AL UALR

E !ifs

MARI'MANUFAC1 RR RRO

by

SAREL FREDERICK CERONIO

Thesis submitted in fulfilment of all the requirements for the degree

DOCTOR COMMERCII

in

BUSINESS MANAGEMENT

in the

FACULTY OF ECONOMIC AND PS ANAGEtifiENT SCIENCES

at the

ND AFRIKAANS UNIVERSITY

j01-1ANNES URG PROMOTER: PROF. N. LESSING APRIL 1996

TABLE OF CONTENTS

Page

SYNOPSIS ii

SINOPSIS iv

LIST OF ACRONYMS vi

LIST OF FIGURES, GRAPHS AND TABLES vii

Chapter 1 ORIENTATION 1-1

Chapter 2 THE EVOLUTION AND DIMENSIONS OF TOTAL QUALITY MANAGEMENT 2-11

Chapter 3 GURUS OF TOTAL QUALITY MANAGEMENT 3-45

Chapter 4 REQUIREMENTS FOR TOTAL QUALITY MANAGEMENT 4-127

Chapter 5 IMPLEMENTING TOTAL QUALITY MANAGEMENT 5-189

Chapter 6 TOTAL QUALITY MANAGEMENT AT EMSA (PTY) LTD 6-265

Chapter 7 TOTAL QUALITY MANAGEMENT FOR THE YEAR 2000 7-305

BIBLIOGRAPHY Bib-351

(i)

YNI PSIS

NAME

CERONIO, SF

DEGREE

D Corn (Business Management)

TITLE

Achieving Total Quality Management in a South African manufacturing environment

UNIVERSITY Rand Afrikaans University

PROMOTER Prof. N Lessing

DATE April 1996

In recent years, the criticality of increased productivity and competitiveness has accelerated in step with global trends towards privatisation, marketisation, and democratisation, coupled with a more highly educated, more vocal and more demanding consumer market. At a time when the technological gap between South Africa, North America, Europe, and the Pacific Rim is shrinking, competitive boundaries are expanding and, as a consequence, consumers have a growing range of products from which to choose. Quality increasingly guides produce selection. Consumer spending patterns have also changed to reflect increased concern for durability, partially as a response to environmental concerns.

Increasing recognition of the inadequacies of traditional quality control functions to address the demand for higher quality products and services has launched a seminal transition to a more comprehensive, integrated approach to quality management. Total Quality Management (TQM) refers to the implementation of a "continuous improvement" process to address inefficiencies at all levels of the organisation.

There is no single theoretical formulation of the TQM approach nor any definitive short list of practices that are associated with it. It is the product of the work of such quality experts as Crosby, Deming, Juran, and Ishikawa. The writings of these Gurus, as well as characteristics typical of most successful TQM processes.

TQM is best viewed as a management philosophy which combines the teaching of Deming and Juran on statistical process control and group problem-solving processes with values concerned with quality and continuous improvement.

TQM is endorsed as a powerful vehicle in the transition from the traditional price focus to quality strategies driven by customer expectations. Improving quality and adopting a customer focused orientation are so fundamental that they must take root in the very essence of the organisation. To achieve ambitious quality goals, the TQM philosophy must permeate all aspects of organisational functioning, underscoring the criticality of human resource excellence to total quality processes.

The TQM approach is frequently endorsed by the impressive results attributable to it. Marked improvements in productivity and efficiency, profits, customer satisfaction, management-employee relations, job satisfaction, morale, and reductions in costs, inventory, defects and inspection requirements are among an array of reported benefits to be derived from TQM initiatives.

The positive relationship between quality and productivity may be largely rooted in the involvement of all employees to execute quality agendas. The benefits of employee involvement from increased productivity, job satisfaction and performance to reduced absenteeism and turnover are well documented.

Great emphasis is placed on including all employees in the TQM culture. Employees are expected to take responsibility for quality in two important respects. They are expected to call attention to quality problems as they do their normal work. Perhaps more important, they are expected to accept the continuous improvement culture and look for ways to do their work better. They are also expected to look for ways in which the overall operation of the organisation can be improved to enhance customer service.

The most important overall focus of employee involvement concerns locating decisions at the lowest level possible in the organisation. This approach consistently advocates a bottom-up approach to management. Jobs or work at the lowest level are thought of as designed best when individuals or teams do a whole and complete part of an organisation's work process. In addition, it is argued that the individuals or teams should be given the power, information, and knowledge they need to work autonomously or independently of management control. The task of management is seen as one of enabling and empowering individuals or teams to function in an autonomous manner. Management is an enabler, culture setter, and supporter rather than a direction of employee action.

This study focuses on the development of the TQM philosophy, and the development of a TQM model to be used as reference in the design of a TQM process in a manufacturing environment. It also endeavours to formulate an implementation process that can be used as guideline for implementing TQM in an organisation.

Research has been based on literature studies, extensive experience in the workplace, and interaction with a wide variety of practitioners in the TQM environment.

The study concludes that South African organisations can address the issues prohibiting real economic growth by continuously improving every product and service produced through the involvement of an empowered workforce, operating in teams, with the objective of achieving optimum customer satisfaction in the long-term.

Pail

CERONIO, SF

G D D Corn (Ondernemingsbestuur) A A

Verwesenliking van Totalegehaltebestuur in 'n Suid MEL Afrikaanse vervaardigings omgewing (uit Engels vertaal)

UNOVERSDTE1T Randse Afrikaanse Universiteit

PROMOTOR Prof. N Lessing

DATUM April 1996

NAA

In die jongste jare het die noodsaaklikheid van verhoogde produktiwiteit en mededingendheid teen dieselfde pas versnel as wereldtendense teenoor privatisering, markgerigtheid, en demokratisering. Hiermee gepaargaande is daar `n meer ontwikkelde, meer hoorbare verbruikersmark met verhoogde vereistes. Op `n tydstip wanneer die tegnologiese gaping tussen Suid-Afrika, Noord-Amerika, Europa, en die Stille Oseaan Randgebied besig is om te vernou, brei die grense van mededinging uit en as gevoig daarvan het verbruikers 'n toenemende verskeidenheid produkte om van te kies. Gehalte rig en beInvloed toenemend die keuse van produkte. Die bestedingspatrone van verbruikers het ook verander om die toenemende kiem op duursaamheid te weerspieel, gedeeltelik as 'n reaksie op omgewingsentimente.

Toenemende bewuswording van die tekortkominge in tradisionele gehaltebeheer-funksies om die vraag na beter gehalte produkte en dienste aan te spreek, het in oorgang na 'n meer omvattende, geIntegreerde benadering tot gehaltebestuur van stapel gestuur. Totalegehaltebestuur (hiema afgekort as TQM) volgens die internasionale gebruik) verwys na 'n proses van deurlopende verbetering om doeltreffendheid op alle vlakke van die organisasie aan te spreek.

Daar is geen enkele teoretiese forrnulering van die TQM-benadering of enige bondige lys van praktyke wat daarmee geassosieer kan word nie. TQM is die produk van die werk van kundiges van gehalte soos Crosby, Deming, Juran, en Ishikawa. Die werke van hierdie kenners, asook die toepassing van hul denkrigtings in baie organisasies wOreldwyd, maak dit moontlik om eienskappe kenmerkend van die meer suksesvolle TQM-prosesse te identifiseer.

TQM kan die beste beskryf word as 'n bestuursfilosofie wat die leerstellings van Deming en. Juran oor statistiese prosesbeheer en groep probleemoplossings-prosesse integreer met die waardes van gehalte en deurlopende verbetering.

TQM is beproef as 'n kragtige voertuig in die oorgang vanaf die tradisionele fokus op prys-na gehaltestrategiee aangegryp deur verbruikersverwagtinge. Verhoogde gehalte en die vestiging van 'n ingesteidheid wat op die verbruiker fokus is so fundamenteel dat dit in die wese van die organisasie inslag moet vind. Ten einde gehaltedoelwitte te bereik, moet die TQM-filosofie alle aspekte van organisatoriese fUnksionering deurdring, met nadruk op die belangrikheid van menslike hulpbronne by die totalegehaltebestuurproses.

(iv)

Die TQM-benadering word dikwels beklemtoon deur die indrukwekkende resultate wat daaraan toegeskryf word. Merkbare verbeterings, enersyds ten opsigte van produktiwiteit en doeltreffendheid, winste, verbruikerstevredenheid, werkgewer-werknemer verhoudinge, werksbevrediging en moraal, en andersyds ten opsigte van vermindering in koste, voorraad, foute en inspeksievereistes is van die voordele wat uit die TQM-proses vooruitspruit.

Die positiewe verband tussen gehalte en produktiwiteit word grootliks gebaseer op die betrokkenheid van alle werknemers by die TQM-proses. Voordele wat werknemerbetrokkenheid teweegbring strek vanaf verhoogde produktiwiteit, werksbevrediging en werksprestasie tot die vermindering in afwesigheid en personeelomset, en is at volledig gedokumenteer.

Groot nadruk word daarop geplaas om alle werknemers by die TQM-kultuur in te sluit. Daar word van werknemers verwag om verantwoordelikheid vir gehalte op twee belangrike gebiede te aanvaar. Eerstens moet daar gelet word op probleme met gehalte tydens die normale verrigting van hul pligte. Moontlik van groter belang is dat daar van alle werknemers verwag word om deel te wees van die kultuur van deurlopende verbetering. Tweedens word daar van werknemers verwag om voortdurend op hoogte van nuwe neigings te wees ten einde die algehele funksionering van die organisasie te verbeter om sodoende klientebevrediging te verhoog.

Die belangrikste fokus van werknemerbetrokkenheid is om werknemers op die laagste hierargiese vlak te Iaat deelneem aan die besluitnemingsproses. Hierdie benadering vereis 'n onder-na-bo benadering tot die bestuursproses. Werk wat op die laagste viak verrig word, word slegs as sinvol beskou indien die individue of spanne betrokke is by 'n volledige deel van die werksproses. Die vereiste is dat die individue of spanne die bevoegdheid, kennis en inligting wat benodig word moet ontvang om die werk so selfstandig en onafhanklik moontlik van die beheer van topbestuur te verrig. Die taak van topbestuur is om werknemers in staat te stet en toe te rus om op 'n selfstandige wyse die werk te verrig. Topbestuur behoort 'n geleentheidskepper en ondersteuner te wees eerder as om die optrede van werkers in 'n spesifieke rigting te probeer dwing.

Hierdie studie sentreer in die ontwikkeling van die TQM-filosofie, asook op die fomiulering van 'n TQM-model wat gebruik kan word as raamwerk in die ontwerp van `n TQM-proses in 'n vervaardigingsomgewing. Dit streef ook na die formulering van `n implementeringsproses wat as riglyn gebruik kan word ten einde TQM in 'n organisasie te vestig.

Navorsing is gegrond op Iiteratuurstudies, uitgebreide ondervinding van die werksomgewing, asook wisselwerking met 'n wye verskeidenheid kenners op die gebied van TQM.

Met die studie is bevind dat Suid Afrikaanse organisasies knelpunte, wat ekonomiese groei negatief kan beInvloed, kan aanspreek deur die voortdurende verbetering van elke produk en diens deur die betrokkenheid van 'n behoorlik toegeruste werksmag, wat in 'n spanverband funksioneer, met die einddoel om optimale kliente-tevredenheid in die langtermyn te bewerkstellig.

(v)

F ONG ENVO ENT

LOST OF ACRONYMS

BS British Standards

CEO Chief Executive Officer

CQA Continuous Quality Advancement

CTE Coefficient of Thermal Expansion

HS&EP Health, Safety and Environmental Protection

ISO International Standards Organisation

JIT Just-in-Time

JUSE Japanese Union of Scientists and Engineers

LWC Lost Workday Case

MLL Minimum Level of Living

NACA National Association of Clean Air

NOSA National Occupational Safety Association

01P Operational Improvement Programme

PCA Philip Crosby Associates

PMR Professional Marketing Review

QFD Quality Function Development

R & D Research and Development

RDP Reconstruction and Development Programme

SABS South African Bureau of Standards

SDE Statistical Design of Experiments

SES Statistical Experimental Strategy

SPC Statistical Process Control

SQC Statistical Quality Control

TQ Total Quality

TQM Total Quality Management

UHP Ultra High Powered

(vi)

LIST OF FIGURES, G PHS, AND TABLES

CH PTER 2

Figure 2.1 The evolution of Total Quality Management 2-19

Figure 2.2 Total Quality Management: Its components 2-23

Figure 2.3 Leadership styles 2-40

CHAPTER 3

Figure 3.1 The quality improvement process 3-55

Table 3.2 The four absolutes of quality management 3-56

Table 3.3 The quality improvement process 3-60

Table 3.4 Salient characteristics of Crosby's approach to TQM 3-71, 72

Table 3.5 Deming's fourteen points 3-76

Table 3.6 Salient characteristics of Deming's approach to TQM 3-101

Table 3.7 Salient characteristics of Ishikawa's approach to TQM 3-111, 112

Table 3.8 Interrelation among Juran's quality parameters 3-116

Figure 3.9 Juran's spiral of quality 3-117

Table 3.10 Salient characteristics of Juran's approach to TQM 3-124

CHAPTER 4

Figure 4.1 Total Quality Management model 4-132

Figure 4.2 Quality management 4-136

Figure 4.3 An operational definition of quality for products 4-149

Figure 4.4 Customer satisfaction framework 4-150

Figure 4.5 Levels of customers' expectations 4-152

Figure 4.6 Work process model 4-159

Figure 4.7 Six step process improvement model 4-165

Figure 4.8 Deming's PDCA wheel 4-167

Figure 4.9 Continuous improvement: The only way out

4-173

Table 4.10 Benefits of quality circles to management

4-180

Table 4.11 Benefits of quality circles to members

4-181

Figure 4.12 Breakthrough improvement in performance

4-183

CH A PTER 5

Figure 5.1 Eight critical factors for TQM implementation

5-195

Table 5.2 Leadership styles and team maturity

5-198

CH PIER 6

Table 6.1

Table 6.2

Graph 6.3

Table 6.4

Table 6.5

Table 6.6

Table 6.7

Table 6.8

Table 6.9

EMSA RDP policy

6-276

EMSA health, safety and environmental protection policy

6-278

Lost time injury frequency

6-278

Agenda for monthly HS&EP meetings

6-279

EMSA quality circle policy

6-285, 286

EMSA vision

6-290

EMSA vision practices

6-291

EMSA values and practices

6-292

EMSA Total quality management policy

6-293

6-294 Figure 6.10 EMSA team structure

CHAPTER 7

Figure 7.1 STAR system

7-332

Figure 7.2 Team development continuum

7-337

Figure 7.3 Progression of empowerment and responsibilities

7-337

rry

RON ENT

CHAPTER 1

1.1 CKGROUND TO THE STUDY 1-2

1.2 ST TEMENT OF PROBLEM 1 -4

1.3 RESEARCH OBJECTIVE 1 -5

1.4 RESEARCH METHODOLOGY 1 -7

1.5 CONSTRAINTS TO THE STUDY 1-8

1.6 STRUCTURE OF THE STUDY 1 -9

1 - 1

NEM

ON U

CHAPTER 1

0 RISC

1.1 B CKGROUND TO THE STUDY

Total Quality Management is a key strategy of many of the world's leading

companies. These companies have selected it as a vehicle of change:

changing the company culture, operating style and attitudes during the

period of transition from where a company is now towards its vision of

where it wants to be. It enables a company to improve its relative market

share by a radical but co-ordinated approach to satisfying customer

expectations.

Total Quality Management is seen as an enabling philosophy, ie. creating

the right environment and correcting attitudes to enable a good company

to become a world class company. It is not a programme but a process of

continuous improvement (Neeson 1989: 34-35) which rolls quality,

productivity and cost reduction together to achieve quality products and

services at the lowest cost.

The whole Total Quality Management action comes down to an enormous

effort for total mobilisation in renewing the company's philosophy, eliminate

all imperfections and keep striving for improvement (Beheydt 1989: 354).

The process comprises a comprehensive set of management philosophies,

management tools and improvement methods, including the following:

customer orientation, the empowerment of employees, participative

management, data-based decisions, continuous improvement, a "process"

orientation, and a set of quantitative tools for process improvement. It is a

1 - 2

most important tool for achieving in-depth competitiveness and company

wide cost control and it works because it benefits the employers, the

employees and the external customers of the organisation.

To achieve Total Quality Management, the process must meet five goals

(Klein 1991: 83-84):

Customer focus - the voice of the customer is clearly heard

throughout the organisation - everyone knows what is required to

satisfy internal and external customer needs.

Focused resources - all significant processes and systems are in

control and all resources are targeted to satisfy all customer needs.

Rewards system - real rewards and incentives are structured so that

achieving process control and customer satisfaction result in benefits

for all the employees of the organisation.

Continuous improvement - a system is in place to continuously

improve all processes in the direction of further meeting customers'

present and future needs.

CEO commitment - the CEO is visibly committed to the Total Quality

Management process and his/her leadership creates an environment

conducive to continuous improvement.

Masaaki Imai (1986) quotes Michael Halay, a professor at Vanderbilt

University's Owen Graduate School of Management, that Total Quality

Management is applied in Japan as the key corporate strategy:

'To be implemented, the strategy must become concrete to everyone in the organisation. Therefore, long term strategies must be translated into short term plans and objectives which are clear and actionable.

"The principles of Total Quality Management provide the necessary

1 - 3

structural framework to help both the employees and management communicate and decide how to improve the quality and productivity of their work.

'Thus, Total Quality Management as a corporate strategy inevitably involves such areas as improving communication and labour relations, as well as revitalizing organisational structures.

"But above all, most importantly, Total Quality Management as a corporate strategy must deal with people. Its net results are more productive workers, more efficient managers, improved communication, and a more effective organization. Better and more competitive products are the result of better people and better management, and not vice versa" (Imai 1986: 74-76).

South Africa's output per capita is judged to be about one sixth of

Switzerland's, one fifth of the USA's, a quarter of Japan's and a third of the

UK's. Productivity must be increased not just to give us a bigger "economic

cake", but also to make South Africa a world class competitor.

Productivity is not the only area that demands attention. It goes hand-in-

hand with quality - an equally critical weapon in the global business war,

and one that will become increasingly important as companies make the

constant improvement of everything they do a way of life.

One way of achieving the required growth in productivity in all its

consequences is by adopting the Total Quality Management principles as

a management policy. Regardless of what the process is called, eg.

Kaizen, Sasol Quality Improvement Process, Integrated Quality or Strategic

Quality Management, it must have a focused goal to constantly improve the

quality of products or services, to increase productivity and to improve the

quality and application of human and material resources. In short, to take

the path towards excellence and perfection for the benefit of the company,

its employees and owners and its clients or customers.

1.2 STATEMENT OF PROBLEM

Many South African companies have wasted untold amounts of money in

the past years on programmes with themes of excellence, customer care,

productivity or quality. Typically these projects are launched with key

1 - 4

people being sent off for training or indoctrination; badges, buttons and

posters appear all over the work-place; the CEO makes a video to explain

the company vision; the "shared values" are printed on laminated pocket

cards, but all too soon, managers' attention drifts, people get busy with "real

work" - and the project is dead.

The reason for failure is twofold:

. the attempt to change the old, inherited ways is treated by

management as a programme, a "theme-for-the-month" and not as a

process of continuous, never ending improvement aimed at new levels

of performance;

° the lack of a set of clear, generic guidelines for implementation of the

improvement process.

Participative management is one of the cornerstones of the Total Quality

Management philosophy. The active involvement and participation of all

employees in problem solving, cost reduction efforts and operational

efficiency improvements are considered essential elements for the

achievement of continuous improvement.

The Total Quality Management process may serve as an example to

organisations endeavouring to improve their performance in their quest

towards delighting their customers. A detailed analysis of this process is

thus called for in order to provide the necessary guidelines for

organisations to gain a competitive edge over their competitors in the global

market during this historic decade of the 1990's.

1.3 RESE RCH OBJECTIVE

The overall objective of this study is to research the implementation and

advantages of the Total Quality Management process to contribute to

1 - 5

knowledge on Total Quality Management in the South African

manufacturing environment.

Secondary objectives are:

Objective 1: To research the evolution and dimensions of the Total

Quality Management Philosophy.

Objective 2: To do research on the philosophies of the Gurus of Total

Quality Management

Objective 3: To do research on the requirements for the successful

implementation of a Total Quality Management process.

Objective 4: To investigate the Total Quality Management implementation

process.

Objective 5: To research the Total Quality Management process practised

at EMSA (Pty) Ltd.

Objective 6: To research the requirements of Total Quality Management

in manufacturing organisations in South Africa, approaching

the year 2000.

This study provides a guideline to organisations contemplating the

implementation of a Total Quality Management process. It may also

motivate further extended research on the subject of continuous

improvement towards organisational excellence. Other researchers will be

able to make use of this study due to the exploratory and reconnoitre nature

of the study. It will in particular form a valuable basis for further empirical

studies, concerning the concepts of Total Quality Management within the

strategic management process. In addition, the findings, conclusions and

recommendations within the study may serve as a guide to practitioners, for

1 - 6

achieving congruency between the desired excellence and strategy of their

organisations.

1.4 RESEARCH METHODOLOGY

Courses and seminars, local and international, which were attended during

a period of 10 years have added theoretical knowledge to practical on-the-

job experience in the Total Quality Management area.

Contact was also made with colleagues in other companies and through the

exchange of ideas, knowledge and experience, an in-depth insight in the

application of the theory at different organisations was gained.

Numerous books, articles and programmes were studied in order to develop

a data base of available relevant information. This literature survey was

done using the following information systems:

The library and library data base of the RAU;

The library and library data base of UNISA;

The computer based information system at the CSIR, called "Infotech";

The EMSA Quality Management Systems library.

The literature study forms a major component of this study and plays an

important role in the achievement of the objectives (objectives 1, 2, 3,4, 5

& 6) of the study. The literature on Total Quality Management is not

confined to a single field or discipline, but covers a wide spectrum of

research conducted within the various fields and related disciplines.

The literature study provides an orientation to the research already

conducted within the field of study, as well as a perspective on the most

1 - 7

current research results and findings applicable to Total Quality

Management, within the context of strategic management.

A cross pollination of ideas and perceptions takes place during the

literature study, in that the ideas, views and perceptions held by various

researchers and writers are compared, evaluated and applied, with regard

to the concepts concerned.

A qualitative study of the Total Quality Management process at EMSA was

conducted to gain an empirical basis for the practical application of the

relevant theories and philosophies.

A comparison between the information obtained from the literature study

and the Total Quality Management process at EMSA was undertaken. The

objectives previously formulated for this study provided an unifying

framework for the syste-matic evaluation and analysis of the information

collected. The information tends to be descriptive and not statistical in

nature and therefore an interpretive-deductive approach is used for

analysing the relevant information obtained.

1.5 CONSTRANTS TO THE STUDY

Perspicacious observers of the growth of literature on Total Quality

Management in South African context will have noticed that the majority of

relevant literature concentrates on either quality or management. The

literature on the concepts as individual entities is extensive in extent, but

the literature integrating the two concepts into a synergistic entity is limited.

This acted as a constraint on the literature research and extensive use of

international publications was required to achieve the objectives defined

previously.

Although the extent of the study is limited to the manufacturing environment

and excludes all services as well as all non-profit making organisations, its

1 - 8

generic concept may be applied by any type of organisation.

Proof of advantages experienced by practising Total Quality Management

principles is limited to one organisation, EMSA (Pty) Ltd, due to the

availability of confidential information.

1.6 STRUCTURE OF THE STUDY

The structure of the study is related to the objectives to be achieved and the

method of study. The underlying structure of the study follows a movement

from gaining a clear understanding of the concepts and terminology, to the

requirements for the successful implementation of a Total Quality

Management process, the implementation process and the advantages of

a Total Quality Management process as illustrated by the achievements of

EMSA.

The structure of the study follows the following format:

Chapter 2: The descriptions and termincAogy of key concepts

and terms used in this study are analysed and defined.

This provides a common frame of reference for the rest

of the study.

Chapter 3: A discussion of the views of four accredited Total

Quality Management "Gurus": Crosby, Deming,

Ishikawa and Juran.

Chapter 4:

The requirements for the successika iuvvp p ementation

of a Total Quality Management process are described.

Chapter 5: A framework for the Total Quality Management imp5e-

mentation process is described.

1 - 9

Chapter 6: This chapter deals with the Total Quality Management

process at EMSA and illustrates the advantages of

practicing this philosophy.

. Chapter 7: The study is concluded with specific recommendations

to its practical implication for the managements of

organisations striving towards customer satisfaction

and organisational success in the South African

environment, approaching the year 2000.

1-10

CH PIER 2

DOM fENSION.

SYNOPSIS

LOST OF FIGURES, GRAPHS ND TABLES

2.1 INTRODUCTION

2.2 DEFINITION OF QUALITY

2.3 TOTAL QUALITY MANAGEMENT EVOLUTION

2.3.1 Operator Quality Control

2-12

2-13

2-14

2-14

2-17

2-17

2.3.2 Foreman Quality Control 2-17

2.3.3 Inspection Quality Control

2-18

2.3.4 Statistical Quality Control

2-18

2.3.5 Total Quality Control

2-18

2.3.6 Total Quality Management

2-19

2.4 DIMENSIONS OF TOTAL QUALITY MANAGEMENT 2-20

2.4.1 The tools for continuous improvement

2-24

2.4.2 The philosophy of customer focus

2-29

2.4.3 The leadership styles for TQM

2-36

2.4.3.1 One-dimensional leadership model 2-37

2.4.3.2 Two-dimensional leadership model 2-39

2.4.3.3 Leadership styles 2-40

2.4 : 4 Conclusion 2-44

2.5 SUMMARY 2-44

2-11

TUNING

COMMENT

CHAPTER 2

LENT

SYNOPSOS

Defining Total Quality Management (TQM) is something like defining love. Most people fall back on gut feelings, reasoning that they know when it is there and when it is not. As in matters of the heart, there is no quality definition that satisfies everyone. Misconceptions about TQM abound throughout the organisation. What is really needed is a definition of TQM that can be used as a common form of communication throughout the organisation.

A major misconception about TQM is that it is confined to the product, and therefore to the manufacturing process. Nothing could be further from the truth. The customer's perception of TQM in an organisation includes more than the satisfaction obtained from the primary product or service. Their view of the organisation that provides the basic need will include how their original inquiry was handled on the telephone, the method and timing of delivery, up to the timeliness and accuracy of the invoice. Clearly, to delight the customer, TQM must be extended to all administrative areas.

Management has the tendency to believe that increased productivity, efficiency or quality, will be achieved mainly through investment in technology. The reality is quite the contrary. Quality is achieved through people. People work in processes and people manage processes. To effectively manage TQM, the organisation has to work through the chain of people who work in or on processes. "People", therefore, is not just a polite term for the workers in the organisation. The people chain, and therefore TQM, both start and eventually finish with the CEO. He determines the direction, personality, and leadership style of the organisation. A culture, conducive for TQM implementation, cannot be achieved without the commitment and visible leadership of the CEO.

It is important to realise that variation is a natural part of life. It is often quoted that between 85 to 95 percent of all the causes of variation are random variations built into processes, and only a small minority are attributable to unusual occurrences. Continuous improvement means working at reducing variation levels where customer delight can be achieved.

To summarise the above, and to that extent the contents of this chapter, an evolved definition for TQM is proposed:

"Total Quality Management is a management philosophy that seeks continuous improvement in all processes, products and services of an organisation. It requires a solid customer focus, a preventative approach to quality, a profound understanding of variation, decisions based on measurement, and the creative involvement of employees at all levels".

2-12

ENT

ENT

CH PIER 2

ENSIO

EH ENT

FIGURES, G PHS AND TABLES

Figure 2.1 The evolution of Total Quality Management 2-19

Figure 2.2 Total Quality Management: Its components 2-23

Figure 2.3 Leadership styles 2-40

2-13

N A

CHAPTER 2

TH PIM ENSIGN

2.1 INTRODUCTION

Good business, which in turn means general prosperity and employment, is not

something which comes about by chance. It is a result of the skill with which

business in general is managed - and business in general is the sum of the quality

of the business units.

Total Quality Management (TOM) challenges all forms of performance and

industrial relationships. It is an unique concept in as much as it is not a technique

or a tool, it is not simply a mechanistic approach, nor is it a behavioural concept

or a purely philosophical approach to life. It is all of these combined. Total

Quality Management represents a totally new approach to industrial

understanding of quality and to the work ethic. Total Quality Management

represents an approach that is dramatically opposed to the turgid, hierarchical,

blame-led, conflict ridden industrial cultures of the past and present. It represents

both a social revolution in the workplace and a rigorously effective approach to

professionalism and success.

2.2 DEFINITION OF MI LITY

To really understand the philosophy behind the concept of Total Quality

Management, it is necessary to define the term 'Quality'.

To many people, quality means goodness, or luxury, or glossiness, or weight, or

price, or conformance to specifications, or fitness for use. In addition, quality is

often used to signify the relative worth of things in phrases such as "good quality"

2-14

or "bad quality" (Crosby 1979:14-18).

Quality is a subjective term which means different things to different people in

different situations. The Webster's Dictionary and the Oxford Dictionary both

define quality as "degree of excellence". In addition to this definition,

industrialists, academics and consultants have created a myriad of alternatives.

According to Feigenbaum (1983:7), quality is based upon the customer's actual

experience with the product or service, measured against his or her requirements -

stated or unstated, conscious or merely sensed, technically operational or entirely

subjective. He continues to define product and service quality as being the total

composite product and service characteristics of marketing, engineering,

manufacturing and maintenance through which the product and service in use will

meet the expectations of the customer (Feigenbaum 1983:7).

Crosby (1979:14), in his definition on quality, expands on the above definition by

defining quality as conformance to requirements. These requirements are

determined through the interaction of a number of parties. The final user of the

product or service has certain needs and expectations which must be satisfied.

The design and production departments within the organisation are responsible

for designing and producing a product or service which meets the agreed to

requirements of the final user. To achieve this, all set production and design

requirements will need to be constantly met, and even exceeded, to ensure

complete customer satisfaction.

In a similar manner to Crosby, Ishikawa (1985:45-46) proposes that customer

requirements are the point of departure when defining quality. Customer

requirements, once accurately recorded, are translated into important final product

control characteristics that are to be deployed through the product design,

development, processing and production control system. He refers to these two

processes as "quality of design" and "quality of conformance", while Deming

(1982:264) refers to them as "quality of design" and "quality of production"

respectively. Any discrepancy between quality of design and quality of

conformance results in defects and/or rework, which results in cost increases and

2-15

waste generation. Quality thus incorporates reliability, serviceability, maintain-

ability and overall economy at which a product or service, which satisfies the

needs of the final user, is produced.

Townsend (1986:4-5) seems to agree substantially with Ishikawa, Feigenbaum,

Crosby and Deming, in that he believes that any definition of quality must cover

two distinct, overlapping, interrelated types of quality - "quality in fact" and "quality

in perception". When a product or service meets the expectations of the customer

it then achieves "quality in perception". According to Townsend (1986:6), even

if a product is manufactured to exact internal specifications ("quality in fact") it is

unlikely to be a success in the market place if it does not meet the quality

expectations of the customer.

Juran (1988 b:2.4) defines quality as "fitness for use". Fitness for use is the extent

to which a product or service successfully serves the needs of the user, during

usage. Fitness for use is determined by those features of the product which the

user can recognise as beneficial to him, and is judged "as seen by the user" and

not by the manufacturer. He notes, however, that this definition needs to be

qualified, as there are many uses and users. For this reason, a product must

possess multiple elements of "fitness for use". Juran hence classifies quality

characteristics into categories known as parameters of "fitness for use". The

major parameters are according to Juran (1988 b:2.9-2.11):

Quality of Design (specifications);

Quality of Conformance (conformance to design specifications);

The Abilities (availability, reliability, maintainability);

Field Service (after sales service).

Due to the central role occupied by the satisfaction of customer needs in defining

quality, Feigenbaum (1983:7-8) and Ishikawa (1985:55) hold that quality is not a

2-16

static term. They believe that it evolves and changes as the customer's definition

of quality evolves and changes over time. This means that quality standards need

to be continually reviewed, revised and improved.

The above definitions of quality bring to the fore a number of important elements

which define quality. First, customer perceptions and expectations play a central

role in determining what constitutes a quality product or service. Second, the

quality of a product or service is influenced by the extent to which the production

process is capable of meeting the requirements defined by customer perceptions

and formalised in the design process. Third, as a consequence of the fact that

customer perceptions and expectations are central to defining quality

requirements, and that these are continually undergoing modification, quality

standards need to be continually reviewed, revised and improved to ensure

customer satisfaction.

2.3 TOT L QU A-1\ LOTS Fifi NAGENIENT EVOLUTOON

According to Feigenbaum (1983:15-17) major changes in the approach to quality

work have taken place at approximately twenty year intervals.

2.3.1 Operator Quallty Control

The first step in the development of the quality field was inherent, in most

industrialised countries, in the manufacturing field up to the end of the nineteenth

century. During this period, which Feigenbaum (1983:15) calls "operator quality

control", one, or a very small number of employees was responsible for the

production of an entire product and was hence solely responsible for the quality

of the product.

2.3.2 Foreman Quality Control

The early 1900's saw the advent of the modern factory concept, whereby a

number of employees all performing similar tasks were grouped so that they could

2-17

be supervised by a foreman, who then assumed .responsibility for the quality of

their work. This Feigenbaum (1983:15) calls "foreman quality control".

2.3.3 Inspection Quality Control

During World War I, the manufacturing process became more complex as a result

of increased technology, complexity and output volumes of the machinery built.

This resulted in many more subordinates reporting to each production foreman.

Due to the production foreman's inability to control the product quality of all the

employees reporting to him, full-time inspectors made an entrance into the

"inspection quality control" period (Feigenbaum 1983:15).

2.3.4 Statistical Quality Control

Inspection quality control peaked during the 1900's and 1930's in the large

manufacturing organisations. This process, however, was unable to cope with the

tremendous mass requirements of World War II, due to the time consuming nature

of an extensive and detailed inspection process. This fourth phase, which

Feigenbaum (1983:16) calls "statistical quality control", was in effect an extension

of the inspection phase, and amounted to making the inspection process in the

large organisations more efficient. Inspection was now carried out with the aid of

statistical sampling methods. The most significant contribution of this method of

quality control was that it provided sample inspection, rather than 100 percent

inspection as done previously. The concept of quality control, however, remained

restricted to production areas.

2.3.5 Total uality Control

Shortcomings of the above quality control process marked the advent of the fifth

step, in the late 1970's, which Feigenbaum (1983:16) calls "total quality control".

This step involved the development of specific decision-making and operating

frameworks which were effective enough to take suitable action on the quality

control findings. This total quality framework made it possible to review decisions

2-18

regularly rather than occasionally and to take control action at the manufacturing

or supplier source and to stop production when necessary. Further, this

framework provided the structure into which the early quality control techniques

could later be joined by the many additional techniques of quality control.

2.3.6 Total LoaMy Management

Still, under the above process, quality standards were not as high as required, and

the cost of quality was unacceptably high. The reason postulated for this was the

failure of quality control to be integrated into every aspect of the organisation.

Quality needed to be something which every employee was committed to and

responsible for, as opposed to something which had to be controlled and ensured

through inspection. The 1980's saw the advent of Total Quality Management, with

its emphasis on defect prevention, and the involvement of the entire organisation

in the quality improvement process (Ishikawa 1985:20). Figure 2.1 illustrates the

evolution of Total Quality Management.

Figure 2.1 The evolution of Total Quality Management

•

rro-rft.t_ QUALITY NAAPJACWENIENIT

rr40,11-...1- QUALITY IC c=. pa,- stc:. e_

,

Isrr"-T- ust-r tc /mi_i

IirasF•mc-ricaPal

IF OR E %RAM I

pOPEF4.0c1,01121

1900 1918 1937 1960 1980

Source: Feigenbaum 1983:16

2-19

2.4 DIMENSIONS OF TOTAL QUALITY MANAGEMENT

Historically, quality control consists of the following (Feigenbaum 1983:44;

Ishikawa 1985:77-78; Juran 1988 b:4.17):

inspecting the final product against a set of agreed requirements or

standards. Quality is seen as a function of the extent of inspection,

necessitating a high ratio of inspectors to workers. Due to its size and

importance, the inspection department is made an independent

department and its authority is enhanced;

the existence of an independent inspection department effectively

means that the responsibility for quality is centralised, and removed from

its source;

quality is seen as a function of worker aptitude, and not the system;

the attitude that mechanisation, combined with a high degree of job

specialisation will result in high productivity, low costs, satisfied workers

and high quality.

A number of inadequacies of this approach have been identified (Crosby 1984:7;

Ishikawa 1985:77-78; Juran 1988 a:24). The more prominent of them include:

the process of information feedback, so central to total quality

improvement, from the central quality control department to the point of

production, is a time consuming and inefficient one;

because quality is treated as a post production inspection function, it is

only addressed on completion of the product or service;

quality is obtained at high cost and loss of productivity;

2-20

a "fire fighting" approach to problem solving is adopted, which results in

short term solutions at the expense of long term improvement;

departments became autonomous units solely concerned with their own

welfare and not that of the organisation as a whole;

department managers are judged on the extent to which they meet

departmental goals, and these goals (with some exceptions) continue to

perpetuate deficiencies of the past. No provision is made to determine

if the existing processes are the most effective and efficient;

the importance of the human element to the quality improvement

process is underestimated.

Total Quality Management (TQM) goes far beyond the philosophy and practices

of quality control and quality assurance. It is a strategy which is concerned with

changing the fundamental beliefs, values and culture of the organisation,

harnessing the enthusiasm of participation by everyone, whether manufacturing

or service oriented, toward an overall ideal of "right first time" (Atkinson & Naden

1989:6). All actions must be focused in an enormous effort of total mobilisation

in renewing the company's philosophy, avoiding all imperfections and striving for

continuous improvement.

There appears to be no universally accepted definition for the concept TQM. The

various definitions attributed to the concept vary in content and context. Each

definition adds to the overall conceptual understanding of the concept, as the

various definitions tend to introduce new dimensions and components to the

philosophy of TQM.

In recent years, there has been an increasing interest in developing improved

"quality" in a broad range of activities covering not only a wide spectrum of

industries in the manufacturing sector but increasingly also in the broad spectrum

of both the public and private service sectors. This interest arises from the

2-21

realisation that TQM is a generic methodology with universal application that can

be exploited in fields as diverse as the development of an engineering product, the

sale and delivery of pizza, and the delivery of financial services by a bank.

One of the important elements of TQM is that of continuous improvements

throughout all stages of any organisation's activities that leads to the final

delivered "product", i.e. continuous improvement is sought in the planning,

development and application of all activities. Irrespective of the nature of the

organisation, whether it be built on innovation, efficiency or effectiveness, and no

matter what type of "process" is managed (static, risk or change), TQM can offer

major benefits.

During the past 50 years, TQM has been developed and practised in Japan very

successfully. However, it is nevertheless still unknown as such in Japan. This

name has been given to Japanese management practice by Western scholars

who, for the last 15 years, have started to pay close attention to the Japanese

system (Fakuda 1986:16; Keys & Miller 1984:342; Koontz 1980:175).

In the late seventies, when U.S. companies realised they faced effective and

strong competition from Japan, top executives from the USA (mainly automotive

and electronics industries) visited Japan to see for themselves the so-called

Japanese industrial "miracle". They had assumed that very sophisticated and

advanced machinery was the reason for such successful manufacturing

performance but, instead, they found relatively very old U.S.-made equipment

being used. From observations and discussions with their counterparts they also

realised that Japanese managers emphasised product quality through

participative management dedicated to continuous improvement. Following

numerous studies, several attempts were made to transfer and implement these

Japanese management practices in North America but difficulties were

encountered. It was later realised that every case should be considered to be

unique and, therefore, special care should be taken for the implementation of

those practices depending on the nature and type of processes involved and

products produces (Kono 1982:91; Sethi 1984:64).

2-22

Customer Satisfaction

Customer defines quality

-Staff- is the most valuable asset

Team work

ES SDE OFD SQC Drive fear out

SPC JIT CQA Prevent problems

Benchmarking Eliminate waste

Pareto theory Reduce unreliability

Cause-effect diagram

Resolve conflicts

Distributions, etc.

In reality, these successful Japanese management practices were all "borrowed"

from earlier Western initiatives and have been further developed in Japan during

the post-war period. Viewed from a North American perspective, this Japanese

management system that is now known as TQM appears to be a complex system

of several innovative and interfunctioning disciplines, including management,

psychology, statistics and engineering and scientific expertise. However, the field

can be more conveniently split into three groups that are classified as: the new

tools, a new philosophy and a new style of management, as outlined in figure 2.2.

Figure 2.2 Total Quality Management: its components

Source: Pouskouleli & Wheat 1992: 309

The successful implementation of TQM requires that all three groups be

interlinked and interact extensively. Implementation of one or two of them may

result in some improvement but the final product or process will not be optimised.

It will remain on a weak foundation.

The "new" tools are in reality old tools being used in a new way (Wheeler &

Chambers 1994:7). Some of them have been developed and studied back at the

turn of the century by the Europeans, Pareto and Fisher. Unfortunately, initial

efforts to introduce and implement them in Western industries were not

successful. However, the same tools were later readily accepted and

subsequently modified by the Japanese to be exploited more in production than

in research (Taguchi 1987:76-79).

2-23

The new philosophy that arose in Japan stems from a combination of several

factors including economic, political and cultural as the most predominant. The

Japanese focus on quality resulted from the need for customer satisfaction in all

activities and the need to beat foreign competition. More importantly, these same

factors encouraged the manufacturer to seek the input of their customers in

directly defining "quality". In return, this exercise confirmed to management that

the source of "quality" arises not only from the mechanical process but also

depends heavily on "the staff. Even with old equipment, quality products can be

produced with committed, quality-conscious staff.

A new management style is also required to encourage the extensive interaction

and exploitation of the new tools and the new philosophy that must interact and

be dedicated to customer satisfaction through the continuous improvement of

quality. This "new style" was also introduced to the Japanese by Western

management teachers after the war (Cole 1980 :22).

Some of the cultural aspects of Japanese life were incorporated into the

management system to produce what TOM adherents are now calling participative

management (Pascale & Athos 1981:16; Ishikawa 1985:126).

It can be appreciated that TOM is more than a "quality" revolution and that is has

to be looked upon as such so that careful and committed implementation can

eventually improve both the process (a service or a manufacturing operation) as

well as the product. These three components of TOM are examined separately

below.

2.4.1 The tools for continuous improvement

As stated earlier, the "new tools" are old. Their roots can be traced back to the

beginning of civilisation when the ancient Egyptians, Babylonians and Romans

introduced "quality measurements" such as taxes and polls. As a result of these

developments, the science of statistics was born.

2-24

From the late 1800's to the early 1900's, European and American statisticians and

mathematicians introduced a number of new concepts and ideas, some of which

are the basis for the Statistical Design of Experiments (SDE) which constitutes the

backbone of the "new tools" of present-day TQM practice (Box & Draper 1986:71;

Box, Hunter & Hunder 1978:27; Ishikawa 1985:134; McLean & Anderson

1984:121;).

Irrespective of the activity in either the service or the manufacturing industry, every

process (activity) is influenced and affected by a number of factors. From

experience, it is assumed that some factors are more important than others - this

has been shown at the turn of the century by an Italian economist, Vilfredo Pareto

(1848-1923), who observed that 90 percent of wealth is in the hands of 10 percent

of the population (Schonberger 1985:282). Using SDE it is possible to screen out

of many potential influences the few vitally important factors which affect the

quality of the product (be it a typed letter, a filing system, decision making,

manufactured goods or R & D).

The most important task for any manager is to use available resources in the most

effective and efficient way. This requires that Statistical Experimental Strategy

(SES) be interlinked with SDE which requires answers to a few extremely

important questions before any, project starts, e.g. how many trials are needed,

under what conditions, how much will it cost, what equipment is needed, what

human resources are required, how long will it take, when will it start, etc. In other

circumstances, certain external constraints may preclude the use of all the needed

resources In those cases, the combination of SDE and SES will indicate the best

way to perform the task under such constraints. While many readers would argue

that answering such questions is a normal part of the strategic planning of any

project, it is highly unlikely that the resources will be used to maximum efficiency

without SDE and SES: far too many projects are still conducted using the old

inefficient (and potentially misleading) one-fact-at-a-time approach.

An equally important requirement is to also select the quality characteristics which

will satisfy customers' requests for and perceptions of "quality". This requires that

2-25

a quality characteristic measurement be identified which will quantify this "quality".

This exercise not only answers the above questions in a quantitative manner but

also indicates with confidence exactly what will be learned after the analysis of the

data obtained from the experimental work. Just as importantly, it indicates what

can not be learned from a particular experimental design before the work is

conducted, i.e. a new design may be required, or more work, or different

resources.

Imagine for a moment that it is necessary to screen eight factors that according

to experience are thought to influence the quality of a manufactured widget. In

order to find the effects of all possible combinations of these factors, 256

experiments will be required. By exploiting experience, SDE and SES it will be

possible to come to an equivalent conclusion by doing only 16 well-selected

experiments. The increased efficiency and savings in time and resources are

clearly considerable (Box & Draper 1986:79; Hicks 1964:16).

Following the screening exercise which may reveal, for example, that only three

factors are important in producing a quality widget, a second study is undertaken

using only the three important factors and a model is developed from which

optimised conditions can be identified. This results in a process and a product

which will be accepted by the customer as a quality product.

Furthermore, it is possible to identify factors which affect the magnitude of the

quality (average) as well as those affecting the variation (standard deviation).

Clearly, by controlling these factors it is possible to control the average quality of

the product as well as the quality variation. This approach has been used in

Japan for more than 45 years and, as a result, the quality of their products is not

only on a targeted value but also within a very narrow range of specifications -

much narrower than that demanded by the customer, i.e. the product has quality

"built-in".

There are several other benefits from the use of SDE apart from being the most

efficient and effective way of studying any system. For example, the need for a

2-26

concise and carefully planned design requires the support staff, the project leader,

research manager, and any others involved to participate .in a brainstorming

session together with other colleagues possibly from other divisions in the

company. This exercise will eventually build-up the necessary links which are

important for the formation of an effective team (Kinlaw 1991:2-4).

Several other tools, such as Histograms, Cause & Effect Diagrams, Pareto

Diagrams, Just-in-Time (JIT), Bench marking and Statistical Quality Control

(SQC), are very important in manufacturing and R & D as well as in any other type

of process (Wheelers & Chambers 1994:31, 288, 293, 303). Two other very

widely used and important methods are Statistical Process Control (SPC) and

Quality Function Deployment (QFD) (Owen 1989:3). Of these various tools, SPC

is probably the most commonly encountered.

Statistical Process Control (SPC) aims at achieving good quality during

manufacture through prevention rather than detection. It is concerned with

controlling the process (or machine) which makes the product. This means that

the process (or machine) which produces the product is inspected and controlled

rather than inspecting the final product. This is really proactive management -

inspecting and controlling the process, rather than reactive management -

inspecting the product after manufacturing. SPC is undertaken through the use

of control charts on which the performance of the process is plotted. If the

process starts to go haywire it can be stopped in good time before many or any

defectives are produced.

Every process has natural variation (Deming 1982:354). In other words, it is

impossible to make any product with absolute consistency. The inconsistency will

be caused by chance variations, however small, in, perhaps, the material, tool

wear, positioning of a piece on a lathe, speed of the machine, start-up period,

actions by the operator, and so on. These are called common causes (Deming

1982:310). This variation can be measured and, using statistics, its spread can

be predicted. It turns out that the spread follows a particular pattern, known as the

normal distribution (Levin 1987:236), irrespective of the type of process, so long

2-27

as there are no "special events" taking place. The special events are assignable

to unusual or unexpected changes or events, which may cause defects to be

produced. A special event may be an untrained operator, tool or bearing failure,

a change in the type of material. The spread of a normal distribution can be used

to calculate control limits. It turns out that within these limits (which equal plus or

minus three standard deviations on either side of the process average value), lies

virtually all of the natural variation (Levin 1987:239). When an operator takes a

measurement and finds that it lies outside those control limits, then it is virtually

certain that a statistically significant change has occurred to the process. The

process should be stopped, the situation investigated, the root cause identified

and corrected before production is resumed.

SPC is of course not the full answer to TQM. A poorly designed product can

conform to all manufacturing requirements, but still fail to convince customers that

it is a quality product. SPC is just one of the tools in the toolkit - albeit a major

tool.

Following a screening done by SDE and the identification of the most important

factors, SPC can be used to monitor the process so that, despite the existence of

exo- or endogenous sources of variation, the final product always ensures total

customer satisfaction.

As will be discussed, one very important element of TQM is that the customer, not

the supplier, defines the quality of the product. For example, the fact that a

customer wants a car to start, irrespective of climatic conditions of temperature,

humidity or elevation, must be translated by the manufacturer into engineering

factors such as the air : fuel ratio, spark advance and voltage at the spark plugs.

Following SDE and SPC, the final product will have the required quality and the

car will start regardless of the conditions.

Although each of these tools assumes a different level of importance depending

on the specific process and also the product of the organisation, they are crucial

elements of TQM. When developing systems solutions, it is imperative to focus

2-28

on the problem to be solved rather than the particular statistical technique to be

used as part of the solution - the main aim being continuous improvement of

everything and everybody in the organisation.

It is essential to recognise that the implementation of one - or all! - statistical tools

does not constitute a TQM process. In developing a TQM process, some

organisations will begin by following the philosophies of recognised quality

"Gurus" and adjusting/changing their management style before starting to use any

of the abovementioned tools. Other organisations may start with the tools and

technology and then later move toward developing management philosophies and

procedures. In all cases it is essential to keep the importance of all three

components in mind when developing a TOM process. No TOM process is

complete until all three components are fully in place, utilised and accepted by the

total workfOrce (Marquardt 1984:8-14; Snee 1985:1-2).

2.4.2 The phlOosophy of customer focus

The new philosophy focuses on the importance of the customer. Organisational

success is strongly related to meeting the needs and expectations of customers.

Suppliers must be, and be seen to be, happy to serve their customers. Equally,

it is an important message for all staff that customer satisfaction is a major quality

characteristic that has to be built-in or provided with all products and/or services

(Saraph, Benson & Schroeder 1989:810-829).

It is important to define the customer clearly. In any organisation there are two

distinct types that are equally important: the internal and the external customers.

The philosophy proposed by TOM explores the internal relationship and considers

as a customer anyone with whom a direct or indirect labour relationship is

maintained. In an indirect way, every other member of the organisation is

considered to be a customer - not just immediate colleagues - because everybody

should have confidence in the "product" they produce. Ultimately, in this manner,

a relationship based on professional respect will be established that carries with

it several other benefits including team building and team work (Kinlaw 1991:xvii).

2-29

In the same manner, it is possible to determine what is required to provide the

external customers with a quality product, i.e. through the use of appropriate tools,

the qualitative description given by the customer will be translated into quantitative

terms. As soon as agreement on these quantitative measurements is reached, it

becomes a straightforward matter for both parties to monitor and examine whether

total quality has been achieved. If it is not achieved, the data will be analysed to

find out why and the process will be changed through the implementation of

relevant corrective action. After all corrective actions are taken, the quality

characteristics will continue to be monitored and the data analysed under a

Continuous Quality Advancement (CQA) program until the desired quality levels

are maintained (Perigord 1990:61).

Doing the right things right, the first time, every time, is the simplest way to

describe any high-quality process (Crosby 1984:60). This will lead to elimination

of unnecessary activities, repetitions, check-ups and rework. Once the key factors

affecting quality are identified, they can be monitored and controlled so that the

"right thing" is done very time. In this manner, it is possible to anticipate, conform

to and exceed the customer's requirements. Such improvements and

understanding of the process not only result in a direct competitive edge but also

indicate what is necessary to meet the quality requirements of tomorrow. In

addition, costs and waste will also be reduced and controlled and as a result

wealth will be created.

Customers are becoming increasingly demanding of high quality products and

services. They want the items they purchase to be usable as promised and to be

delivered or repaired within the proper time frames. They also keep themselves

very well informed. A study made by Peugeot, France, shows that

one dissatisfied customer leads to the loss of twenty three potential

customers;

one satisfied customer leads to seven potential customers (Perigord

1990:44).

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To create an organisation that takes pride in serving its customers (internal and

external), managers and employees must accomplish four basic tasks:

reconcile the differences between how they would like to serve

customers and the present quality of service or product;

develop an organisation united behind serving customers well;

lay the groundwork for employees to develop solid relationships with

their customers (also the person next in line);

manage conflict and refine skills in order to continuously develop and

improve the organisation's ability to satisfy its customers (Tjosvold

1993:xiii).

On August 20, 1987, President Ronald Reagan signed a bill in the U.S. Senate,

creating Public Law 100-107 and confirming that quality had indeed became a

matter of national strategic importance. This act heralded the institution of a

national quality and productivity improvement award that has since been awarded

annually to deserving organisations in the United States of America. This award

is known as the Malcolm Baldridge National Quality Award and is awarded by the

President of the USA (Steeples 1992:10).

The purpose of the National Quality Award programme is to help the United States

improve quality and productivity by:

stimulating companies to attain excellence for the pride of achievement;

recognising outstanding companies to provide examples to others;

establishing guidelines that business, governmental and other

organisations can use to evaluate and improve their own quality efforts;

2-31

providing information from winning companies on how to manage for

superior quality.

The major categories of a TOM system are contained in the Award's seven

examination categories:

1.0 Leadership 100 points

2.0 Information and Analysis 70 points

3.0 Strategic Quality Planning 60 points

4.0 Human Resource Utilisation 150 points

5.0 Quality Assurance of Products and Services 140 points

6.0 Quality Results 180 points

7.0 Customer Satisfaction 300 points

Total value of points 1 000 points

(Steeples 1992:22)

Customer satisfaction is the biggest single focus point of the Award's examination

categories (30% of the points) and this is a clear indication of its importance when

evaluating a TC)iVi process.

The Customer Satisfaction category examines the company's knowledge of the

customer, overall customer service systems, responsiveness, and its ability to

meet requirements and expectations. Also examined are current levels and trends

in customer satisfaction. The eight items for examination in this category are:

determining customer requirements and expectations;

0 customer relationship management;

customer service standards;

commitment to customers;

2-32

complaint resolution for quality improvement;

determining customer satisfaction;

customer satisfaction results;

customer satisfaction comparison (with those of competitors that provide

similar products and services);

(Steeples 1992:192-193).

The European Quality Award has been initiated by the European Foundation for

Quality Management and was awarded for the first time in 1992. The eight

examination categories for this award are:

customer satisfaction - the perceptions of external

customers, direct and indirect, of the company and

of its products and services;

20%

people - the management of the company's people and

the peoples' feelings about the company; 18%

business results - the company's achievement in relation

to its planned business performance; 15%

processes - the management of all the value - adding

activities within the company; 14%

leadership - the behaviour of all managers in transforming

the company toward TQM; 10%

resources - the management, utilisation and preservation

of financial, information and technological resources; 9%

2 - 33

policy and strategy - the company's vision, values and

directions and the ways in which it achieves them; 8%

impact on society - the perceptions of the community at

large of the company; 6%

(Steeples 1992:313).

Once again, it is evident that customer satisfaction is regarded as the most

prominent evaluation of a company's TQM process.

Unsatisfied customers react by severing relationships with suppliers who are not

focused on their needs and requirements. Xerox Corporation, a winner of the

Malcolm Baldrige Quality Award, has slashed its supplier base from 3000 to 350

since 1981. IBM cut its roster of significant suppliers from 4000 to 3000 in 2

years. Unisys Corporation reduced their suppliers from 2300 in 1985 to 670 in

1992. Motorola reduced their suppliers, from 4000 in 1990 to 1500 in 1992, as a

result of unacceptable quality of products and services. They treat their suppliers

as an extension of their own factory and this partnership aims at achieving less

than 3,4 defects per million operations (Haavind 1992:164).

For an organisation to become truly customer driven, a major shift in corporate

philosophy must occur. Organisations committed to customer satisfaction realise

that achieving the desired satisfaction cannot result just from doing all the

traditional things better. Good product quality, warranties and customer surveys

can help, but they are inadequate without something more. That "something" is

when the customer is viewed as a partner and not a target (Naumann & Shannon

1992:47). As a partner, the customer is actually involved in an organisation's

decision-making processes at many levels in the organisation. Committed

organisations recognise that customers are a valuable asset and a source of

innovation and they develop mechanisms for customer involvement

comprehensively throughout the organisation.

2-34

The cornerstone for external customer satisfaction is the total drive for internal

customer satisfaction. To be truly effective, the TOM process must ensure that the

voice of the customer is clearly heard throughout the organisation - everyone not

only knows what is required to satisfy internal and external customer needs, but

are also empowered and enabled to satisfy those needs (Klein 1991:83). Smith

(1988:5-6) states that customer focus involves not only conventional market

research, but also requires sales staff, functional management and system

designers to develop an awareness of what the internal customer wants. Those

employees who do not have direct contact with external customers must be

encouraged to view their colleagues as internal customers. We all have a

customer for our work; the next operator in the process line, the user of our

service, the boss, the secretary ... who the customer is depends only on the

transaction.

Each transaction must have a recognised customer, with identified needs and

expectations, who provides continuous feedback on the quality of the product or

service supplied to him or her. Without customer response it is very difficult to

know whether the product or service supplied has added real value, or only cost.

Thus, all employees are seen as part of a chain, from internal supplier through to

external customer, including both line and support functions. In this way, TOM

emphasises that all employees are ultimately involved in serving the final

customer, so that quality matters at all stages of the process, whilst teamwork and

cooperation are essential elements of the process.

An advantage over competition as a result of customer satisfaction through quality

can be a key to survival in the international and domestic market place

(Feigenbaum 1983:xxxi; Ishikawa 1985:104-105; Juran 1988 b:xi; Kane 1986:29).

One of the reasons for this is that quality can have a major effect on productivity

and profitability. Evidence that quality customer service is becoming an

increasingly important competitive differentiator is available in the PIMS corporate

database, which shows that firms with high relative quality, whether in product or

service industries, incur costs that are no higher than their competitor's, yet can

charge approximately five percent more than their competitors (Buzzel & Gale

2- 35

1987:149). The work of Kume (1985 a:16) demonstrates that poor quality can

lead to decreases in market share. This view is confirmed by the findings of

Juran (1988 b:3.2 and 3.9-3.19). His findings are supported by Deming

(1982:225), who argues that the production of poor quality goods or services will

not result in customers repurchasing. The long term effect of poor customer

perception of a supplier's goods and services will be a reduction in market share.

2.4.3 The leadership styles for TOM

Total involvement forms the third and final core concept of TQM. Through it, the

idea of winning loyal customers is mirrored into the organisation, to build loyal

employees and loyal suppliers. Total involvement aligns and integrates the efforts

of everyone: managers and workers.

In this regard, leadership has specific implications for the senior managers

embarking on the quality journey. When implementing TQM, several fundamental

activities must be accomplished by the senior management team. These senior

managers bear ultimate responsibility for the success of the organisation and, by

virtue of their positions, have the authority to set direction, establish policy,

allocate resources and select the markets in which the organisation will

participate. These individuals are responsible to their customers, their employees

and ultimately to their shareholders for the success of the enterprise.

TQM requires skills in both leadership and management. The difference between

these two skills is stated succinctly by Bennis (1990:18):

"Leadership are people who do the right thing; managers are people who do

things right... Americans (and probably those in much of the rest of the

world) are underfed and overmanaged. They do not pay enough attention

to doing the right things, while paying too much attention to doing things

right."

To implement TQM, managing to get results will share centre stage with leading

to improve systems. The old roles of planning, organising, leading and controlling

2- 36

will be diminished. In their place, we will find leaders who vision, align, empower,

coach and care.

Leadership style is important in the quest for TQM. Many leaders say, "My style

is my style. It's me. It's the way I do things and the way I am. It matches my

personality. I've always been this way, and I can't change now." This is not

necessarily true, however. People can change if they want to - and they must if

they want to experience success in a quality improvement environment. It is not

difficult to change because most people do not use the same leadership style in

all situations regardless of what anyone believes.

Most people are actors. They act one way in front of their bosses, another way

with workers, and still other ways in front of their families or the people at church.

It is the same with leadership for most people; to some degree, surroundings

affect the leadership style people use. This is perfect for the TQM environment

because many factors require leaders to adapt their styles to best suit the purpose

at hand. It is important to recognise two concepts (Johnson 1993:55):

some styles are more appropriate than others depending on the

situation;

leadership style is a learned skill that is used to support leadership

needs as situations change.

2.4.3.1 One-dimensional leadership model

In the past, there were generally thought to be two main leadership theories:

democratic and autocratic. All leadership styles exist somewhere on a straight line

between these two theories. In the true democratic theory, the leader is committed

to goals established by the group. The group determines who the leader will be

and how the leader will best serve it in the quest to meet the established goals,

which are also determined by the group.

2-37

The group decides why certain courses of action are taken or if any action will be

taken. The answer to the question "Why?" becomes important in democratic

leadership styles. If the "why" is not great enough, no action will be considered.

In the more autocratic styles, "why?" becomes less and less important except to

those in leadership positions (Johnson 1993:55). Autocratic leaders might not

discuss the reasons why with their followers - the choice is the leaders'.

In the true democratic theory, when the "why "becomes" great enough to deserve

action, the group votes to decide whether it will act, who will do what, where it will

be done, when it will be done and how it will be accomplished. The group is the

decision-making body. In true delegating situations, the team will make many of

these decisions by itself. This ultimate leadership style provides great payoffs in

TOM.

In the autocratic-type theories, leaders are committed to goals and the reasons

why, which are established outside the work group by people of higher authority

(stockholders, voters and other such groups). The group then helps the leader

reach these goals. This does not mean that the group cannot have goals in

addition to the leader's goals. Teams become superior by reaching for and

meeting goals above those expected of them or established for them. The leader

might explain the reason why goals were established. The leader determines who

will do what, where it will be done, when it will be accomplished, and, to some

degree, how it will be done.

There are many leadership styles under the autocratic theory. They range from

autocratic to consultative to participative and delegating. Business and military

leadership theories are autocratic by nature. The leader, not the group,

determines how the leader will lead, although the wise leader learns to tailor

his/her style to the situation. Leadership style, however, is how the leader comes

across to the followers and not how the leader sees himself.

2-38

2.4.3.2 Two-dimensional leadership model

There are virtually unlimited numbers of leadership styles that can be identified.

There is little supportive evidence that any one style is constantly more effective

than another until the situation aspects of leadership are considered. Leadership

styles generally consist of behaviour patterns observed over time with leaders of

like performance profiles in similar situations. Leaders do not generally select

leadership styles the way cars are selected. Without training and conscientious

habit - changing measures, leaders' styles generally are based on patterns

learned over time, what they see working for others, and the behaviours of those

perceived to be leaders. Other factors are the boss's demands, environmental

demands, and the various pressures of the workplace. With training and habit

changes, leaders can vary styles to meet the situations that confront them to bring

out the best in individuals and groups.

Hersey and associates developed a two-dimensional theory of leadership (Hersey

1984). Degree of direction lies along one dimension and measure of support lies

along the second dimension. This theory has been named situational

leadership.

The concept of situational leadership provides an excellent understanding of

practical leadership that works. A third dimension can be added: the relative

power through leadership.

Situational leadership is derived from two seperate actions: supportive and

directive. Directive actions concern how the leader defines and directs the tasks

and responsibilities for the team. It involves telling the who, what, where, when,

why and how of performing tasks. Supportive actions involve communicating with

the team by listening, encouraging, helping and training the team members. It

involves ensuring the team understands the who, what, where, when, why and

how of assignments; defining the vision; and empowering the team for success.

Leaders become successful by directing and supporting their people to levels

2- 39

Preparation Activities

Payoff Activities Power Over

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appropriate for each situation. The leaders' attitudes and behaviours are both

important because team response depends on them. Attitudes includes concerns,

feelings and values, while behaviour is built on factors such as commitment,

excellence and knowledge. Although the leader's attitude can extinguish or ignite

the drive for excellence, action will determine whether people own the quality

process or remain involved from the periphery.

2.4.3.3 Leadership styles

Figure 2.3 Leadership styles

Source: Johnson 1993:56

Four leadership styles can be developed from these actions using the two-

dimensional grid (see Figure 2.3) (Johnson 1993:56).

Others are possible but four are appropriate here. Directing, coaching,

participating and delegating will be used here as the four leadership styles

because they fully support TQM concepts.

2-40

The grid layout is arranged to establish a relative starting time that is deemed

important for choosing leadership styles in the TQM process. The four leadership

styles derived from the supporting and directing actions provide situational

leadership from the highly directive stages of early employment or beginning

process deployment to the empowered stages where delegation becomes reality.

The first two, directing and coaching, actually are preparation phases in most

cases. They are highly directive leadership styles that occur during initial stages

of employee training and development.

Directing is a high-direction, low support style used in situations where specific

instructions and close supervision might be required. This style is appropriate

when people require training to gain awareness of a situation. New employees

in the indoctrination stage are one example. Other examples include emergencies

such as combat, when the leader has marching orders from above, when the team

has a low understanding of the new task, and as a last resort because people are

unable or unwilling to perform the task or because they are unsure of themselves.

Coaching is a high-direction, high-support style. It works when "Why?" needs to

be explained. Coaching is used when people have acquired the basic knowledge

and skills required for the task and are improving their efforts to carry out

assignments. Coaching requires hands-on, show-and-tell training much like that

provided by a sports coach during training sessions. It is the correct leadership

style when group involvement is important and the group has a fundamental

knowledge of the task; the group members might have a realistic expectation of

some personal benefit from solid performance, but they do not have the complete

picture. They are willing to complete the task, but they are not totally capable of

peak performance for some or other reason.

The payoff leadership styles, participating and delegating, are low in direction.

They can take place only when employees are well-trained and strongly support

the organisation's vision and goals. They are the ultimate leadership styles

because TQM will produce marginal success unless these styles can be

employed. Organisational excellence depends on people with the ability and

2-41

willingness to perform well with occasional guidance rather than constant

direction.

Participating is a low-direction, high-support style that is extremely important in

the TQM process. Participating is used when ideas are shared in an effort to gain

total team input to solve quality, production, and customer service problems. All

team members must be able and willing to complete the task at hand.

Participation is used when team commitment is necessary and the team

thoroughly understands the task and performance requirements, yet cannot act

without support. The team can reasonably expect recognition for its efforts when

it performs to some designated level. Synergism generally is expected to increase

results when high-performance teams work together.

Delegating is a low-direction, low-support style employed when team members

are able, willing, and confident to tackle projects by themselves with minimal

guidance. These teams are committed to the success of the organisation, assume

ownership in it, and are empowered to act on the organisation's behalf.

Delegation is used for a variety of other reasons, including training team members

in new areas, when selecting and/or training people for promotion, or when a

leader wants to free up time for personal growth in new areas.

Figure 2.3 depicts these leadership styles on a two-dimensional grid. They are

placed on a time line, the first line that starts at the top left and works its way

through four styles, ending at the top right quadrant. TQM followers should

progress along this time line, which is a measure of training effectiveness and

ownership of the TQM process over time.

The second line on the chart places the four leadership styles along the time line.

This shows the expected progression of people when they are first hired to new

process deployment under the directing style, through coaching and participating,

to the ultimate payoff style, delegation. In the directive style, a high level of

support either is not required or there is not time. The coaching style becomes a

natural progression as training and awareness of needs take hold. In the

2-42

participating style, high-level direction is not needed and might interfere with the

team's initiative. When the delegating plateau is reached, the team is willing and

able to handle the situation facing it with little support or direction. Providing

either generally would be undesired. Since the greatest performance potential

exists under the delegating style, the leader's goal must be to bring the team up

to speed rapidly so it can effectively operate in this mode.

The third line shows the activating force that powers each of the leadership styles.

Positional power generally is the prime mover during the directing stages. Initial

relationships with new employees don't produce personal power to any great

degree, and the deployment of new processes requires the leader to say, "We are

going to produce excellence in our organisation. Here is my vision...". When

coaching is used, the followers have been progressing long enough that the

skilled coach usually has gained considerable personal power, which becomes the

motivating force. The leader's influence is enough in most cases when

participative leadership styles are employed and empowerment fuels the

delegating style.

The fourth line illustrates the progression of training and development that

supports the various leadership styles. Knowledge acquisition is the initial phase

of training, which introduces the participants to the task at hand and provides them

with the basics to begin their efforts in that task. This is followed by skills

enhancement, which helps people become productive. Under proper leadership,

most people become more willing to perform as their ability to do the job well

increase. This leads to participation, which requires attitude adjustments and

teamwork skills for maximum effectiveness. Continuously fine-tuning the process

requires the delegation style and demands attention to excellence in every detail

of the operation.

The fifth line exhibits employee attitude and contribution to the TQM process in

part and the organisation as a whole. People are initially aware of organisational

needs and quality processes. As they work with solid leaders, they become

involved in TQM and the organisation. Participation demands commitment to

2-43

excellence and the organisation if there is to be a payoff. The ultimate is TOM

and organisational ownership as teams are empowered through the delegating

leadership style.

2.4.4 ConcOusion

TOM embraces not only the quality of a specific product, process or service, but

everything an organisation does, might or should do to determine the opinion not

only of its immediate customers or end-users, but its reputation in the community

at large. TOM is an umbrella term which includes: everything that an organisation

does to determine whether its customers return to them and recommend them to

others; minimising cost through efficient and effective organisational management;

maximising the resources of the workforce to cooperate in making the organisation

the best in its field; and finally, the exploitation of the weaknesses of the

organisation's rivals.

2.5 SUMifiARY

In this chapter, a comprehensive selection of current literature on Total Quality

Management was studied and reviewed in order to clarify the term "TOM".

Chapter 3 presents an overview of accredited quality management gurus'

approaches to TOM.

2-44

NU

ROHM

CHAPTER 3

3.1

3.2

U LITY IW HAGEN

SYNOPSIS

LOST OF FIGURES, GRAPHS AND TABLES

INTRODUCTION

THE TE ,,1/4CHINGS OF THE GURUS

3-46

3-47

3-48

3-49

3.2.1 Historical masters 3-49

3.2.1.1 Sun-Tzu 3-49 3.2.1.2 Aesop 3-52 3.2.1.3 Socrates 3-53

3.2.2 20th century quality masters 3-54

3.2.2.1 Philip B. Crosby 3-54 3.2.2.1.1 Brief biography 3-54 3.2.2.1.2 Crosby's approach to TQM 3-54 3.2.2.1.3 Summary 3-70

3.2.2.2 W. Edwards Deming 3-72 3.2.2.2.1 Brief biography 3-72 3.2.2.2.2 Deming's approach to TQM 3-73 3.2.2.2.3 Summary 3-100

3.2.2.3 Kaoru Ishikawa 3-102 3.2.2.3.1 Brief biography 3-102 3.2.2.3.2 Ishikawa's approach to TOM 3-102 3.2.2.3.3 Summary 3-110

3.2.2.4 Joseph M. Juran 3-112 3.2.2.4.1 Brief biography 3-112 3.2.2.4.2 Juran's approach to TOM 3-113 3.2.2.4.3 Summary 3-123

3.2.3 Comparing the Gurus 3-125

3.3 SUM RY 3-126

3-45

ENT

CHAPTER 3

OUft lit"'

ENT

SYN I PSIS

Quality is an important competitive factor and in most markets a prerequisite of survival. This is why more and more organisations are implementing Total Quality Management. The 1990's looks set to see the quality revolution of the 1980's spreading beyond manufacturing organisations to both private and public services.

Many organisations base their quality approach on the work of one of the "quality gurus". This is a term coined to reflect their influence on:

the organisation and practice of quality management; and

modem management thinking.

Written hisotry provides a grand procession of characters and legends to emulate, starting as early as 500 BC. Some would seem to presage TQM principles, and a brief visit will be paid to Sun-Tzu (a Chinese warrior), Aesop (a Greek slave), and Socrates (a Greek stone-mason and philosopher).

In this chapter the focus will, however, be on the key features of the methods of Crosby, Deming, Ishikawa and Juran. Arguably, this list is not exhaustive and there are others who have influenced the development of quality management issues.

The purpose of this chapter is:

to examine the salient features of each guru's method; and

to compare their approach using a comparison framework.

This will enable managers and other readers to appreciate the common ground and differences between each guru's thinking and approach. To compare the approaches of the various guru's systematically, a matrix of key features was developed. Six key factors were selected. These are:

general approach;

external interface;

organisational context;

organisational requirements;

means and techniques; and

pace and nature of change.

3-46

Mei"

EitliENT

CHAPTER 3

LIST OF IFOGURES, GRAPHS AND T;LIES

Figure 3.1

Table 3.2

Table 3.3

Table 3.4

Table 3.7

Figure 3.8

Figure 3.9

Table 3.10

The quality improvement process

The four absolutes of quality management

The quality improvement process

Salient characteristics of Crosby's approach to TQM

Deming's fourteen points

Salient characteristics of Deming's approach to TOM

Salient characteristics of Ishikawa's approach to TOM

Interrelation among Juran's quality parameters

Juran's spiral of quality

Salient characteristics of Juran's approach to TQM

Table 3.5

Table 3.6

3-55

3-56

3-60

3-71, 72

3-76

3-101

3-111, 112

3-116

3-117

3-124

3-47

CH

G

PIER 3

HAGEN

3.1 INTRODUCTION

The 1990's look set to see the quality revolution of the 1980's spreading to more

and more organisations. Moreover, in this decade the quality revolution will

spread beyond manufacturing organisations to both private and public services.

This is because quality is considered to be an important competitive strategy

(Shetty 1987:46).

Many organisations base their quality approach on the work of one of the so-

called quality gurus. This is a term coined to reflect their influence on:

the organisation and practice of quality management; and

modern management thinking.

The list of gurus generally includes Crosby, Deming, Feigenbaum, Groocock,

Ishikawa, Juran, Taguchi and Townsend. Arguably, this list is not exhaustive and

there are others who have influenced the development of quality issues.

Surely, the first quality engineer was some unknown chariot maker in Sumeria who

observed that the smoother the wheel, the faster the chariot, or some swordsmith

farther north in the land of the Hittites who scrutinised his work in order to free it

of all blemishes, thereby increasing its cutting power. Or was it a Neanderthal,

who plied his craft with flint knapping tools, being attentive and conscientious in

shaping a tool for a precise use? Modern archaeologists have demonstrated that

3-48

these skills are difficult to acquire. Yet we know that the skills were practised by

Neanderthals and were passed on through generations. So perhaps quality

control predates Homo Sapiens, and originated with Homo Sapiens

Neanderthalenses.

While this thought experiment is entertaining, there are no written records to to

use as guidance. Written history, however, provides a grand procession of

characters and legends to emulate. Some would seem to presage TQM

principles. While others can undoubtedly be found (Clemens & Mayer 1987) from

nearly every era and arena, the spotlight here will be on:

Historical masters: Sun-Tzu, Aesop and Socrates;

20th Century masters: Crosby, Deming, Ishikawa and Juran.

3.2 THE TEACHINGS OF THE GURUS

Charismatic pacesetters such as Crosby, Demin or Juran are often identified (or

even equated) with the TQM movement. Their magnetism has resulted in

passionate devotees, each proclaiming their pundit to have revealed the one true

path to quality enlightenment. The squabbling that occasionally occurs between

each guru's camp sometimes resembles religious "heresy" disputes, where much

arguing proceeds over differences without distinction. Because the writings of all

the masters - historical and present day hero's - are motivational, it is important

to read and reflect upon more than one of them prior to embarking on a TOM

implementation process. While all of their platforms may agree to within 95

percent, that last five percent may represent the appealing difference.

3.2.1 Historical masters

3.2.1.1 Sun-Tzu

Sun-Tzu lived sometime during the warring states period (480-221 BC) in China

(Sun-Tzu, translated by Griffith 1963:iv). During this time, the entire world, as the

3- 49

Chinese knew it, was in constant war. Sun-Tzu observed the political and

leadership struggles and attempted to codify how best to approach these

disciplines.

Wing (1988) casts Sun-Tzu's terminology into business and strategic terms rather

than martial terms and the 13 sections are summarised below.

1 Calculations. Is the goal reasonable and worthwhile? If so then the time

to act is now. If not, wait and build strength until it is reasonable. Self-

reflection (e.g., benchmarking and audits) are necessary to understand

one's own strength as well as that of the opponent. Both the self and the

opponent must be understood.

Estimating the cost. Contingencies and alternatives must be weighed.

Once the costs have been estimated, then commit to an unrelenting

forward momentum. There must be unbelievably swift and decisive action,

with no looking back.

Plan of attack. Is the objective isolated or integral? If the objective is

isolated, then a forward attack is appropriate. If it is integral, then a

broader, less obvious attack route may be necessary.

Positioning. Remove elements around you that allow backsliding. One

must have a supportive environment. You cannot cross a river by going

across halfway and then returning to shore to rest for the next half.

Directing - Positioning your foe. Isolate your opponent, make plans that

do not include it; enlist the help of others. Act spontaneously.

illusion and reality. The opponent must not be allowed to rest and

recover. When weak, feign strength and when strong, feign weakness.

7 Manoeuvres and tactics. Indirect tactics such as logistics are essential

3-50

to success. Indirect actions which lead to direct effect are the best.

Competition within your own forces is dangerous. The focus must be on

the enemy. Give your opponents the ability to flee. Damage the overtaken

as little as possible because they are tomorrow's customers.

Spontaneity in the field. Sun-Tzu warns against being overly cautious,

reckless, angry, fastidious, and attached to the organisation or the states

quo.

Moving the force - confrontation. Self-control and discipline will grow

from a determined challenge.

Situational positioning. Challenge only when certain. Put yourself

between your foe and his support system, as disorder brings defeat.

Situational awareness. Awareness of the situation is.vital. Contradictory

situations call for contradictory action.

The fiery attack. Do not prolong the confrontation. Enlist help from the

outside and make every action count.

The use of intelligence. Information is the essence of success or defeat.

An analogy can be made between Sun-Tzu's process and those of the immune

system: it wards off disease and attackers without damaging the underlying

support system. Like the immune system, which can enter an autoimmune phase

and destroy the very body it was protecting, so too can TQM consume its own as

it metamorphoses a company via continuous change and quality improvement,

making the new business very different from the old one. In this respect Sun-

Tzu's philosophy embodies principles of TQM: survival, growth and continuous

improvement in a chaotic world.

3-51

3.2.1.2 Aesop

Aesop was a Greek slave who lived in the 5th century B.C. (Handford 1954:xiv).

While not providing the integrated framework of Sun-Tzu, Aesop's simple fables

or parables provide profound insight into the nature of people's conduct in society.

A small sample of TQM related morals is presented:

United we stand, divided we fa. The four oxen and the lion (Handford

1954:171). A direct appeal to the use of self-managing teams, quality

circles and other uses of teamwork and shared vision.

Please all and you Please none. The man, the boy and the donkey

(Handford 1954:73). A vision that has been defined in scope and is

attainable is essential. Serving only some segments of customers may

mean ignoring others.

A loam w500 not be believed), even when he speaks the truth. The shepard

boy (Handford 1954:200). Credibility in management is regained every

day, and when lost, it may be lost until that management is replaced, and

quite likely even longer. Trust is not bought by salary, or enforced by

memos. Without trust, it is difficult to achieve the union required to

succeed.

We often despise what is most useful to us. The hare and the hunter

(Handford 1954:134). Hourly, shopfloor, unskilled, ... the list is long that is

used to demean the workers on whom the organisation relies. There is

dignity in all work. Failure to understand this leads to strikes, lock-outs and

boycotts, and management by fear.

You may share the labour of the great, but not the spas. The lion's

share (Handford 1954:23). Rewards must be given out on a fair and

regular basis, and it must be understood how one can achieve these

rewards.

3- 52

0

Perseverance wins the race. The hare and the tortoise (Handford

1954:70). Aesop agrees with Sun-Tzu regarding careful calculations,

plotting and provisioning. Ambition and excitable energy are no substitute

for wisdom and careful planning.

0

it us quaHty not quantity that counts. The vixen and the lioness

(Handford 1954:19). A vixen sneered at a lioness because she never

bares more than one cub. "Only one," she replied, "but a lion."

What is so instructive about Aesop's fabels is that little has changed in human

nature since the beginnings of civilisation. Aesop has permeated Western

literature for some 500 years, as browsing through a quotation dictionary will

readily confirm.

3.2.1.3 Socrates

Socrates, the philosophising stonemason, lived from 470 B.C. to 399 B.C. in

Athens, during the Golden Age of Pericles (Lindsay 1906: Introduction). He is

known from the works of Plato as one of the great philosophers. A number of TOM

concepts can be found in the various Socratic dialogues.

0

Fif oot cause analysis. Socrates was always asking Why?, and even when

told why, would keep probing until he reached the bottommost cause. This

rumination was meant to sweep away preconceptions and prejudices to

reach the real reasons or truths of what ever subject was before him.

0

Empowering the worker. Democracy lends voice to all. Coupled with

critical self-examination, this leads to an empowering force of continuous

self-improvement.

0 Vision and ethics. Constantly examining organisational beliefs and

motives requires building a solid framework of morals and ethics.

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Socratic dialogue refers to the method of instruction by question and answer used

by Socrates in order to elicit from his pupils truths he considered to be implicitly

known by all rational beings (Collins English Dictionary 1994:1467). By using this

method, a leader goads others into thinking about their actions and beliefs when

making decisions and solving problems.

3.2.2 20th Century quaty masters

3.2.2.1

Philip B. Crosby

3.2.2.1.1

Brief biography

Philip B. Crosby was born in 1926 in Wheeling, West Virginia. Crosley obtained

a degree in podiatry (his father's profession) but decided he didn't like the

profession. In 1952 he became a reliability engineer for Crosby Corporation in

Richmond, Indiana. He later worked for the Martin Corporation from 1957 to 1965.

Crosby was in charge of quality on the Perching missile project. From 1965 to

1979 he was the vice president of quality for ITT. In 1979, he founded Philip

Crosby Associates (PCA) in Winter Park, Florida from where he retired in 1991 to

begin Career IV, Inc. to help grow executives.

3.2.2.1.2 Crosby's approach to TQM

Crosby's aim is to change the perceptions and attitudes of top management about

quality. He defines quality as "conformance to requirements" (Crosby 1979:14),

a supply-led definition, thus making quality tangible, manageable and measurable.

The requirements of a product need to be defined and specified clearly so that

they are properly understood. These requirements are determined through the

interaction of a number of parties. The final user of the product or service has

certain needs and expectations which must be satisfied. The design department

within the organisation is responsible for designing a product or service which

meets all the requirements of the customer in a cost effective way. Thereafter, the

manufacturing department must ensure that the product or service which it

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CONCEPTS

ABSOLUTES OF QUALM!

0 M M

T M E N T

T E A M

w 0 R K

S

S T E M S

TOOLS

produces conforms to the requirements determined in the design process.

An error in any of the above processes will result in the production of a product or

service which does not conform to specification initially determined by the end

user. According to Crosby's definition, conformance to requirements is the only

measurement of quality. Poor or high quality has no meaning, only

nonconformance or conformance. The cost of quality is measured by the cost of

nonconformance. Crosby estimates that in most companies these costs run at

about 20 to 40 percent of sales (Crosby 1979:101-108).

Thus, according to Crosby (1984:7), all nonconformances are caused, and

anything that is caused, can be prevented. As he describes it, the organisation

can be "vaccinated" against nonconformance. Some of these "antibodies" are

managerial actions, while others are procedural common sense. The preparation

of this vaccine is discussed with the aid of figure 3.1.

Figure 3.1 The quality improvement process

Source: Crosby & Associates 1989:39

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CONCEPTS

Crosby (1984:59-86) builds his quality process on the "four absolutes of quality",

where the performance standard is "zero defects", the measurement of quality is

the cost of quality, the system is prevention and the definition of quality is

"conformance to requirements". The four absolutes are the concepts which are

needed to transform the culture of the organisation to one which enhances and

supports TONI.

Table 3.2 The four absolutes of quality management

(SOLUTES OF Q1U LITY

Definition of quality:

Conformance to requirements

Systems:

Prevention

Performance standard:

Zero defects

Measurement:

Cost of quality

Source: Crosby & Associates 1989:11

The First Absoiute: The definition of quaiity is conformance to requirements

According to Crosby (1984:59) quality improvement is built on getting everyone

to do it right the first time. In this regard, management essentially has three basic

tasks to perform:

1) establish the requirements that employees are to meet;

3- 56

supply the where with all that the employees need in order to meet those

requirements; and

spend much of its time in encouraging and helping the employees meet

those requirements.

Management should display their commitment to prevent nonconformance by

adopting a quality vaccine consisting of determination, education and

implementation. Quality improvement is a process, not a program and it should

be designed to be permanent and lasting.

The Second Absoiute: The system of quaiity is prevent i n

The foundation of Crosby's approach is that defective work must be prevented

before it appears, rather than dealing with it once it has occurred. Appraisal is

very expensive and is always conducted after the fact, which means that the cause

of the defect will not be addressed. The system of prevention allows for the

identification and eradication of the factors giving rise to the defective output.

Prevention comes from proper design of equipment and requirements, continual

training of the workforce, discipline, example, and leadership focused on quality.

Since Crosby equates quality management with prevention, inspection, testing,

checking and other nonpreventive techniques have no place.

The Third Absoiute: The perfonrnance standard is zero defects

Crosby (1979:1) states that quality is free, but it is not a gift. What costs money

are the unquality things - all the actions that involve not doing the job right the first

time, and the sorting and inspection following the production of a defective

product.

What Crosby is emphasising is that quality will not evolve naturally. Successful

quality improvement requires active steps to make quality a standard way of life.

Managers of any operation or function in the organisation must take active, visible

steps to improve quality in every process and task under their leadership.

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The first of these steps is the setting of performance standards. These

performance standards are the device for ensuring that the organisation meets its

quality requirements. For Crosby, the only acceptable performance standard is

zero defects.

Zero defects is a performance standard which needs to be understood and

attainable by all individuals within the organisation. It means that requirements

must be met first time, every time and that errors are not acceptable. Where the

zero defect standard is not met, the reason for this failure must be identified and

the cause rectified.

Zero defects is an attitude of defect prevention. Zero defects is not a slogan, it is

a management performance standard. Demotivating employees by constant

exhortation is not the answer. Crosby believes that in the 1960's various

Japanese companies properly applied the zero defects standard by using it as an

engineering tool with the responsibility of proper implementation left to

management. By contrast, the zero defects standard was used as a motivational

tool in the United States, with responsibility left to the worker, where it failed.

The Fourth Absoiute: The measurement of quality us the price of non

conformance

A major downfall of most quality control practices is that, although most quality

failures are discovered in the factory instead of after shipment, the techniques for

finding them are often excessively costly and wasteful (Feigenbaum 1983:5; Juran

1988 b:17-24). The costs of poor quality, including customer complaints, product

liability lawsuits, redoing defective work, and products scrapped after inspection

and testing are often huge. Crosby (1979:101-108) and Juran (1988 b:1) estimate

that in most companies these costs run at about 20 to 40 percent of sales. This

suggests that management should be investing a proportionally higher amount of

money and effort on defect prevention, as opposed to quality testing and

appraisal. The phenomenon is explained as follows. The more defects or

nonconformities produced in an organisation, the higher the failure costs. The

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traditional answer to higher failure costs has been more inspection and testing,

which of course increases appraisal costs. According to Feigenbaum (1983:13)

and McMillan (1982:33) this tighter inspection has little effect with regard to the

elimination of defects, as opposed to prevention. Some of the defective products

are going to leave the plant and end up in the hands of unsatisfied customers.

Appraisal costs thus stay high as long as failure costs remains high.

Feigenbaum (1983:113) and Kane (1986:29) suggest that the manner whereby

this spiralling cost cycle could be reduced is by concentrating on preventive

measures. An increase in prevention costs results in defect reductions, which in

turn have positive effect on appraisal costs because defect reduction means a

reduced need for routine inspection and testing activities.

The cost of quality can then be measured by calculating the total costs of doing

things wrong, or the price of nonconformance.

Crosby advocates that the absolutes of quality are realised through paying

attention to the areas of commitment, teamwork and systems. These three areas

in turn are addressed by Crosby's fourteen steps to the quality improvement

process (Crosby 1984:97-104). These steps are illustrated in table 3.3.

Crosby's 14 steps are a specific action plan for the improvement of quality and can

be seen as reinforcing Deming's 14 points of quality management philosophy.

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Table 3.3 The quality improvement process

Steps kb the improvement process Commitment Teams ems

Management commitment

Quality improvement teams

Measurement

Cost of quality

Quality awareness

Corrective action

Zero Defects planning

Employee education

Zero Defects day

Goal setting

Error causes removal

Recognition

Quality councils

Do it all over again

x

x

x

x

x

x

x

x

x

x

x

x

x

x

Source: Crosby 1984:99

The fourteen steps in table 3.3 are clustered and classified further into three

areas: commitment, teamwork and systems.

Under commitment fall: management commitment

zero defects planning

zero defects day

do it all over again

Contained in teamwork are: quality improvement teams

quality awareness

employee education

goal setting

quality councils

3 - 60

Under systems fall: measurement

cost of quality

corrective action

error causes removal

recognition

Step One: Management commitment

Management commitment at all levels of the organisation is vital to the success

of a total quality improvement process. Management are responsible for a number

of actions. First, they must decide that they want a zero defects strategy, and

must develop and announce a clear, specific quality policy to this effect. Second,

their commitment to the zero defects concept and the quality improvement process

must be displayed through action. In order for this to happen, management must:

develop and communicate a quality policy;

develop a comprehensive zero defects strategy to provide determination,

education and implementation of quality improvement;

establish an organisation to carry out the quality improvement process;

ensure that every manager, and eventually every employee, understands

and practices the absolutes of quality;

provide the resources needed to ensure that quality is built into every

function of the organisation;

ensure that all management communication contains a message denoting

their commitment to the zero defects policy, and explaining the policy;

put quality at the top of the agenda.

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Step Two: Quality improvement team

The early establishment of a quality improvement team is vital to the success of

the quality improvement process (Crosby 1979:152). This team will promote,

supervise and coordinate the planning and implementation of the quality

improvement process throughout the organisation. Team members will need to

be formally trained to run the quality improvement process.

The quality improvement team is cross-functional, comprising of an administrative

representative from each department or major area of operation in the

organisation, and an administrator or coordinator. The members of the team

would be nominated by department managers and approved by the senior

executives of the organisation. The chairperson would be selected by the team

members. The quality improvement team will report to, and receive, its overall

direction from a senior management steering committee.

The objectives of the quality improvement team are (Crosby 1979:152-162):

to provide the framework for the overall coordination of the quality

improvement process;

to provide a vehicle which can remove the roadblocks to quality

improvement;

to provide a formal communications medium to ensure that the quality

improvement efforts are coordinated throughout the organisation;

to ensure continuity of the quality improvement process.

The responsibilities of the quality improvement team are (Crosby 1979:152-162):

to develop key quality related issues and a detailed strategy;

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to set a timetable for all quality improvement process activities;

to establish the need for resources such as administrators, training

programs;

to monitor results, and make adjustments where necessary;

to assign each member the responsibility of over-seeing one or more of the

14 steps;

to develop a complete 14-step implementation plan, and to meet regularly

to administer the plan and review progress.

The responsibilities of each individual member of the team include (Crosby

1979:153);

representing his/her department on the team;

ensuring that the decisions of the team are executed in the department.

Step Three: Measurement

The purpose of the measurement step is to provide a display of the current and

potential nonconformance problems in a manner that permits objective evaluation

and corrective action (Crosby 1979:169).

The objectives of the measurement step are (Crosby 1979:169-178):

to communicate openly where nonconformances exist;

to establish an atmosphere that allows the honest reporting of errors;

to ensure that all employees understand the purpose of measurement and

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the system used to provide for it;

to help all departments understand their responsibilities to quality through

the display of nonconformances;

to document actual quality improvement as it occurs.

An important source of measurement data is provided by observations of actual

rejections and the results of inspection. A more general form of measurement is

provided by Crosby's Quality Management Maturity Grid (Crosby 1979:32-34).

This grid is a measure which enables management to identify the organisation's

present status or maturity level regarding the quality improvement process. It

does this by measuring management and subordinate attitudes to quality. These

results can then be compared with those that existed on a previous occasion. The

grid breaks down the continuum of maturity levels (attitudes to quality) into five

categories and lists the categories by which each can be measured. The maturity

grid emphasises the change in attitude toward meeting product requirements or

quality that takes place in the progression through the stages of a quality

improvement process. Perceptions are the instrument used to identify the

organisation's position on the grid. The data used in the measurement process

is collected by means of an attitude survey (Sargent 1986:30). With this

information, management can identify where their organisation is placed on the

maturity grid and what their next course of action ought to be. A possible

constraint of the maturity grid is that it does not provide an explanation of why the

organisation is at that specific position on the grid (Sargent 1986:30).

Step Four: Cost of quaOity

The cost of quality is a management tool which is used to measure quality

improvement. This facilitates the identification of which areas in the organisation

need corrective action. The reduction of the concepts of quality to a cost figure

renders it intelligible to all. Crosby (1979:105-107) provides the following

categories of costs:

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1 Prevention costs

These are the costs of all activities undertaken to prevent defects in design

and development, purchasing, labour and other aspects of creating and

initiating a product or service.

Appraisal costs

These are costs incurred while conducting inspections, tests and other

planned evaluations used to determine whether hardware, software or

services conform to requirements.

Failure costs

These are the costs associated with output which does not conform or

perform to requirements. Included are the evaluation, disposal, and

consumer-affairs aspects of such failures.

Crosby (1979:104), Juran (1988 b:4.10-4.13) and Kume (1985 b:16-17) stress,

however, that management should not be totally pre-occupied with attempting to

obtain an exact cost figure for quality as this is likely to be a time consuming and

subjective excercise All that is required is a consistent, reasonable accurate

estimate of the cost of quality. After all, the purpose of calculating the cost of

quality is essentially to draw the attention of the organisation to the cost of poor

quality, to identify high cost centres and to provide a measurement base for seeing

how quality improvement is progressing (Aubrey & Eldridge 1981:17).

Step Five: Quality awareness

The purpose of this step is to raise the level of personal concern felt by all

employees toward the production of quality products and services.• An awareness

of the importance of the quality reputation of the organisation needs to be

engendered in the workforce. Employees will be made aware of the need, the

3-65

status of the process and the continuous commitment of management to quality

and quality improvement.

The objectives of the quality awareness step are (Crosby 1979:181-191):

to develop a plan to share information about quality, including need, status

and success;

to establish a mechanism to encourage departmental meetings on a regular

basis.

The quality awareness activity has two essential ingredients (Crosby 1979:182):

Regular meetings must be held between management and employees to

discuss specific nonconformance problems and to design actions which

need to be taken to solve these problems. These meetings should not only

be between workers and their supervisors but also between the supervisors

and their management team. The meetings should take place on a regular

basis to discuss quality improvement actions as part of the drive to

eliminate all nonconformances.

Information about the quality process must be communicated through well

designed communication channels throughout the organisation. The

purpose of good communication is to provide reassurance that the

company is serious and committed to quality and quality improvement and

to convey this message constantly to all the people.

Step Six: Corrective action

Crosby (1979:65) argues that the measurement of quality alone is insufficient.

The results of the measurement process must be used to identify and resolve the

causes of nonconformance.

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The purpose of corrective action is to provide a systematic method of permanently

resolving the problems that are identified through the previous action steps.

Corrective action should operate on the Pareto Principle, which states that

problems should be addressed in descending order of importance (Schonberger

1985:483). Thorough analysis of the various processes in the organisation are

essential to corrective action.

Corrective action systems have to be based on data that show what the problems

are, and an analysis that shows the causes of the problems. Once the root cause

of a nonconformance has been identified, it can be addressed by, for example,

redesigning of the process or equipment, and the retraining of operators, in order

to prevent the recurrence of the problem. This process involves all employees

and external suppliers involved in the area or process under investigation.

Crosby (1979:67) also suggests that one of the most effective ways of identifying

the causes of defective output is the quality audit. The quality audit is a well

designed and planned examination of a process or function, carried out by

determining conformance to procedures and specifications in a process or by

critical analysis of the product or service that is a result of the process. All

nonconformances to procedures or standards have to be analysed and corrected

through the corrective action process.

Step Seven: Zero defects planning

The purpose of planning for zero defects is to examine the various activities that

must be conducted in preparation for formally launching zero defect day (see

step 9 for a discussion of zero defects day).

A quality improvement task team, which reports to the quality improvement team,

should be established to do the planning for zero defects day. At least one

representative of each department will be included in the task team.

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Step Eight: Education

The purpose of this step is to provide training to all employees within the

organisation as well as the organisation's external suppliers. This education will

provide individuals with the tools and techniques to support the quality

improvement process. Other objectives of the education process include (Crosby

1979:68):

the provision of a common understanding, throughout the organisation, of

all the absolutes of quality management;

ensuring that all employees are properly educated so they can effectively

carry out their roles in the quality improvement process.

The education process is a continuous one, starting with top level management

and working down through the entire organisation. Due to the central role played

by management and team leaders in the quality improvement process, special,

intensive education must be designed and provided to them, since they will drive

the entire improvement process.

The majority of authors on the subject of TOM identify the importance of education

to the success of the quality improvement process (Cashbourne 1987:109; Crosby

1979:68; Deming 1982:285; Ishikawa 1985:106-109; Juran 1988 b:10.51-11.4;

Lomas 1986:218; Marash 1989:123; Townsend 1986:13). As identified by them,

the major thrust of the education phase of the total quality improvement process

is three-fold.

Initial awareness training, designed to make the workforce aware of the

importance of quality to the future success of the organisation. Awareness

training is also used to show individuals how quality can be integrated into

their own functions within the organisation.

To provide employees with an understanding of what not to do and why, as

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well as what to do to ensure quality improvement.

To provide the workforce with the tools to manage their own quality outputs.

Step Nine: zero defects day

The purpose of a zero defects day is the creation of an event which will make

each employee realise that there has been a change of culture and attitude within

the organisation and the extent to which management is serious about these

changes. On zero defects day management publicly affirms its commitment to

zero defects. This day is in essence a public relations exercise to create

awareness of the future focus on total conformance to requirements.

Step Ten: Goal setting

The goal setting process must be initiated once measurements are established

and should be linked to the nonconformances revealed through the quality

appraisal process. It involves the establishment of improvement goals by both

individuals and groups or teams. All goals met should be publicised and

celebrated.

Step Eleven: Error cause removal

Error cause removal will enable individual employees to communicate to

management which obstacles impede upon their ability to improve quality. Error

cause removal is not a suggestion system in that employees only need to identify

the causes of errors, they need not provide solutions to the problems. It is a

formalised procedure that provides a systematic way of identifying problems.

Step Twelve: Recognetion

Recognition is the means whereby rewards are given to those who actively

participate in the quality improvement process. Crosby (1984:117-119) suggests

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that those who are to be rewarded should be elected by their peers. He also

stresses the importance of intrinsic rewards, since he feels extrinsic rewards are

not entirely effective.

Due to the fact that TQM is dependent on the commitment and participation of the

entire workforce, the reward structure of the organisation should be structured in

such a way that it is in the interests of, and to the benefit to, the entire workforce

to participate (Haridy 1985:43). The quality improvement process stresses the

concept of using teams to identify opportunities and make improvements.

Methods of compensation and reward should compensate individuals for their

team participation, rather than strictly on an individual or organisation-wide basis.

(Koopman et al, 1987: 95-112 & 161-162; Project Free Enterprise Report 1986:

21 & 26; Townsend 1986:84-85). In South Africa, a policy of rewarding group

behaviour would be consistent with what Silberbauer (1987:26-47) identified as

the cultural inheritance of most South African black people - a need for affiliation.

This view is supported by Coldwell & Moerdyk (1981:70-76) who point out that

Africans in general tend to show a need for group orientation and affiliation.

Step Fourteen: Do it over again

This step emphasises that the quality improvement process is a continuous

process. It involves the selection of a new quality improvement team, since the

retiring team often feels that there is little left to do in the quality improvement

process and tends to stagnate, and therefore it amounts to an injection of

enthusiasm into the process. The new quality improvement team will start the

whole quality improvement process again. This step involves two very important

elements: selecting a new team and reviewing present quality improvement

activities.

3.2.2.1.3 Summary

Crosby (1984:136) does not insist that the fourteen steps have to be carried out

in any particular order, with the exception of steps one and two. Education, for

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example, is seen as an ongoing process which needs to be undertaken right from

the inception of the process. The establishment of an environment which will

facilitate improvement is primary. This is done through education, formalising

management commitment and measuring nonconformances.

Since Crosby (1984:136-137) focuses on first changing the management culture,

his approach is clearly a top-down process. It is evident that Crosby believes that

the responsibility for quality does not lie with the quality professionals or the

quality function within the organisation. The quality function is only responsible

for guiding the process. Training and motivation are the main functions of this

umbrella body. The execution of quality is the obligation and responsibility of all

employees of the organisation. Quality improvement is therefore seen to be a line

function with quality responsibility being decentralised. However, total quality

improvement is a process which is directed and guided by management policies

and actions. Managers at all levels of the organisation are responsible for

removing the obstacles to and promoting the decentralisation of quality

responsibility. Table 3.4 depicts the key characteristics of Crosby's approach to

TQM.

Table 3.4 Salient characteristics of Crosby's approach to TQM

TEGORY ELEMENTS:::0E:QUALITY FOODS: POINTS

Supply-led

Conformance to requirement

Zero defects

Implicitly functional

Manufacturing emphasis

A General Definition of quality

Main emphasis

Dominant factor

Scope of application

Applicability-sector

B External

interface

Customer focus

Market focus (environment)

Vendor/buyer relationship

Implicit in customer

requirements

Not addressed

Not specified

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C Organisational

context

Primary change agent

Top management role

Management style

Organisation culture

Top management

To understand costs of

quality, to promote zero

defects

Instructional, promotional

Quality as an organisational

culture

D Organisational

requirements

Top management commitment

Employee involvement/participation

Education and training

lnventment in non-human resources

Essential

Essential

Essential

Not specified

E Means/

techniques etc.

Cost of quality (appreciated)

Training programmes

Participation feedback

(eg. communication, quality

circles)

Statistical methods

Recognition/rewards system

Inspection procedures

Important, to motivate

management

Training and motivational

programme, including zero

defect days

Teamwork on zero defects;

consultation of problems

Not specific, but measuring

results is stressed

Recognise and reward those

who achieve quality (zero

defect) goals

Not stressed

F Change Pace of change

Nature of change

Gradual

Sequential (though ordering

of steps may vary)

Source: Own compilation

3.2.2.2 W. Edwards Deming

3.2.2.2.1 Brief biography

W. Edwards Deming was born on October 14, 1900 in Sioux City, Iowa. Shortly

thereafter, his family moved to Powell, Wyoming. Deming graduated with a B.S.

3-72

in Physics from the University of Wyoming in 1921, and graduated form Yale with

a Ph.D in mathematical physics in 1928. He worked for the U.S. Census Bureau

during and after World War II. In 1950, Deming went to Japan to help conduct a

population census, and lectured to top business leaders on statistical quality

control (SPC). Deming told the Japanese they could become world-class quality

leaders if they followed his advice. During the 1950's, Deming again travelled to

Japan at the behest of the Japanese Union of Scientists and Engineers (JUSE).

Because of his refusal of payment for lectures (Japan at the time was quite

impoverished), JUSE used the funds to establish the Deming Prize, which is today

the most honoured quality award in Japan. Today Deming is generally regarded

as the top leader in quality management, and is still cited as the founder of the

third wave of the Industrial Revolution.

3.2.2.2.2 Deming's approach to TQM

The Deming approach to TQM has its origins in statistical process control and is

based on five philosophies.

Continuous improvement

The first philosophy (Deming 1982:22) is that of the continual improvement of

product and service quality. This centres on the elimination of any obstacles

which stand in the way of achieving higher quality and involves testing and

statistical feedback at various stages of manufacturing and marketing in order to

improve a system which involves design, production, merchandising and service.

The purpose of this is to provide a product or service which will meet the needs

and expectations of the end user. The argument underlying this is that Deming

views the customer and the level of customer satisfaction as the most critical

elements in the entire production process (Deming 1982:225).

Different roles for management and workers

The second philosophy is that of the division of work between the workers and

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management. Deming (1982:36) advocates that there are different roles for

management and workers to fulfil in the quality improvement process.

Responsibility for the quality improvement process is shared between

management and workers. The worker, who is in contact with the process, should

control it and aid management to improve it. After all, operators who work in the

system are the ones who really know where the potential for improvement lies.

Workers are, therefore, not only required to work in the system, but to help

management to improve it. This requires that the employees are provided with the

correct tools to enable them to fulfil their responsibilities. This is the responsibility

of management. Management's responsibility is to provide all resources required

to improve the system to produce quality products and services. Contained in this

philosophy is the basic view that one can rely on the worker, that one can trust

them and that if given responsibility they will do their best for the organisation.

Statistics

The third philosophy is that of the utilisation of statistics as the language of

communication between workers and management (Deming 1986:340-341). If

management are to control the variation in a factory or other place of work, they

need to learn the language and implications of statistical process control.

Variation

The fourth philosophy is that of the causes of error, or variation. Deming

(1982:111-120) provides two causes of variation, which need to be corrected or

reduced in different ways, namely:

First, "special causes" of variation (Deming 1982:111-115) occur when a

measurement is made which falls outside the normal limits of control for the

activity being measured. A special cause is one that is specific to some group of

workers, or a particular worker, machine or specific local condition. The discovery

of a special cause of variation, and its removal are usually the responsibility of

someone who is connected directly to the operation. Their responsibility is to find

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the cause and to remove it.

Second, "common causes" of variation (Deming 1982:115-120) occur when a

measurement is made which falls within the normal limits of control, but at an

unacceptable range of variation from the mean. Common causes of variation are

faults inherent to the system. Elimination or reduction of common causes can be

effected only by action of management, since the system is under the control of

management.

Improvement of a process then, according to Deming (1982:115), can come from

the elimination of a special cause of variations by the worker, and then also from

actions by management to eliminate common causes of error or variation. Deming

(1982:124) stresses that the removal of a special cause of variation in order to

move toward statistical control, does not constitute a significant improvement of

the process. Removal of a special cause only brings the system back to where it

should have been. The quantum leap in system improvement only commences

once management removes the common causes for variation from the system.

Statistical stability in a system is seldom a natural state. It is an achievement, and

results from eliminating all assignable causes of variation, leaving only the natural,

random variation of a stable process. The behaviour of such a system in the

future is predictable and has a definite capability, expressible as the economic

level of quality for that process (Deming 1982:319).

5. Attitude towards quality

The fifth philosophy involves the attitudes of the management of an organisation

toward quality, productivity and competitive position. This philosophy is

encapsulated in Deming's fourteen cardinal points (Deming 1982:13-59). These

fourteen points are seen by Deming as being vital to the organisation-wide quality

improvement process.

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emIng's Foamteen Pain s o a..ga ity mprovernent

Create constancy of purpose for improvement of product and service.

Adopt the new philosophy of refusing to allow defects.

Cease dependence on mass inspection and rely on statistical control.

End the practice of awarding business on the basis of price tag alone.

Constantly and forever improve production and service.

Provide all employees with on the job training.

Adopt and institute leadership.

Drive out fear.

Break down barriers between staff areas.

Eliminate slogans, exhortations, and targets for the work force.

Eliminate numerical quotas for the work force and numerical goals for management.

Remove barriers that rob people of pride of workmanship.

Institute a vigorous programme of education and self-improvement for everyone.

Put everybody in the company to work to accomplish the transformation.

Table 3.5 Deming's fourteen points

Source: Deming 1986:23-24

Deming's fourteen points are the basis for transformation of any organisation. It

will not suffice merely to solve problems, big or little, in the system or process.

Adoption and action on the fourteen points are a signal that the management

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intend to stay in business and aim to protect investors and jobs. Such a system

formed the basis for lessons for top management in Japan in the 1950's and in

subsequent years (Deming 1986:1-6 and Appendix). The fourteen points apply

anywhere, to small organisations as well as large industries, to the service

industry as well as to manufacturing.

Deming (1982:15) stresses that the responsibility for these fourteen points lies

with top management. Management must understand and have the authority to

carry them out. By placing responsibility for these points with management,

Deming is not suggesting that quality is only management's job. He argues that

quality is everybody's job, but management is responsible for the leadership and

commitment for the quality transformation (Deming 1982:16).

It is possible to summarise Deming's fourteen points into two main sub-

philosophies as follows:

A management value system and approach for managing a company is

required (points 1-5 and 14).

The worker is the most valuable asset of a company in attaining excellence

in quality. This aspect requires specific management actions in supporting

the worker (points 6-13).

The fourteen points are not intended to follow a sequence. Rather they are a list

of management actions and responsibilities.

1 Create constancy of purpose toward improvement off product and

service, with the aim to become competitive and to stay in business,

and to provide jobs

In this step Deming (1982:17-18) forwards two problem areas which management

have to address. First, "problems of today", which are concerned with the

regulation of present quality standards and output, and second, "problems of the

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future". These problems command first and foremost constancy of purpose and

dedication to improvement of competitive position to ensure the company's future

viability and existence.

An organisational vision must guide the corporate culture and provide a focus to

the organisation. This vision equips the organisation with a long term perspective,

measure management commitment, and benchmark how the organisation is doing

relative to other related firms. This vision must not vary by department, by

pressure of work, by time of month or by customer.

The establishment of constancy of purpose includes the acceptance of obligations

such as the following (Deming 1982:18-19):

innovate for new and better ways of doing things;

allocate resources to accomplish the long term plans;

put resources into research and education;

constantly improve design of product and service;

put resources into maintenance of equipment, furniture, fixtures and new

aids to production.

Constancy of purpose provides a philosophy and a framework so that decisions

can be made in a consistent manner. Managers under the Deming philosophy are

concerned with the problems of today and tomorrow and inspire confidence with

their long term view of the company and its commitment to quality.

Embarking on the journey to quality signals the beginning of a new era and a new

spirit for an organisation. Top management is infused with a spirit of change and

growth, and this will filter down through the organisation. However, the journey

is also filled with possible pitfalls that must be overcome to succeed. Possible

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pitfalls include the following (Gitlow & Gitlow 1987:25-26):

Failure to plan for the problems of tomorrow.

Management must continually plan for future developments in aspects like

the following: customer needs and performance requirements, products and

services, materials, methods, training and skills requirements, supervisory

methods, costs of production and marketing. Failure to plan for the

problems of tomorrow can be deadly to an organisation.

Management zeal to complete the mission statement.

This will inevitably lead to the exclusion of input by certain groups and

individuals in the organisation.

Thinking that the mission statement is cast in stone.

Rigid adherence to a document only creates an inflexible system.

Flexibility and adaptation are essential ingredients in the Deming

framework to deal creatively with tomorrow's problems. The company's

goal statement should reflect this, or the organisation will not be responsive

to its vendors, customers, and others in the extended process.

2. Adopt the new phiOosophy

According to Deming (1982:19-22), traditional attitudes to quality tend to

be that it is inevitable to make mistakes, and that some degree of rework

and error is inevitable. He argues that no level of defects is acceptable.

The foundation of the Deming philosophy is quality, its importance, how to

improve it, and it's benefits. Adopting the new philosophy is synonymous

with adopting a quality consciousness. This new quality consciousness is

the backbone of the organisation's mission statement, embodying it with

spirit and direction.

Adopting the new philosophy requires changing attitudes. This is difficult

for many people because it involves moving from the known to the

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unknown. This creates mistrust, fear, and anxiety, particularly for people

who are satisfied with the status quo. Changing attitudes is a difficult task,

but it can be made easier by giving people something more concrete to

grasp. Defining what is meant by quality can create a common ground for

discussion and can make clear what is expected of everyone.

Quality must be thought of as a customer-oriented philosophy. Quality

should be defined as "surpassing customer needs and expectations

throughout the life of the product." Definition of quality and commitment to

it are top management's responsibility. Top management must infuse

everyone else with the spirit of neverending improvement. This is a difficult

process and some pitfalls to be avoided are as follows (Gitlow & Gitlow

1987:37-38):

Top management continuing to push for quantity while espousing a quality

philosophy

This contradiction will be noticed immediately by middle management,

workers, and union officials, who may then become turned off to anything

having to do with the new philosophy.

The company's inattentiveness to customer feedback

Company's have to have a system whereby they can properly receive,

assess, and use consumer feedback in redesign, otherwise there can be

no real improvement.

Ignoring the union

Union officials should be made aware of the company's interest in moving

toward the Deming philosophy, from the very beginning. They should be

an integral part of the effort and should be included in the initial training of

top management.

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iv) Middle management's fear of change

Middle management have succeeded under the current system and may be

reluctant to change. Top management must demonstrate their commitment

to quality improvement by becoming visibly involved in the removal of

barriers to continuous improvement.

3. Cease dependence on mass inspection to achieve quality by building

quality into the product in the first place

Deming (1982:22 & 70-71) argues that routine mass inspection is

synonymous with planning for defects during production, acknowledging

that the process cannot make the product correctly, or that specifications

made no sense in the first place.

Mass inspection is essentially checking goods with no consideration of how

to make them better, improve the process, or achieve higher quality within

the framework of the Deming philosophy. Moving from defect detection to

defect prevention to never-ending improvement is critical to the new

philosophy. Inspection only measures the extent of the problem, and does

not allow any correction of the problem. Mass inspection is managing for

failure. Under the new system, the goal is to manage for success. As

inspection decreases due to improvements in the system, more and more

of the resources spent on the inspection effort can be turned to further

improvements in the system, creating a spiral of quality.

Eliminating the need for inspection on a mass basis involves funda- mental

changes in how an organisation views its processes. Striving for never-

ending improvement is dependent on these changes to succeed. Possible

pitfalls include the following two aspects (Gitlow & Gitlow 1987:49):

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i) Ignoring the importance of statistical process control

Implementing Deming's philosophy relies on both humanistic and statistical

aspects, and both are necessary for success. Only statistically stable

processes are predictable and ready for quantum improvement.

ii) Lack of communication with vendors

To go from defect detection to defect prevention to never-ending

improvement, it is necessary to work with vendors to help them improve

their processes. Their outputs become inputs in the next process and no

process can produce a quality output with defective inputs.

4. Minimise total cost by working with a single suppilier - end the practice

of awarding business on price tag alone

Deming (1982:23-30) argues that price has no meaning without a measure

of quality. Without adequate measures of quality, business will be awarded

to the lowest bidder, with low quality and high cost being the inevitable

result. Awarding business on the basis of price tag alone is managing for

failure. If no thought is given to the quality of what is being purchased, and

incoming materials are of poor quality, then the final product will be of poor

quality. Awarding business on the basis of quality, in addition to price, is

managing for success. It leads to single sourcing, which results in quality

incoming materials as the purchasing company becomes involved in

helping the supplier to improve his process over the long run.

Changing purchasing practices involves upsetting many "givens" in the

marketplace. Some possible problems and pitfalls include the following two

aspects (Gitlow & Gitlow 1987:67-68):

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Top management resisting single sourcing

Top management has to be trained to understand the benefits of single

sourcing before they will become freed of the fear of all the disasters that

could potentially interrupt production.

Not providing adequate training and supervision for purchasing agents

The new role of purchasing agents will substantially change. These

purchasing agents will need training in statistical methods, as well as

ongoing support in adjusting to their new, more complex duties of selection

of vendors on the basis of their statistically proven ability to meet required

quality standards.

5. improve constantiy and forever the system of production and service

to improve quality and productivity, and thus constantly reduce costs

Deming (1982:30-31) advocates that all employees in the organisation

must strive toward continual reduction of waste and improvement of quality

in every activity. Improved quality increases productivity due to the

reduction of rework and rejected products. Systems and processes must

be evaluated to ensure continual increasing effectiveness.

Making a commitment to constantly improve the system necessitates a long

term perspective. Analysing, understanding, and improving the process are

ongoing tasks that stretch out into the infinite future.

Constantly working to improve the system is managing for success. Quality

achievement becomes management's primary objective. When

management understands the sources of process variation, acts to achieve

a stable process, and reduces common process variation, quality will result.

The organisation succeeds through management taking responsibility for

improving the system.

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Constantly improving the process is strongly tied to stopping mass

inspection. Achieving a stable process is necessary to minimise inspection

costs. This works cyclically because the time and money saved from

minimising inspection can then be put back into further improvement of the

process.

Statistical methods are vital in working toward never-ending improve- ment.

Everyone in the organisation need to learn basic techniques and principles

to participate in the transformation process. However, the environment in

the company must demonstrate the new commitment to quality, a long term

perspective, and a growing trust between management and workers before

statistical methods can be used.

Introducing the use of statistical methods to enhance the process of

neverending improvement is a difficult and critical process. There are

many pitfalls that must be avoided in working toward never-ending

improvement (Gitlow & Gitlow 1987:93-95). The main ones are listed

below:

Management attempting to reach never-ending improvement only through

automation, and capital investments

This may be necessary, but overall system improvement using statistical

methods may minimise the need for capital investment and can enable the

organisation to reach its goals.

Management's inability to create an environment that is conducive to the

workers' acceptance of their new tasks

Employees are going to experience many changes in the implementation

of the new quality philosophy. They will be required to go through training

in statistical methods, which will substantially alter their jobs. If

management has not created an environment that recognises the difficulty

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of this and has not offered substantial support and freedom to express

doubts and concerns, workers will reject the use of statistical methods.

Managers' reluctance to make improvements that reduce their level of

responsibility

Since the use of statistical methods usually lead to simplification of the

process, managers may fear that their departments will become less

complex, changing the need for their level of management. Managers must

be informed and trained in their new roles and responsibilities in the new

system.

Using statistical methods as a policing tool

Statistics should be used constructively for the purposes of never-ending

improvement. Using statistics as a policing tool only creates and fosters

an atmosphere of mistrust and pettiness, rather than creating an

atmosphere of never-ending improvement.

6. Institute modem methods of trakdng on the job

In the Deming philosophy, people are viewed as an organisation's most

valuable long term resource (Deming 1982:31-32). Management must help

their people, through training, to constantly improve their skills and abilities.

People want to do a good job, but they need to understand what their job

is and to feel a part of the extended process. Modern training methods

involve a long term perspective because use of control charts implies

commitment over time, with consideration of normal variation in the system.

Training becomes a process, not an entity that is completed for the sake of

completing it.

Modern methods of training help to create the new corporate environment and

provide a positive attitude that is necessary to compete in the new economic age.

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By operationally defining what is expected of the worker and gearing training to

improve what the worker already knows, management creates a positive

experience. This feeling is generalised to feeling good about the organisation,

about the work being done, and about himself or herself.

Training workers to achieve statistical control results in improvement of quality.

The system's capability becomes known, and the company knows what it is able

to produce consistently and at what price. This is vital information to customers

and can make the company a much wanted supplier.

Training is extremely important in changing an organisation from its current state

to a state of never-ending improvement. The entire organisation, including top

management and union officials, should participate in training in the new

philosophy and methods. There are, however, several pitfalls that can impede the

training process (Gitlow & Gitlow 1987:108-109):

Management using training as a reaction to problems

It is very easy to throw training at a problem, instead of analysing the

problem, discovering what the real issues are, and formulating and

implementing a plan for dealing with it. This reaction is only a "band-aid"

solution that may improve the problem in the short run, but over time will

not solve the problem and may create more problems.

Continuing to rely on on-the-job training

Management has to give up the notion that employees can train each other.

It is management's responsibility to provide employees with the tools to do

their jobs. One of those tools are proper training. Deming considers

reliance on on-the-job training a serious disease in modern industry.

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Failure to realise that training is a process requiring never-ending

improvement

Management has a tendency to believe that when people have completed

training, they are trained for ever. Training is a process that should be

constantly refined.

Delaying implementation of the training

Once people are trained, they should be given the opportunity to use what

they have learned as soon as possible. This will substantially reinforce

their learning.

7 Adopt and institute leadership: modem methods of supervision

Supervision is a critical link between top management and workers.

Instituting modern methods of supervision is key in changing an

organisation, because supervisors wield a lot of power in their

interpretation of management's edicts and actions. Deming (1982:32-33)

suggests that the responsibility of supervisors be changed from sheer

output targets to incorporate a quality component. Supervisors must be

responsible for identifying barriers to the quality improvement process.

Therefore, management has to work closely and carefully with supervisors

to ensure their acceptance of the new philosophy and the carrying out of

their new responsibilities. Management has to provide a role model for

supervisors, helping people accept change and creating a supportive

environment.

The new method of supervision concretely demonstrates a long term

perspective. Using control charts to monitor the worker's performance

necessitates a long term view because the worker is looked at over time,

rather than on a day-to-day or hour-to-hour basis. By concentrating on

process control and considering normal variation, the supervisor is clearly

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communicating management's long term commitment.

Another way that the new supervision demonstrates long term commit-

ment is through the amount of time and resources that are devoted to

employees and their learning and development. The supervisor's job is to

promote the growth and development of the employee through a long term

trusting relationship. It is within the context of this relationship that the new

philosophy is made real for the worker and the employee can believe that

top management cares about its workers.

Instituting modern methods of supervision is managing for success. It

generates a positive atmosphere because supervisors are not policing

workers and blaming them for the handicaps of the system. The worker is

treated with dignity, trained and supervised properly, and knows what the

job is so that performance can improve. It is a cycle of positives that is set

into motion by the new supervision methods and attitudes.

Changing the way supervision is practiced is a very important element of

the journey to quality. It involves major alterations in people's day-to-day

existences at work. Problems that may impede efforts to improve include

the following (Gitlow & Gitlow 1987:126-127):

i) Failing to view the worker as a whole human being

Employees are humans with lives outside of the organisation. Taking a

long term view can help supervisors support an employee through illness,

family problems, or substance-abuse problems. If the employee is seen as

a valuable resource to the organisation, these difficult times that everyone

experiences occasionally should be looked on as temporary and

surmountable, not as something for which the worker is penalised.

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ii) Ignoring the union in the implementation of the new supervision methods

Union people have to understand supervision with statistical methods.

They must be involved in training in the new philosophy, from the

beginning, so that they can understand the type of supervisory climate you

are trying to create. Otherwise, they will think that this is just a more

sophisticated, precise way to police employees, and they may sabotage

your efforts.

8. Drive out fear, so that everyone may work effectiveiy for the company

If quality is to improve in all aspects of the organisation, then the quality of

work life must improve for everyone. People need a consistent, supportive,

nonthreatening, secure environment in which to work. This can only be

achieved through top management's commitment to treat people in a

manner that allays fears and anxieties. Top management has to be given

that same type of atmosphere, boards of directors and stockholders cannot

motivate managers by fear. Otherwise, the mandate will be to use fear on

subordinates to achieve goals. The quality improvement process is

founded on employee involvement and understanding, two factors which

are unlikely to emerge where employees are fearful in their jobs (Deming

1982:33-35).

Setting up long term goals that are consistent with the new philosophy will

aid in driving out fear. People will be impressed with the new goals of

improved training and supervision, not blaming workers for problems in the

system - all of which are indicators of management's commitment to

reducing fears. Using control charts to monitor the process involves a long

term perspective on process improvement that will eventually assist to

reduce fear. The workers will become more open and honest about

discussing barriers to performing their jobs because they will sense that

problems will be acted upon. When fear is in the system, everyone in it

operates for short term gain at the other's expense, instead of as a team

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with a long term goal of quality and process improvement.

Driving out fear involves managing for success. Management provides the

workers with adequate training, good supervision, and proper tools to do

the job. Management measures performance fairly by using control charts

to separate problems of the system from those of the workers. People are

treated with dignity, and fear is removed from the work environment. When

all of these elements are in place, people want to work with management

for the overall good of the organisation and to share in its success.

Eliminating fear is one of the first things that should be acted on in the

organisation's journey to quality. It can bring about tremendous changes

if management is sensitive and responsive to people's concerns. Potential

pitfalls include the following (Gitlow & Gitlow 1987:137-138):

Avoiding the problems of people

Human beings have emotions that strongly influence their behaviour. Their

fears are a barrier to their emotional well-being and their job performance.

Managers' job is dealing with employees' problems, eliminating their fears,

and encouraging their development as people. Managers have to relate

to employees on a person-to-person basis and should accept their

employees' anxieties as normal emotions that can be dealt with and

ameliorated. After all, managers may have experienced the same fears

and should be able to communicate this to their subordinates.

Not planning for the new fears that the new philosophy may create

Management's concentration on driving out existing fears may involve a

serious oversight. Implementation of the new system may introduce new

fears into the environment, such as the fear of opening up and revealing

oneself, and a mistrust of management's new attitude. These new fears will

have to be foreseen and be dealt with in training and supervision.

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Management may feel that it has traded in one set of fears for another, and

become frustrated. However, ignoring the new fears will not make them go

away. They can be handled properly if management addresses them and

works with employees and the union to alleviate them.

9. Break down organisational° barriers - everyone must work as a team

to foresee and solve probiems

The internal organisational structure gives rise to barriers between

departments, and barriers between areas within departments. Competi-

tion, personal grudges, different ways of looking at a problem, and different

priorities are common barriers to communication and team-work. Barriers

also exist between levels in the hierarchy. Poor communication between

employees and supervisors, supervisors and middle management, and

middle and upper management is common.

Every department and individual in the organisation must be seen as a

customer and a supplier. They receive products and services from

colleagues in the process and after working on it, pass it on to the next

stage in the process. Prior to reaching its final user, a product or service

has been impacted on by many individuals or departments, all of whom will

have an effect on its quality. It is therefore important that each individual

or department in the process is aware of the quality requirements of the

next stage in the process. An internal client attitude must prevail to ensure

continuous quality of products and services (Deming 1982:33-35).

Breaking down barriers requires a long term perspective. These barriers

were created over a long period of time, and it will take time and patience

to remove them. If an organisation is to adopt the new philosophy of never-

ending improvement of quality in the extended process, then all areas have

to work as an integrated whole. Vendors should be involved and be

communicating freely with the organisation. Customer surveys and

employee surveys should be done to break down barriers between the

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organisation and its consumers and employees. Labour unions and

management have to remove obstacles that impede their cooperation.

Removing barriers to communication between all of these entities in the

extended process is an important aspect of adopting the new philosophy.

Driving out fear and breaking down barriers between all members of the

extended organisation will go a long way in signalling the arrival of the new

system and the eventual phasing out of the old one. Breaking down

barriers in organisations is a difficult endeavour, but its rewards are great.

Pitfalls that may impede efforts include the following (Gitlow & Gitlow

1987:150-152):

Management's fear of losing the chain of command

Managers, who are take-charge people, may have a difficult time giving up

some control to the teams. They may see it as undermining their authority

and may not be able to give the team the autonomy it needs to function.

Management's denial that barriers exist

Managers like to believe that they are doing a good job at working with their

people. The news that people in their department don't communicate with

them or each other is generally greeted with denial and avoidance.

Barriers can be so strong and so engrained in an organisation that the

thought of removing them is absolutely overwhelming.

Failure to deal with people's fears

Efforts at breaking down barriers can be impeded by fearful employees who

are scared of the change. They have learned how to get along in the old

system, they know it and are comfortable with it. But they are unsure what

.their role will be in the new system and are consequently scared. They will

tend to cling to something familiar - the grapevine - which can become a

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very negative, destructive force. It can distort information, reinforce old

barriers, create new ones, and generally wreak havoc on attempts to

transform the organisation.

10. Eliminate arbitrary numerical goals, posters, and slogans Tor the

workforce which seek new levels of productivity without providing the

methods to achieve them

Eliminating arbitrary numerical goals for the workforce is a strong statement

that signals management's commitment to the never-ending improvement

of quality (Deming 1982:36-40). Management must demonstrate a long

term perspective and a constancy of purpose by unifying the entire

organisation around this larger goal. Everyone should be made aware of

management's desire to stay in business and to compete on the basis of

quality improvement, as opposed to pushing the workers on quantity.

Therefore, the new goals will now be set in the quality context, instead of

. arbitrarily targeting some "magic" number as a goal to reach. The new

attitude will be graphically shown to workers when posters and slogans are

removed from the work-place. Replacing arbitrary goals with the use of

statistical methods, particularly process control charts; will also aid in

strengthening management's credibility. Workers will begin to believe that

they are not being pushed to produce, penalised for variation, or expected

to bear the burden of management for taking responsibility for the system.

The training and ongoing supervision that will be provided will be so

thorough and comprehensive that the use of posters and slogans will seem

ludicrous. Supervisory relationships that are developed over time, allowing

trust, support and guidance to replace fear and insecurity, will motivate

employees far more than a numerical goal or poster ever could.

Removing posters and slogans from the workplace and replacing them with

meaningful goals, eliminating arbitrary numerical goals and their

derivatives, and introducing planning based on statistical process control

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are key action points on the Deming agenda. Potential pitfalls are the

following (Gitlow & Gitlow 1987:161-162):

Management's inability to trust the new goals

Management traditionally has relied heavily upon numerical goals because

it holds the erroneous nations that these: (a) let individuals clearly know

what is expected of them, (b) improve communication between supervisors

and subordinates, and (c) are needed as motivators to keep people on

track. Programmes or campaigns which command a task but leave the

worker powerless to achieve the objective constitute management by fear.

Using numerical goals for evaluation

A common belief is that numerical goals make the evaluation process more

equitable by pausing on specific accomplishments and by letting

subordinates know how they are doing in relation to the organisation's

goals. The problem is that not all accomplishments can be quantified and

not all accomplishments (or their lack) are due to the employee's efforts.

The system may be responsible.

11. Replacing management by numbers with never-ending improvement

Work standards, measured day work, and piece work are names given to

a practice in industry that is contributing greatly to the demise of quality,

productivity, and competitive position (Deming 1982:40-43). Management

demonstrates its short term perspective by establishing work standards and

quotas. Both of these are set at a particular point in time and often fail to

take into account changes in the process over time. Eliminating work

standards and replacing them with control charts that can analyse, monitor,

and change the process will signal the commitment to a long term

perspective.

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Employing statistical process control charts is managing for success

because it allows management to see what really exists in the process, not

only some arbitrary figure that it desires. Everyone become involved with

actions that can improve quality. The environment undergoes a

transformation and becomes a positive, successful, quality-oriented place

to work.

Getting rid of work standards and quotas will be difficult because they are

so much a part of many organisations. Transformation cannot take place,

though, unless they are eliminated. Possible pitfalls in this process include

the following (Gitlow & Gitlow 1987:170).

Clinging to a short term view

One of the pitfalls management can succumb to is not realising the long-run

process improvement potential of eliminating standards and quotas.

Maintaining a short term view, rather than a process view, will cause the

further decline of productivity, quality and competitive position.

Accepting current work standards as the "Best We Can Do"

Often, the present work standard is nationalised as a technological limit of

performance for the process. This reduces hopes for long term process

improvements because people feel that there is no possibility to get better.

Management has to refuse to condone this line of reasoning and must

continue to stress never-ending improvement. Pilot projects that succeed

in process improvement have to be a priority, and their results should be

communicated to everyone in the organisation to inspire further

improvements.

12. Remove barriers that rob people of their pride of workmanship

Deming (1982:43-47) stresses the importance of treating and involving

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hourly paid employees in the quality improvement process. These

employees have an important role to play in the quality improvement

process, and must be provided with the understanding, opportunity, and

tools required to participate.

Restoring pride of workmanship necessitates a long term perspective on

management's part. Employees must be viewed as the most valuable

resource of the organisation and their pride of workmanship as essential

to the company's existence in the long run. Workers who are not frustrated

about barriers to the performance of their jobs will put forth their best efforts

for the good of their company. Establishing constancy of purpose,

developing a mission statement, and socialising employees to the mission

will aid in developing the worker's identification with the goals of the

company and pride in being part of an organisation that has as its mission

never-ending improvement of quality.

In contrast, managing for failure, accepting poor quality as a way of life,

and handicapping employees with problems in the system - rob all workers

of their right to pride of workmanship. Management must provide workers

with defect free materials, must use statistical methods to analyse and act

on causes of variation, and must provide proper supervision and training

to do this. Managing for success involves a positive approach to problem

solving, communication between and within departments, and elimination

of fear, all of which will contribute to pride of workmanship.

Removing barriers to pride of workmanship is an ongoing process that

requires constant attention to details and sincere concern for employees.

Failure to act on this point "may be the single most important contribution

of management to poor quality and loss of market, save for failure to act on

Point 1" (Deming 1982:66). The following are some of the possible pitfalls

that could impede management's efforts to restore pride of workmanship

(Gitlow & Gitlow 1987:179-180):

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Top management's isolation from employees

Top management is protected by an absorbing layer of middle

management, whose job often is to make top management think everything

is fine. Top management then views the organisation through rose-

coloured glasses, believing that the employees can take pride in their work.

Management doesn't realise the degree to which employees fear physical

harm due to unsafe equipment, have to work with defective materials, are

not properly trained and supervised, etc., so consequently it doesn't realise

that things need to be changed.

Establishing a Quality Control Department

Setting up one department as responsible for quality sends the message

to everyone else that quality is not their concern. Management has to help

everyone incorporate never-ending improvement of quality into their every

action. Otherwise, there is a loss of pride because management is seen

as not really caring about the individual employee's level of quality.

Failure to follow through on employee's suggestions

Very few things can anger and disenfranchise an employee as much as

being ignored. Being unresponsive to workers by not following through, or

failure to give feedback on why something can't be done or why there are

delays is unconscionable. Putting up a suggestion box is worse than

useless if no one gives feedback on the employee's ideas. It will only serve

as a symbol of management's inability to relate to employees and of its

reluctance to deal with problems face-on.

13. institute a vigorous program of education and seif-improvement for

everyone

Training (Point 6) provides an immediate change in behaviour. Results of

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education may not manifest themselves immediately, but it can have far

reaching long term effects. Education develops employees for changes in

their current and future jobs, in respect of procedures, materials,

machinery, techniques, quality characteristics, and operational definitions.

Everyone's job will be changing to incorporate the use of statistical

methods, from management to hourly workers. Education must be provided

so that the transformation process can occur smoothly. Education and

training can prevent employee burnout because employees are exposed

to new information and are provided with a forum to discuss problems. This

can be very valuable because it stimulates interest in the job and

encourages involvement in problem solving.

Other areas that education and training could cover include basic skills

such as maths, reading, and verbal and written communication; job related

subjects such as chemistry or electronics; and personal improvement topics

such as substance-abuse education or stress reduction. The reason for

providing in these needs is often because public education has not met the

needs adequately. The organisation must attend to its employees'

educational needs if it wants to utilise them to their fullest potential and to

promote job satisfaction.

Education and retraining are critical components of managing for success

(Deming 1982:47-49). Being responsive to customers' changing needs is

an important part of never-ending improvement of quality. If an

organisation does not educate and retrain its employees in state-of-the-art

methods, there is a low probability that customers' needs will be met.

Several pitfalls in relation to training have been discussed in Point 6.

However, continuous education and retraining involve two additional

potential problem areas (Gitlow & Gitlow 1987:189-190):

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I) Management's reluctance to get involved

Sometimes top management feels that it really doesn't have a need for

continuous education or retraining and that this need only applies to the

workforce. Self-improvement is an ongoing task of education and self-

development, and is the responsibility of every member of the organisation.

ii) Service departments' belief that never-ending improvement of quality

applies only to manufacturing areas

This is a common misconceptioh, usually brought about by the use of only

production examples in training. All efforts should be made to develop

service examples, as the tools, methods and requirements are equally

applicable to service areas.

14. Structuring for never-ending improvement

Point fourteen is the embodiment of the philosophy itself. Its major thrust

is that top management has to accept the responsibility for the never-

ending improvement of quality in organisations and has to create a

structure conducive to the implementation of this philosophy (Deming

1982:49-50). Without top management's realisation that it is in deep .

trouble and that it must make a commitment to change, frustration at the

lower levels is inevitable, and workers will labour in an atmosphere full of

inconsistencies, inequities, needless competition, and fear. This will wear

down and burn out middle management and employees.

Changing the structure of an organisation necessitates a long term

perspective because the short term effects may be somewhat chaotic and

unsettling. Until top management has trained a substantial number of

people in the new philosophy, confusion, distrust, and miscommunication

may exist. Management can only undertake these organisational changes

if it is prepared to allow enough time for people to adapt to the new

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structure and methods. Patience and an understanding of the process of

change will enable management to see the company through its

metamorphosis.

Pushing the 14 points means absorbing them and living them in a manner

that integrates statistical methods, an understanding of systems and a

concern for everyone in the organisation. This holistic approach is a

proven way to improve quality, increase productivity, and gain competitive

advantage.

3.2.2.2.3 Summary

Deming is widely regarded as the person who helped to bring about the Japanese

quality revolution. He is associated with SPC and other problem-solving

techniques which measures performance in all processes. His definition of quality

is that of satisfying the customer, not merely to meet his expectations, but to

exceed them (Deming 1982:225). Deming has stressed the need to stay ahead

of the customer, to anticipate his needs and demands, and his philosophy thus

starts and finishes with the customer. The aim is to add value which the customer

wants.

The means to improve quality are in the ability to control and manage systems and

processes properly, and the nature of management responsibilities in achieving

this. SPC aims to improve processes and reduce the inevitable variation which

occurs in production from common and special causes. Common causes of

variation are systematic and are shared by many operators, machines or products.

The elimination of common causes is the responsibility of management. Special

causes relate to the lack of knowledge or skill or poor performance and are the

responsibility of operators and workers.

Deming stressed the responsibility of top management to take the lead in

changing processes and systems. Management should give workers clear

guidelines for what is considered acceptable work, and provide the tools to

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achieve it. These tools include the appropriate working environment and climate

for work - free of fault finding, blame or fear. Deming also strongly promoted

employee participation at all levels of the quality improvement process. Table 2.9

depicts the key characteristics of Deming's approach to TOM.

Table 3.6 Salient characteristics of Deming's approach to TOM

CATEGO ''Y ELEMENTS OF QUALITY' (FOCUS PONT

A General Definition of quality Main emphasis Dominant factor Scope of application Applicability-sector

Customer led Process Control of variation Holistic Manufacturing emphasis

B External Customer focus

Market focus (environment) Vendor/buyer relationship

Surprise, delight customers; anticipate customer needs Quality needed to stay in business Considered integral; quality requirement of vendors

C Organisational context

Primary change agent Top management role

Management style

Organisation culture

Top management To promote quality, to improve the system Participative Quality as an organisational culture Integrated-need to break down "barriers"

.

D Organisational requirements

Top management commitment Employee involvement/participation Education and training Inventment in non-human resources

Essential starting point Essential Essential - a vigourous programme Not specified

E Means/ techniques etc.

Cost of quality (appreciated) Training programmes

Participation feedback (eg. communication, quality circles)

Statistical methods Recognition/rewards system

Inspection procedures

Reduce total costs Essential - especially training on the job for all to reskill Achieve in both positive way (eg. teamwork) and negative way (eg drive out fear, eliminate exhortations) Statistical process control Increased job satisfaction through quality and pride in workmanship. Performance appraisal irrelevant. End mass inspection, which accept errors/defects. Obtain statistical evidence of built in quality.

F Change Pace of change

Nature of change .

Implicit gradual in implementing the 14 points Continuous improvement philosphy

Source: Own compilation

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3.2.2.3 Kaoru Ishikawa

3.2.2.3.1 Brief biography

Kaoru Ishikawa was born in 1915, and earned a degree in applied chemistry from

the Engineering Department of the University of Tokyo in 1939. After World War

II he became involved in Japan's efforts to promote quality. In 1947, he was

appointed as assistant professor at the University of Tokyo, and, after obtaining

a doctorate of engineering, he was promoted to the position of full professor in

1960. He became president of the Musashi Institute of Technology and, until his

death in 1989, was the foremost figure in Japan regarding quality management.

He was the first to use the term "total quality control" and developed the "Seven

Tools" that he thought any worker could use (Ishikawa 1985:44). He received

many awards during his life, including the Deming Prize, the Second Order of the

Sacred Treasure, the Nikon Keizai Press Prize, and the Grant Award from the

American Society for Quality Control for his educational programme on quality

control.

3.2.2.3.2 Ishikawa's approach to TQM

Ishikawa defines quality as the development, design, production and service of a

product that is most economical, most useful, and always satisfactory to the

customer (Ishikawa 1985:44). He argues that quality control goes beyond the

product and encompasses after-sales service, quality of management, quality of

individuals and the company itself. Ishikawa (1985:44) also advocates that, since

ensuring the production of a quality product or service is impacted on by the entire

organisation, and since the essence of TQM is the prevention of defects, everyone

in the organisation must participate in and promote quality control, including top

executives, all divisions within the organisation, and all employees.

Ishikawa (1985:172-84) states that TQM is a revolutionary management

philosophy characterised by five strategic goals.

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1. Seek quality before profits

This requires a fundamental change that ideally starts at the top and

gradually permeates the entire organisational belief system. Communi-

cating the importance of quality requires that top management:

establish long-term quality objectives as key elements in corporate

strategy;

maintain support of quality when significant trade-off decisions are

made;

maintain performance standards and conformance to requirements;

avoid giving double messages to employees;

encourage behaviour that seeks to improve rather than maintain the

existing business.

By recognising the interrelationship between customer satisfaction,

quality, and market share, managers will be able to realise their

traditional bottom line profit goals as the returns from paying for high

quality exceeds the incremental costs of achieving it. If an overly

inflated price is not charged for the increased quality, the firm can gain

a disproportionately higher market share with its quality investment.

2. Develop employees° it human potential through education,

training, delegation, and positive reinforcement

For TQM to take hold and permeate the organisation, companywide

employee participation is essential. In order to accomplish quality

improvement, quality of work life strategies must be well developed.

Extensive training is required to expand each employee's knowledge of

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various functions. Managers need to develop the skills of

communication, listening, and clarifying in order to specify clear

requirements, delegate assignments, and enable employees to find the

source of problems rather than continually put out fires. Understanding

motivational theory and the management skills of delegation and

positive reinforcement is necessary for the manager interested in

involving people in the identification and permanent resolution of quality

and productivity problems.

Ishikawa (1985:140-143) recommends that the vehicle whereby

employees can participate in the quality improvement process is through

the establishment of a Quality Circle (QC) programme. The basic philo-

sophy of QC activities carried out as part of company-wide quality

improvement activities are:

contribute to the improvement and development of the enterprise;

respect humanity and build a worthwhile-to-live-in, happy and

productive workarea;

exercise human capabilities fully, and eventually capitalise on these

infinite possibilities.

A QC is defined as (Ishikawa 1985:139):

a small group;

performing quality improvement activities;

voluntarily;

within the same workshop or workarea.

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This small group's activities are:

continuous, with all members participating;

part of the company-wide quality improvement activities;

self-development as well as mutual development;

control and improvement within their workarea;

utilising quality improvement techniques.

The TQM process links employee participation and human resource

development activities directly to the financial goals of the organisation.

Employees' attitudes and behaviours are recognised as the very basis

of quality and productivity gains. Each employee is seen as a creative

innovator and source of ideas to improve the products and services of

the company. The importance of shared high-quality goals cannot be

overstated. People who believe in their product or service and are

committed to what they are doing experience feelings of pride and self-

worth that are the essence of TQM. Successful TQM managers are

skilled at the development of high-quality goals, and work in their

organisations serves as a powerful source of intrinsic employee

motivation.

3. &did iong-term consumer orientation, both outside and inside the

organisation

The TQM process places primary importance on meeting customer

requirements, whether these requirements occur inside or outside the

company (Ishikawa 1985:44). A customer is defined as someone who

receives a product or service. For example, the marketing department

might be the product engineering department's customer or vice versa.

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Meeting customer requirements means that various functions must work

together to establish these requirements and clarify them as never

before. When changes in procedures occur, they are reviewed by

internal customers to determine whether the requirements need to be

changed. No assumptions are made, all requirements are verified and

acted upon. The consequence of this single process is ongoing and

extensive communication and the development of measurements,

documents, and procedures that people can trust. The extent of new

structural policies and reward-system changes required to encourage

this customer orientation is easily under estimated. The full extent to

which corporations need to be market-oriented is also frequently

misunderstood. Firms known for quality products and services establish

quality standards based on their market requirements rather than

engineering requirements or traditional financial considerations.

Companies that are serious about meeting customer requirements are

also serious about developing close working relationships with their

suppliers (Ishikawa 1985:159-160). Suppliers are significant

contributors to any quality improvement process. Internal effectiveness

is dependent upon the quality of external parts received. Company's

with a strong quality focus, typically:

develop strong interdependent relationships with a small number of

vendors;

hold vendors responsible for delivering a defect-free product;

actively involve vendors in product development and knowledge of

product use.

The result of this shared interest in quality improvement is an informal

network of companies that are bound together by their commitment to

TQM and their ability to meet the time and quality standards it

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necessitates.

4. Communicate throughout the organisation with facts and statistical

data and use measurement as motivation

For a quality management system to be effective, communication of

problems and issues must take place across functional boundaries and

up and down the entire organisation. To accomplish this goal, it is

essential that there be a common language in place that deals factually

with problems. Measurement and statistical data provide this type of

language (Ishikawa 1986:1). In many companies, the tools of

measurement are not used to their full capacity but as an employee

control that can impede productivity.

Statistical quality control tools have traditionally been used quite

differently than is the case in a TQM approach.

Traditionally, statistical quality control is:

found primarily in manufacturing areas;

related to acceptable quality levels and the process of rejecting

parts;

seen primarily as a management tool to control workers'

nonconformance.

On the other hand, the TQM approach to statistics:

emphasises the existence of measurements in all functions;

uses measurements to monitor progress toward shared goals, with

the emphasis on tracking prevention and improvement rather than

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making accept/reject decisions;

uses measurements to communicate across departmental

boundaries with data;

uses measurements to make decisions at both the management and

operations level;

uses measurements to generate shared goals and to reinforce

achievement.

Measurement and statistics become the language used by management

and employees to discuss common problems and to communicate

effectively across departmental boundaries. Accurate measurements

and data go a long way toward resolving conflicts that result from

opinions and hip-shooting decision styles and provide solid data on

which to base management decisions. Measurement and statistics

become the essen-tial link between people and productivity. With jointly

established quality and productivity standards and continuous

measurement the employee, every employee, becomes a manager. The

supervisor in turn becomes more of a facilitator and provides positive

reinforcement when there is measurable improvement.

5. Develop a companywide T itfi process focusing ail employees on

the quality-related) implications of every decision and action at all

stages of the product or service-development continuum from

design to sales

Extensive communication and an effective problem solving system

characterise the TQM process (Ishikawa 1985:196). In an environment

that supports quality improvement, every employee understands what

he or she is expected to do, recognises the costs that result from

nonconformance of product or service, and feels responsible and able

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to do it right the first time. To accomplish this goal, extensive

communication is necessary and procedures are in place that ensure

early communication of the requirements between the various functions.

This communication greatly increases the chances of a successful

outcome.

Early intervention and involvement of employees result in better

decisions and in employees who are knowledgeable about all phases of

the development cycle. In addition to early employee involvement in

product development, a TOM process will have an effective problem

solving structure, able to resolve problems across departmental

boundaries. Quality circles are supported by higher level management

teams that can resolve interdepartmental issues. Overlapping groups

are an effective concept used to increase quality and productivity:

problem-solving teams with high-performance goals are linked

together by persons who occupy overlapping memberships in

several groups;

problem solving teams exist at all levels in the organisation;

identified problems are resolved at the lowest possible level;

problems that cannot be solved are sent to the next level of

management;

higher level teams represent more than one function.

Ishikawa classifies statistical quality control techniques into two groups

of increasing complexity. The first group is the classic Seven Tools and

require minimal statistical knowledge. The Seven Tools are:

i) Pareto diagram (Ishikawa 1986:42-49)

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Cause-and-effect diagram (Ishikawa 1986:18-29)

Histograms (Ishikawa 1986:5-17)

Check sheets (Ishikawa 1986:30-41)

Scatter diagrams (Ishikawa 1986:86-95)

Graphs (Ishikawa 1986:50-60)

Control charts (Ishikawa 1986:61-85)

Ishikawa believed that these seven tools should be known and applied

widely, if not by everyone, in the company. They should certainly not be

the preserve of experts, and are simple enough for everyone to use for

ongoing improvement. More specifically they should be used by quality

circle members in analysing problems and devising improvements.

Used together, they form a powerful set of statistical tools for everyday

use.

The second group of statistical methods are for use by quality

specialists and also by managers who have responsibility for quality in

their sections. These methods include, but are not limited to:

Sampling (Ishikawa 1986:108-116)

Hypothesis testing (Ishikawa 1986:96-107)

Sampling inspection (Ishikawa 1986:117-137)

3.2.2.3.3 Summary

It is evident that Ishikawa considers TQM to be a participative form of quality

improvement, whereby quality responsibility is decentralised.

The decentralisation of quality responsibility means that responsibility for quality

is not being left with a central quality department. It assumes that all individuals

and functions within the organisation are responsible for their own quality and thus

for the quality of the organisation as a whole. Ishikawa (1985:50-88) stresses that

this process of decentralising quality responsibility needs to be promoted and

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directed by management.

A number of deliberate actions on the part of management are required to ensure

that it is supported and encouraged. First, in order to facilitate the decentrali-

sation of quality responsibility, management must adopt a management style

which will allow intervention in decision making by subordinates. Where they do

not, the workforce will not participate in the quality improvement ,process.

Second, training aimed specifically at quality improvement must be provided.

This education needs to be provided to all levels within the organisation and must

be given on a continuous basis. Third, management are responsible for

establishing and distributing a quality policy throughout the organisation. This

policy should make clear the intentions of management regarding the importance

of quality and the decentralisation of quality responsibility.

The salient characteristics of Ishikawa's approach to TQM are summarised in

Table 3.7.

Table 3.7 Salient characteristics of Ishikawa's approach to TQM

CATEGORY :: :-:-.::: ..... ISLE ENTS:OF QUALITY . - ::::::::-.:.:FOCUS.POINTS .

A General .

Definition of quality Main emphasis Dominant factor Scope of application Applicability-sector

Value led Individual quality Perceived consumer value Holistic Manufacturing emphasis, but also supplies to services

B External interface

Customer focus

Market focus (environment) •

Vendor/buyer relationship

Integral to quality definition and management Quality - an important source of empetitive advantage Selected suppliers in partnership for quality

C Organisational context

- •

Primary change agent Top management role

Management style

Organisation culture

Top management To promote quality, to improve the system Participative Quality as an organisational culture Integrated-need to break down "barriers"

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D Organisational requirements

Top management commitment Employee involvement/participation Education and training Inventment in non-human resources

Essential Essential Essential for all employees As part of overall quality drive

E Means/ Cost of quality (appreciated) Improvement - quality reduces techniques other costs etc. Training programmes Essential. All employees

should be competent in statistical process control and problem solving

Participation feedback Advocate of quality circles, as (eg. communication, quality a means for participation and circles) problem solving. Statistical methods Statistical process control Recognition/rewards system Quality behaviour and

performance to be rewarded Inspection procedures Inspection part of oepratives

role, essential in manufa.cturing

F Change Pace of change Gradual Nature of change Continuous improvement

Source: Own compilation

3.2.2.4 Joseph M. Juran

3.2.2.4.1 Brief biography

Joseph M. Juran was born in 1904 in Rumania, and went to the United States in

1912. A holder of degrees in engineering and law, he advanced to the positions

of quality manager at Westerh Electric company, government administrator and

professor of engineering at New York University before embarking on a consulting

career in 1950. Juran is regarded as one of the architects of the quality revolution

in Japan, where he lectured and consulted frequently, starting in 1954. However,

he feels that the people mainly responsible for the Japanese quality revolution

have been the Japanese operating managers and quality specialists (Juran

1994:31). In 1979, he founded the Juran Institute, which conducts quality training

seminars and publishes quality-related work.

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3.2.2.4.2 Juran's approach to TQM

Juran's approach to quality improvement focuses on management leadership and

organisation, as opposed to statistical tools and techniques (Lodge .1989:118).

According to Juran (1988 b:2.6), managing for quality improvement is done by

means of a quality trilogy consisting of three managerial processes: planning,

control and improvement.

Quality planning is the process of developing products and processes required to

meet customers' needs. It involves a series of universal steps (Juran 1988 b:2.6):

Determine who are the customers.

Determine the needs of the customers.

Develop product features which respond to customer's needs.

Develop processes which are able to produce those product features.

Transfer the resulting plan to the operating forces.

Quality control is a process used by the operating forces as an aid to meeting

product and process goals. It is based on the feedback loop, and consists of the

following steps (Juran 1988 b:2.6):

Evaluate actual operating performance.

Compare actual performance to goals.

0 Act on the difference.

The quality improvement process aims to attain levels of performance which are

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significantly better than any past levels of performance. When such levels of

performance are reached, Juran (1988 b:5.20) refers to the process as a

"breakthrough". The quality improvement process is composed of a sequence of

activities (Juran 1988 b:22.6-22.12):

Awareness: this is the phase of convincing managers that there is a

need to do something different with respect to quality.

Setting goals: goals for the quality improvement process must be set at

both the organisation and department levels, and should provide the

basis against which the quality improvement process can be measured.

Organising the overall process: this involves a number of activities, all

of which are dependent on top management support and involvement.

Juran defines quality as "fitness for use" (Juran 1988 b:24). Fitness for use is the

extent to which a product or service successfully serves the needs of the user,

internal or external, during usage. He proposes that two elements of any product

or service have a large impact on quality. The first is product performance. The

extent to which products and services perform and, therefore, meet the needs of

customers will influence the degree of product satisfaction. The primary goal of

product perfortance is to be equal, or superior, to the quality of competing

products. The second element is freedom from deficiencies. Deficiencies result

in complaints, claims, returns and rework. They collectively are forms of product

dissatisfaction. Some deficiencies impact on external customers and hence are

a threat to future sales as well as a source of higher costs. Other deficiencies

impact on internal customers only and hence are mainly a source of increased

costs (Juran 1988 a:5).

Fitness for use is determined by those features of the product or service which the

user can recognise as being beneficial to him, and is judged by the user and not

by the manufacturer. Juran classifies quality characteristics into categories known

as parameters of fitness for use. The major parameters are (Juran 1988 b:2.9-

2.11):

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Quality of design;

Quality of conformance;

The "Abilities";

Field service.

Quality of design is a technical term and can be regarded as a composite of three

separate steps in a common progression of activities:

Identification of what constitutes fitness for use to the user;

Choice of a concept of product or service to be responsive to the

identified needs of the user;

Translation of the chosen product concept into a detailed set of

.specifications which, if faithfully executed, will meet the user's needs.

The extent to which a product conforms to the design specifications is called

quality of conformance.

The "abilities" of a product are its availability, reliability and maintainability and are

mainly required for long-life products. Short-life products (food, fuel) have their

fitness for use determined mainly by quality of design and quality of conformance.

The abilities are closely interrelated and are vital for fitness for use.

The final parameter is field service. The usual determining features of this

parameter are:

It relates to activities that are carried out after the sale rather than before

the sale.

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Fitness for use

NTERRELATIOITAMOKIG:JURAWS.QUALITY

Quality of De.sign Quality of market research Quality of concept Quality of specification

Quality of Conformance Technology Manpower Management Reliability

Availability Maintainability Logistical support Promptness

Field Service

Competence Integrity

It is performed by organisations or departments regarded as service

industries or departments rather than manufacturers.

It includes extensive contractual and informal contact directly with the

user.

The above four parameters are depicted in the form of a diagram, as shown in

figure 3.8.

Figure 3.8 Interrelation among Juran's quality parameters

Source: Own compilation

Due to the central role occupied by the satisfaction of customer needs in defining

quality, Juran (1988 b:2.4) believes that quality is not a static term. He believes

that it evolves and changes as the customer's needs and requirements change

over time. This means that quality standards need to be continually reviewed,

revised and improved.

The entire cluster of activities through which fitness for use is achieved,

irrespective of where these activities are performed, are contained in Juran's

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Product Development

Marketing

Further Product Development

Customer

Operations

U Customers

quality spiral (Juran 1988 b:2.5) and is depicted in figure 3.9.

Figure 3.9 Juran's spiral of quality

Source: Juran 1988 b:2.5

The spiral shows the typical sequence of activities for putting a product or service

in the market. The first turn of the spiral of progress starts with the definition of

customer needs to enable proper product development. At the end of that turn the

experience of use creates new ideas which start a new turn of the spiral for further

improvement. The intermediate stages of the spiral will now be discussed for

clarification.

1 illiarket research

Market research for the quality parameter is needed

for the development of new products, and

for monitoring the performance of current products (Juran 1988 b:12.2).

The main purpose of this step is to identify user needs, to asses if they are

being met, and if not, to determine the cause. The information gathered

during this stage amounts to the identification of customer requirements,

and is used in the next step of the spiral : product development.

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Product deveDoprnent

Product development relates to the process of translating the needs of the

user (learned through market research), into a set of product design

requirements for manufacturing (Juran 1988 b:13.2). This activity is also

known as research and development, product engineering or design, and

its role is to develop a product which meets all the customer's

requirements. According to Juran (1988 b:13.3) there is increasing

evidence that many fitness-for-use problems can be traced to the design

stage of product development.

Supplier relations

The q-Ciality of items purchased for use in the production process is very

important as it will directly impact on the quality of the final product. Where

the quality of purchased materials is poor, either inspection costs or after

sales failure rates will be unacceptably high (Juran 1988 b:15.2).

The overall objective is the creation of a partnership with a supplier that

guarantees the quality of purchased goods to ensure that a minimum of

incoming inspection or corrective action is required.

Rflaroufacturiing pinning

Manufacturing planning refers to the accumulation of activities which place

a factory in a state of readiness to meet quality and processing standards

(Juran 1988 b:16.2). A major objective of these activities is the prevention

of defects. The process begins with the examination of the design concept

to identify alternative approaches to manufacture the product, and is

concluded when the production process is prepared and set-up for the

production personnel to commence production (Juran 1988 b:16.3).

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5. Production

Production is the activity of running the processes, machines and tools, and

of performing the associated mental and manual operations to produce final

products from basic raw materials and other components (Juran 1988

b:17.2).

Juran (1988 b:17.4-17.5) emphasises the importance of having all

decisions and actions related to product quality under the control of the

production workers themselves. However, the creation of such a state of

self-control requires that certain essential criteria must be met (Juran 1988

b:17.4-17.5). Employees must be provided with all the means to:

know and relate to the objective;

measure their performance;

regulate the process.

The three basic criteria for self-control make possible a separation of

defects into categories of controllability. If all three criteria for self-control

have been met, a defect or nonconformity is the responsibility of the

worker. A defect or nonconformance is considered management's

responsibility if one or more of the criteria for self-control have been

omitted.

The theory behind these categories is that only management can provide

the means for meeting the criteria for self-control. Hence, any failure to

meet these criteria is a failure of management, and the resulting defects

are, therefore, beyond the control of the workers.

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6. inspection and testing

By inspection and testing is understood the evaluation of quality of some

product characteristic in relation to a prescribed standard (Juran 1988

b:18.4). Inspection cannot ensure quality, it can only determine whether

or not products conform to specification, and where variation occurs, to

identify the cause. Juran (1988 b:18.109) considers inspection as part of

the preventative approach in the quality improvement process, rather than

the sole means to ensure quality. As the causes of defects are identified

and removed, through, amongst others inspection, inspection costs can be

reduced with a resulting positive effect on the cost of quality.

7 Marketing phase

This phase of the spiral is concerned with the process of persuading

customers to buy products for reasons related to product quality (Juran

1988 b:19.1), and forms part of the broader marketing activity which affects

all steps of the spiral.

8. Customer service

This section is concerned with post-production activities. These activities

may be classified into "pre-use" and "use" phases (Juran .1988 b:20.2).

After production and prior to customer use of the product, is defined as the

pre-use phase, which includes activities such as packing, shipping,

receiving and storage. The use phase includes activities such as

installation, checkout, operation and maintenance.

Juran (1988 b:20.18-20.34) recommends the establishment of a corrective

action system to identify and correct the actual cause of product failures,

either in the pre-use or use stage. The main steps of this system involves

first, information gathering through the use of field and in-company reports

(on failures and complaints), second, information processing (designed to

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identify the actual cause of the complaint or failure), and lastly, corrective

action focused on prevention of re-occurrence.

9. Administrative and support operations

According to Juran (1988 b:21.2), activities which only have an indirect

influence on quality, such as those carried out by administrative

departments, must be included in the quality improvement process. In

large organisations, these activities are very often departmentalised. As

a result, each department carries out an operating process, produces a

product, and supplies that product to other departments (their internal

customers) or the end user (external customers). The result is that each

department within an organisation will be both a client and a supplier.

A company-wide quality function arises from the fact that product quality is

the work of all departments (Juran 1988 b:2.4). Each department not only

has a responsibility to carry out its special function but also has the

responsibility for quality.

An important element of the quality spiral is that it is a process, indicating the

continuous nature of quality improvement, as opposed to the static nature of

quality control. Juran (1988 b:5.2) refers to the continual improvement of quality

in terms of a "breakthrough", as opposed to mere control.

Control to Juran's theory is the principle of prevention as opposed to inspection

(Juran 1988 b:Chapter 9). The mechanism whereby this is ensured is quality

assurance. Quality assurance is intended to provide protection against quality

problems through early warnings of trouble ahead. These early warnings take two

major forms (Juran 1988 a:264):

quality audits;

managerial reports.

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A quality audit refers to a review of performance. This review is conducted

independently by persons who bear no close responsibility for the performance

under review. A managerial report consist of periodic, structured summaries by

management on the status of quality in the various departments within the

organisation.

The trend to decentralise quality responsibility does not result in the redundancy

of the quality department. In the absence of some recognised organisation

mechanism for assuring coordination, it may be easy, for departments to

emphasise departmental results to the detriment of company results. The prime

responsibility of the quality department is to pass on the responsibility for certain

aspects of quality once it perceives that the line department is able to take charge

of this responsibility. It, therefore, has an important role to play as regards

developing new quality improvement techniques, handing these over to the line

departments, and then withdrawing to the role of providing a consulting service.

A vital element of this process is that all responsibility for operations rests with line

management, not staff management (Juran 1988 b:7.32).

In addition to the quality department, Juran (1988 a:250) recommends the

establishment of a company-wide quality committee. The main purpose of this

committee is to give the quality improvement process direction and guidance. The

roles of the committee are fivefold, namely:

to coordinate the establishment of quality goals in the organisation;

to coordinate the preparation of strategies to reach the goals;

to review actual progress against these goals;

to coordinate the administration of the reward system for goal achievement;

g, to create the infrastructure required to run the above system.

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A further element of TOM given . considerable attention by Juran (1988

b:Chapter 7) is the identification of quality responsibility for every aspect of the

organisation. Juran (1988 b:7.25-7.28) recommends the use of a responsibilities

matrix as a means to summarise quality responsibilities within the organisation.

The minimum information required in order to adhere to quality assurance systems

is to know who must do what. This information is provided by the responsibilities

matrix. This matrix will inform the individual at a glance what he/she is responsible

for doing and will guide him/her in locating supplementary information on how,

when and why.

As regarding the tools required for quality improvement, Juran (1988 b:23.1-24.40)

acknowledges the importance of statistical methods, particularly in process

improvement and process control. He stresses that statistical methods are not a

cure-all, and need to be regarded as part of an integrated approach to quality

improvement.

3.2.2.4.3 Summary

Three major concepts emerge from the work of Juran. The first is the quality

spiral, which indicates the TOM concept. The second is that of a management

breakthrough & new levels of quality management. The third is that of self-control,

based on the role of management in attaining the breakthrough.

The quality spiral conveys two messages. • The first is that quality is a total

management approach. There are specific steps which have to be executed in

striving to produce a quality product. The quality of output can only be as good

as the weakest link in this chain of steps. One could have the best quality of

design, but with a poor quality of manufacture, quality of the final product will be

poor.

The second message is that quality is a continual process. The organisation has

to move continuously through the spiral of progress to ensure fitness for use.

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According to Juran, the prime objective of TOM is the production of quality

products and services through the decentralisation of quality responsibility. The

successful decentralisation of quality responsibility relies on the workforce being

placed in a state of self-control. Only when employees are in a state of self-

control will management be able to hold them entirely responsible for the quality

of their output. The salient features of Juran's approach to TOM are depicted in

table 3.10.

Table 3.10 Salient characteristics of Juran's approach to TOM

CATEG , - ELEMENTS 0 CIJALOTY CUSPOINTS

A General Definition of quality Main emphasis Dominant factor Scope of application

Applicability-sector

Customer led People Fitness for purpose Comprehensive programme for product life span Manufacturing and services

B External Customer focus Market focus (environment) Vendor/buyer relationship

Integral to quality definition Not specific Multiple suppliers selected on quality

C Organisational context

Primary change agent Top management role

Management style Organisation culture

Management Educative, supportive,avoiding exhortation Participative, enabling Integrated

D Organisational requirements

Top management commitment Employee involvement/participation Education and training lnventment in non-human resources

Essential Essential Essential As part of improvement programes

E Means/ techniques etc.

Cost of quality (appreciated)

Training programmes

Participation feedback (eg. communication, quality circles) Statistical methods

Recognition/rewards system Inspection procedures

Objective is to obtain optimal quality Teamwork approach on breakthrough projects; annual programmes Emphasis on participation and teamwork Reference to; not intergral to approach Emphasis on recognition Eliminate inspection depart-ments

F Change Pace of change

Nature of change

Gradual Step by step, eg. break-through projects

Source: Own compilation

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3.2.3 Comparing the Gurus

The approach to TQM of various 20th century gurus was reviewed in the previous

sections. In this section, the similarity between their approaches will be

highlighted and summarised. While each of the gurus on quality has his own

distinctive approach, there is much common ground in what they say and propose.

These points are discussed below.

The importance of controlling the process and not the product.

The importance of not forgetting the human process. This is as vital, if

not more so, than the control of the technical process.

Top management is responsible for quality, and not the workforce. It is

management's responsibility to provide commitment, leadership, and the

appropriate support to technical and human processes. Thus, it is

imperative that management has a clear understanding of the process.

Management determines the climate and framework of operations within

the organisation. It is imperative that management fosters the partici-

pation of the workforce (and others such as vendors and buyers) in

quality improvement, and develops a quality culture by changing

perception of, and attitudes towards, quality.

The importance of education and training is emphasised in changing

employees' beliefs and attitudes and enhancing their competencies in

carrying out their duties.

The emphasis is on prevention of product defects, not inspection after

the event, and on the reduction of the costs of quality to improve

competitive-ness.

Quality improvement is emphasised, producing benefits over time,

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whether developed continuously or project by project. TOM is not a

programme but a process, and not an instant cure.

There is a broad agreement that all aspects of activities should be

looked at for quality improvement, as these all contribute towards

quality. Functional integration is considered as an important ingredient

of TQM.

9) Quality is a company-wide activity.

3.3 SURAM RY

In this chapter, a comprehensive overview of accredited quality management

gurus' - current and hystorical - approaches to TQM was conducted. A

comparison of these approaches concluded the chapter.

Chapter 4 defines the term Total Quality Management by means of a TOM model

which is used to discuss the requirements for implementation of a TOM process.

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ENT

CHAPTER 4

mgcoliggij

SYNOPSIS

UST OF FIGURES, GRAPHS ND TABLES

4.1 INTRODUCTION

4.2 A TOTAL QUALITY MANAGEMENT MODEL

4.2.1 Input

4.2.2 Process

4.2.3 Output

4.3 REQUIREMENTS FOR Titilfi

ENT

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4-129

4-130

4-131

4-132

4-132

4-133

4-135

4.3.1 Leadership for TOM 4-135

4.3.2 Customer focus 4-145

4.3.3 Continuous improvement 4-157

4.3.4 Employee involvement 4-174

4.3.4.1 Quality Circles 4-177

4.3.4.2 Breakthrough Teams 4-182

4.3.4.3 Control Teams 4-183

4.3.4.4 Steering Committee 4-184

4.4 SUMMARY 4-187

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CHAPTER 4

REQUMEMENTS

SYNOPSES

Total Quality Management is seen as an enabling philosophy, ie. creating the right environment and correcting attitudes to enable a good company to become a world class company. It is not a programme but a process of continuous improvement which rolls quality, productivity and cost reduction together to achieve quality products and services at the lowest cost.

The whole Total Quality Management action comes down to an enormous effort for total mobilisation in renewing the company's culture, eliminating all imperfections and continuously striving for improvement.

A customer focused organisational culture, based on the process of continuous improvement through the involvement and participation of all employees, provides the competitive advantage required for survival and growth of an organisation.

Successful organisations have some common indicators of success. These include, but are not limited to, the following:

increased productivity; increased profitability; increased market share; reduced costs and waste; empowered and enabled employees.

These indicators of success are also the outputs of the theoretical model of the Total Quality Management System described in this chapter. The parallel between these outputs and the success indicators implies that the practising of the Total Quality Management principles will be beneficial to the organisation.

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4pivyttAgni

CHAPTER 4

ENT EAR ENT

UST OF FIGURES, GRAPHS AND TABLES

Figure 4.1

Figure 4.2

Figure 4.3

Figure 4.4

Figure 4.5

Figure 4.6

Figure 4.7

Figure 4.8

Figure 4.9

Table 4.10

Table 4.11

Figure 4.12

Total Quality Management model

Quality management

An operational definition of quality for products

Customer satisfaction framework

Levels of customers' expectations

Work process model

Six step process improvement model

Deming's PDCA wheel

Continuous improvement: The only way out

Benefits of quality circles to management

Benefits of quality circles to members

Breakthrough improvement in performance

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4-136

4-149

4-150

4-152

4-159

4-165

4-167

4-173

4-180

4-181

4-183

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CHAPTER 4

REQUIREN CAP

4.1 INTRODUCTION

After consideration of the theories advanced by Crosby (1979), Deming (1986),

Juran (1988) and Ishikawa (1985), it is evident that while each theory possesses

certain unique characteristics, a number of elements are common to most of the

theories, irrespective of their point of origin. The objective of this chapter is to

develop a framework for Total Quality Management which will serve as the basis

for defining the requirements for TQM implementation.

There is almost universal agreement that there are a number of areas within the

organisation which require alignment when determining the requirements for TQM

(Beard 1989, Crosby 1979, Edosomwan 1987, Feigenbaum 1983, Garvin 1983,

Juran 1988b, Kenworthy 1986, Marash 1989, Townsend 1986). These common-

abilities can be summarised as follows:

Quality begins with delighting all customers.

The quality organisation has learnt how to listen to customers and help

customers to identify and articulate their needs.

The quality organisation leads customers (internal and external) into the

future by being proactive by anticipating future needs.

iv). Flawless, customer-pleasing products and services result from well

planned systems and processes that function faultlessly.

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In a quality organisation, the vision, values, systems, and processes are

consistent and complement each other.

Everyone in the quality organisation works in concert.

Teamwork in quality organisations is based on commitment to the

customer and to continuous improvement.

In the quality organisation everyone knows their jobs.

The quality organisation uses data and a scientific approach to plan

work, solve problems, make decisions and pursue improvements.

The quality organisation develops a working partnership with its

suppliers and customers.

The culture of the quality organisation supports and nourishes the

improvement effort of every team and individual in the organisation

under the visible, committed leadership of top management.

From these guidelines it is now possible to develop a conceptual Total Quality

Management model, according to the systems approach (Koontz, O'Donnel &

Weihrich 1984: 18-21), which will be used to determine the requirements for the

TQM process.

4.2 A TOTAL QUALM MANAGEMENT MODEL

The TQM system consists of an input, a process for transformation and an output,

and utilises the feedback communication, which originates at the output, to re-

energise the system into perpetual, ever improving motion. This model is depicted

in figure 4.1

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TOTAL CADALOTY MAMAGEMEMT MODEL

>1 CULTURE CHANGE

[INPUT

0

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3 1=1 UJ

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cn = t: PROCESS ._ = u

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0 0 „."

..75, z.), 0,,____ -.....-_, 0 x-1.- -LN3vas0

REEM

ERGI

SIN

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E SY

STEM

OUTPUT

INCREASED PROFITABILITY INCREASED CUSTOMER SATISFACTION INCREASED PRODUCTIVITY EMPOWERED & ENABLED EMPLOYEES REDUCED WASTE AND COST

• INCREASED MARKET SHARE

Figure 4.1 Total Quality Management model

Source: Own compilation

4.2.1 Druput

The input that activates the process consists of a change in the organisation's

culture. The need for such a change results from feedback regarding productivity,

profitability, customer satisfaction, costs and market share. New objectives,

strategies and key success factors are identified and the change process is led

by a visibility committed chief executive and his top management team.

4.2.2 Process

The three main elements of the process are interactive and consist of:

i) Customer focus: Customer is defined as being an internal or external

user/buyer of any product/service provided by the organisation, and also

as the owner or shareholders of the organisation who are directly

affected by the success (or failure) of the organisation.

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Continuous improvement: The continuous improvement of

productivity, quality, profitability, safety, environmental protection, asset

utilisation, knowledge, processes, etc. are essential in the advent of

competing in the global market.

Employee involvement: The active involvement and participation of all

employees, in a multi-functional capacity, in all improvement actions are

considered to be a fundamental element for the achievement of

continuous improvement.

4.2.3 Output

The output of the TOM process are the results of the process as a whole and

include, but is not limited to, the following:

0

increased productivity;

0

increased profitability;

0

increased customer satisfaction;

0

increased market share;

0 reduced waste and costs;

0 empowered and enabled employees.

Quality is of strategic importance in global competition. It must involve into a

corporate way of life as its success is largely dependent on how well it is

integrated into the corporate culture. A survey to identify critical success factors

indicated that quality, along with the globalisation of markets, is the most important

factor that will force changes in the 1990's (Kwok 1994: 14-15).

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The TOM model presented in this chapter is not only applicable to the

manufacturing environment, but also to the service and public sector

environments. This structured approach to TQM makes it implementable in any

industry with significant benefits in terms of enhanced customer satisfaction and

reduced costs. For example, AT&T Oklahoma City works (an electronic

communications equipment manufacturer) achieved a 66 per cent reduction in

manufacturing intervals, a 60 per cent reduction in inventory investment, a 50 per

cent reduction in purchased component lead time, a two orders of magnitude

reduction in incoming component defect levels and 99 per cent on time shipment

performance during the last seven years of structured TQM introduction into the

business (Pulat 1994 : 49).

While there can be no model built in concrete for TOM implementation, the TOM

model presented in this chapter indicates that TOM is a journey towards customer

delight, and not an end to a program implemented as a "colour of the month" or

"buss-word" of the 1990's.

The shift from the classic descriptors of quality to a holistic approach to quality is

being driven by focus on customer needs (Pulat 1994: 44). The previous

concepts of per cent defects and specification conformance are no longer

sufficient to describe overall quality performance. Modern understanding of

quality is greatly influenced by the needs of the customer. Customer needs in turn

define specific manufacturing/service requirements with respect to on-time

deliveries, reduced manufacturing lead times, minimum inventories and training/

retraining.

Although many agree that TOM is a philosophy, and some say it is an "art that

utilises science" (Spechler 1991: Conference Discussion), its pillars still need

defining if TOM is to be applied in industry. An operational definition is hence

necessary. The proposed TOM model is used as basis in deriving an acceptable

operational definition for TOM.

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Total Quality Management is a management philosophy, led by the CEO, that

seeks continuous improvement in all the processes, products and services

of an organisation. Ot requires a solid customer focus, a preventative

approach to quality, a profound understanding of variation, decisions based

on measurement, and the creative involvement of employees at all levels.

4.3 RE

UDRJEMENTS FOR TOM rap

With all the talk about quality improvement, many companies are beginning to get

the message. They are exploring what is needed to start a TQM effort of their

own. Becoming a total quality organisation is not an end but a journey. It takes

an organisation several years just to master the basics and then they never stop

improving. The problem for many organisations is that they are not sure where to

begin and how to approach a TQM effort. It is not so much a lack of knowledge

of what is quality, but how to get there.

4.3.1 Leadership for TQM

When implementing TQM, several fundamental activities must be accomplished

by the senior management team. These senior managers bear ultimate

responsibility for the success of the organisation and, by virtue of their positions,

have the authority to set direction, establish policy, allocate resources, and select

markets in which the firm will participate. These individuals are responsible to

their customers, their employees, and ultimately their shareholders for the success

of the organisation.

TQM requires skills in both leadership and management. Clarification of the

distinction between leadership and management is offered in figure 4.2

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Figure 4.2 Quality management

QUALOTY afiANAGEME

MANAGING LEADING

Plan Vision

Organise Align

Leading Empower

Control Coach

Care

Getting ImprovIng

resuIts systems

Source: Own compilation

To implement TQM, managing to get results will share centre stage with leading

to improve systems. The old functions of planning, organising, leading and

controlling will be diminished. In their place, leaders who vision, align, empower,

coach and care will be found.

Many authors hold that management commitment is the most important ingredient

of effective TQM implementation (Alexander 1981 : 617; Babbit 1981: 28; Bradley

& Hill 1987: 74; Beard 1989: 10; Candy 1982 : 45; Cole 1980: 25; Crosby 1979 :

21-34; Crosby 1984: 59 & 100, Dale 1984: 7; Edosomwan 1987 : 67; Ingle 1982 :

57; Ishikawa 1985: 122-128; Juran 1988b : 8.7; Kane 1986 : 28; Marash 1989 :

121; Townsend 1986: 8-9; Tribus 1988 : 29). Research has shown conclusively

that where management is not committed to the quality improvement process,

subordinates are unlikely to be committed to the process either (Bradley & Hill

1987: 72; Cole 1979: 77; Dale 1984: 7; Deming 1982 : 62; Feigenbaum 1983 :

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205; Ingle 1982: 55; Juran 1988b : 10.51; Kenworthy 1986: 21, Marash 1989 :

122; McGraw & Dunford 1987: 157; Peters 1980: 205).

The importance of top management commitment to the quality improvement

process is twofold. First, the workforce receives its standards from its leadership

(Crosby 1979: 123; Deming 1982 : 62; Ishikawa 1985: 122; Juran 1988b : 8.3;

Lomas 1986 : 218; Rieker 1983 : 16). Through their actions and behaviour,

management sets the standards for the whole organisation. For this reason, Barra

(1986 : 7) recommends that management must view quality as an attitude that

starts with them and spreads throughout the organisation. This means a

commitment from the top of the organisation down, in which management

demonstrates, by actions and behaviours, that quality, not quantity, is the issue

that guides decision making.

Throughout the organisation, management's behaviour must be orientated towards

defect prevention rather than corrective action (Crosby 1979 : 132). This requires

that management, through their own actions and behaviour, erase the attitude in

employees that error is inevitable and should be anticipated (Crosby 1979: 132;

Kane 1986: 28; Rieker 1983: 16).

Secondly, management is responsible for motivating the entire organisation

towards a participatory style of management, in which problems, organisational

information, decision making and recognition are shared with the entire workforce

(Burnham 1987: 9; Cole 1980: 41; Crosby 1984: 10; Feigenbaum 1983: 201;

Gow 1980: 18; Ishikawa 1985: 112; Juran 1988b : 10.1-10.55; Lees & Dale 1985:

21; Main 1980: 32; Shaw 1982: 36; Townsend 1986: 61-67). This involves the

development and introduction of the structures and framework required for the

participative quality improvement process (Crosby 1979: 34-54; Deming 1982 :

68; Feigenbaum 1983: 200; Garvin 1983 : 68; Juran 1988b : 10.31 & 22.5;

Townsend 1986: 171-173). These actions will facilitate and encourage employee

participation. Also, they will serve as an indication to the workforce that top

management is not only preaching participative quality improvement, but

practising it. That such a perception is held by the workforce is seen by a number

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of authors as being vital to the success of the participative quality improvement

process (Crosby 1979: 7; Juran 1988b : 22.9; Koopman 1987: 22; Nemoto 1987 :

63).

Continuous improvement of all products, services and processes is accelerated

if everyone challenges the status quo every day. Leaders can set the stage for

this challenge by developing answers to six fundamental questions:

Why do we exist, what is our purpose? (mission)

What will we look like in the future? What do we want to become?

(vision)

What do we believe in, and what do we want everyone to abide by?

(values)

What guidance will we provide to the many individuals in our

organisation as to how they should provide products and services to our

customers? (policy)

What are the long- and short-term accomplishments that will enable us

to fulfil our mission and attain our vision? (goals and objectives)

How are we going to move toward our vision and accomplish our goals

and objectives? (strategy) (Thompson & Strickland 1995: 22-57).

Answers to the first three of these questions form the cornerstones of the

leadership's framework. The mission defines why the organisation exists. The

vision shows what the organisation wants to create, and the core values explain

how it wants to act. Answers to the remaining three questions fill in the details and

build on these cornerstones.

These questions, while seeming simple and obvious, are enormously complex and

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difficult to answer, especially when an organisations's traditional products and

services are buffeted by new technologies, by competent and aggressive

competitors, or by changes in customers' expectations. Nonetheless, failure to

respond to each of these questions renders an organisation incapable of

understanding and meeting its customers' demands, unable to allocate its

resources effectively and efficiently, and incapable of capitalising on the talents

of its people.

MISSION

The question of why an organisation exists is answered in its mission statement.

This statement is comprehensive, easy to understand, usually limited to one

paragraph in length, and describes why an organisation was created, and its

primary function. The mission provides a clear statement of purpose to all

employees as they perform their daily tasks. This statement, when published and

disseminated to employees throughout the organisation and widely communicated

to customers and the public at large, commit an organisation internally and

externally to a specific purpose. A well-articulated mission statement also guides

employees as to how they should manage their activities and sets a level of

expectation among customers as to what they should expect to get from this

organisation.

VISION

The vision provides a description of what the organisation will evolve into in the

future and, like the mission statement, provides continuous guidance to

employees at every level as to how they should manage their respective

responsibilities. Usually, the vision is drafted as soon as the mission statement

is completed and is developed through the same collaborative process.

The vision need not be described in precise financial or market terms. Rather, the

intent is to provide a broad description of what an organisation can become if

everyone's efforts are focused and successful. The vision is less a dream, less

4 - 139

a soft expectation of what is desirable, than a realistic picture of what is possible.

The vision states what the organisation wants to become and where it wants to go.

When there is a genuine vision people excel and learn, not because they are told

to, but because they want to (Senge 1990: 206). Leaders should translate their

personal visions into shared visions that will galvanise an organisation. A vision

is shared when all the employees of an organisation have a similar understanding

of the vision and are totally committed to achieving the goals implied by it.

Leaders should develop and live an enabling and empowering vision and ensure

that the vision is (1) specific enough to act as a "tie-breaker (eg. quality is more

important than volume) and (2) general enough to leave room for the taking of

bold initiatives in today's ever changing environment (Peters 1987: 482).

VALUES

Organisations should not operate with some behaviours being expected without

ever being explicitly stated. Clear definitions of expected behaviours should be

provided so everyone has a clear sense of the values of the organisation. Stated

values must be consistent with realities and can not merely be proclaimed; they

need to be lived convincingly. The following is an example of a credible set of

corporate values:

People: Our people are the source of our strength. They provide our corporate

intelligence and determine our reputation and vitality. Involvement and

teamwork are our core human values.

Products: Our products are the end result of our efforts, and they should be the

best in serving our customers. As our products are viewed, so are we

viewed.

Profits: Profits are the ultimate measure of how efficiently we provide

customers with the best products for their needs. Profits are required

to survive and grow.

4 - 140

QUALITY POLICY

Organisations consist of many different individuals with many different opinions.

The quality level for the production and delivery of products and services should

not be left for everyone to determine individually. A written quality policy should

be provided to determine the boundaries between which products and services will

be provided. The following elements should be considered by top management

for inclusion in the organisation's quality policy:

Importance of quality, eg. "quality is first among equals."

Quality competitiveness, eg. "best in class."

Customer relations, eg. "constantly meet customer needs."

Internal customers, eg. "quality extends to all departments."

Workforce involvement, eg. "our policy is to provide 40 hours of quality training annually to every employee."

Quality improvement, eg. "we will continuously improve our services."

GO LS AND OBJECTIVES

Leaders must progress from the broad direction provided by the mission, vision,

value and quality policy statements to declare what must actually be

accomplished. Unless these statements are translated into measurable

performance targets, they will be little more than nice sets of words. Goals cover

the organisation's broad intent by defining what is to be attained through sustained

effort over the long term. By contrast, objectives define what is to be achieved in

a specific period of time. Clear-cut, measurable objectives help spur everyone in

the right direction and serve as mileposts against which progress can be gauged.

Five criteria help in framing effective objectives (Thompson & Strickland 1995:30-

35):

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Objectives should be definitive and specific;

Objectives should describe accomplishments or results, not activities or

behaviours;

Objectives should be measurable (quantifiable);

Objectives should delineate a time frame or deadline;

Objectives should be challenging yet achievable and they should be

within the control of the responsible business unit and not rely on what

might be achieved by other parts of the organisation.

STRATEGY

Having established what is to be achieved through a sustained effort over a

specific period of time, the next step for top management is to determine how

these objectives are to be achieved. This is accomplished through development

of strategies and plans to specific courses of action : Who does what by when.

One element of the strategy should be the adoption of TQM as a comprehensive

management system to achieve objectives by assuring all work is performed in a

systematic, integrated, consistent manner. The implementation of TQM becomes

the responsibility of senior management, and its pursuit of TQM is a prime

example of its leadership.

The last element of the leadership framework covers management's actions in

day-to-day activities. Commitment relates to what is done by managers

themselves and in the allocation of resources to achieve total quality in the

organisation. Although there are many examples that illustrate leadership in the

implementation of TQM, one that remains as significant as the process of forging

key statements is the demonstration of commitment by senior management. The

demonstration of commitment takes many forms and is evidenced by what

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managers do as well as what they say in daily contact with the rest of the

workforce.

The first opportunity to demonstrate commitment is often found in reallocating

resources and funding additional staff to implement the extensive training that is

required to equip all employees with skills and knowledge required to pursue

TQM. Equally important is senior management's willingness to demonstrate

commitment by participating in the same training that the rest of the workforce will

undertake. Senior management must also use the same tools, jargon, and

processes to pursue continuous improvement in everything they do and not merely

instruct their subordinates to do it.

Senior management's commitment can often be gauged against the following ten

attitudes and behaviours:

Maintaining a long-term perspective in the face of short-term pressures;

Providing a focus on meeting customers' needs and being sensitive to

the markets in which the organisation participates;

Realising that some returns are immediate but others will take three to

five years of dedication and hard work;

Stressing that improving the process is as important as attaining results

and that both must be accomplished;

Allocating resources to support TQM training and implementation;

Instituting compensation, recognition, reward, and promotions based on

the criteria that support TQM;

Fostering employee involvement and better relationships across

functions and between unions and management;

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Building partnerships with suppliers and customers for mutual benefit;

Acting as a role model; "walking the talk" using quality improvement

tools and jargon.

Leaders base decisions only on real data. Opinions are interesting, but

decisions should only be based on what is known and can be proven.

Trust is a facilitator which helps to make it possible for an organisation to function

effectively. It is hard to imagine a quality-orientated management team without a

reasonable degree of trust and credibility (Gitlow & Gitlow 1987 : 20-22). An

organisation without trust is more than an anomaly, it is a misnomer. Trust implies

accountability, predictability, and reliability. It is what sells products and keeps

organisations operating. Trust provides the foundation which maintains

organisational integrity. It is known when it is present and when it is not; it is

essential and is based on predictability. Leaders who are trusted are predictable

in their behaviour towards the TQM process, have continuity and make their

position as the sponsors of the TQM process clear. If the vision of the

organisation is to be achieved, the leader in quality management must be a

reflection not only of clarity, but of constancy of persistence and reliability (Bennis

& Nanus 1985: 46). Persistence does not always mean sticking to the same thing

forever. It does mean giving full concentration and effort to whatever one is doing.

Integrity, reflected in honesty and frankness properly clothed in tact, is a key to the

process of establishing trust in the TOM process (Crosby 1984: 155-160). There

is no greater need within quality leaders than the need for integrity (Bennis 1989:

164-167). It is, in a sense, the assurance that what one sees, what is said to be,

is something that can be counted on, without qualification in the leadership role

of the total quality organisation. Integrity in the leadership position leads to trust

within those individuals counted on to facilitate achievement of quality in the

operations of the organisation (Crosby 1984: 155-160).

TOM is a strategic process that is launched from the top executive suite and

requires both management and leadership skills. This principle, when accepted,

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sets in motion a series of activities by senior management that shapes the

organisations's future. The activities can not be delegated, and the process of

how things are done are as important as what is actually accomplished. That is

to say, the right things must be done right, the first time!

4.3.2 Customer focus

The key to gaining long-term competitive advantage is to continually meet

customers' expectations in ways that they recognise as adding value. To achieve

this advantage, it is necessary to know who the customers are, what they expect,

and how well the organisation (and its competitors) are performing from the

customer's point of view.

Organisations committed to TOM realise that achieving customer satisfaction can

not result from just doing the traditional things better. Good product quality,

warranties, and customer surveys can help, but they are inadequate without

something more. That "something" is changing the customer from a target to a

partner (Naumann & Shannon 1992 : 47). As a partner, the customer is actually -

involved in the organisation's decision making processes at many levels in the

organisation. Committed organisations recognise that customers are a valuable

asset and a source of innovation. Therefore, committed organisations actively

develop mechanisms for customer involvement comprehensively throughout the

organisation.

Demand by customers for products of progressively higher quality continues to

accelerate (Desatnick 1989 : 24-26). The world wide quality revolution evident in

a growing number of organisations has reinforced such expectations. Peters

(1989 : 78) recommends that top management become more proactive in

satisfying customer expectations by changing from a product or engineering focus

to a focus on customer-driven quality. It should be accepted that quality should

apply company-wide. Deming (1986: 168-170) suggests that quality is defined

by the customer and has many measurement scales, one for each of the

characteristics the customer considers important. Juran (1989: 15-19) defines

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quality as "fitness for use," with each product having multiple quality

characteristics of two kinds: customer-desired product features and freedom from

deficiencies. While both Deming's and Juran's definitions are customer oriented,

they are not easily used in gaining customer input to the quality improvement

process. Crosby (1979: 14) comes closer to an operational definition when he

defines quality as "conformance to requirements," because a set of specifications

can often be created that define the product from the viewpoint of the customer,

serving as a de facto means of customer feedback. If the product meets those

specifications, it conforms to requirements; hence, for Crosby, the ideal is zero

defects or meeting the specifications 100% of the time.

What do customers want? In essence, they want their expectations to be met

completely and consistently. Consumers tend to perceive the quality of a service

or product by comparing the actual service experienced or product received.

Their experience is judged to be unsatisfactory when expectations are not met,

satisfactory when they are met, and more than satisfactory when they are

exceeded. Successful organisations are able to diagnose the full set of

customers' expectations and satisfy them completely, every time. World class

organisations have the ability of understanding implicit and even latent

requirements. These latent requirements are features that customers want but do

not know are available and hence are unable to articulate in discussions with their

suppliers.

Once the customers are identified in the targeted market niche for a particular

product or service, their expectations can be determined by answering four key

questions:

What product/service characteristics do customers want?

What performance level is needed to satisfy their expectations?

iii) What is the relative importance of each characteristic?

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iv) How satisfied are customers with performance at the current level?

Finding answers to these questions begins by postulating a set of features and

characteristics that customer might want. This list of hypothetical criteria should

next be tested by directly asking customers about their preferences and

requirements. The process of learning customers' needs, requirements,

expectations, and level of satisfaction is commonly called listening to the voice of

the customer (Fontenot, Behara & Gresham : 1994: 73-76).

Garvin (1987: 101) proposes an aggressive organisational strategy to gain and

hold markets with high quality as a competitive linchpin. He argues that quality

means pleasing customers, not just protecting them from annoyances (Garvin

1987: 104), and proposes replacing defensive quality strategies with a strategic

approach based on eight customer related dimensions of quality. An

organisation's strategic choice is the combination of the dimensions it will

emphasize in defining quality for its products, which include, according to Garvin

(1987: 101-109):

perfomiance, a product's primary operating characteristics;

features, the "bells and whistles" that supplement basic functioning;

reliability, the probability of a product not malfunctioning within a

specified time period;

conformity, the degree to which a product's design and operating

characteristics meet established standards;

durability, a measure of product life which also has an economic

component;

vi) serviceability, the speed, courtesy, competence, and ease of repair of

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the product;

aesthetics, how a product looks, feels, tastes, sounds or smells; and

perceived quaiity, the image or reputation of a product.

Garvin treats these quality characteristics or dimensions as a clear vocabulary

with which to discuss quality strategy (Garvin 1987: 104). Sparks and Legault

(1993: 18-21) propose to build on this with a process flow chart that classifies

these dimensions and follows the product from conception to customer. In doing

so, all Garvin's dimensions are included and several added to make the definition

more complete. The process flow chart is the basis for both a classification

system for these quality dimensions and for a customer-focused definition of

quality that the manufacturer can operationalise.

The process flow chart, shown in figure 4.3, identifies and organises for the

manufacturer the dimensions of quality most important to the customer's

satisfaction and to his own success. It includes elements of the quality process

seen by the customer in his or her experience with the product, as well as those

that the customer never sees but that define quality from the manufacturer's

viewpoint.

The flow chart makes clear that the product is designed to fulfil some customer

need, is produced using some set of tools, techniques, machinery, etc., is sold in

a manner reflecting (and reflecting on) the quality of the product, is delivered to

the customer, and may require service after the sale. Safety and environmental

impact become a necessary part of each element of the process relating to sale,

delivery and, service, as well as the more traditional functions of design and

production. Customer perceptions of quality are important at every stage of the

flow chart, but often relate to the reputation where the physical quality of the

materials from which the final product is made is not well understood. Finally,

While the flow chart shows the stages in conventional order, it loses none of its

relevance if that order is changed, such as if the sale of a product occurs prior to

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F. DUO PRO AN OPE TOONAL:DIEFI'NOTOON OF tUfr UTTY:

PRODUCTION

Performance Conformance Facilities Quality Anticipated

Features Communication On-time Service

Aesthetics Process Place Unanticipated

Reliability Transaction Service

Durability System

DELIVERY DESIGN AFTER-THE-SALE

SAFETY AND SECURITY

PERCEIVED QUALITY

its production.

Figure 4.3 An operational definition of quality for products.

Source: Sparkes & Legault 1993: 17.

Using the concept of the TQM model (Chapter 4.2), the continuous improvement

philosophy assumes that each stage in the flow chart provides feedback to all the

preceding stages. That feedback becomes a catalyst for change and establishes

a framework for communicating with the customer on the characteristics of quality

thus far identified.

Quality in production historically has been the most important focus of the

manufacturer, with increasing attention being paid to design. Adding the stages

of sale, delivery, and post-sale service, and recognising perceived quality and

safety as important to all stages force the manufacturer to think beyond those

traditional concerns to what happens to the product during and after its sale. If the

manufacturer wants to ensure total customer satisfaction, doing everything right

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until the product leaves the factory is not enough. Failure to perform to

expectations on any one element will reflect on the manufacturer, even when the

company does not have control of all the stages of the process flow chart. The

philosophy of continuous improvement teaches that improvement of process

quality for any dimension at any stage of the flow chart increases both product

quality and customer assessment of that quality. Top management must choose

the dimensions of quality to emphasize to satisfy the target market of its products.

The objective of implementing this disciplined approach of determining outputs,

identifying customers, and identifying requirements is to enhance the supplier's

ability to meet the customers' needs and expectations and thereby increase

customer satisfaction. Clearly, the only viable means for organisations to achieve

their objectives is to meet the requirements of their customers by continually

improving work processes. Customer needs and expectations are constantly

escalating as customers have their requirements met and learn of new possibilities

from competitors. Any company that is too internally focused and not mindful of

the dynamics of the market place will eventually lose market share.

The task, then, is to pursue customer satisfaction in an organised, disciplined

manner, as shown in figure 4.4.

Figure 4.4 Customer satisfaction framework

Source: Own compilation

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Beginning with an external assessment of the customers' perceptions of the

products and services provided by the organisation, internal work processes

impacting customer satisfaction are identified and improved to remove unwanted

variation in performance. Unnecessary work steps are eliminated and variation

is minimised so that consistent, reliable delivery of service can be achieved.

Improvements are captured and made a permanent part of the new process, and

the exercise is repeated. Once process stability is achieved, the organisation tries

to improve the overall process by moving performance to a new level that better

matches what its customers are demanding. This approach enables the

organisation to continuously improve its outputs and meet its customers'

requirements.

While internal suppliers are focusing on meeting the needs of their immediate

customer (the next person to whom they are providing a product or service), they

should also be mindful of the final end user, the external customer who will

eventually consume the product or service. This awareness provides a reality

check on an organisation, in that all individuals in the organisation must

understand how their products and services are being accepted in the market

place. Later, when customer satisfaction data are reported, everyone sees his or

her value in contributing to the success of the organisation.

The characteristics of products and services expected by customers can be

viewed as a progressive hierarchy of three levels: base expectations (conjunctive

rule), specifications and requirements (disjunctive rule), and delight (lexicographic

rule) (Shiffman & Kanuk 1983: 545).

Conjunctive ruie: A non-compensatory decision rule in which

customers establish a minimally acceptable cutoff point for each

attribute evaluated. Products or services that fall below the cutoff point

on any one attribute are eliminated from further consideration (Shiffman

& Kanuk 1983: 589).

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(LATENT)

LEVEL 2

Options and trade - offs available for selection by customers.

(EXPLICIT)

LEVEL 1

Minimum performance levels always assumed present

Specifications and

Requirements

ass Expectations

(IMPLICIT)

LEVEL 3

Value - added characteristics and features that customers did not expect Oeflgh

0

Disjunctive rule: A non-compensatory decision rule in which customers

establish a minimally acceptable cutoff point for each relevant product

attribute so that any product meeting or surpassing the cutoff point for

any one attribute is considered an acceptable choice (Shiffman & Kanuk

1983: 590).

0

Lexicographic rule: A non-compensatory decision rule in which

customers first rank product attributes in terms of their importance, then

compare brands or suppliers in terms of the attribute considered most

important. If one brand or supplier scores sufficiently high, it is selected

(Shiffman & Kanuk 1983: 592).

These three levels are often referred to as implicit, explicit, and latent and are

illustrated in figure 4.5.

Figure 4.5 Levels of customers' expectations

Source: Own compilation

Delineation in this fashion provides a model for understanding the level of

performance needed to satisfy customers' expectations. The customers' base

expectations form the lowest level. These are the characteristics (or levels of

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performance) that are always assumed to be present, and if they are missing,

customers will always be dissatisfied. The next level is represented by the

specifications and requirements that are visible to customers and are actively

involved in their selection process. This is the level where explicit trade-offs are

made and terms negotiated. The highest level of performance is represented by

the value-added features that the customer did not even know about but is

delighted to receive. Performance at this level can be described as delivering all

of the explicit requirements as well as latent ones. Latent requirements are real

but are not always visible or obvious to the customer.

Recognising the performance level of any product or service characteristic offers

three advantages. Firstly, it clarifies which characteristics should be discussed

in detail with current or prospective customers. Secondly, it helps to predict how

the level of customer satisfaction might respond to a change in characteristics.

Thirdly, it indicates possible future trends in expectations. This knowledge can be

applied as follows (Zeithaml, Berry & Parasuraman 1990: 111-116):

Focus discussions with customers around the characteristics that

represent the conspicuous specifications and requirements (level 2).

Customers tend to take the base expectations (level 1) for granted and

assume that knowledgeable suppliers know this. Similarly, customers

can not be expected to appreciate level 3 features until they are

experienced.

Meeting level 1 expectations is a defensive requirement that at best will

help avoid creating dissatisfied customers.

High levels of customer satisfaction can be expected by consistently

delivering the implicit base expectations (level 1) and every explicit

specification (level 2), as well as including the value-added features

(level 3) that delight customers.

0 Customers expectation levels will escalate, and performance levels will

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migrate down through the hierarchy over time. The escalation of

customers expectations will move a latent requirement to an explicit

specification to an implicit expectation, and the continuous improvement

process has to be proactive in recognising this trend and to ensure

performance to an ever higher level of customer satisfaction.

Just as the external customer must be satisfied, the internal customer must

receive the product or service required for effective operation. Process

effectiveness, continuous process improvement, and employee satisfaction

ultimately depend on the level to which the internal customer is satisfied (Bank

1992: 16-17).

To discover the internal customer network requires the following questions to be

asked by each individual employee:

Who gets my work?

What exactly does he/she need from me?

Am I giving you what you need?

What do you do with the product you receive from me?

What can we do together to make things work better?

Employees who work with each other to this extent soon being producing

noticeable improvements. Other processes follow suit and soon the whole

operation will improve. Improvements in one area of an organisation prompts

improvements in others and in the end performance of the whole organisation

improves dramatically. Top management's role in this is to point out the

improvements to everybody concerned so that everybody eventually wants to join

the movement.

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Ongoing communication is essential. Work groups who labour in common

processes must take time to talk the process through, determining how each group

can improve the process to the benefit of all. Depending on the process, these

team meetings can select a particular part of the process for improvement, or they

can address an ongoing situation they all would like to fix. The decision is purely

situational.

Supervisors need to be on the lookout at this point. Occasionally an individual in

charge of a process dominates suppliers and customers alike. These weak links

prove difficult to satisfy beyond reason and don't place much effort into satisfying

their customers. This becomes a situational leadership (see chapter 2.4.3.3: 2-

36) problem that must be handled as circumstances dictate.

Changing to a customer-driven corporate culture must occur incrementally.

Middle managers alone can not effect a change in corporate culture - it must be

comprehensive and have the total support of the CEO and his top executives.

Such a transformation is not easy because it requires changing beliefs and values

acquired over an employee's career. This change in corporate culture is not only

possible, it is essential if organisations are to survive the next decade.

Transforming the corporate culture to a customer-orientation requires five

essential prerequisites (Naumann & Shannon 1992: 50-51):

i) First, the chief executive must be intimately involved in developing the

desired culture. A CEO must not be deluded into thinking that a change

in culture can be delegated to trusted subordinates to develop and

implement. CEO's themselves are responsible for providing the vision

and direction for their organisations. Ultimately, the CEO must be the

key change agent. Top managers must be consistent in both words and

actions. The signals they send out determine how the rest of the

organisation will follow through on the intended change in culture.

The organisation of the future will be a learning organisation that strives

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for continual improvement and flexibility (Senge et a/. 1994: 12). The

vision and direction that come from the CEO will provide the key

integrative mechanism in a flatter, more decentralised organisational

structure. Therefore, customer-driven orientation must be embraced as

a way of life and as a basic business philosophy - not as a discreet set

of activities and techniques. Ultimately, business must be designed

around the goal of maximising customer satisfaction. If "six sigma" is a

reasonable goal for TQM in production processes (Gill 1990: 42-46),

the same concept can be applied to customer satisfaction (Fontenot,

Behara & Gresham 1994: 73-76).

Second, changing to a customer-driven orientation should be viewed as

a long-term evolutionary process. It takes years to implement TQM

successfully, and it will also take years to fully achieve a customer-

driven orientation. However, key target areas for improvement need to

be identified if customer orientation is to be successful. Whatever the

areas identified, subsequent expansion of customer focus efforts must

be based on successes, not failures. The initial efforts must be

"doable", leading to identifiable results, and must be aimed where

opportunities for success are easiest to achieve.

Third, developing a customer-driven orientation must involve all

organisational levels and areas, from receptionists to production

workers. When all levels are involved, the importance of customer-

driven focus will be unmistakable. Change efforts are executed by

employees who actually contribute to customer satisfaction. This means

moving beyond simple participative management. Real delegation must

occur so that employees have a stake in the company's long-term

success. An innovative culture that thrives on change and improvement,

and rewards all employees for their contributions must be established.

Fourth, developing a customer-driven orientation requires extensive

training and development of the workforce. Everyone must understand

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how his or her job contributes to customer satisfaction. Employees must

not only know their roles; they must also recognise that their jobs can

be changed to enhance customer satisfaction.

v) Finally, a customer-driven orientation must be evaluated, monitored, and

reinforced. This means conducting complaint analysis, or regularly

monitoring customer attitudes by using surveys. While these efforts are

a start, they must also be translated into performance evaluation,

compensation, and promotion systems. Customer retention rates and

customer profitability analysis must be calculated and rewarded.

Behavioral change must be rewarded at all organisational levels, either

intrinsically or extrinsically.

Customers tend to perceive the quality of products or services by

comparing the actual level experienced to their expectations. The

process of satisfying customers therefore begins by fully understanding

their expectations. This process can be referred to as listening to the

voice of the customer and requires learning what features and

characteristics customers want, the performance level they expect, the

importance they attach to each characteristic, and how satisfied they are

with the performance of the current level. Building an understanding of

customer satisfaction and the relative importance customers attach to

each quality characteristic is a complex and difficult task. Once

understood, customers' expectations must then be translated into

product and service specifications to ensure the production or providing

of the expected products or services.

4.3.3 Continuous improvement

According to Flott (1994: 50) process management is TOM in working clothes.

Process management is a continuous undertaking, which recognises that the work

being done is accomplished through a series of processes. Everything an

organisation does, from first contact with a potential customer until the product or

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service has fulfilled the purpose for which it was created, is part of a process.

The aim of process management is to increase the efficacy of every process. The

desired outcome is greater customer satisfaction and all the benefits that accrue

along with that accomplishment. By identifying potential problems, process

management helps to guarantee defect-free results.

A process can be defined as the sequential integration of people, materials,

methods, and machines in an environment to produce value-added outputs for

customers (Sherkenbach 1987 : 36). A process converts measurable inputs into

measurable outputs through an organised sequence of steps. Four groups of

people are involved in the operation and improvement process, as shown in figure

4.6.

Customers: the people (or person) for whom the output (product or

service) is being produced. Customers are the people who will use the

output directly or who will take it as an input into their own work process.

Work groups: the people (or person) who work in the process to

produce and deliver the desired output.

Supplier: The people (or person) who provide input to the work

process. The people in the process are in fact the customers of the

supplier.

wner: the person who is responsible for the operation of the process

and for its improvement.

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Figure 4.6 Work process model

Source: Adapted from Sherkenbach 1987:36

Pall (1987: 31-32) identifies six ingredients that are essential for quality process

management:

Ownership: Assign responsibility for the design, operation, and

improvement of the process.

Planning: Establish a structured and disciplined approach to

understand, define, and document all major components in the process

and their inter-relationships.

Control: Assure effectiveness: all outputs are predictable and

consistent with the customers' expectations.

Measurement: Map performance attributes to customers' requirements

and establish criteria for the accuracy, precision, and frequency of data

acquisition.

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improvement: Increase effectiveness of the process by permanently

embedding identified improvements.

Optimisation: Increase efficiency and productivity by permanently

embedding identified improvements.

These six ingredients are fundamental to the successful management of the

quality improvement process. These ingredients are needed for the work

processes that produce and deliver products and services to customers, for the

processes that clarify requirements and satisfaction along the customer-supplier

chain, and for the processes that support employees in their jobs.

Deming has stated repeatedly, "There is no such thing as instant pudding"

(Deming 1988 : 19-22). Continuous improvement of key business processes

cannot be expected to be an exception. The application of an improvement

process requires discipline and a long-term approach by top management.

By linking Sherkenbach's four groups of people involved in the improvement

process (Sherkenbach 1987 : 36) with Pall's six ingredients that are essential for

process management (Pall 1987: 31-32), it is now possible to propose a six step

process improvement model. This six step process improvement model introduces

a systematic approach for applying quality management to any type of process.

It can be applied to any operation: information systems, marketing, finance,

administration, research and development, engineering, service, or manufacturing.

It can be applied to any system: those that exchange information with the

customer, those used to produce and deliver products and services, and those

that create the work environment.

Universal application is possible because the approach helps build a fundamental

understanding of the business processes before attempting to improve them.

Continuous improvement requires knowing what these processes are, measuring

how well they are performing and understanding why they are performing the way

they are. This profound knowledge is built through application of the first four

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steps of the process. Application of this knowledge is fundamental in the

continuous improvement process and is the basis of steps five and six of the

process improVement model.

Each of the six steps (figure 4.7) is explained and described in a straightforward,

linear fashion for clarity. Actual application, however, will often be complicated by

the need to recycle back to earlier steps as new information is gained and earlier

hypothesis are found to be incomplete or incorrect.

Step 1: Define the problem in the context of the process

The process improvement model begins by clarifying which systems are involved,

so that efforts can focus on processes, not outputs. Specific activities within this

first step are:

1.1 Identify the output.

1.2 Identify the customers

1.3 Define the customers' requirements.

1.4 Identify the processes producing these outputs.

1.5 Identify the owner(s) of the processes.

When customers' needs and expectations are not well understood, special effort

must be made to define them clearly and objectively. This lack of understanding

is often encountered when output properties are difficult to measure, as is

commonly the case when the outputs are intangible.

The owners of the processes involved should also be identified in this first step.

This task is often taken for granted because of how clear ownership is in most

manufacturing operations. For example, in manufacturing, responsibility is usually

defined clearly and documented for daily operations, preventive maintenance, and

individual manufacturing blocks of process units. On the other hand, this clarity

it often lacking in service processes. Understanding who the owners are is an

essential step in assuming that appropriate resources are applied and that

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identified improvements can be authorised and acknowledged.

Step 2: Identify and document the process

This second step in process improvement demands that the process be described

in clear, understandable terms, which is usually accomplished with a picture or

model, not merely through written or verbal description.

The process flowchart is a commonly used tool for describing processes

(Schmenner 1981 : 18). Creating a flowchart assists in performing the following

four improvement activities:

2.1 Identify the participants in the process, either by name, by position, or

by work group.

2.2 Provide all participants in the process with a common understanding

both of all steps in the process and of their individual roles.

2.3 Identify inefficient, wasteful, and redundant steps.

2.4 Offer a framework for defining process measurements.

Step 3: Measure performance

In the absence of documented performance standards, remedial work is needed

to quantify how well (or poorly) the system is performing. Further, these measures

must be defined and evaluated in the context of customer expectations. This step

is of double importance in situations where neither output requirements nor

processes have been defined previously.

Performance can be measured at three levels: process, outputs and outcomes.

Process measures define activities, variables, and operations of the work process

itself. Output measures define specific features, values, and attributes of each

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product or service and can be examined from two sides. One side represents the

output characteristics desired by the customer (requirements), and the other side

represents output characteristics actually delivered by the process (capability).

The former is referred to as the voice of the customer and the latter as the voice

of the process. Outcome measures define the ultimate impact of the process and

are dependent on what the customer does with the product or service. Customer

satisfaction represents the key measure of outcome. Flott (1994: 51) proposes

four factors that determine the health and competitiveness of a process,

irrespective of whether it is a manufacturing, service or business process. These

four qualities of a good process are:

0 Effective: A process is considered effective if it meets the requirements

of the customer; in other words, if it does what the customer expects it

to do.

0

Efficient: A process is efficient if it produces what it is supposed to

produce at the lowest possible cost; that is, if it expends a minimum

amount of time and resources. A process' non-monetary cost, its effect

on morale, public relations, and other factors must also be considered.

0

Under control!: A process is under control if the various activities are

documented and well defined, and if data control points are established,

monitored regularly and met constantly.

0

Adaptable: A process is considered adaptable if it has built-in

mechanisms - such as measurements and reviews - that allow those

responsible for the process to determine its capability to meet all

customer requirements.

Step 4: Understand why

Lack of data increases the difficulty of understanding why a system is performing

the way it is. This problem is compounded when the outputs do not appear to be

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produced by a repetitive system, as is the case for long-term processes, such as

research, development, and engineering. The six step process improvement

model is designed to bridge this gap to assure identification of the specific factors

limiting the systems capability.

By defining the problems in the context of their process (Step 1), identifying all the

steps in the process (step 2), and measuring performance in objective terms

(step 3), the classic tools of statistical analysis and quality can be applied to

understand the root causes of the performance gap. Four tools stand out for

accomplishing this step: Pareto analysis, cause-and-effect analysis, histograms,

and control charts (Ishikawa 1986: 5-85).

Deming explains that experience alone teaches nothing and must be applied to

knowledge of fundamental principles in order for learning to take place (Deming

1986: 52-53). Steps 2 and 3 of the process improvement model were designed

to provide the base of fundamental principles. This is accomplished through

flowcharting, modelling and measuring. Step 4 offers methods to acquire the next

level of knowledge and to gain a profound understanding of the process.

Answering three basic questions can help build a fundamental understanding of

the process in order to take effective and efficient steps toward permanent

improvement.

4.1 Have the vital few been distinguished from the trivial many? Juran

believes that a fundamental law of nature dictates that 80 percent of the

problems are the result of 20 percent of the causes. One key to

improvement is to identify those crucial 20 percent and focus attention

on them. The pareto analysis is a method for categorising and

recategorising causes until the vital few are found (Burr 1990: 50).

4.2 Have the root causes been diagnosed? Ishikawa suggests that the first

signs of a problem are its symptoms, not its causes (Ishikawa 1982: 18-

29). Actions taken on symptoms cannot be permanently effective. It is

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necessary to understand and act on the underlying root causes. Cause-

and-effect diagrams, fishbone charts and Ishikawa diagrams are

synonyms for a basic tool that can be used to help differentiate among

symptoms, causes, and root causes (Ishikawa 1982: 18-29).

4.3 Are the sources of variation understood? Deming explains that all

variation is caused and that the causes can be classified (Deming 1986 :

309-370). Common causes are inherent within the system and yield

random variation within predictable boundaries. Special causes are

assignable to specific reasons or events and result in sporadic variation

that defies prediction.

Taking corrective action to control variation requires knowing its type,

since appropriate actions differ according to the type of variation.

Common causes can only be solved by addressing the underlying

system. On the other hand, special causes are addressed by

eliminating their specific, identifiable source. Control charts help to

distinguish between common and special causes of variation.

Figure 4.7 Six step process improvement model

DEFINE PROBLEM

2 IDENTIFY ANDPROCESS DOC UMENT

3 MEASURE PERFORMANCE

UNDERSTAND WHY

, DEVELOP AND TEST IDEAS

u9 6 1-10CEIVOilMJECITIONS

• AND EVALUATE

Source: Own compilation

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Step 5: Develop and test ideas

The first four steps built the foundation for understanding the critical dimensions

of the process. The assured knowing what the processes are, measuring how well

they are performing, and understanding why they are performing the way they are.

These steps led to identifying the underlying causes of the principal problem.

Developing ideas for improvement begins with Step 5.

Ideas for improvement must address the root causes of the problem. Step 5 is the

point at which development of new ideas and potential solutions should be

encouraged.

Step 6: Implement solutions and evaluate

The sixth step beings by planning and implementing the improvements identified

and verified in step 5. Step 6 continues to measure : and evaluate the

effectiveness of the improved process. Step 6 also serves to evaluate the process

itself and to acknowledge and celebrate the contributions of those who

participated in this increment of process improvement. It makes no difference

whether this was the work of a individual or, as is more likely, a team effort.

Reward the contributors for the results achieved as well as for their discipline in

applying the six step model.

Finally, return to step 1 to begin the next increment in the ongoing process of

continuous improvement. A continuous improvement methodology proposed by

Deming is called the Deming (or Shewart) Wheel (Deming 1986: 88; Shewart

1986: 45). This wheel, or cycle, consists of four elements that, when performed

in sequence, provide a process for continuous improvement. These elements are

plan, do, check and act, and are shown in figure 4.8.

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CONTINUOUS IMPROVEMENT

Figure 4.8 Deming's PDCA wheel

Source: Adapted from Deming 1986: 88

Saylor (1992: 163) explains the PDCA wheel, as applied by the United States

Navy Personnel Research and Development Centre, to improve the quality and

productivity of the Navy's logistics organisations. In this model, the following

actions are accomplished during the improvement cycle:

Plan

State the goal (mission).

Define the process through a flowchart.

Determine the desired outcomes.

Do

Identify potential causes of quality.

develop baseline for process outputs.

construct an as-is process flowchart.

perform cause-and-effect analysis.

Identify process measures.

Establish data collection procedures.

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what data will be collected.

how will the data be collected.

who will collect the data.

where will the data be collected.

when will the data be collected.

perform Pareto analysis.

. Check

Collect and analyze data

histograms.

scatter diagrams.

run charts.

control charts.

Determine types of process variation causes.

special causes. * common causes.

Act

Select causes to change.

Take action on special causes.

Develop changes for common causes.

Implement common cause changes on a trial basis.

Evaluate effects of changes.

Standardise and document process improvements.

Monitor process.

Continue improvement cycle.

In the quest for continuous improvement, Deming argues that three sets of guiding

ideas are critical (Deming 1993: 111). The first concerns constancy of purpose

for the enterprise as a whole. The second has to do with complete understanding

of the nature of variation. Lastly, there is a set of guiding ideas that concern

human motivation. All human beings, according to Deming, are born with "intrinsic

motivation", an inner drive to learn, to take pride in their work, to experiment, and

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to improve. These three ideas are linked together by the common need for

everybody in the organisation to understand the causes of variation. Due to the

importance of the need to understand variation, the two types of variation are

summarised as follows:

O

Common causes of variation on a production process are causes of

variation that are inherent to the manufacturing system, or the way that

system is managed. They arise out of the process, or out of the way the

process is organised and operated. Because they are part of the

system, they are the responsibility of those who control the system: the

managers, and specifically, the top level of management. Common

causes of variation can only be reduced or removed through action by

management.

O

Special (assignable) causes of variation are causes that are localised in

nature. They are not part of the overall system, and should be

considered as abnormalities. Often they will be specific to a certain

operator, a certain machine, or a certain batch of material. Special

causes are assignable causes of variation. Thus, they are exceptions

to the system and deserve exceptional treatment. Normally, the workers

or the local supervisors can take action to identify and remove a special

cause of variation and top management action is not required.

If continuous improvement is the goal, how is progress to be measured?

Wheeler and Chambers (1994 : 12-21) identify four possibilities that

apply to every production process. These four categories are useful

ways to summarise the status of a process.

THE IDEAL STATE

The first of these four possibilities is the ideal state. A process in this state is in

statistical control and is producing 100 percent confirming products. This

complete conformity to specifications implies that all of the product is suitable for

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its intended purpose. Being in statistical control means that the variation present

in the product stream is consistent over time. Such a process will continue to

produce nothing but good product hour after hour, day after day, week after week,

as long as it remains in control. Clearly this would be an ideal state for any

process.

A process gets to be in the ideal state by satisfying four conditions:

The process must be inherently stable over time.

The manufacturer must operate the process in a stable and consistent

manner. The operating conditions cannot be selected or changed

arbitrarily.

The process average must be set and maintained at the proper level.

The natural tolerance of the process must be less than the specified

tolerance for the product.

When a process satisfies those four conditions, the manufacturer can be confident

that nothing but conforming product is being shipped. Whenever one of these

conditions is not satisfied, the possibility of shipping non-conforming product

exists. The only way a manufacturer can know that these four conditions apply to

his process, and the only way that these conditions can be maintained day after

day, is by the use of process control charts.

Therefore, if a manufacturer has a process that is operating in the ideal state, and

wants it to continue to operate in this state, he will be using control charts to

become aware of problems before they are severe enough to result in non-

conforming product. Moreover, once a process is in the ideal state, the continued

use of control charts will facilitate continuing process improvement. This will lead

to ever more uniform product, which will yield lower costs and greater productivity.

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THE THRESHOLD STATE

The second category is the threshold state. A process in this state will be in

statistical control, but it will be producing some non-conforming product. As

before, the fact that the process is in statistical control means that the variation in

the product stream is consistent over time. When consistency is seen in a

process that is producing some non-conforming product, the producer can count

on producing the same amount of non-conforming product consistently until either

the process is changed or the specifications are lowered.

The traditional solution of 100 percent inspection is not satisfactory because it can

not be perfect. As long as some non-conforming product is produced, some will

be shipped. Screening through inspection only reduces the amount of non-

conforming product shipped. The real solution is to stop making non-conforming

product. To do this with a process that is in the threshold state, the producer will

have to modify the process. If the non-conformity occurs because the natural

variation in the process exceeds the specified tolerance, the producer has to

either change the specifidations or change the process variation. Specifications

may only be changed with customer agreement. Most customers are reluctant to

agree to such a change unless they can be convinced that the producer does

indeed have a stable and consistent process. Once again, control charts are the

key to any success in getting the specifications relaxed.

If the producer decides to try to reduce the process variation, some of the common

causes of variation from the process will have to be removed. This means that the

process itself will have to be modified. Moreover, different modifications will have

different effects and the producer will have to evaluate each effect.

THE RINK OF CHAOS

The third state is the brink of chaos. Processes in this state are out of statistical

Control even though they are producing 100 percent conforming product.

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Many people find this combination hard to imagine because they are accustomed

to thinking that any process which produces 100 percent conforming product is in

control. In one sense they are right. As long as the process is producing 100

percent conforming product there will be no problem with rejected shipments. But

this happy circumstance is not likely to last indefinitely for the fact that the process

is out of control means that the pattern of variation in the product stream is

inconsistent over time. The process is unstable, and this instability will continually

change the product characteristics.

The problem with any process that is out of control is that it is subject to the effects

of assignable causes. These effects can best be thought of as changes in either

the process average or the process dispersion that apparently occur at random

intervals. So, while the conformity to specifications may bull the producer into

thinking his process is predictable, the assignable causes will continue to change

the process until it will eventually produce some non-conforming product. The

assignable causes "control" what the process will produce by determining when

the process average or dispersion will change.

THE ST TE OF CHAOS

The state of chaos exists when a process is out of control and is producing some

non-conforming product. The lack of control means that the producer is

confronted with a changing level of non-conformity in the product stream. Efforts

to correct this problem are ultimately frustrated by the random changes in the

process, which result from the presence of the assignable causes. When a

modification is made to the process the effect will be short lived because the

assignable causes continue to change the process.

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IDEAL STATE - PROCESS IN CONTROL

100% CONFORMING PRODUCT - CONTROL CHARTS

MAINTAIN PROCESS IN CONTROL GIVE TIMELY WARNING OF ANY TROUBLES

THRESHOLD STATE - PROCESS IN CONTROL - SOME NONCONFORMING PRODUCT

MUST EITHER CHANGE PROCESS OR CHANGE SPECIFICATIONS

- SORTING IS ONLY A TEMPORARY FIX CONTROL CHARTS

MAINTAIN PROCESS IN CONTROL EVALUATE EFFORTS AT IMPROVEMENT

BRINK OF CHAOS PROCESS OUT OF CONTROL

- 100% CONFORMING PRODUCT ALL MAY SEEM OKAY, BUT

- SPECIAL CAUSES DETERMINE WHAT IS PRODUCED BY THE PROCESS! QUALITY AND CONFORMANCE CAN CHANGE AT RANDOM LEADING TO CHAOS

CHAOS - PROCESS OUT OF CONTROL

100% NONCONFORMING PRODUCT - SPECIAL CAUSES STILL DOMINATE

RANDOM FLUCTUATIONS DUE TO SPECIAL CAUSES WILL EVENTUALLY FRUSTRATE ANY EFFORTS AT PROCESS IMPROVEMENT

- THE ONLY WAY OUT OF CHAOS IS TO FIRST ELIMINATE THE SPECIAL CAUSES

Figure 4.9 Continuous improvement: The only way out

Source: Wheeler & Chambers 1994: 21

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The only way to make any progress in moving a process out of either the state of

chaos or the brink of chaos is to first identify and then eliminate all assignable

causes.

All processes belong to one of these four states. Processes, however, do not

always remain in one state. It is possible for a process to move from one state to

another. In fact, there is an universal force acting on every process that will cause

it to move in a downward direction of performance. That force is entropy. It

continually acts upon all processes to cause deterioration and decay, wear and

tear, breakdowns and failures.

Entropy is relentless. Every process will naturally and inevitably migrate toward

the state of chaos. The only way this migration can be overcome is by continually

repairing the effects of entropy. A dual problem confronts every manufacturer.

The manufacturer must be able to identify both the effects of entropy and the

presence of assignable causes of variation. While entropy forces a process

toward the state of chaos, the presence of assignable causes creates a barrier to

process improvement, as shown in figure 4.9.

TQM achieves continuous quality improvement through prevention and the

systematic improvement of key processes. Systematic process improvement

relies on building a fundamental understanding of customers' requirements,

process capability, and the causes of the gaps between them through a thorough

understanding of the causes of variation.

4.3.4 Employee involvement

One of the main responsibilities of top management is the creation of an

environment which will be conducive to the development and survival of

participative forums for the continuous improvement of quality (Gregerman 1979 :

160). This view is supported by Garvin (1983: 63); Hagan (1984: 22); Ishikawa

(1985: 5-11) and McMillan (1980: 26). According to Oakland (1989: 20-26)

TQM, the new way of management, is the third revolutionary wave after the

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industrial and computing revolutions. Oakland (1989: 26) states that:

"TQM is concerned with moving the focus of control from outside the individual to within; the objective being to make everyone accountable for their own performance, and to get them committed to attaining quality in a highly motivated fashion."

Organisations must provide effective responses to the increasing quality

expectations for goods and services, changing demographics of the workforce,

competition, and dramatic shifts in the national and international market places

(Carnevale 1991 : 15-38). Employee involvement is a vital component of any

effort to develop organisations as pro-active, change responsive systems because

innovation is directly tied to the use of effective communication through employee

involvement (Kouzes & Posner 1990: 56-59). Successful employee involvement

programmes involve greater input by employees in problem-solving, enhanced

two-way communication through the sharing of information and employee input,

and more effective means of providing rewards and recognition for successes

(Truell 1991 : 1).

Participative quality improvement impacts on and is impacted upon by the

structure and climate of the organisation (Carroll 1987 : 66, Dale and Hayward

1984: 475-484; Juran 1988b : 10.17-10.18 & 10.49, McGraw and Dunford 1987 :

150). Total Quality Management does not exist in a vacuum and is a function of

the organisational climate to which it is subject (Crosby 1984: 45-52). The very

nature of participative forms of quality improvement, which entrusts employees

with problem-solving responsibility, presumes an organisational philosophy of

employee involvement and participation (Brooke 1982: 77). However, given the

tradition and characteristics of South African management and labour relations,

employee participation is unlikely to emerge spontaneously, and needs to be

enabled if the process is to unfold. This would require a set of deliberate and

specific management decisions to set the process in motion (Hagan 1984: 22,

Manning 1987 : 16). The purpose of these decisions is the developing of a

organisational climate which will be capable of sustaining a participative

improvement process (Manning 1987 : 20). This climate should be one in which

employees' ideas are welcomed and sought by management (Crosby 1984: 97;

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Tribus 1988: 30). The creation of this climate among the workforce is to a large

degree dependent on management style.

Brooke (1982: 77) and Cole (1979: 77) stress that a philosophy of involvement

of subordinates must be held and promoted not only by top management, but by

management throughout the organisation. While it is recognised that different

management styles are applicable to different situations (Hersey 1984: 34), the

total quality improvethent process and accompanying management style need to

be seen in perspective (refer to chapter two).

The decentralisation of quality responsibility and the involvement of the workforce

in the quality improvement process is central to Total Quality Management.

Engaging the participation of the workforce in the organisation does not go hand-

in-hand with an autocratic centralised or traditional management style (Koopman

et al. 1987 : 145). Under an autocratic style of management, management

reserves the right over power, decision making, authority, accountability,

innovation and the dissemination of information. Rigid control systems in turn are

administered by layer upon layer of managers each with their own rules and

authorities, each a potential source of information distortion. Rigid control

systems and creativity are incommensurate (Russel & Dale 1989: 6).

Where management style is not democratic, a more democratic, participative,

people building style has to be adopted in order to enlist the participation of the

workforce in quality improvement (Alexander 1981: 619; Koopman et al. 1987 :

94-112; Russel & Dale 1989 :10). Barra (1986 : 8) recommends a people-

orientated management style that respects the intelligence of employees, and

encourages creativity; a style that credits employees with the capacity to absorb

training and the motivation to use it constructively; a style that listens to

employees' recommendations and recognises achievements in a personal way.

Once management style and the prevailing organisational climate are supportive

of intervention in the form of subordinate decision making, it is necessary to create

some vehicle whereby subordinates can actually become involved in the decision

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making process. Participative teams are the most common vehicle used to

achieve this.

Since every individual and function within the organisation is a contributor to

• defect levels, every individual and function must participate in the quality

improvement effort. The vehicle for promoting such participation is usually some

form of quality improvement team (Crosby 1979: 152-169; Deming 1982: 107-

110; Ishikawa 1985: 137-153; Juran 1988b : 10.1-10.49; Koopman et al. 1987 :

14-45; Townsend 1986 : 44-45). There are many types and forms of quality

improvement teams, the more common being quality circles, breakthrough teams

and control teams. Due to the fact that most participative teams are based on

similar principles, these will only be addressed in the discussion on quality circles.

The coverage given to the other forms of participative teams will be limited to the

extent in which they differ from the other teams.

4.3.4.1 Quality circles

Barnard (1993: 8) defines quality circles as:

"... small groups of workers, usually between three and twelve, who perform similar work and meet regularly for about an hour a week. The meeting is chaired by a supervisor or even a self-elected leader, to identify communal problems that they themselves can solve; to analyze the causes of problems and to make motivated proposals to management for their solution."

McGraw and Dunford (1987: 151) define quality circles as :

"... voluntary groups of workers who meet regularly in paid time to identify, analyze and make recommendations to management on problems in their immediate workplace ..."

Baird (1982 : 25) regards a quality circle as:

"... an organizational tool which is used to increase employee participation in the running of the organization."

Although numerous writers have advanced different definitions of quality circles,

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their definitions have many similarities. This discussion on quality circles focuses

on the application of quality circles for employee involvement in the quality

improvement process.

Quality circles may be formed anywhere in an organisation where people work

together and experience similar problems (Dale 1984a : 56). For this reason,

members of quality circles are normally from the same work area (Barnard 1993 :

9; Daniel & Huss 1987: 9) and the same hierarchical level (McMillan 1982: 35).

Membership of quality circles is usually voluntary and no pressure is exerted on

workers to join (Alexander 1981 : 616; Barnard 1993 : 99; Dale 1984a : 56;

Robson 1984 : 2). Thompson (1982 : 116) suggests that it should also be

voluntary for a manager to decide whether to volunteer his workforce or not. The

reason for this view is that where management or their subordinates feel

uncomfortable with participation in quality circles, the project may be sabotaged.

However, Thompson also recommends that managers should undergo training as

to the workings, benefits, problems and skills required to partake in the operation

of a quality circle before deciding to volunteer or refuse participation in the

program.

The average size of quality circles varies between five to fifteen members, which

is large enough to allow each member an opportunity to be heard and yet not so

large as to be intimidating to members (Dale 1984a : 59; McCarty 1984: 100;

Yager 1979: 683).

Leadership of quality circles is usually assumed by the supervisor of the work

group in the early stages of the program (Barnard 1993: 116). The findings of

Dale (1984b : 2) indicate that the trend regarding the leadership of circles is for

it to pass, in time, from the supervisor to shop floor employees elected by the

circles' members. This suggests that after supervisors have derived the benefits

from their role as a leader, namely building a team and emphasising their position

in the workplace, they show their willingness to pass on the role of leader. This

step enhances the potential of personal development of circle members.

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Quality circles meet on a regular basis for a relatively short period of time - the

exact regularity being determined by the nature of the organisation and the

maturity of the circle (Dale 1984a : 3). Lees & Dale (1985 :13) show that the most

popular circle meeting frequency is once a week for an hour, during company time

(Barnard 1993: 8).

Quality circles are a means of providing subordinates with the opportunity to

identify and resolve problems related to their day-to-day work (Barnard 1993: 8;

Gow 1980 : 18).

The quality circle concept is based on the premise that people who are involved

in a particular job know more about it than someone else. For this reason, they

are in a better position to identify solutions to problems within their scope of

reference (Barra 1986 : 8). Quality circles, therefore, provide workers with an

opportunity to become involved in meaningful decision making in the organisation.

Quality circles may scrutinise a diversity of issues relating to their immediate

workplace (Cole 1979 74; Dale 1984b : 3). The selection of projects to be

addressed by the circles may be undertaken in a number of ways. It may be made

by the circle members themselves, it may be submitted to the circles by

management or non-members, or it may be done by some combination of these

(Barnard 1993: 142). Dale (1984b : 3) argues for the selection of projects by the

members themselves. The philosophy underlying this approach is that circle

members should be given as great a degree of ownership of the project as

possible.

Training is a very important and integral part of the quality circle process

(Harshman 1982 : 21). Thorough training enables the circle to optimalise the time

it takes to achieve goals. Spencer (1987 : 237) is of the opinion that since training

is so extremely important, it needs to be carried out effectively to ensure complete

understanding of the quality circle procedure, bearing in mind the varying retention

capabilities of the circle members. The training of circle leaders and members

must include skills in the following areas (Barnard 1993: 129):

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BENEFITS TO MANAGE 7v1 IN

Circles provide an opportunity for future managers to emerge.

Circles make management easier since they solve problems at grass roots level, allowing management to concentrate on more complex issues.

Circles place junior management in a leadership role in relation to the circles.

Improved communications.

group dynamics and processes;

information gathering and problem analysis;

decision making and presentation skills;

implementation and maintenance.

Training of circle members has a long term benefit to the trained workers and the

organisation as a whole, which is why it should be well planned and administered.

It must include technical and interpersonal skills, and according to Sedam (1982 :

74) must be comprehensive and directed at changing the organisational culture,

not merely installing a system for employee involvement. Since circle participation

is voluntary, training of leaders and members is more satisfying and effective.

The research of Lees & Dale (1985: 32-33) identified the various management

and employee benefits (Table 4.10) to flow from involvement in quality circles.

Table 4.10 Benefits of quality circles to management

Source: Adapted from Lees & Dale 1985: 32-33

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Table 4.11 Benefits of quality circles to members

BENEFITS TO MEM ERS

Circles provide the opportunity to become involved in the organisation.

Better team work within the department.

Increased job satisfaction.

Circles help relieve frustration by ensuring that something is done to remedy a bad situation.

Better relationship with management.

Increased feeling of "belonging" to the organisation.

Recognition for achievements.

Increased pride in work.

Gives them a voice in their own future.

Enables more learning about the job to be done.

Improved job security by helping the organisation to operate in a more cost effective manner.

Source: Adapted from Lees & Dale 1985: 32-33

A study by Tortorich et al. (1991: 23-24) which measured the organisation impact

of quality circles, found that quality circles had a profound positive impact on

quality through improvements in organisational variables such as production rates,

defect rates, scrap rates, attrition rates and lost time, amongst others. Similar

findings were obtained by Dale's research (1984a : 59 and 1984b : 12-15), which

highlights the following quality related benefits to emanate from quality circles:

cost and wastage reduction, productivity improvements, working conditions and

safety improvements. Dale (1984a : 61) found the estimated benefit : cost ratio

of circle projects to vary from 2:1 to 6:1, with an average of 3,6:1.

Stanton (1986: 98) suggests that one of the major benefits to flow from quality

circles is the improvement of internal communication. The positive effect on

communication comes about because organisational members, who would not

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normally communicate with one another, get the opportunity to do so during

quality circle meetings and presentations to management. Also, quality circles

promote direct communication between themselves and management (McGraw

& Dunford 1987 : 163; Stanton 1986 : 111-112). The effect, however, goes

further. Because projects are group efforts and not individual efforts, interaction

must take place not just within circles, but also between them (Yager 1979: 684).

Many authors attribute the effect which quality circles have on quality to the fact

that involving employees in the decision making process creates an environment

in which everyone is conscious of quality and the need to improve it. In addition,

giving ownership of quality to the workers tends to increase their commitment to

quality improvement (Dale 1984a : 61; Daniel & Huss 1987: 9-15).

4.3.4.2 Breakthrough teams

Breakthrough teams, task teams, project teams or ad hoc committees, are teams

of employees established to deal with specific projects or assignments, and are

usually disbanded once the assigned project has been completed (Juran 1988b

10.10). According to Juran (1964: 2), a breakthrough means "change, a dynamic,

decisive movement to new, higher levels of performance". The breakthrough team

usually consists of about six to eight members. Team members may be drawn

from multiple departments/functions or from within one department, depending on

the scope of the project (Juran 1988b : 22.26; Kenworthy 1986: 23; Nemoto

1987: 51). Kenworthy (1986: 23) found that where team members are drawn

from various departments within the organisation, departmental boundaries were

eroded and understanding between departments enhanced.

Breakthrough teams are typically appointed by top management, to work on

complex and multi-disciplinary projects with the aim to permanently improve

existing standards (Barnard 1993 : 184; Juran 1988b : 10.10 - 10.11).

Breakthrough teams therefore provide management with a top-down approach to

management within the ambit of employee involvement (Project Free Enterprise

Report 1986: 72).

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Breakthrough

Control

g 0 0 © E

r 0

DO

Trims

In contrast with quality circles, membership of breakthrough teams is not voluntary

and the team is dissolved as soon as the problem has been solved (Barnard

1993: 184).

Breakthroughs are called drives, campaigns, programs or breakouts and are

focused on quantum leaps in long-term performance (Juran 1964: 7-8), and are

illustrated in figure 4.12.

Figure 4.12 Breakthrough improvement in performance

Source: Own compilation

4.3.4.3 Control teams

Control teams are permanent teams, with an average of ten members, who meet

at least once a month to work on never-ending improvement in total quality

(Barnard 1993: 184). Participation in control teams is compulsory and the teams

shadow the organisational structure (Townsend 1986: 61-63). Every department

should have a control team, led by the departmental manager, to work on

maintaining process control as well as making small, incremental improvements

in the quality of the process, product or service relevant to that department.

Employees from the quality assurance, engineering, industrial engineering,

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maintenance and costing departments may be co-opted to form part of a control

team if it is working on a problem to which they could make a contribution (Barnard

1993: 184).

Townsend (1986: 20) believes that control teams must be given a great deal of

autonomy to implement any ideas which fall within their area of responsibility.

Recommendations for improvement should be the sole property of the team

members in order to give them ownership of the process (Edosomwan 1987 : 68).

The importance of this is twofold. One is to strengthen the participant's

commitment to the resulting recommendations. The other is to stress that quality

improvement is not something being done to participants, but an achievement of

the participants (Townsend 1986: 37). Peters (1980: 196) found autonomy in

decision making a common attribute in his research of "well run" organisations.

Townsend (1986 : 66) defines control teams as

"... the next evolutionary step beyond quality circles".

A further important distinction between control teams and quality circles is that

membership and participation in control team is compulsory. According to Lawler

and Mohrman (1985 : 65-71) low volunteer rates is a major reason for quality

circle failure.

4.3.4.4 Steering committee

Many authors suggest that some type of steering mechanism must be established

to guide and provide the various quality improvement teams with direction and

assistance where necessary (Cashbourne 1987: 109; Crosby 1984: 106; Dale

1984a : 54; Ishikawa 1985: 113-119; Juran 1988b : 10.49-10.50; Klein 1981 :

19; Tavernier 1981 : 18; Townsend 1986: 5-12). This mechanism is referred to

as the steering committee of quality improvement teams.

The steering committee is usually set up to oversee, direct and review the entire

4 - 184

quality improvement process. The committee does not assume direct, day-to-day

responsibility for quality assurance as this task is performed by each of the line

divisions in the Total Quality Management organisation. The steering committee

is a corporate level committee and usually consists of senior management

representatives, selected line and staff managers, and, where applicable, union

representatives (Juran 1988b : 22.7; Russel & Dale 1989 : 13). It may also

include a limited number of participants from the quality circle programme (Lees

& Dale 1985: 9). As many departments as possible should be represented on the

steering committee (Cashbourne 1987: 109; Crosby 1984: 106; Edosomwan

1987 : 67).

The reason for this high level involvement is that one of the prime responsibilities

of the steering committee members is to represent and be able to commit their

departments to action (Crosby 1984: 105-107).

Other responsibilities of the members of the steering committee include (Crosby

1984: 106):

to lay out the quality improvement programme;

to cause the decisions of the committee to be executed in their

department; 0

to contribute creatively to the implementation of the improvement

activities.

The overall steering committee serves as (Klein 1981: 19; Ishikawa 1985: 113-

119):

0 a forum for consideration of operational improvements which are likely

to affect more than one department, and which may exceed a certain

sum of money to implement;

cr a court of appeal for ideas or suggestions not accepted by the area

management;

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. a forum whereby management can raise improvement issues which it

wishes to communicate to all employees.

More specifically, the major functions of the steering committee are to (Juran

1988b: 22.7-22.8):

0

formulate the quality policy; 0 estimate the major dimensions, eg. cost of quality, return on investments

from prior improvements, etc;

establish a project system, choose breakthrough projects and assign

teams to them;

identify needs for training; 0

plan the training; 0

establish support for the quality improvement teams; 0 provide co-ordination of the quality improvement process; 0 revise merit rating for managers to reflect quality of operations and

improvement in quality; 0

design the quality recognition programme.

According to Lawler (1994 : 70) the most important overall focus of employee

involvement concerns locating decisions at the lowest level in the organisation.

This approach consistently advocates a bottom-up approach to management.

Jobs or work at the lowest level are thought of as designed best when individuals

or teams do a whole and complete part of an organisation's work process. In

addition, it is argued that the individuals or teams should be given the power,

information and knowledge they need to work autonomously or independently of

management control. The job of management is seen as one of preparing the

individuals or teams to function in an autonomous manner. Management is an

enabler, culture setter, and supporter rather than a controller or director or

employee action.

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4.4 SUM RY

The TQM system consists of an input, a process and an output, and utilises the

feedback communication, which originates at the output, to re-energise the system

into perpetual, ever improving motion.

The input that activates the process consists of a change in the organisation's

culture. The need for such a change results from feedback regarding productivity,

profitability, customer satisfaction, costs and market share. New objectives and

key success factors are identified and the change process is led by a visibly

committed chief executive and his top management team.

The three main elements of the process are inter-active and consist of:

Customer focus: customer is defined as being an internal or external

user/buyer of any product/service provided by the organisation, and also

as the owner or shareholder of the company who is directly affected by

the success (or failure) of the organisation.

Continuous improvement the continuous improvement of productivity,

quality, profitability, safety, environmental protection, asset utilisation,

knowledge, processes, etc. are essential in the advent of competing in

the global market.

Employee involvement the active involvement and participation of all

employees, in a multi-functional capacity, in all improvement actions are

considered to be an essential element for the achievement of continuous

improvement.

The outputs of the process is the measure of performance of the organisation and

includes, but is not limited to the following (Zairi et al. 1994: 40):

increased productivity;

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increased profitability;

increased customer satisfaction;

reduced waste and costs;

empowered and enabled employees;

increased market share.

In the next chapter, the implementation of a Total Quality Management process

is described.

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Sc

A

CHAPTER 5

0

NAG EMI EN

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5-191

5-192

5-192

5-196

5-203

5-206

5-212

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5-233

5-240

5-250

5-261

5-264

SYNOPSOS

LOST OF FIGURES, GRAPHS ND T IBLES

5.1 ONTF ODUCTION

5.2 C ITOC L F

5.2.1 Management behaviour

5.2.2 Policy management

5.2.3 Organisation for TQM

5.2.4 Employee involvement

5.2.5 Communication for TQM

5.2.6 Training and education

5.2.7 Quality technologies

5.2.8 Process management systems

5.3 CONCLUSOON

5.4 SUMMARY

r2A, CIO S FOR T ililliPLEMENT TOON

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SYNOPSIS

There is no one correct way to implement TQM just as there is no one way to run an organisation. However, there are accepted practices that have been proven to work, and incorrect ways of doing things that can lead to trouble. Between these two extremes lies the gray area that also must be used. Such will be the case of any TQM implementation process.

Reasons abound why there are so many variables in the TQM process. First, TQM fits all organisations from giant industries to small education systems. The needs vary greatly with the type and size of the organisation. The framework and ultimate goals will remain the same, but the training format, the quality manual, and so forth may be different.

The second, major reason TQM processes may vary is because TQM's main ingredient is employee involvement. People are different. The needs of people on an assembly line and in an accounting office are different. The work they do, their education backgrounds and their customers are different.

A third reason each TQM implementation effort varies is because of the organisation's current status. Some organisations have a long history of quality performance with a significant training programme. Others are just embarking on the quality journey, and may not have a training programme at all.

Regardless of where the organisation is in its struggle for quality, the basic concepts are identical. The base of the process is employee involvement; the focus is on the customer, both internal and external; and certain quality tools and technologies are required to implement and maintain the TQM process.

TQM is a long term transformation process evolutionary in character. This mandates change throughout the organisation. Different planning requirements, new systems and procedures, different leadership and management styles, new work habits, and new employee relations skills will all be part of the change required.

The TQM implementation process requires patience. It is a long-term process that takes time. It also requires continuous change. These changes are best implemented in small steps. Organisational leadership must show evidence of change before change will be accepted by other members of the organisation.

TQM builds on the strengths of the organisation and creates plans to overcome weaknesses or quality-deficient areas. This requires organisation assessments based on a well documented quality management system.

TQM implementation is not a temporary change in how things are done in the organisation. There is no agreed time frame to know when the implementation process is over and when one can begin the normal maintenance of the TQM process. It depends on the organisation, and the effectiveness of the design and action plan. Under most circumstances, a well executed innovation approach for TQM implementation should be providing measurable results within one year to eighteen months.

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CHAPTE FT 5

PILE

ERENT

LOST OF FOGURES, GRAPHS AND TA LES

Figure 5.1 Eight critical factors for TQM implementation 5-195

Table 5.2 Leadership styles and team maturity 5-198

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NG ENVORONM ENT

CHAPTER 5

GEM

5.1 DNTRODLOCTBON

The level of awareness of Total Quality Management has increased considerably

over the last few years. There is widespread consensus that TQM is a way of

managing organisations to improve their overall effectiveness. There is less

agreement as to what are the key elements of TQM and what are the critical

factors that influence the TQM implementation process. Organisations differ in

their approach to TQM. Some focus on specific areas such as quality

management systems or statistical process control, whereas others take a holistic

approach and attempt to implement TQM covering all the key areas.

This chapter examines the TQM implementation process and identifies the critical

factors that determine the success of this process.

5.2 CRilTilCAL FACTORS FOR TOM OitfiPLEMENT TOON

An extensive literature survey was carried out to identify the critical factors

necessary for the successful implementation of TQM. The writings of the quality

gurus (Crosby 1979, 1984; Deming 1982, 1986, 1993; Feigenbaum 1983; Garvin

1987, 1988; Groocock 1986; Ishikawa 1982, 1985; Juran 1988, 1989, 1994;

Oakland 1989) and several implementation case studies were considered (Barker

1991; Cook 1991; Cullen 1991; Curtis & Boaden 1988; Dempsey & Hesketh 1988;

Harvey 1989; Houghton 1991; Porter & Hird 1989; Rees & Rigby 1988; Sugden

& Parker 1989). The organisations reviewed as the case studies were clearly

influenced by the ideas of Crosby, Deming, Feigenbaum, Ishikawa and Juran.

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From these writings and the case studies, it is possible to identify eight critical

factors in the TQM implementation process that are common to successful TQM

implementation.

1 Management behaviour: Clear leadership and vision is required and

senior management must demonstrate a clear commitment to TQM and

be actively involved in the TQM process. Management should set an

example by managing quality as a key strategic issue and supporting

continuous improvement.

Policy management: Policy management is a system in which top

management establishes a corporate vision of quality and a results

oriented company policy.

Organisation for TQM: TQM requires an organisational structure which

demands and harnesses the full potential of the workforce. A team

structure provides the means of involvement and the power for quality

improvement. The hierarchical structure with a facilitation role provides

a clean line of authority for setting goals and reviewing progress.

Employee involvement: Involvement in the TQM process is a key

determinant of a successful programme. Until everyone is involved in the

process of quality improvement, there is a major cost of lost opportunity

being carried by the organisation.

Communication for TQM: Communication provides the means of raising

quality awareness and involvement and reinforcing the message. It is

also critical as a means of publicising achievements and recognising

contributions to quality improvements.

Training and education: Training and education should cover all

employees as part of an ongoing process, with the scope and depth

tailored to suit each group's needs.

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7 Quality technologies: Quality technologies, such as measurement, quality

costing and benchmarking provide the techniques to identify opportunities

and solve problems. They enable continuous improvements and

reductions in variation to be achieved.

8. Process management and systems: A key part of any TQM strategy is the

management of processes. A documented quality system, as part of the

total quality strategy, contributes to this by managing the organisation's

processes in a consistent manner.

The eight critical factors (Figure 5.1) identified above can be compared with two

other assessments of the critical factors of successful TQM implementation.

Saraph et al. (1989: 810-829) have attempted to determine the important factors

for quality management using a questionnaire technique and factor analysis. The

following eight critical factors were identified:

0

The role of management leadership and quality policy; 0

The role of the quality department; 0

Training of employees; 0

Product/service design; 0

Supplier quality management; 0

Process management; 0

Quality data recording; 0

Employee relations.

The Malcolm Baldridge National Quality Award (1995) identifies a similar list of

critical factors. As part of the award procedures, examiners assess the

performance of the organisation against seven criteria:

Leadership;

Information and analysis;

Strategic quality planning;

Human resource development and management;

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Management of process quality;

Quality and operational results;

Customer focus and satisfaction.

The similarity of these three sets of critical factors for TQM is evident. There are,

however, a few major differences. Quality results are a measure of the success

of the TQM process and not a critical implementation factor. Customer

satisfaction is an implicit goal of the TQM process. Similarly, product/service

design, identified by Saraph et al. is implicitly accepted by all organisations on the

TQM route.

Figure 5.1 Eight critical factors for TQM implementation

Source: Own compilation

5 - 195

5.2.1 Management behaviour

Top management must play an active role in implementing the systems approach

to Total Quality Management. They must discourage the work force from cutting

corners when it comes to the quality of what they do on a daily basis. The idea

of producing products quicker and cheaper should not supersede the idea of

making them better. While producing products quicker and cheaper in a major

determinant of short term competitive edge, better products and services are

invariably the determinant for long term survival. When the systems view is

implemented effectively, faster and cheaper production cycles can very well exist

with better and more profitable products.

Pulat (1994:44) argues that strong management leadership is the most important

element of the TQM implementation process. Strong management leadership is

however, not only required of the top person in an organisation, but also of all

direct reports of that person. As core members of the corporate team, they must

regularly meet with the customers and the suppliers of the organisation. Their

personal involvement and visibility in developing and maintaining an environment

that is conducive to quality excellence is needed for TQM to succeed. Lower level

leaders may help in this process through scheduled and unscheduled talks and

active engagement in goal setting, planning and performance reviews.

In the current industrial and financial environment the implementation of the TQM

process is one of the most complex projects that an organisation can undertake,

because of the need for all employees, including top management, to accept the

cultural change. It is well accepted that changing things is much easier than

changing people; nevertheless, the management structure has to take the visible

leadership from the top, involving everybody in the organisation in achieving good

quality. It is also advisable for top management to concentrate on the approach

of effective problem-solving at the early stages of a TQM process in order to

understand the organisation's strengths and weaknesses (Badiru 1990:36). In

many ways the problem-solving approach is the easiest and cultural change is by

far the most difficult aspect of the TQM process.

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Often during the problem-solving analysis stage it is usual to discover that many

of the problems which have affected company operations over a long period are

not specific to the point of emergence, but in fact have originated from basic

company-wide difficulties. As a result, the major problem-solving resource has to

be redirected at the basic problem area of the organisation's activity.

Furthermore, it can be obvious that many of the problems experienced can be

traced through the management structure of the organisation to board-level

activities (Kanji & Asher 1993:103). In general, the TOM process helps to prevent

problems occurring in the organisation and therefore the problem-solving phase

provides a beneficial insight into the TQM process.

A problem in larger organisations is that top management cannot always get to

everybody. Things get passed down from level to level and can be misunderstood

(Vasilash 1989:51). TQM is always led from the top of any organisation, and it is

therefore important to avoid a situation where it simply stays at the top. It should

be each individual leader's responsibility to propagate TQM within his/her

jurisdiction, and this must be achieved satisfactorily. If it is not achieved, there is

a risk of the process degenerating into yet another "flavour of the month".

The success of an organisation often depends on the top managers' single-

minded approach to dealing with company problems. Obviously, for some

organisations TOM means a major change in management practice, and it is

invariably difficult to implement over a short period. However, to make a

significant change in management practice it is necessary to educate managers

in their understanding and approach to TQM. Once they have mastered the

principle and practise of TOM, they can demonstrate their total commitment and

take the lead in the TOM implementation process.

According to Robson (1989:71) and Hardes (1992:46-47), demonstrations of

commitment from the top management are essential, but they are not altogether

enough. Certainly the whole of the management training and development

process in the organisation will need to be reviewed, and probably redesigned

around the principles and practices of TOM. The prevailing management style in

5 - 197

TEAM TU RIMY APPROPRIATE CHARACTEROSTOCS 46)

LEADERSHIP- STYL lEAIDERSHIPiiSTYLE

Unable and unwilling Telling High task, low relationship

Unable but willing Selling High task, high relationship

Able but unwilling Participating Low task, high relationship

Able and willing Delegating Low task, low relationship

many organisations is still, at best, consultative and is often still autocratic

(Perigord 1990:xi-xiii). TQM calls for the progressive development of truly

participative and delegative management styles, in line with the increase in

personal responsibility for meeting the agreed to requirements of customers now

and in the future.

Literature on TQM seldom addresses issues of organisational change

management or situational leadership. Conventionally, TQM processes start with

the assumption that employees will participate and take on extra responsibilities,

if the appropriate environment and stimuli are provided. This simplistic

assumption fails to recognise that teams vary in maturity and need to be

approached differently. Hersey & Blanchard (1982:149-155) propose four basic

team groups, and suggest different styles of leadership for each group (Table 5.2).

Also refer Chapter 2.4.3 for more detailed discussion on situational leadership.

Table 5.2 Leadership styles and team maturity

Source: Adapted from Hersey & Blanchard 1982:149-155

This model has implications for the degree of success that an organisation will

experience in TQM implementation. According to the model, leaders need to

adapt their leadership style to suit the maturity of the team. A relationship-

orientated leadership style would not be effective in managing a team of unwilling

and incapable employees, who need to be directed in the initial stages.

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It is imperative to ensure that quality is given the correct status within the

organisation, that the main board of directors see quality as an important and

integral aspect of the company mission statement; that forward organisation

strategies embrace quality objectives; that quality, in fact, becomes the only way

of life within the organisation (Kanji & Asher 1993:108-109).

The required management style must be one which embraces the following seven

attributes (Kanji & Asher 1993:109).

hands on, value driven;

where values are set by the highest management level;

where management show that they mean what they say;

where management clearly state beliefs and values;

where management have an obsession with and feeling for product and

service quality;

where management do not ever walk by poor quality and ignore it;

where management live by a set of values.

The whole organisation must be prepared to receive this important management

message before the subsequent stages of the correct quality system and process

management can realise the benefits which can be attributable to them. The

constancy of purpose to achieve quality must not only be exhibited by the main

board of directors. It is essential that the same constancy of purpose flows down

to all those in management roles.

Payne (1991:28) has proposed that there are two key processes in the

management of a TOM culture. These are:

5 - 199

O

leading; O communicating.

For leaders to influence the behaviour of others they must have clear beliefs and

values of their own. Thus an important aspect of leadership in the creation or

adaptation of a culture is the communication of a strongly-held vision and

modelling of values and behaviour espoused in the vision. Following this initial

phase of cultural development, the leader's role is more concerned with identifying

and setting goals consistently with the vision and modelling how these goals are

to be achieved.

The management of a TQM culture can be viewed as an attempt by management

to control how employees feel as well as how they behave in the workplace. It can

be seen as a form of emotional discipline. However, as Van Maanen & Kunda

(1989:43-103) observe, although managers may define what is given, the

managed define what is taken. Thus, key aspects of TQM, such as recognising

the importance of the customer, must be successfully communicated by senior

managers in their daily interaction and communication with employees.

Payne (1991:26) believes that a programme aimed at improving customer

satisfaction and total quality may well succeed in changing attitudes and

behaviour. For organisations adopting TQM it is important to understand that the

term "customer" refers to the internal as well as external environment.

Changes in the external environment, while impacting on the internal culture of an

organisation, may be dampened owing to the stability of the organisation's culture.

Thus, where rapid change occurs in the external environment, the requisite

change within the enterprise may not be forthcoming. If service to customers is

important to an organisation, beliefs about the rewards and costs associated with

providing customer service need to be addressed. In addition, employee

behaviour needs to be addressed by a change in work practices and the technical

system used to deliver service to customers. This cultural change needs to be

engineered, given strong leadership and managed carefully (Williams, Dobson &

5 - 200

Walters 1989:39).

While TQM promotes the notion of internal and external customers and the value

of employees as a resource, many organisations adopting TQM appear to have

some difficulty in translating this to employee equity. Employees seek equity for

their involvement in and commitment to a TQM process in a similar way to external

customers expecting equity in the exchange of money for products and services.

While some progress has been made at a supervisory level and TOM facilitation

has been recognised as a valid role for supervisors, with shopfloor employees as

internal customers, the same cannot be claimed for mid-level managers. Thus for

many TOM processes, incongruence between espoused values and values in

operation is a problem. In particular, modification to the reward system, to include

recognition and praise when appropriate, seems to be a major issue for

employees.

Employee commitment to the objectives of the organisation and employee

satisfaction with the TOM approach are considered essential to the successful

implementation of TOM. Therefore, the requisite climate for a top management

led culture change is necessary before implementing a full-scale TOM process.

The concept of corporate culture appeared during the late 1970's. It was a

response to a fundamental concern for companies: how to mobilise all personnel,

and, in particular, create an organisational framework based on an unique

"identity" to which each person could relate. In other words, construct an ideal

image with which everyone could easily identify, and then mobilise the entire

company on the basis of new values.

Every company, and every geographic unit within the same company, has a

culture of its own - a set of values, beliefs, myths, symbols, rituals and images that

are described by employees in their own unique terminology. The company's

past, its habitual behaviour, its personnel policy, and often its product, each exert

an influence. Likewise, logos, the aesthetic characteristics of the product, its

"nobility", the decor, advertising messages, the speeches of top managers,

5 - 201

internal memoranda, booklets, introductory brochures, and annual reports are all

symbols that create an "atmosphere", a "tone". The term culture is considered to

mean the governing processes, the process for relationships and interactions, and

the other transactions between the members of a particular organisation.

Corporate culture can be defined as being a coherent set of attitudes common to

all fulltime employees within a working environment. It is therefore the sum of all

the constants that are accepted by everyone. These constants may be values,

beliefs, or rituals.

Corporate culture can be studied in a manner that includes the following steps:

base the study on the experience of fulltime employees;

eliminate the influence of external constraints;

take into account the history of the company;

convey the reality rather than intentions or desires;

obtain top management's encouragement;

obtain acceptance by employees.

The purpose of the study may be to select avenues of communication that are

consistent with overall policy and respond to expectations of personnel.

However, one must bear in mind that, in an organisational entity and living system

as complex as a company, a process for improvements must be set in place. A

new logo, new decor in offices or factories, a new aesthetic design for products,

an internal publicity campaign - each of these occurrences demonstrates to

employees that top management intends to change and develop the company.

However if there is no alternation in behaviour - particularly in management style -

apart from developing new symbols, the operational reality of work life quickly

becomes inconsistent with the image desired by top management. Even more

seriously, employees feel deceived and consider this "cultural" initiative an

extravagance on the part of top management, which simply wishes to improve its

image with the general public, or be seen to be the bandwagon of change towards

TQM.

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The change in culture required for successful TQM implementation, can only come

by example and through action by top management and managerial staff.

5.2.2 Policy management

Policy management is a system in which top management establishes a corporate

vision of quality and a results-orientated company policy. The vision and policy

are then translated into specific goals, and those goals are disseminated

horizontally and vertically throughout the organisation for further appropriate

modification and eventually full acceptance. All the organisation's resources are

then made available to achieve those goals.

Policy management translates top management's vision into process-oriented,

manageable, and monitorable approaches. There are nine steps in the policy

management system.

1 Determine policy and direction

To determine the organisation's policy and direction, top management has to

consider the company's needs, problems, and prevailing business environment.

The identified needs of the organisation may be to increase sales, increase

profits, and provide quality products or services to be viewed favourably by

customers and society. External customer needs may be on time delivery of

products that perform to their expectations at a reasonable price. Internal

customers may experience the need to be satisfied with their jobs, enhanced self-

esteem and a feeling of belonging in the organisation.

The business environment issues may be determined to be a growing number of

competitors, technological improvements in the industry, adaptability to new

materials, and export opportunities available by ISO 9002 accreditation.

2. Select objectives and fix targets

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Bearing in mind the company's needs, resources, and technical constraints, top

management has to identify the objectives of the organisation. The objectives may

include:

meeting the needs and expectations of customers;

developing and implementing a quality management system;

continuous improvement;

managing quality effectively and efficiently;

sharing and gaining of knowledge.

Performance indexes have to be developed for quantifying the progress in

achieving each objective. Using these indexes, top management will be able to

compare monthly and yearly achievements against goals set under company

policy and direction.

Develop and select items

Since objectives can be met using many different means, top management has to

determine which means to use. In this process, each objective can be developed

into several implementation items (measures). Since it is often impossible to

implement all of these items, it is necessary to evaluate the importance of all the

items and to select a manageable number for implementation.

Deploy organisation's objectives

Departmental managers have to discuss the company policy with their staff

members and with all the employees in each department. During this process, the

policy is made more sound and awareness of it will grow, which will help to

achieve a higher acceptance rate. Departmental objectives and means have to

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be developed in relation to the organisation's objectives.

Schedule items

Department wide lists of implementation items are to be prepared and the steps

needed to achieve these objectives have to be developed. The time needed to

perform the tasks in each step has to be determined and used to compile a

schedule for timely completion of selected items.

Plan monthly activities

Since it is difficult to set up a precise, detailed plan for an entire year, the selected

items can initially be scheduled on a monthly basis. Where necessary, activities

can be scheduled on a weekly or daily basis to help reduce the gap between plan

and results.

7 Conduct monthly evaluations

At this point, the organisation proceeds from planning to execution and control.

To achieve a high success rate in policy implementation, progress in implementing

the plan has to be evaluated at regular intervals to compare current status with the

interim target. These evaluations, called the "forward-looking, action-oriented

evaluations", are performed to determine the level of achievement and the next

steps to take.

8. Conduct top management reviews

Reviews are conducted at two levels: the departmental level and the

organisational level. During these reviews performance of each department is

assessed and reports are prepared and reviewed in departmental meetings.

Measures are then developed for those areas in which the targets were not met.

This top management review may cover:

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how extensive the gap is between the plan and the results;

what activities need to be implemented in the next month, and how to

implement them;

revisions in policies and implementation items necessitated by changing

market conditions.

9. Conduct a year-end evaluation

At the end of the year, a list of accomplishments, unfinished tasks and outstanding

issues are prepared. The reasons for gaps between the plan and results have to

be identified. The year's experience can also be used to improve the quality of the

policy management system itself.

A well designed policy management system will assist top management to focus

and direct the management behaviours required for the TQM process.

5.2.3

rganisation for TC)illi

To successfully implement TQM, the existing organisational hierarchy must be

transformed into the team that will make TQM a reality.

Assess need for consultant

The first step is to address a widely debated topic in the TQM arena: to hire, or

not to hire, a consultant. The answer to this question depends on a number of

factors including an organisation's size, intrinsic talent, culture and tempo, to

name a few.

Larger organisations frequently hire consultants to design and debug a process

before a major "roll-out", due to basic economics. If it takes one to two years to

5 - 206

deploy a major new initiative throughout an organisation, it is important to "get it

right the first time". Changes in direction and focus confuse management and the

workforce, and arm personnel with sufficient ammunition to forestall the program.

If the organisation has a cadre of internal consultants and trainers who feel

comfortable at the front of a classroom, it can save a lot of money. The challenge

for these internal people is to create the focus and discipline to proceed on a

given course. A consultant can accomplish this by charging exorbitant rates!

When word gets around that "the consultant" will be on site on the first of each

month, people within the organisation scurry to meet these milestones. With

exceptions, it is very difficult for an insider within an organisation to create this

discipline. The exceptional cases eluded to stem from an organisation's culture.

If the prevailing attitude is one of get the job done or we can do it, and top

management are used to creating a certain tempo and focussing on other major

corporate initiatives, they will be able to implement TQM - assuming the correct

skills base is brought to bear.

Consultants are specialists. The benefits from the application of their expertise

to a specific situation . usually exceed the cost. Their credibility and direct hands-

on experience provide a faster and smoother transition toward TOM. Experienced

consultants have encountered and overcome the barriers and pitfalls of

implementation; they possess detailed knowledge to minimise problems. For

these reasons corporations routinely hire consultants.

Until a few years ago, many organisations sought consultants to provide extensive

introductory training on TQM. This is no longer the case. Today most

organisations do extensive preliminary research on their own. Furthermore, when

they do hire a consultant, they seek either a well-defined specialist or a generalist.

• Companies planning to implement TOM, or larger companies dealing with specific

problems (eg. ISO 9002 implementation), hire specialists to fill a specific need, a

niche. Smaller companies seek generalists who can do everything from

developing a strategic plan and facilitating team sessions, to conducting customer

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surveys, and so forth. They cannot afford the cost of the specialist, nor can they

afford to bring in a steady flow of consultants to address the details of their

operation.

A consultant, whether a specialist or a generalist, should be able to assist in

forming expectations of results. A popular response to the question, "When

should I see results?" is, "It depends!". As it turns out, experiencing results does

depend on many things. But, after spending time within the company, consultants

should be able to suggest what kinds of results the company should expect to see

and when.

It is important to reemphasise this point because management does have

expectations, and without a satisfactory answer from the consultant, they will

maintain their own expectations as the standard. If it takes too long, or if the

magnitude of the first success is inconsistent with these expectations, bad things

can happen. Typically, these bad things take the form of a breakdown in

confidence between the top management team and the consultant. Worse yet, it

can result in a change-over from one consultant to another. In this case, everyone

loses. Changing consultants part way into the TQM implementation process is a

big decision, resulting in a substantial cost in both time and money for the

organisation. More important, this action will be viewed as a discontinuity by the

workforce and managers looking for a reason to circumvent the initiative. If top

management loses credibility in this area, the costs can be immeasurable.

Steering committee

A steering mechanism is required to guide and provide the various quality

improvement teams with direction and assistance where necessary. This

mechanism is referred to as the TQM steering committee and typically consists of:

. the CEO;

0 the organisation's functional managers;

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selected line and staff managers;

union representatives;

the TOM facilitator.

The steering committee is charged with the responsibility to oversee, direct and

review the entire quality improvement process - from design, through the

implementation period and until TOM becomes the way of life in the organisation.

The steering committee has the responsibility to implement policy, to develop and

implement the TOM plan, and to create, empower and support the departmental

TOM teams. The steering committee also reviews, analyses and improves

processes within the organisation with the aid of the departmental teams and the

TOM co-ordinator. The greatest responsibility of the steering committee is to

remove barriers between functional entities within the organisation and facilitate

communication to show support and overcome any resistance to the change that

will inevitably be encountered.

More specifically, the major functions of the steering committee are to:

be a cross-functional forum for consideration of operational improvements

which are likely to affect more than one department;

formulate the quality policy;

0 establish a project system, choose breakthrough projects and assign

teams to them;

identify needs for training and plan the training;

be, and be seen as, the champions for the principles of TOM.

The steering committee is a formal team with a team charter detailing its:

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purpose;

boundaries within which it will operate;

members;

frequency of meeting;

measures of performance.

During the implementation phase, the steering committee should meet at least

two-weekly to review progress and to address any difficulties relevant to the

implementation process. If a consultant is involved with the implementation, the

consultant will be a member of the steering committee for the duration of his/her

assignment with the company.

TQM facilitator

Facilitators are commonly used in TQM implementation as trainers and guides to

help the quality teams and the managers to adapt to the new system. It is also

possible that the facilitator may initially be a consultant, but it is recommended that

a senior member of the organisation fills this chair as early as possible during the

implementation process. As long as an outside person acts as facilitator, the

whole change process may be regarded as belonging to the outside party and the

workforce may find it difficult to accept ownership of the TOM process.

Facilitators must be exceptional people. They must understand the TOM process

very well so that they can help develop the departmental quality team leaders.

They must have the respect and trust of all the traditional functions - unions,

employees and management. Some guidance on the traits or characteristics

desirable in this person, adapted from Jablonski (1995:96), are:

credibility;

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a track record of successfully introducing innovation and achieving

organisational commitment;

known to be team players and have the leadership capacity to bring

together the thinking of the group;

good interpersonal and communication skills;

a strong personal belief in the participative ethic;

capability to constructively confront the status quo and still work

effectively with those in position of authority;

self-secure and able to maintain clear thinking in conflict situations;

a long term commitment towards the company.

Facilitators have two key roles within successful TQM implementations:

providing support and direction to improvement groups;

training personnel who are involved in the improvement process.

Successful companies do not assume that improvement groups can deal with any

implementation problem that may arise without special training. Instead they have

prepared facilitators in the skills required to support these groups in a structured

manner.

Facilitators must be capable of recognising how to support such groups at

different stages in the process. Facilitators providing support to improvement

groups can be counter-productive by providing either too little or too much

facilitation. Too little facilitation generally results from inadequate support within

the management structure, whilst too much often results from inadequate training

provided to the facilitator.

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Hand-in-hand with achieving the love of change is the training of managers,

supervisors, project leaders and team members at every level. They will need

help in understanding TOM and how to lead the transformation. They need to

understand their new roles as defined within the new vision of the company. New

skills, such as group and meeting management, the problem-solving process and

problem-solving techniques, and project planning and control are required. These

requirements are often overlooked by senior management. The TOM facilitator

has the responsibility to identify these needs as and when they occur, and to

arrange the necessary training and coaching to satisfy these needs timeously.

Implementing TOM requires a committed team, focussed on a managed change

in the organisation, to achieve measurable results within a specified period -

normally 12 - 18 months.

5.2.4 EmpOoyee invoOvernent

Employee involvement refers to the degree to which employees in a given

organisation or department stay informed and make decisions about their work.

Employee involvement is influenced by an organisation's (or group's) culture,

management style, and employee preferences. Employee involvement levels

range from very little to almost total involvement with self-directed work teams

calling for a very high level of involvement. Although to some extent descriptions

of this sort are arbitrary, they can provide a baseline to compare with employee

involvement in individual organisations. With this understanding, determination

of what must be done to increase this level to assist and benefit TOM

implementation can begin.

The TOM steering committee should be involved in initial explorations. If it

decides to address this issue in a feasibility study, it may want to ask a

representative sample of employees to estimate the level of involvement in their

department. In some cases, someone from outside these groups may need to be

brought in to provide perspective and facilitate discussions.

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The following six levels of employee involvement begin at the minimum level seen

in organisations today, and stop just short of the level at which self-directed teams

operate. These are not development stages that an organisation must go through

in sequence during the TQM implementation process. Nor are higher levels

automatically better. It is up to each organisation to find the level that works best

for a given situation, department or phase during the implementation process.

Level 1: Managers make decision on their own, announce them, and then

respond to any questions employees may have

At this level, employee involvement is defined as listening and asking questions;

employees are involved neither in making nor approving decisions. Typical

activities include:

the regular scheduled meeting in which managers bring employees up to

date on regular operations;

the special meeting in which managers announce new development, like

the introduction of a TQM strategy for improved company performance;

the "press conference" meeting in which employees can voice their

concerns and/or request information about events.

Management expectations. Managers expect that this level involvement will

produce conformance to decisions made by them.

Employee needs. This level of involvement only meets employees' need for

information concerning their work.

Advantages. This level is a fairly speedy and efficient way to disseminate

information, and it keeps employees from wasting energy ferreting out rumours.

Also, if employees believe managers are being honest and open, it develops a

sense of trust between the two groups.

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Pitfalls. It can fail to uncover- and can often cause - employee alienation and even

rebellion, and it places the entire burden of decision making on managers, without

any input from employees.

Level 2. Managers usually make the decisions, but only after seeking the

views of employees

If level 1 is typified by a press conference type of meeting, a typical level 2 activity

is a round-table discussion. The key difference is that managers seek the views

of employees on problems and issues before making a decision, although they do

not necessarily agree to act on these views.

Management expectations. Managers expect that this level of involvement will

give them information they can use in making management decisions, and will

reassure them that employees accept these decisions.

Employee needs. This level of involvement satisfies employees' needs for a

limited degree of interaction with the decision makers in the organisation (versus

involvement in the decision-making process itself).

Advantages. The advantages are:

0 managers have access to the opinions and views of employees (including

technical experts with special expertise) and therefore can make better

decisions;

0 employees tend to feel more involved in the decision-making process than

they do in level 1, and they are therefore more likely to accept and

endorse management decisions wholeheartedly without having to take

responsibility for them when they don't work out;

. decisions can still be made quickly since employees have no vote in the

decision-making process.

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Pitfalls. Because at this level of involvement there is no specific purpose beyond

getting employees' concerns and ideas on the table, the dialogue can turn into

time-wasting gripe sessions. Employees may also resent having their ideas taken

over and carried out by others. This level of limited, two-way communication can

also be misconstrued as "total employee involvement", guaranteeing that no

further levels will be explored.

Level 3. Managers create temporary employee groups to recommend

solutions to particular problems.

Level 3 represents an increase over level 2 with selected employees (often from

more than one department) formally assigned to come up with solutions to

particular predefined problems, rather than simply offering their ideas. Task

forces are typical of level 3. The key elements of this level are:

. the problem has been predefined;

employees carry out this assignment in addition to their regular work; and

° once the group makes its recommendations, it is disbanded.

Management expectations. Managers expect real commitment - in the form of

expert and effective contributions towards the solution of a specific problem - from

the employees in these special groups.

Employee needs. This level of involvement provides employees with opportunities

to receive recognition for their efforts.

Advantages. The advantages of this level are that managers can use the

expertise of their own employees and avoid having to pay for outside help, and

that management can bring just the right combination of expertise to solve a

problem.

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Pitfalls. Employees can be squeezed between the demands of their jobs and

those of problem-solving groups. Appointing a special group can become a

substitute for taking action, because the group itself has no authority to act upon

its recommendations. When their assignment is finished, employees can feel

disappointed and let down.

Leve0 4. Managers meet with groups of employees on a regular basis to

identify problems and recommend solutions

Level 4 is like level 3, with two important exceptions: groups are permanent, and

they identify problems as well as recommend solutions. Quality circles typify this

kind of involvement. Groups operating at this level are usually led by the

employees' supervisor; employee participation is, for the most part, voluntary and

is perceived as an add-on to regular work. While this type of involvement is still

outside the regular management structure, the organisation often appoints

facilitators to train these groups and to serve as a link between work groups and

managers with the authority to implement employee recommendations.

Management expectations. Managers expect real employee commitment to seek

out and solve productivity, quality, safety and quality-of-work-life problems.

Employee needs. The primary employee need met by this level of involvement is

the opportunity to play a real part in identifying and solving problems of concern

to them.

Advantages. Employee creativity unleashed by this greater level of involvement

can result in supervisor problem-solving efforts during the TQM implementation

process.

Pitfalls. Because groups at this level are outside the traditional management

system, they may not have enough power to make much of an impact. Also, to

remain in existence, they constantly need to find new problems. If the problems

disappear, they have nothing left to do but disband.

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Level 5. Managers establish and participate in cross-functional problem-

solving teams.

This level combines the cross-functional aspect of level 3 (typified by the task

force) and the permanence of level 4 (typified by the quality circle). Often

members will be "peak performers" from several departmental quality circles.

They form a permanent, cross-functional group that typically meets less frequently

but for longer sessions than a quality circle. The group may have enough people

from different departments to be able to break into subgroups to work on specific

problems.

Management expectations. At this level, management expects to see

interdepartmental cooperation throughout the organisation and improved

coordination and productivity organisation-wide as a result.

Employee needs. This level of involvement meets employees' need to have some

influence on policies and procedures that go beyond their own departments.

Advantages. Managers and employees can begin to understand the issues and

concerns of other departments, and of the organisation as a whole.

Pitfalls. As more people from different parts of the organisation work together,

group issues can flare up, strengthening barriers between departments instead of

eliminating them.

Level 6. Ongoing work groups assume expanded responsibility for a

particular issue, like cost reduction, quality impr•vement and

employee participation processes.

At this level, problem solving is integrated with employees' daily job

responsibilities, or rather, one aspect of them, such as service quality or job

safety. The traditional management structure hasn't changed, but within it

employees have more responsibility to find ways to improve how they do their

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jobs. The rationale is that when it comes to their jobs, employees are the experts,

and given a specific focus for their improvement efforts, can come up with the best

solutions.

Management expectations. Managers expect that a top priority issue or problem

will receive concentrated attention. Managers expect employees to take the

initiative for this process, leaving managers to function as coaches.

Employee needs. Whereas in level 5 employees had a measure of influence over

organisation wide policies and procedures, in level 6 they have the opportunity to

exert total control in the smaller arena of their jobs.

Advantages. With control, employees have the chance to make small but critical

improvements in their work that can pay off in productivity increases and real

quality improvements. Furthermore, being held responsible for their efforts tends

to increase their commitment and level of contribution. Finally, this level offers

organisations an opportunity to get a flavour of what self-direction feels like

without having to make extensive changes in their existing management

structures.

Pitfalls. This approach can seriously threaten those supervisors and middle

managers who are not equipped by either temperament or training to take a less

directive, more facilitative approach with their employees.

Once the steering committee has reached agreement on the present level of

employee involvement, and the level it thinks it would like to move to, to facilitate

TOM implementation, it needs to consider the steps to make this shift possible.

These could involve new procedures, training, and other less direct efforts to

create a more supportive organisational environment.

A TOM-based approach to increasing organisational effectiveness sets into

motion many complex organisational and personal changes that have to be

considered while planning the change. Such an approach changes the roles

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traditionally assumed by management, union and employees. It requires a

different union stance and different employee attitudes toward the company and

their work. These attitudes do not change so much by talking about them but

come from the experience of working together in a different, more collaborative

way.

In unionised organisations, the support, commitment, and active involvement of

the union are important for success. In any unionised company, the employees

have "hired" the union to represent them. If the union tells employees not to

cooperate, many will not.

Experience has shown that it is difficult to maintain an effective change effort if the

union resists participation. The best efforts tend to arise from joint

union/management commitment. This is best exemplified through joint planning

and implementation.

Historically, unions have reacted to management plans and decisions, and their

constituents have seen them as their defenders when management decisions are

viewed unfavourably. This stance has allowed unions to be highly visible and

active advocates for their constituents. The emerging union role has been to work

with management as co-planners, decision makers, and implementers.

As a co-planner of change, unions become involved in decisions and plans as

these are being developed. The unions predetermine the impact on their

constituents and work with management to develop the best approach. This role

establishes the union along with management as an advocate of a decision or of

a point of view. This can be a very uncomfortable position for unions, especially

on controversial issues.

Increasing employee understanding of and input into decisions that affect them

greatly reduces the union's risk of being seen as in collusion with management.

As employees become more involved in decisions that affect their work, it

becomes more obvious that union and management are working together to

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benefit everyone.

The surfacing of concerns of all parties and the development of ground rules and

safeguards can be the key in the union reaching an agreement on TQM

implementation. The focus on the win/win goals of product quality and employee

job satisfaction are rallying points that all should be able to support.

Union support for TQM implementation may vary, depending on its earlier

experiences. In most organisations, previous successes lead to strong support

by unions. However, some organisations have had "false starts" - this is, efforts

not living beyond one year. This causes union leadership to view any attempt to

change as just another management gimmick that will not work. It is of real

importance that the benefits related to the TOM process are well communicated

to all union shop stewards and officials to preempt any negative feelings prior to

implementation.

Unions may actively oppose participative efforts if it views them as management

efforts to alienate employees from the union. Unions must be satisfied that the

converse is true, and management can demonstrate this attitude by involving the

union in the goal setting, planning and implementation process.

Both management and union must be educated about the benefits to the company,

to the employees, and to the union. Management and union leaders must be

committed to using every employee's talents to the fullest extent possible and to

making the organisation a better place to work. The union cannot be committed

only to the human outcomes, nor can management seek only economic outcomes.

If managers and employees do not have the opportunity to influence the changes,

they may be limited or encapsulated by those who see little opportunity to shape

the future direction. Participation by a broad spectrum of stakeholders in

identifying issues and planning for their resolution is paramount to building the

widespread commitment and support needed for successful implementation of the

TQM process.

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5.2.5 Communication for TOM

Organisations implementing TOM require improved communications to support the

improvement process. Traditional "through the proper channels" types of

communication are inadequate because they are slow, cumbersome, and

sometimes inaccurate.

In a TQM environment people need to communicate across organisational levels,

functions, product lines and locations to solve current problems, avoid new ones

and implement change. Though threatening to some managers, this type of cross-

organisational communication must be encouraged.

Well developed communication channels are characterised by the following three

factors (Porter & Parker 1993:19):

regular communication with staff using a variety of media;

communication viewed as a two-way process, with channels for feedback

available;

communication viewed as an ongoing process, with consideration given

to ways of reinforcing the concepts in the future.

When an organisation plans to implement TQM, it is necessary to plan how the

employees will be informed about the change event and how it will impact them.

The communication plan provides a structured framework for the effective and

efficient delivery of messages that:

inform;

influence;

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O

direct;

O resolve; and

O provide feedback

for individuals and groups who are directly and indirectly impacted by the

introduction of the new improvement process into the business.

The communication plan supports the change event by:

decreasing uncertainty and increasing acceptance of the change event;

facilitating ownership of the change event;

increasing the probability of cooperation when change in implemented;

enhancing morale before, during and after change occurs;

reducing misinformation caused by rumours and lack of understanding;

assisting in reaching new performance levels in a shorter period of time.

These benefits will increase change acceptance and decrease unnecessary costs

incurred by the organisation while it is adapting to the change, eg. decreased

productivity and morale.

Publicity contributes to ensuring the success of the TQM implementation process.

Publicity in this context refers to the use of posters, pamphlets and newsletters.

This communication channel lends itself to creating the correct atmosphere for

culture change, so that improvements can then follow. Highly publicised change

campaigns are often very successful in increasing awareness, but also run the risk

of damaging the organisation's credibility should the campaign prove

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unsuccessful. On the other hand, the reverse is often true for less publicised

campaigns.

An effective communication plan can accomplish the communication goal of the

change process by providing accurate, useful and timely information. Specifically,

it should:

exploit existing communication channels in the organisation;

convey accurate and useful information to targeted receivers;

O present information in a timely fashion relative to key change events, eg.

conversion, project start and milestone dates, and improvement goals to

be achieved;

provide feedback channels to evaluate the success of the change

process;

provide a means for evaluating communication success;

.

foster commitment to the change event by creating an informed

organisation.

Everyone in the organisation must participate in the change and improvement

efforts. Crucial but important techniques that can be used to encourage

participation include:

recognise and publicise team and individual accomplishments contributing

to the improvement process;

share success stories and disseminate good ideas applicable to other

parts of the organisation;

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implement a suggestion systeth that acts rapidly, provides feedback and

rewards implemented suggestions;

encourage the formation of quality circles, problem "hit squads" and other

improvement teams.

Work is a form of theatre. Structures and props help people enact it and

understand it. They are part of the process of creating meaning.

Quality circles and teams are structures commonly used in participative

management processes. They focus group attention and make for good

communication.

Quality circles and teams atomise organisations. They recognise people's need

to belong (for "affiliation") and they focus on clear tasks. There are many ways to

build powerful communications around them: special uniforms, badges, emblems,

mottos, or mascots; social events such as golf days, darts contests or picnics;

tailor made reward systems and training courses.

Quality circles and teams are communication media. They should be leveraged

in every possible way. It is worth remembering that the most important objective

of any communications programme is to encourage innovation, learning and

growth. Flexibility and cooperation must be encouraged, imagination must be

fostered, and networks must be allowed to form and reform in the most organic

way possible. Communication must take place not just within circles or teams, but

between them too.

A communication strategy is often very helpful to provide structure to the

communication plan. An 18 point strategy is proposed.

1 Determine available budget and resources for communication strategy.

o Consult TQM facilitator to establish budgetary parameters

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Confirm allocated resources with TOM facilitator

Establish project deadlines.

2. Develop communication objectives which will:

decrease uncertainty and increase understanding of the change event

- INFORM;

promote agreement on the need to change - INFLUENCE;

facilitate ownership of the new process - RESOLVE/FEEDBACK;

increase cooperation and support during the implementation -

DIRECT.

Identify the audience to whom the communication will be directed.

Define specific high level information requirements, per audience, that

support predefined communication objectives.

Identify specific key messages to be sent, per identified audience, which

are consistent with the high level requirements:

- Messages that INFORM, include:

what the change is, including mission, goals, and objectives;

why the change is being implemented;

who will be responsible for implementing the change;

o how the change will happen.

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Messages that INFLUENCE, include:

direct, anticipated business benefits;

how the change will support the business mission and vision;

success stories;

direct benefits, eg. increased skills, participation, job

satisfaction and customer satisfaction.

Messages that RESOLVE objections:

level of management commitment, approval, support and

allocation of resources.

Messages that DIRECT, include:

implementation approach and deadlines;

exact responsibilities and deadlines for each audience;

training arrangements;

support activities.

6. Identify available formal and informal communication media/channels

which will enhance communication to the intended audience.

Written media may include:

0 memos;

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0 newsletters;

0 personal letters;

0 notices on bulletin boards.

Audio-visual media may include:

0 videos;

audio cassettes.

Face-to-face communication may include:

0 one-on-one interviews/meetings;

0

group meetings or presentations;

0 site visits.

Communication channels may include:

0 regular department meetings;

0 green areas;

0

briefing groups;

0 management briefings;

0

TQ-hours;

0 quality circle meetings.

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7 Evaluate effectiveness of available media currently in use in the

organisation.

evaluate media coverage of identified audience;

evaluate audience attitudes to the use of media;

evaluate previous experience with media;

evaluate cost of media against contribution of message to project

success;

evaluate overall estimated media cost in terms of available

communications budget.

8. Select media based upon evaluation, ensuring that the selected media

target the identified audience effectively with due regard to cost efficiency.

Select media which support the:

objectives of the communication;

time frame and milestones;

intended audience;

probability of acceptance of the message;

complexity of the message.

9. Develop feedback mechanisms to facilitate two-way communication.

develop reply slip attachments to printed communications.

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develop feedback response forms for audio visual media.

10. Develop evaluation mechanism/strategies to evaluate effectiveness of

communications.

develop evaluation response forms for all communications;

develop telephone evaluation surveys;

determine frequency and timing of evaluations;

allocate responsibility for conducting evaluations;

ensure that the results of the evaluations are used as input for

adjusting the communication strategy;

11. Identify developers for the actual communication of individual

communications.

Identify potential developers with required skills in:

0 printed media;

0 audio visual media;

0 presentations;

0 group facilitation.

Determine the availability of identified developers.

Identify available subject matter experts from within the project team.

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Allocate responsibility for the development of specific messages to

developers and/or subject matter experts.

12. Identify senders of messages.

Identify individuals who have:

credibility in the eyes of the users;

influence over users;

reasonable grasp of the subject matter;

good presentation skills.

Allocate responsibility for the sending of specific communications.

13. Determine strategy for quality assessment and final appraisal of all

communications prior to communication strategy implementation.

Obtain approval in terms of:

content and accuracy;

organisation's values and protocol;

organisational standards;

audience literacy.

Allocate responsibility of eliciting approval to one individual.

14. Determine exact timing for specific communication for the duration of the

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implementation process.

- Time messages to coincide with:

o process launch;

start and end process phases;

anticipated periods of low morale;

o key milestones;

logistical imperatives (training, support phases);

high incidence of rumours;

o high incidence of objectors;

high incidence of uncertainty;

anticipated achievements.

15. Consolidate activities from previous tasks (1 to 14) in the form of a

communication plain matrix.

Arrange the plan by objective.

Arrange messages per objective in chronological order.

Indicate the following information on the communication plan:

objectives;

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O

target audiences;

O messages;

O media;

O

feedback mechanisms

O

developers;

O senders;

O

timing (dates).

Submit communication plan, together with a detailed cost breakdown, to

CEO for final approval.

Manage implementation process communications in terms of the approved

communication plan.

Develop messages.

Distribute/communicate messages.

Review feedback.

Review evaluations.

Incorporate results of feedback and evaluations into the

communication plan.

18. Review communication plan effectiveness and efficiency and update the

plan where necessary on'an ongoing basis.

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Review actual vs planned budget.

Evaluate success with which objectives are met.

This communication strategy structures the method of communication but not the

content. It is designed to open up communication channels, while at the same

time controlling the flow of information and protecting the participants. Managers

cannot manage and the implementation process cannot succeed if all the people

concerned do not have access to accurate information. This communication

strategy is not a panacea, but it will direct the flow of necessary information to

enhance the whole implementation effort. Although there will always be some

difficulties that will need a different and more situation-specific approach, most of

the problems and fears related to interpersonal communications can be solved

using this strategy.

Communication is of central importance to the development and maintenance of

cultural and corporate identity. This is because language provides the "vehicle"

for the creation of meaning and common understanding. In addition, although

individuals who have internalised the values of the organisation are likely to

engage in cooperative and spontaneous behaviour in support of the stated aims

and objectives of the TQM process, it is still necessary that they be given positive

reinforcement (eg. recognition) for their efforts. A lack of recognition and praise

for a job well done is often of serious concern to employees. Effective

communication is of vital importance to the reinforcement of organisational values

and goals during the TQM implementation process.

5.2.6 Training and education

Through the life of manufacturing management, technical matters have

overshadowed human issues. Human issues, in general, are perceived as too

complex and erratic to be analysed methodically. Reflecting this bias, operations

textbooks discuss technical topics such as facilities planning and line balancing

extensively, while many leave out or scantily address the importance of human

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resources to the production systems. It is no surprise, then, that technological

advancements in manufacturing have evolved around elimination of labour from

the factory floor. Although cost justification appears to exist in replacing workers

with machinery the cost-benefit analysis does not incorporate the many cerebral

contributions that committed employees can make. By limiting attention to the

physical capabilities of the work force, it is commonly concluded that automation

extirpates many headaches related to the vagaries of human behaviour, labour

unions, and government regulations. Furthermore, automation is supported on the

ground that it bring about speed and consistency in performance, causing

improvements in both quality and productivity.

Against such a background, it is rather ironic that the application of artificial

intelligence to manufacturing is becoming a popular topic. If intelligence is so

helpful to manufacturing in its artificial form, then why are the benefits of the real

intelligence so often overlooked or ignored?

TOM, a process of continuous improvement through the involvement of all

employees, is designed to engage workers' minds with the managerial aspects of

their jobs. To be competitive, manufacturers should count on the ideas and

judgement of production workers, as well as their physical efforts. Intense

international competition along new dimensions - eg. rapid product introductions,

flexibility, and reduced lead time, coupled with technological advancements,

reduced inventories and the blurring of lines between functional areas and

between types of manufacturing processes - are some of the trends that are

forcing a reassessment of workforce issues and the topic of education and training

of all employees on a company wide basis.

Effective functioning of a flexible manufacturing system requires workers who are

better educated and more sophisticated than those they replace. In fact, the

required skills and job characteristics would resemble those of white-collar

workers. Flexible automation calls for skilled workers who can frequently change

its parameters and adapt to it. Flexibility means that many jobs entail more than

a set of activities to be continuously repeated. Therefore, managers and industrial

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engineers can no longer prescribe the work procedures. As a result, collaboration

and team work would replace traditional supervisory responsibilities.

Aside from personality traits that influence a worker's willingness to become an

enthusiastic member of a continuously improving organisation, workers' technical

knowledge and training play important roles in the success of the TOM process.

Work groups are most effective when team members are multi-skilled and have

a good understanding of more than one job. Such requirements place special

emphasis on the degree and nature of on-the-job training that workers receive.

Specifically, training programmes tailored to the technical, administrative, and

psychological needs of workers must be designed. Although the new TQM-breed

of workers are likely to show the desire and willingness to take charge of broader

jobs, South African manufacturing firms cannot assume that formal academic

education has adequately catered to the worker's technical and managerial skills.

The TQM philosophy strongly urges the use of on-the-job training for inculcating

in all workers organisation-specific skills and an understanding of the whole

operation.

Training and education in the TOM implementation process can be based on

experience and peer role models. An effective approach is to train the leaders of

an organisation first and then let them train the managers who report to them.

Those managers then explain the TOM process to their staff and train the quality

teams. This technique can have many positive results. It puts the responsibility

for learning about TQM squarely on the shoulders of leaders and managers. Also,

it is important that the TQM message comes from the most senior manager, the

CEO, and not from an outsider/consultant who may be in the organisation for only

a brief time during the initial phases of the implementation process.

Quality teams and team leaders will require a large amount of initial training, and

the coaching process becomes very critical. Employees are not normally

experienced at conducting meetings, brain-storming problem causes and

solutions, or implementing actions to solutions. They will need close support and

coaching without domination or intimidation as the quality teams begin to operate.

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It may also be effective to use some of the better team leaders to train others. It

may also be helpful for members of one team to visit other teams as guests.

Consultants, when used, should be in the background after the early stages of the

implementation process. If consultants are used in the training process, a co-

trainer - either the TOM facilitator or another manager - should assist with the

ongoing training and coaching process.

All organisations learn, but some do not learn fast enough to survive. In today's

world in which knowledge workers and managers are becoming a key ingredient

of success for organisations, the ability of an organisation to keep up to date by

learning is more important than ever. Rapid changes affects more and more

aspects of business: development cycles in products ranging from computer chips

to potato chips are being compressed, control over intellectual resources is

becoming more important than control over raw materials, and the nurturing of

knowledge - not able to "learn" - are in great danger of failure. The rate at which

individuals and organisations learn may become the only sustainable competitive

advantage, especially in knowledge-intensive industries.

Transforming organisations in ways that favour learning, responsiveness and

innovation is becoming a major aspect of corporate purpose all around the globe.

Organisations are adopting features that favour learning out of economic

necessity, as a by-product of installing information technology, or in response to

demands from restive employees for challenge in their work. Often, some

organisations do not connect the surge in performance they experience with the

features they have introduced. This is unfortunate, because as such

organisations consciously adopt such features, in a planned fashion, the full

benefits of the learning organisation can be captured.

A TOM focussed learning organisation is conceived as one able to sustain

consistent internal innovation or "learning", with the immediate goals of improving

quality, enhancing customer or supplier relationships, or more effectively

executing business strategy through the involvement of all employees, and the

ultimate objective of sustaining profitability.

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Successful TOM implementation is characterised by three organisational

characteristics which equip it for the learning requirements of the TQM process.

First it must make a commitment to knowledge. A very important aspect of this

commitment involves the selection of people. Very often organisations hire people

expecting to train them in all they need to know. The organisation acquires no

learning at all in this transaction. It may also suggest to people hired in this way

that nothing worth knowing exists outside the organisation. This is the antithesis

of the learning organisation; it teaches, it does not learn.

Another aspect of commitment to learning involves the development of learning

internally through a variety of means. Research is one such mechanism; others

include discussions or seminars intended to discover what individuals have

learned and to record it for use by others. An organisation committed to learning

will systematise what it has learned by codifying it and making it accessible to

others, by embodying it in TQM practices and procedures, and by publishing much

so that others outside the firm can critique its accuracy and value.

Second, a TOM learning organisation must have a mechanism for renewal within

itself. Departments and other units of organisations continually fall into

bureaucratic rigidity. They cease to adapt; to learn. They become impediments

to the success of the organisation. It is not just a matter of leadership or even of

a few individuals within them, it is the whole organisation that is at fault. In many

instances, the individuals continue to have great potential - it is the system in

which they are imbedded which is at fault. In looking at organisations like this,

one is sometimes driven to wonder, "How can the whole be so much less than the

sum of the parts?" The TQM process enables the learning organisation to

intervene in such situations to renew and revitalise itself.

Such a mechanism includes the power to abolish or transform (which ordinarily

exists - at least formally - in a business organisation), a systematic method of

identifying when the need exists (which often does not exist in an organisation),

and an established procedure for taking large-scale action (for example, adding

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or transferring many new people at once to the department so that a new critical

mass is created).

Third, successful TQM implementation requires an openness to the outside world

so that it may be responsive to what is occurring out there. This may be

accomplished in various ways because there are many different kinds of

knowledge a TOM organisation has to acquire. For scientists and engineers,

access to new developments in their field are crucial. Managers require

knowledge of how the business environment is changing from periodicals,

briefings and periods of formal education; the rank and file needs training in new

technology and processes. For the organisation's staff as a whole, an openness

to the changing needs of customers and suppliers is required.

Every individual in the organisation, from the newest entry level employee to the

CEO, needs to be involved in TQM training. The fundamental philosophy

underlying TQM and a particular organisation's implementation of it must be

shared and discussed with all members of the organisation if a common

understanding of TQM goals and objectives and the means of attaining them are

to be achieved.

Training should not be viewed as a "one shot" effort. Like TOM itself, training in

the form of refresher and advanced courses must be viewed as a continuing

improvement process.

Besides the fundamentals of TOM, individuals must be given the opportunity to

pursue additional, specialised training that will provide them with the tools and

skills they require.

Depending on the group - and the individual - the training might range from soft

topics (communication skills, interpersonal dynamics, team building) to hard topics

(statistics, accounting, engineering). Most individuals will require and want a

combination of topics.

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Everyone must participate in the improvement efforts. The person in any

organisation that best understands his or her job, and how it can be improved, is

the one performing it. Several techniques that can be used to encourage

participation include:

recognise team and individual accomplishments contributing to the

improvement process;

share success stories and disseminate good ideas applicable to other

parts of the organisation;

encourage risk taking by removing the fear of failure (easy to say, tough

to do!);

encourage the formation of quality circles, problem "hit squads" and other

quality improvement teams;

implement a suggestion system that acts rapidly, provides feedback and

rewards implemented suggestions;

Organisations implementing TQM need ongoing training and educational

programmes which share four characteristic features.

Training has to be viewed as a continuous process for the organisation,

offering an opportunity for reinforcement of the TQM concept.

Training has to be focussed so that employees receive appropriate

courses at the appropriate level of detail for their need.

Training must be planned for the future to include the development of

further TQM skills and techniques.

Training materials customised to suit the particular organisation enable

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employees to relate the course examples to the particular activities of the

organisation.

The timing of training and educational courses for managers and their

subordinates emerges as an important issue. For managers to be able to give the

necessary support and reinforcement to their subordinates, their training must be

correctly phased. The training of managers with their subordinates promotes

teamwork and can avoid giving TOM the label of "for management only".

The most successful TOM implementation processes are those which require

management to train their own staff eventually. There are several advantages in

using this method of teaching:

. managers and supervisors themselves become leaders in quality;

. respect is gained from subordinates;

the reliance on external expertise is reduced.

Just as TOM is a continuous journey, so is education about quality and continuous

improvement. Everyone needs to learn about TOM. The questions management

must deal with include: who must learn what, how and by when. Although there

may be a wealth of knowledge about quality, there is still probably more written

about it than is known. There is now an endless supply of alternatives for

educating anyone willing to listen and pay the price. The organisation's steering

team will need to establish criteria in deciding which approach best fits the

organisation's needs. One axiom of quality is that "it is learned best by example".

A powerful message is sent when top management can really teach the principles,

answer the hard questions, and demonstrate the desired behaviours.

5.2.7 QuaOity technoDogies

There is a very simple, fast way to establish the personality of an organisation -

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any organisation. All one has to do is look at the way it measures itself and the

priorities that are set on each measurement. A financially driven organisation will

have measures that focus on things like production costs versus target, after sales

service costs, profit and compliance to budget. An organisation that is quality

driven will focus on measurements like customer satisfaction level, poor quality

costs, first time yields and customer complaints per unit sold. A resource oriented

organisation will measure things like inventory turns, value-added per employee,

inventory costs and cycle times.

A healthy, TQM focussed organisation has a balanced measurement system.

Within this balanced system, priorities are placed upon measurements that relate

to the customer. For example, market share, customer satisfaction index,

competitive price and reliability. The second priority measurements focus on the

organisation's performance. For example, productivity, poor-quality costs, percent

successful new products, value-added per employee and return on investment.

Measurements are helpful tools to guide an organisation. They can never replace

good judgement, but they can greatly improve the decision to be made.

Essentially, measurements can be divided into three categories:

1. Performance measurements:

return on assets;

profits;

percent product purchased;

costs;

inventory turns;

cycle times;

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after sales service costs.

2. Process improvement:

percent defective parts;

poor quality costs;

process capability;

first-time yields;

competitor comparisons.

3. Forecasting:

market trend analysis;

product costs;

customer expectations;

new product requirements;

budgeting.

Each of these three categories have unique requirements associated with them,

each of which must be considered when designing a measurement system. The

measurement system must be robust enough to provide guidance in all three

categories and for any level in the organisation.

As important as measurement is, by itself it is worthless. Unless an effective

feedback system exists, measurement is a waste of time, effort and money.

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Specific feedback enables an individual to react to the data, and correct or prevent

any problems.

A major problem with most processes is that performance is measured only at the

end. In most cases, this provides little relative feedback about individual activities

within the process or, when it does, it is too late.

The organisation should establish measurement points close to each activity so

that the people performing each separate activity receive direct, immediate, and

relevant feedback. Delaying measurement only allows additional errors to be

made.

During the TQM implementation process, management is responsible for providing

sound measurement systems, and appropriate feedback, to assist everyone in the

organisation to do their jobs better - during the implementation as well as in the

future. Management signals what is important by measuring its results. Many

people figure that if it is not measured, why do it? Consequently, every important

job can and should be measured. Although, theoretically, each task should be

measured and reported to the individual performing the task, this is not always

practical. The best way to start the measurement system is to examine each of

the organisation's stakeholders' expectations and be sure that those key needs

are being measured and reported. Typical stakeholder measurements are:

customer satisfaction - external customers;

value added per employee - management,

Job security - employees;

return on investment - investors;

increased tax base - community.

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The second priority is to examine the critical process flowcharts, and identify those

activities that significantly impact total process effectiveness, efficiency and

adaptability. Relevant measurements for these critical activities, as well as for the

total process, can then be established.

Reviewing the internal customer satisfaction level will identify a third set of

measurement priorities, focussing on activities that are not meeting internal

customer expectations.

Fourth priority is given to activities that require significant resources. Performance

should be measured in terms of effectiveness and efficiency and expressed in

physical terms (eg. time to perform a task, cycle time), or in monetary value,

allowing a number of resources to be combined (eg. value-added costs, labour

costs).

The fifth priority is to measure the performance of each individual and provide

personal, confidential feedback to each employee. This data is essential to

individual excellence.

The best person to do the measuring is the person performing the activity. There

is immediate feedback, and he or she should have the best understanding of the

job. In cases where the self-inspection error rate is too high, the people

performing the activity can check each other's work. This is also a good way to

exchange ideas and to begin standardising.

The organisation should never rely on the external customer to be its last

inspector, but if the internal process fails, a data system that collects this

information and reports it back, so that the internal process and measurement

system can be corrected, must exist as final feedback.

When establishing a measuring system, the organisation will be working with two

types of data: attributes data and variables data.

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❑ Attributes data

This kind of data is counted, not measured. Generally, attributes data requires

large sample sizes to be useful. It is collected when all that is required to know

is "yes" or "no", "go" or "no-go", or "accept" or "reject". Examples of attributes data

include:

Did an employee arrive at work on time?

Was the letter typed with no errors?

Is a department operating below budget?

Did the meeting start on schedule?

In general, attributes data are considered separately from measurement data

because they have a certain irreducible discreetness that measurement data do

not possess. With measurement data, the discreteness of the values is basically

a matter of choice. It can be manipulated by, for example, choosing a smaller unit

of measurement. This is not the case with attributes (or count) data, which are

based on the occurrence of discrete events, and so consist of integral values.

This discreteness is, therefore, a characteristic of the data, and must be taken into

account when establishing statistical control charts.

Statistical control charts of attributes data include:

the ;7-chart for individual values and a moving range, used when the

average count is large enough to prevent the discreteness of the counts

from significantly affecting the control chart limits;

the np-chart for data based on binomial counts;

the p-chart for data based on binomial counts;

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the c-chart for data based on Poisson counts;

The 0-chart for non conformities per unit area of opportunity.

❑ Variables data

Variables data is used to provide a much more accurate measurement than

attributes data provides. This involves collecting numeric values that quantify a

measurement and therefore requires smaller samples. Examples of variables data

include:

Number of times a phone rings before it is answered.

Cost of courier mail.

Number of hours to process an engineering change request.

Monetary value of inventory.

Number of sick days per employee per year.

Statistical control charts are powerful tools for detecting uncontrolled variation.

The most effective control chart for variables data is the X - and R-chart. The

premises of the )7:- and R-chart is that while the measurements, averages and

ranges of collected data have different distributions, these different distributions

are related in certain ways when the measurements originated from a process that

is stable. Any variation outside the calculated control limits indicates an undesired

out-of-control event for the process being measured, and calls for an intervention

from an authorised operator.

The various applications of statistical quality control (SQC) and the closely related

statistical process control (SPC) can be extremely beneficial to a wide range of

businesses. Both involve ways to measure deviations or variability in the

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processes used in manufacturing materials, parts, and products. They involve a

family of different means of determining the variation from a specified quality norm

based on a statistical analysis of the process - and then using techniques such as

probability theory to redefine and further improve the process. These techniques

are not as complicated as they may appear, and they can be extremely useful.

One of the primary objectives of implementing TQM is to reduce the losses that

are caused by waste or poor quality. Poor quality costs the organisation money,

while good quality saves the organisation money. Many organisations do not

measure the cost of poor quality; and if it is not measured, it cannot be controlled

or reduced.

The poor-quality cost reporting system is only one of the many tools needed in a

comprehensive, organisation-wide TQM process, but is it an important tool, since

it directs management attention and measures the success of the organisation's

efforts to improve. It also provides management with the necessary tools to

ensure that sub-optimisation does not have a negative effect on the total process.

Poor-quality cost is defined as: all the cost incurred to help the employee do the

job right every time, the cost to determine if the output is acceptable, plus all the

cost incurred by the organisation and the customer because the output did not

meet specifications and/or customer expectations.

Poor-quality cost provides a very useful tool to change the way management and

employees think about errors. Poor-quality cost helps by:

Getting manage ent attention. Talking to management in monetary

terms provides them with information that they relate to. It takes quality

out of the abstract and makes it a reality that can effectively compete with

cost and schedule.

Changing the way the employee thinks about errors. Employees need

to understand the cost of errors they make.

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Providing better return on proble -solving efforts. Poor-quality cost

monetarise problems so that corrective action can be directed at the

solutions that will bring maximum return.

Providing a means to measure the true impact of corrective action

and changes made to improve the process. By focussing on poor-

quality cost of the total process, sub-optimisation can be eliminated.

Providing a simple, understandable method of measuring what effect

poor quality has on the organisation and providing an effective way to

measure the impact of the improvement process.

Providing a single measurement that brings together effectiveness and

efficiency measurements.

Benchmarking is regarded as another very important requirement for successful

TOM implementation. Benchmarking is the process of continually researching for

new ideas and methods, practices and processes, and either adopting the

practices or adapting the good features, and implementing them to obtain the

"best of best". Benchmarking is basically an objective setting process.

Benchmarks, when best practices are translated into operational units of measure,

are a projection of a future state or endpoint. In that regard their achievement may

take a number of years to attain. The benchmarks may most importantly indicate

the direction that must be pursued rather than specific operationally quantifiable

metrics that are immediately achievable. A benchmarking study may indicate that

costs must be reduced and customer satisfaction levels increased or return of

assets increased. In addition, the concentration of best practices supports the

general direction that must be pursued with specific insights into how the

benchmarks can or should be attained. The conversion of benchmarks to

operational targets translates the long-term actions into specifics.

Process benchmarking is a systematic approach or process to drive change into

an organisation. It arrives at change by doing process-to-process comparisons

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and developing data about performance output levels for the process. In other

words, it is the search for those practices that lead to superior performance, and

as such contributes greatly to the success of the TOM implementation process.

The centre of the benchmarking study is an attempt to define the processes that

are critical to competing and/or improving critical performance metrics and then

comparing and analysing processes against other best-in-class organisations on

a worldwide basis. From this analysis should come a definition of

gaps/inadequacies in the process and determination of cause which then should

be corrected so as to drive the TOM process.

Benchmarkers follow a systematic effort to drive change. They are, in fact,

developing the enablers and understanding the obstacles. More important, they

are building a transformation and implementation plan for the organisation, based

on the benchmark data and analysis. In addition, the benchmarking process and

effort will typically generate a wider range of options to improve processes and

capabilities than available with other approaches.

An organisation can benchmark at a number of levels. It can benchmark internally

for a multi-location facility, against other firms in its industry, or competitors in

other industries. Benchmarking can be done regionally, on a global basis, or by

best-in-class. Whatever option is used, however, there has to be a potential

payoff. Benchmarking efforts should generally focus on identifying the best

anywhere.

Many organisations turn benchmarking on itself. They benchmark their

benchmarking. They work from the premise that in a world of continuous change

what they most need is to manage change, shorten the time needed to make

positive change, and bring about change in a direction that will show results with

a minimum of stops and starts and navigational manoeuvres. They need to learn

from the best what others may be doing, while sharing with some of them what

they are doing.

Finally, organisations can take the notion of benchmarking and drive it into their

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suppliers. One of the questions an organisation might ask of its supply base is

have they done a competitive analysis to understand where they stand against

competitors and can they provide evidence of whether they are the best in their

class? Do they have a systematic benchmarking effort that will drive them to

sustained levels of excellence as a long term supplier?

It is also important to realise that benchmarking is not some instant pudding

approach that leads to excellence. Organisations must first cultivate a culture that

allows change and break-through thinking. If an organisation is only beginning

their TOM efforts, it is not advisable to try to copy immediately what the leading

world class firms are doing. At such an early stage the organisation may not be

fully prepared to implement the full power of these approaches to drive bottom line

results.

It takes time for the TOM cultural change process to evolve. Short-term thinking

has to be discouraged. The cost-versus-benefits of TOM implementation is not

a straightforward method of predicting future cash flows. Some outcomes of TOM

are immediately apparent, from the attitude changes of empowered workers to the

improved products being produced. These items are but the tip of the TOM

iceberg. The intangible components of TOM are hard to value and to measure.

How much more is a proud, trained, eager and satisfied worker worth? What is

the value of a worker competent in all quality technologies and able to detect new

problems as they occur - even pro-actively keeping problems from occurring?

Some of these assets are indeed difficult to price. However, the use of quality

technologies such as SPC, quality costing and benchmarking can contribute

significantly to determining relevant measurements to guide the TOM

implementation process.

5.2.8 Process management syste s

TOM rests first and foremost on the fundamental beliefs, values and convictions

of the organisation's leaders. It requires an unflinching pursuit of long-term

customer satisfaction through the systematic improvement of all products,

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services, and processes. TQM relies on soft concepts like leadership, respect,

trust and intrinsic motivation. It also relies on principles that are difficult or

impossible to measure.

With these caveats in mind, it is important to acknowledge the value of quality

management systems during the TQM implementation process. These systems

provide frameworks within which to measure and audit the performance of an

organisation along its endless quest to improve quality. Although these

frameworks can supplement management's commitment to quality improvement,

they cannot replace it.

A quality management system integrates all elements required by an organisation

to continuously improve customer satisfaction through better products, processes

and services. There is no universal prescription but a number of benchmarks are

available that provide operational definitions of TQM. These benchmarks include

recognised standards such as International Standards Organisation Series (ISO

9000/9004), British Standards Institute BS5750 and ANSI/ASQC Q90/94.

ISO 9000 is essentially a code of practice which has been developed by the

International Standards Organisation for the European Community, but has since

become recognised internationally. This code highlights all critical elements which

should be addressed and formalised by companies wanting to institute a quality

management system.

In South Africa the South African Bureau of Standards (SABS) has been

appointed as the representative body with the responsibility of assessing /auditing

the conformance of organisations to the requirements of the code. This is done

through preliminary audits to help organisations to obtain ISO 9000 listing, as well

as compulsory audits to ensure that organisations comply with their written quality

management systems.

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❑ ISO 9000 aernents

Management responsibility

The inherent philosophy of ISO 9000 is that quality improvement starts at the top

and that it is management responsibility to get it implemented and to ensure that

it is maintained. Against this backdrop the code requires that management shall

define and document its policy, objectives and own commitment to quality. They

should also ensure that this policy is understood, implemented, and maintained

at all levels in the organisation. This requires that management provide the

necessary policy and guide-lines under the following headings:

Quality policy

Organisation for quality management

responsibility and authority

verification of resources and personnel

management representative

Management review

Quality system

It is a requirement of ISO 9000 that participating organisations implement and

maintain formal systems for quality management covering all aspects of their

business, not just quality assurance. This quality system should include all

elements which are required for managing quality effectively. In broad terms the

documentation required to describe the quality system can be divided into the

following:

Quality manual

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Documented system procedures

Documented work instructions

Contract review

The overriding factor of ISO 9000 is to ensure that an organisation meets

customer requirements all the time. Contract review reflects on the actions an

organisation will follow to help them provide a quality product/service. It

determines all which needs to be done in order to meet the customer's

requirements, and identifies all important aspects of the customer's needs before,

during and after execution of the customer's order or request; this obviously also

entails determining whether the organisation has the capability to meet all

requirements within a mutually agreed time frame.

Design control

This is a very important section for those organisations which develop products

for themselves or tailor make products by design for customers, research and

development departments, and product engineering departments. This section

does not cover what the drawing office does. Design control entails the checks,

trials, and balances an organisation takes to ensure a quality product from the

conception of an idea, to prototype, to trial production batch in the market, final

specifications, and acceptance of the first production batch or product by the

customer. Protocol management may be necessary to ensure that all those

involved participate and sign acceptance of decisions taken.

1=1 ocument control

ISO 9000 is a documented management system. Document control provides the

guidelines to ensure that the documentation which drives the organisation's

processes are always dealt with in an appropriate way. The organisation has to

establish and maintain procedures to control all documents and data that relate

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to the requirements of this code of practice. These documents have to be

reviewed and approved for adequacy by authorised personnel prior to issue.

Two key elements of this code are:

Document approval and issue control

Document changes and modifications.

The kind of documents which need to be controlled are as follows:

0 Policies

o Drawings

o Blueprints

o Test procedures

Inspection instructions

Work instructions (operating procedures)

o Quality manual

Quality management procedures

Forms that measure quality of inputs and/or outputs.

❑ Purchasing

The code specifies that the organisation has to ensure that purchased products

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conform to specified requirements. The following elements all contribute to quality

purchasing:

Assessment of sub-contractors and suppliers

Purchasing data - clearly specifying what is to be purchased, with

guarantees and receiving checks

Verification of purchased products - ensuring that product received

conforms to the purchase requirements

Monitoring of suppliers' performance and changes.

Customer supplied product

This section of the code specifies that the manufacturer has to establish and

maintain procedures for verification, storage, and maintenance of customer

supplied products.

Product identification and traceability

An important facet of quality management is that an organisation should develop

the ability to trace back material right through the entire process: receipts,

production, delivery, and installation, right back to the supplier of the raw material

or component. Where, and to the extent that, traceability is a specified

requirement, individual product or batches shall have an unique and recorded

identification.

Process control

The code requires that the production process is documented completely, not just

in terms of the broad overall process, but also with regard to detailed work

instructions, the way all aspects of the process should be controlled and measured

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against standards, the criteria for workmanship (standards), as well as how and

when approval should be given for the use and application of processes and

equipment. The purpose of process control is therefore to ensure that the

production process consistently produces acceptable quality products or services.

❑ Inspection and testing

The purpose of inspection and testing is to ensure that a quality product is

provided at the end of the line. It is possible to distinguish three dimensions with

regard to inspection and testing.

Receiving inspection, which requires that critical incoming supplies are

inspected and verified as conforming to specifications defined in purchase

orders or per supplier agreement, before it is used.

In process inspection and testing, which ensures that product in the

process conforms to requirements. Non conformances should be

identified as early as possible. Types of tests which may fall into this

category are:

set up specifications;

first piece inspection;

specific inspections or tests by the operators;

fixed inspection stations at set intervals;

patrol inspections by inspectors.

Final inspection and testing is to finally ensure that the product meets all

specifications.

An important element of this section is that records should be kept to prove that

all elements of inspection and testing, as stipulated in the procedures, are

continuously applied.

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Inspection, measuring and test equipment

The purpose of this element of the code is to ensure that the correct inspection

and measuring equipment is used at all times, that it is maintained in the

appropriate way and that records are kept to show that it is handled in a controlled

manner. A very significant requirement is that calibration of test and measuring

equipment should meet national recognised standards where appropriate.

Inspection and test status

The inspection and test status of product shall be identified by using markings,

authorised stamps, tags, labels, routing cards, inspection records, test software,

physical location, or other suitable means, which indicate the conformance or non

conformance of product with regard to inspection and tests performed. The

identification of inspection and test status shall be maintained, as necessary,

throughout production and installation of the product to ensure that only product

that has passed the required inspection and tests is despatched, used or installed.

Control of non conformaning product

Non conforming product has to be identified and appropriate decisions taken as

to what should happen to it. These decisions should obviously fall in line with

documented procedures which should indicate when non conforming product has

to be:

remarked;

accepted with or without repair by concession;

used for alternative purposes, or;

rejected and scrapped.

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The code does not address quality costs as a measurement tool for controlling

non conformance. This is where an effective integrated TQM process will

compliment ISO 9000 by measuring the cost of non conformance, the cost of

corrective action and the cost savings of improvements.

Corrective action

This element of the code could be seen as the engine for continuous

improvement. It requires that appropriate procedures and practices be

implemented which should identify and resolve non conformance on an on-going

basis, so that errors are permanently fixed to prevent re-occurrence.

Handling, storage, packaging and delivery

With ISO 9000 the focus is not purely on the production process - it stretches

further, and encompasses handling, storage, packaging and delivery. In this

context all four of these aspects may apply not just to outgoing product but also

to incoming product and product moving between departments.

Quality records

Quality records have to be maintained to demonstrate achievement of the required

quality and the effective operation of the quality system. Pertinent sub-contractor

or supplier quality records shall be an element of these data.

All quality records have to be legible and identifiable to the product involved.

Quality records shall be stored and maintained in such a way that they are readily

retrievable in facilities that provide a suitable environment to minimise

deterioration or damage and to prevent loss. Retention times of quality records

shall be established in writing. Where agreed contractually, quality records shall

be made available for evaluation by the manufacturer for an agreed period.

A very important aspect of quality records is that the system in place should

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clearly demonstrate that the required quality is being achieved and that the quality

management system is working effectively. The organisation has to demonstrate

that it reviews the information in order to avoid repeat errors. For this reason the

following types of quality records are normally kept:

O

Inspection data

O

Test data

O

Qualification reports

O

Audit reports

Material review reports, eg. customer supplied product verification

Calibration data/reports/records

Quality cost reports

Non conformance and corrective action reports

Training records and statistics

Statistical records - performance measurement information.

This is an important element of ISO 9000. These records are hard evidence to

prove that the processes are in fact working in all its dimensions.

❑ Internal quality audits

Once the quality management system has been implemented it is a requirement

of the code to have regular internal quality audits to verify that quality activities

comply with planned arrangements and to determine the effectiveness of the

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quality system.

The results of these audits should be brought to the attention of management

personnel having responsibility for the area audited to ensure corrections are

effected. This procedure must be seen as a tool for identifying opportunities for

improvement and not as a policeman action.

Training

Well defined job specifications per job function needs to be drawn up. These will

be the standard to which people are assessed and development plans are made,

executed and evaluated for effectiveness of training. The correct, effective on-the-

job training skills are essential in providing quality products and services.

Statistical techniques

The purpose of this element is to ensure that the organisation measures and

analyses all the critically important elements in the company which effect quality

and performance. Examples are as follows:

Company-wide quality cost analysis reports

Company-wide performance statistics, reviewed monthly by the

operational committee

Customer complaints reviewed to show that the trend is a declining

number of complaints and to highlight improvement opportunities

Projects are prioritised cost effectively to ensure best business

performance

Strategic plans are monitored and reviewed monthly to see that goals are

met.

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Servicing

This section relates to after sales servicing and preplanned maintenance of

equipment which could affect the quality of product. This also refers to customer

service in solving complaints and warranty policies.

After initial assessment and approval by the SABS of the quality management

system of an applicant in accordance with a stated part of ISO 9000, the

applicant's name is included in the SABS list of suppliers whose quality

management systems comply with ISO 9000. A certificate giving the name,

address and the commodity or range of commodities or services is issued to each

listed supplier. The listing does not relate to the relative quality level of the

product(s) or service(s), but merely to the quality management system controlling

the product or service.

Looking at ISO 9000 as a part of the TOM implementation process, it is obvious

that the value of ISO 9000 listing lies in the synergy created by the preparation,

accreditation, and the continuous self-auditing of the whole quality management

system. The reason for this is that these elements, firstly, promote understanding

of the importance of improving quality (as shown by the cost of quality), and

secondly, they provide employees with the opportunity to continuously rectify, or

prevent, quality problems.

5.3 CONCLUSION

Any attempt to implement the TOM process in an organisation is faced with one

of the most complex tasks ever likely to be encountered. As a form of

organisational culture change, TOM requires a variety of skills and methods which

have not been the traditional educational and experiential fare of the typical

leader.

Organisational change is based on changing the mind-sets, or paradigms, of the

people in the organisation. Paradigms explain why employees perceive reality

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according to culturally-determined meanings and guidelines. Armed with

paradigms, employees approach the work environment and interpret what they

see and experience according to their shared understandings. When

organisations begin the process of change necessary to adapt to the conditions,

environments, and markets of this, and the next, decade, it will be necessary to

adopt a paradigm more suitable for the global community. TQM is being heralded

as the paradigm necessary for this organisational transformation.

TQM is a form of organisational change and development, and is one of the

possible ways to prepare any South African organisation for the global competition

and operating environment of the 1990/2000's. If managers can understand the

holistic nature of TQM as a way of conducting business and running operations,

then they have already begun to develop the conceptual foundation necessary for

change. Managers can test their TQM understanding and commitment by asking

four critical questions during the implementation process.

1 is TOM a basic cornerstone of the business plan, operating policies,

and mission/vision of the direction the organisation wishes to take

now and in the future?

If TQM is considered an add-on or a luxury, then it will probably have an

early implementation failure. To be successful, TQM must become a new

way of managing, not a secondary operational strategy.

2. Are the managers in the organisation prepared to empower their

employees?

TOM is based on the transfer of operational decision-making power from

the top of the hierarchy to the bottom. The authority to make decisions is

a domain frequently guarded by many managers.

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Is the CEO prepared to empower the managers who report to

him/her?

Empowerment involves the transfer of decision making and problem

solving concerning work process issues to those people who actually do

the work. Empowerment, as an element of TOM success, is best realised

in quality team activity. Managers who develop effective quality teams

have taken the time and effort to build the trust and support necessary for

their employees to be able to function in this non-traditional organisational

process.

Is the organisation willing to redesign its systems of management

information, accountability and performance evaluation in the

organisation?

TOM is primarily concerned with the quality dimension; therefore, it

requires accounting and information systems that support the generation

of revenue as well as cost containment. Traditional accounting methods

which provide reliable data for decision making and strategy in the areas

of employee and consumer satisfaction are either very elementary or non-

existent except for cost controls in areas such as labour, materials and

overhead expenses. TOM organisations have to establish means to

measure and account for non-traditional areas such as consumer

satisfaction, operational quality and effectiveness, and other TOM goals.

The eight critical factors model for TOM implementation serves as a universal

road map to TOM implementation. It provides a systematic approach to build a

fundamental understanding of customer's requirements, process capabilities and

the causes for gaps between them. A road map differs from a prescription.

People who are unfamiliar with a route use a road map as a guide for getting from

point A to point B. On the other hand, a prescription specifies requirements that

must always be followed in exactly the prescribed way and sequence. The hub

of the model is continuous improvement of all processes, products, and services

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in the organisation. The goal of the model is customer's delight in the

organisation it chose to do business with.

5.4 SUMMARY

This chapter examined the TQM implementation process by means of an eight

critical factor model for TOM implementation. The model is focussed on satisfying

the customer through continual improvement, by providing the employees with the

tools required to develop and implement improvements in everyday activities.

An example of the TOM process in a South African manufacturing environment is

presented in Chapter 6.

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IERIEN

s ENT

CHAPTER 6

ANAGE

SYNOPSIS

LIST OF FIGURES, GRAPHS AND TABLES

6-266

6-267

6.1 INTRODUCTION 6-268

6.2 DISCUSSION 6-269

6.2.1 Background of EMSA 6-269

6.2.2 EMSA cares for its employees 6-272

6.2.2.1 Equality in the workforce 6-272

6.2.2.2 Health, safety and environmental protection (HS&EP) 6-277

6.2.2.3 Training and education 6-281

6.2.3 The TOM process at EMSA 6-284

6.2.3.1 Employee involvement 6-284

6.2.3.2 Continuous improvement 6-297

6.2.3.3 Customer focus 6-300

6.3 CONCLUSION 6-303

6.4 SUMMARY 6-304

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S ENT

CHAPTER 6

AGE

TO

SYNOPSIS

EMSA has made an enormous effort for total mobilisation of its workforce in renewing company culture, eliminating imperfections and striving for continuous improvement. The company has successfully implemented TQM to combine quality, productivity and cost reduction together to achieve quality products and services at the lowest cost. Continuous improvements in product quality and customer focus has resulted in reduced electrode consumption and significant cost savings by its customers.

The company has been a NOSA NOSCAR plant since 1988 and has received the highest safety rating awarded by Union Carbide Corporation (USA). This commitment to safety and environmental protection contributed towards the low labour turnover of 4,14 percent in 1995. Employees appreciate the concern for their health and safety demonstrated by the company in providing them with a safe and healthy work environment.

Teamwork, under leadership of the general manager, forms the basis of all daily operational activities and the focus is clearly on continuously improving everything they do.

EMSA's management firmly believes that TQM can only be achieved through people and care of people is considered as an essential element in achieving operational improvements. Employees participate in all efforts to continuously improve productivity, quality, and customer satisfaction.

EMSA believes that there is no "safe" way, no "quality" way and no "productive" way to perform a task, only the "right" way. If the task is performed "right" it will be safe, high quality and productive.

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ENT

CHAPTER 6

TOTAL UTY GE

LIST OF FIGURES, GF. PHS AND TABLES

Table 6.1

Table 6.2

Graph 6.3

Table 6.4

Table 6.5

Table 6.6

Table 6.7

Table 6.8

Table 6.9

Figure 6.10

EMSA RDP policy

EMSA health, safety and environmental protection policy

Lost time injury frequency

Agenda for monthly HS&EP meetings

The EMSA quality circle policy

EMSA vision

EMSA vision practices

EMSA values and practices

EMSA Total quality management policy

EMSA team structure

6-276

6-278

6-278

6-279

6-285, 286

6-290

6-291

6-292

6-293

6-294

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CHAPTER 6

WITIMANAGOVI. CAP

6.1 INTRODUCTION

TOM put EMSA, the only graphite electrode producer in Africa, firmly on the road

to continuous improvement. So much so that the company received, amongst

others, a gold award in the National Productivity Institute's productivity

improvement competition, an ESCOM Effective Energy Design award for

developing a new energy efficient process, NOSA NOSCAR awards for

achievements in health, safety and environmental protection, as well as showing

an increase of 600 percent in net income over the past 10 years.

EMSA, a joint venture between Samancor and UCAR Carbon Company

(International), is located in Meyerton, in the province of Gauteng, and

manufactures artificial graphite electrodes and carburisers for the steel,

metallurgical and chemical industries. The company was founded in 1965 and

has grown from a modest beginning to a progressive company satisfying the total

South African market's demand for graphite electrodes.

This chapter describes the background against which TOM was implemented at

EMSA as well as the benefits resulting from an holistic approach to TOM in a

South African manufacturing environment. All information was sourced from

interviews with key personnel and relevant documents provided by them.

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6.2 DISCUSSION

6.2.1 Background of EMS

As early as the 1950's graphite electrodes started to play an important role in the

South African economy. The management of Samancor (or Amcor as it was then

known) correctly perceived the situation and started to work towards the

establishment of a graphite electrode manufacturing facility in South Africa.

From the very beginning it was realised that the necessary technology would have

to be obtained from an existing graphite electrode producer. Samancor was also

very keen for the proposed facility to be as independent of imported raw materials

as possible and therefore desired that the electrodes be manufactured from pitch

coke which presumably could also be made locally.

In the metals and alloy field Samancor enjoyed very good relationships with the

Union Carbide Corporation who was the leader in the graphite electrode industry.

Samancor invited the Carbon products division of Union Carbide to become a

partner and to provide the technology in a proposed local graphite producer.

For two reasons, Union Carbide declined the offer. At that time, Union Carbide's

policy was that they would only enter into a joint venture if they had both financial

and managerial control. Samancor, however, would not agree to this, as they

wished to control the operation. Furthermore, Union Carbide did not have much

experience in making graphite electrodes using pitch coke.

Union Carbide advised Samancor that during the second World War, a West

German company, Sigri Elektrographit GmbH, successfully produced large

quantities of graphite electrodes using pitch coke and suggested that Samancor

approach Sigri, who were then the second largest graphite electrode producers

in the world, for the technology.

Sigri was indeed interested in supplying the technology and becoming a partner

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in the proposed graphite electrode producing company.

By the time (early sixties) that an agreement in principle had been reached with

Sign, South Africa's total annual usage of graphite electrodes was approximately

equal to the quantity used in one week in South Africa today. This was regarded

to be far too small for the establishment of a viable electrode manufacturing

facility.

In the mid-sixties, the local demand for graphite electrodes had grown sufficiently

to support a small sized manufacturing facility and thus, 30 years ago, EMSA was

established as a joint venture between Samancor and Sigri. The design and

construction work of the plant was started in March 1966 on the farm Kookfontein

in the district of Vereeniging. It is located on the same farm, and north of,

Samancor's existing ferro-alloy and phosphate plants. EMSA began machining

imported electrodes in January 1967, and full manufacturing of graphite

electrodes, from raw materials to finished product, began in April 1968. The

designed capacity for the EMSA plant was 4900 metric tons per year, producing

electrode sizes up to 450 mm in diameter.

During the first few years after start-up, many teething and product quality

problems were experienced. These problems, including the fact that EMSA was

one of the smallest graphite electrode producers in the world, resulted in a poor

financial performance by EMSA.

In the late 1960's !scar, then the mother company of Samancor, adopted a

revolutionary steel melting technique and decided to build a very large, ultra-

modern electric arc furnace steel melt plant at their Vanderbijlpark facilities. Two

150 metric ton "Ultra High Powered" (UHP) furnaces were to be installed, which

would consume approximately the same quantity of graphite electrodes as all the

other South African users together.

It was very important for EMSA to be able to supply this additional electrode

demand required by 'scot -, as it would have enabled EMSA to virtually double its

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output. This would reduce EMSA's high fixed cost per ton of product and thus

hopefully materially improve its financial performance.

Iscor's new UHP furnaces were designed to considerably increase the steel

production per unit time and furnace area. The UHP technique required graphite

electrodes of a considerably higher quality than the ordinary grade electrodes

which had been used until that time in all South African steel furnaces and which

were manufactured and marketed by EMSA.

EMSA's specialist advisors could not supply the necessary technology for the

production of UHP graphite electrodes. Thus, to ensure further growth and to

meet the country's demand, the agreement with Sigri was terminated in March

1971. A new joint undertaking was entered with Union Carbide Corporation in

October 1971. Union Carbide was not only the largest producer of graphite

electrodes in the world, but also developed the UHP melting technique in the USA.

Union Carbide pioneered the development of the first UHP graphite electrodes for

use in modern industrial furnaces. Designed to conduct the enormous amounts

of electricity required for UHP steel making furnaces, graphite electrodes maintain

their strength and shock resistance at temperatures high enough to melt metal.

Modem manufactured graphite is essentially a crystalline form of pure carbon. By

varying such characteristics as the size, number and orientation of carbon-

graphite crystals, it is possible to produce a wide range of products suitable for a

diverse range of applications. When considering the unique properties of

graphite, it is easy to understand why this remarkable substance has so many

practical uses. Graphite does not melt and is stable at 3 000 °.C. In fact, as the

temperature gets higher, graphite actually increases in strength. Also, graphite

can be manufactured in a very pure form, and it is non-reactive with most

chemicals. It has high thermal conductivity and shock resistance, good electrical

conductivity, and is self-lubricating.

The super grade graphite electrode of large diameter (600 mm) required by the

UHP technique also required a special raw material, namely petroleum needle

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coke with a low coefficient of thermal expansion (CTE). Union Carbide had

access to low CTE needle coke and was an ideal partner to take EMSA into the

future. The new partner in the business was responsible for the transfer of

technology and the supply of raw materials to manufacture UHP graphite

electrodes. Between 1971 and 1976 a great deal of management time was spent

on planning new facilities and implementing Union Carbide's technology. In

actuality, until 1977 Union Carbide attended only to the technical expertise of the

undertaking and had no real influence on its management regarding personnel

matters.

Between 1972 and 1981 the capacity of the EMSA plant was raised to the current

30 000 metric tons per year. This included the installation of a new forming

facility, baking furnaces, an impregnation plant, graphitising furnaces and an

extended machining facility. EMSA today is a fully integrated business and

through the dedication of its people and growth in the local market for graphite

electrodes and related products, has become a financially viable and successful

business. Today the company is owned on a 50 : 50 partnership basis by

Samancor and UCAR Carbon Company, previously the carbon products division

of Union Carbide Corporation.

6.2.2 EMSA cares for its employees

EMSA can be regarded as a progressive company that has for many years

provided well for the basic and security needs of its employees. Since 1977 the

creation of a system of equality, a safe and healthy work environment, and the

development of all employees has become a priority.

6.2.2.1 Equality in the workforce

In 1977 EMSA became a signatory to the Sullivan code of conduct (Sullivan 1979 :

67), since one of the share holders, Union Carbide was one of the original

Signatories of the code in that year. The nature and scope of the management of

multinational and international corporations in South Africa entered a new era with

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the implementation of the Sullivan code of conduct. The aim of this code of

conduct, designed by the American civil rights leader Dr Leon H Sullivan, was to

achieve the equality of white and non-white workers in South African corporations

directly or indirectly controlled by American corporations.

The Sullivan code of conduct consists of seven principles which are aimed at

bringing about changes in the organisation in order to achieve equality in the

workplace (Sullivan 1980: 5). Pretorius (1988: 116-117) categorises the seven

principles into two groups:

El "Principles to ensure equal opportunity between whites and non-whites in

and outside the work environment where the two groups are in direct

contact or competition". This includes integrated facilities (principle 1),

training to prepare non-whites for, and promotion of non-whites into

supervisory and management position (principles 4 and 5), and the

elimination of laws and practices that prevent social, political and

economical justice (principle 7).

El "Principles to ensure equal opportunity between whites and non-whites in

and outside the work environment where the two groups are not in direct

contact or competition". Examples are equal and fair employment

practices (principle 2), equal pay for all employees doing equal or

comparable work (principle 3), and the improvement of the quality of non-

white employees' lives outside the work environment (principle 6).

Progress in achieving the requirements of the Sullivan code was measured by an

independent auditing firm, Arthur D Little, Inc (Cambridge, Massachusetts).

Compliance to the code was expressed as Rating 1 (full compliance), Rating 2

(good progress) and Rating 3 (needs improvement). Since 1977 the following

changes have been made to achieve equality for all EMSA employees:

toilet facilities are fully integrated;

6 - 273

a modern cafeteria and a washroom with integrated facilities were built;

all employees have the same pension and group insurance benefits;

all employees qualify equally for housing subsidies;

non-white and female appointments were made, in technical, clerical,

supervisory, and management positions, on the principle that the

appointed person has the necessary capabilities to meet the demands of

the position;

the right to free association is recognised and employees belong to the

union of their choice;

EMSA has contributed to development of the communities where its

employees live by providing water, schools, and educational opportunities

to children of employees;

all employees receive equal remuneration for the same or comparable

work;

there is no difference between the wage scales for white and non-white

employees.

The implementation of the Sullivan code formed an integral part of the

management function of every manager and supervisor in the company. During

1988 EMSA achieved a Rating 1 for the first time and retained this rating yearly

until 1994. After the abolishment of apartheid and the democratic election of a

new government in April 1994, the statutory requirement for American companies

with operations in South Africa to report annually on the Sullivan code of conduct

is no longer a requirement in terms of the US legislation.

6 - 274

However, EMSA continued with a social responsibility programme aligned with the

Reconstruction and Development Programme (RDP) during 1995, and will

continue to do so in the future. EMSA's commitment to equality and affirmative

action in the workplace is clearly displayed by its Reconstruction and

Development policy, Table 6.1.

A significant portion of the annual expense budget is allocated to projects directed

at providing better education, primary health, and community services to

disadvantaged communities.

South Africa is at the turning point in its history. Private sector involvement is

crucially important in keeping the fabric of its fragile society together. In 1993,

EMSA received the Professional Marketing Review (PMR) Social Upliftment

Corporate Care Award for the company's contribution to social upliftment in South

Africa. The judges were very impressed by EMSA and its employees' quantitative

and qualitative efforts to realise equal opportunities, wealth and justice for all

employees and the wider community. EMSA's programme consists of four main

sections, namely: social justice, education of non-employees, training and

development of employees, and community development.

EMSA's corporate care projects encourage all employees to suggest activities in

which the company can become involved. All managers, heads of departments,

and union representatives are members of a Social Upliftment Steering

Committee, which meets monthly to discuss the progress of current projects and

to evaluate proposed projects. The committee also identifies community specific

projects. Members talk to employees, visit school communities, institutions and

associations, identifying group and individual needs.

EMSA believes that by caring for its people - both in the workplace as well as in

the community where they live - an environment is created where all employees

naturally contribute to the welfare of the company in its quest for continuous

improvement of all its services and projects.

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Table 6.1 EMSA reconstruction and development programme policy

PURPOSE STATEMENT

To provide equal opportunities, wealth and justice for all.

poLicySTATEMENT

The EMSA Reconstruction and Development Programme will facilitate sound productive reconstruction and development and will always strive to increase the productivity pool of the country, and to contribute to equal opportunities, wealth and justice for all people. The programme will further facilitate the non-segregation of races in/at all facilities, equal opportunities and equal and fair employment practices for all employees, irrespective of race, colour or sex. All employees will enjoy freedom of association.

The UNISA minimum pay level (MLL) will at least be met for the lowest paid jobs at EMSA.

Preference will be given to the upliftment of EMSA employees and their families.

BOUNDARIES/CONSTRAINTS

Money / Manpower / Time.

sFscpc sTRAT.g.plE.

Equal pay for equal work.

Equal access to benefits within company policies and rules.

Training and advancement

Employees will be trained according to the company's people development and training strategy and policy.

Continue with the advancement and recruitment of disadvantaged people with the ultimate objective to fill at least 60% of all management and staff positions with people from a disadvantaged background.

Recruit and appoint only well qualified and competent people (best applicant) who would need minimum training and assistance to be successful.

Facilitate an environment whereby disadvantaged appointees are assisted and trained by current employees.

Non-employee education

Financial and non-financial support for non-employee education will be in line with the national population demographics.

Community development

The company will strive to increase the percentage purchases from non-white owned businesses.

Financial and non-financial support for community development will be in line with the national population demographics.

Source: EMSA management : 1995 (a)

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6.2.2.2 Health, safety and environmental protection (HS&EP)

In 1978 EMSA received a National Occupational Safety Association (NOSA) four

star rating and in 1982 management set the goal of winning a NOSCAR award.

A NOSCAR award is the highest award made for safety by NOSA. The ongoing

improvement in the safety achievements of EMSA includes a five star rating in

1983, regional winner in 1984, national winner in 1987 and the company's first

NOSCAR award in 1988. The communal goal contributed greatly to encouraging

a spirit of team work and achievement. Safe and pleasant work conditions were

created for all employees. Top management is personally involved in six-monthly

self audits, monthly HS&EP meetings, and all enquiries into serious and

potentially serious injuries and incidents. Management's commitment to the

creation of a safe and healthy work environment unquestionably played a decisive

role in creating a positive attitude and safety awareness among employees. This

can be illustrated by E MSA's excellent safety achievements and the large number

of employee HS&EP suggestions (on average 200 per year) that are implemented

annually.

During 1995, performance in HS&EP affairs once again was excellent and EMSA

retained its NOSCAR status for the eighth consecutive year. The company also

featured in the launch issue of NOSA's safety newspaper, "Workers Life", directed

at the hourly paid workforce in South Africa (NOSA 1995: 6-7).

EMSA was the first graphite facility to achieve a Union Carbide HS&EP "Meets"

rating in 1990. This is the highest rating awarded, by independent auditors, when

evaluating a company's HS&EP procedures and practices and comparing them to

the standards prescribed by Union Carbide. This rating was again confirmed

following an audit by UCAR in 1993 during a 3 yearly follow-up audit.

The main objective of EMSA's HS&EP programme is to continuously reduce the

probability for injuries. The EMSA HS&EP policy (Table 6.2) clearly shows the

company's commitment towards achieving this objective. According to this policy,

line management is responsible to ensure continuous improvement in the safety

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of all employees.

Table 6.2 EMSA health, safety and environmental protection policy

EMSA:HEALTI+1; SAFETY:AND ENVIRONMENTAL PROTECTIONPOLICY

The success of our business depends upon the prevention of accidents, occupational illnesses, deterioration of the environment and the strict compliance with established HS&EP legal and policy requirements.

Compliance to established laws, UCAR Carbon HS&EP Policies and the NOSA safety system will be accomplished through establishing clear policies, procedures and standards within EMSA with an emphasis on simplicity.

Line management is responsible and accountable for achieving and maintaining HS&EP excellence within their areas of responsibility.

Continuous improvement of our HS&EP program will be promoted to remain competitive and to retain a position of leadership in industry.

Source: EIVISA management : 1995 (b)

A direct measure of the success of the drive towards reducing injuries, is the

number of man-hours worked without a lost workday case (LWC) injury. The

company works approximately 1,2 million man-hours per year. The goal is to work

1 million (or multiples of 1 million) man-hours without a LWC injury. This goal has

been achieved 16 times in EMSAs history! Since 1976, the 2 million consecutive

man-hours without a LWC injury has been achieved on three occasions. The

record for man-hours worked without a LWC injury stands on 5,76 million man-

hours! Continuous improvement in the frequency of lost-time injuries since 1972

is shown in graph 6.3.

Graph 6.3 Lost time injury frequency

Source: EMSA management : 1995 (c)

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HS&EP training is provided on an ongoing basis. All managers, heads of

departments and supervisors received in-depth training on the Occupational

Health and Safety Act during 1995. This act differs from the preceding Machinery

and Occupational Safety Act in that the protection of the health of the employees

is included in the new act - something which has been part of the EMSA HS&EP

programme for many years. Ten percent of all employees are trained, on an

annual basis, in NOSA prescribed training courses and first-aid. All employees

belong to departmental HS&EP committees. These committees meet monthly,

using the standard agenda shown in Table 6.4.

Table 6.4 Agenda for monthly HS&EP meetings

AGENDA FOR MONTHLY ,:HSAIE:P.MEETINGS

Approval of previous minutes Matters arising Injury/incident statistics and review Audits Goals progress Housekeeping trophy Plant

Offices Topic of the month Item of the month Annexure II follow-up HS&EP training Review of HS&EP manual Transport Review committee report back Incident recall HS&EP suggestions Off-the-job safety

Source: EMSA management : 1995 (d)

Items 10 and 11 on the agenda are aimed at providing a short training session on

a selected item of the EMSA HS&EP procedures and programmes. These items

are scheduled to cover all the procedures and programmes with all employees

over a three year period.

6 - 279

HS&EP films or videos are shown monthly to all employees. During this one-hour

session, serious incidents and all injuries during the preceding month are also

discussed. Photographs or videos of the incident/injury are shown to create an

awareness of the situation to prevent reoccurrence.

EMSA is dedicated to preventing atmospheric pollution in the community where

it operates. Specifically, EMSA strives in its corporate and personal actions to:

avoid unnecessary contributions to air pollution;

meet or better existing air quality standards in cooperation with the air

pollution control authorities and with the community;

. minimise atmospheric emissions from processes through the use of the

best affordable technology;

. support research and monitoring into atmospheric phenomena so that the

most cost effective pollution prevention strategies can be devised.

In recognition for its contribution towards air pollution prevention, EMSA received

the National Association for Clean Air's (NACA) Corporate Award. NACA, a

comprehensive authority on air quality in South Africa, bestows this prestigious

award for exceptional contribution to the prevention of air pollution on a national

basis to an organisation with a history of commitment to clean air.

This look at EMSA's successful HS&EP programme leaves little doubt that one of

the greatest contributions to the attainment of its high degree of total safety results

from its systematic approach and outlook; all stages of design, manufacture and

operation, the people - equipment - material - environment sub-systems are

considered as interrelated interdependent components of the overall system.

Safety at EMSA has come to mean freedom from the people - equipment - material

- environment interactions that result in injury to personnel, damage to equipment,

time loss or any down grading of the company's objectives.

6 - 280

6.2.2.3 Training and education

The importance placed on education and training is evidenced by the substantial

amount of money spent on this topic during 1995, namely 6 percent of EMSA's

total wage bill.

Until 1979 training was given mainly to top and middle management. This

included training in the Union Carbide management principles and systems, the

Kepner Tregoe problem-solving and decision-making techniques, and negotiating

skills. After a full time training manager was appointed in 1979, training

programmes were implemented for potential supervisors and for the development

of all hourly employees.

At present, employees receive, on average, 10 working days training, in various

subjects, during the calendar year. This training includes:

0

adult basic education and training;

0

total quality management;

quality circles training for leaders and members;

statistical analysis, SPC and experimental design;

justice for all;

0

industrial leadership;

0

labour relations act;

0 occupational safety and health act;

0 first aid;

6 - 281

O

23 NOSA courses;

O

forklift operators course;

O crane operators course;

O slingers training;

. apprenticeship training and education.

All employees are encouraged to improve their education levels by enrolling for

degrees, diplomas and high school certificates. Financial assistance is given to

all employees studying towards recognised qualifications at accredited institutions,

provided that the field of study is relevant to the company and the employee's

future prospects in the company.

The Manpower Training Amendment Act, which came into effect during 1990,

provides for the establishment of industry based training boards to take over the

administration of the apprenticeship system from the Department of Manpower.

The training boards had to formulate conditions of apprenticeship which provide

for a competency-based modular training system as opposed to the time-based

system used in the past.

A system of accreditation was introduced. This involved the evaluation of training

institutions or employers to determine whether they can function as a training body

and produce trained artisans who comply with set standards to the industry.

EMSA was granted accreditation during 1993 to train apprentices in the trades of

electrician, fitter, fitter and turner, and welder. This accreditation was granted to

EMSA by the Metal and Engineering Industrial Education Training Board.

EMSA also supports education and development programmes in the community

and for children of EMSA employees.

6 - 282

0

Junior Achievers: This programme exposes children from all cultures to

an equal opportunity environment. The 10 week educational programme

is presented by EMSA to senior high school children from the community

to teach them how to organise, operate and manage their own business.

Mentorship programme: A resident professor at a local university is

sponsored to mentor post graduate students from the disadvantaged

community.

Adopted schools: Needy schools in the community are assisted by

providing the basic equipment necessary to ensure an acceptable level

of schooling for the attending children. EMSA artisans are also involved

in maintenance activities at these schools.

0 Supplementary classes: These classes are presented by a local

university, and sponsored by EIV1SA, to matriculants from the

disadvantaged communities. The classes are presented to matriculants

in preparation for their final exams.

EMSA believes that a trained and educated workforce is an informed workforce,

and as such are able to make better judgement decisions, as and when required,

in both the workplace and in their private capacity as members of the community.

From this background study of EMSA, the character of the company very clearly

constitutes itself as being one of caring for, and serving of, its employees. It is

obvious that the company recognises the potential greatness of the people in and

around it, and that it wants to serve (or give) in such a way that this potential

greatness may be realised. This perspective is extremely important because it

shows that serving people does not mean being servile; it means doing the things

required to make the other person greater and not the things that will evaluate

only the self. From the company's point of view, this also means not tolerating

mediocrity. Serving the other does not mean to allow him equality with the worst

in himself, but to create the circumstances where he will rise to the best in himself,

6 - 283

in other words, where he will start acting with generosity, courage and care

towards everybody in the immediate environment.

6.2.3 The TOM process at EMSA

In chapter 4, a model to define the elements of the TQM process was proposed.

These elements were defined as:

0 employee involvement: the active involvement and participation of all

employees, in a multi-functional capacity, in all improvement actions are

considered to be a fundamental element for the achievement of

continuous improvement;

0 continuous improvement: the continuous improvement of productivity,

quality, profitability, safety, environmental protection, asset utilisation,

knowledge, and processes are essential in the advent of competing in the

global market;

customer focus: customer is defined as being an internal or external

user/buyer of any product/service provided by the organisation, and also

as the owners/shareholders of the organisation who are directly affected

by the success (or failure) of the organisation.

The TOM model provides the structure for a systematic analysis and evaluation

of the TQM process at EMSA.

6.2.3.1 Employee involvement

EMSA was one of the first companies in South Africa to implement quality circles.

As far as can be established, EMSA was the first organisation to successfully

involve hourly-paid black workers in quality circles (Barnard 1993: 186). The

quality circle programme was implemented slowly and systematically. The

decision to implement quality circles was taken at the end of 1981 and a quality

6 - 284

circle policy (Table 6.5) was formulated and approved by top management even

before management communicated with employees on the proposed

implementation of quality circles. This was done to ensure that top management

reached consensus on the objectives of the programme and to affirm from the

outset management's commitment to quality circles.

Table 6.5 EMSA quality circle policy

EMSA QUALITY: CIRCLE POLICY

Employee input into the day-to-day operation of the job(s) is considered to be an important

element in the successful operation of the company. A quality circle program is one method

of effectively obtaining that input and as such is endorsed and fully supported by

management.

DEFINITION

Quality circles are small groups of employees who meet on a regular basis to discuss their

work problems, analyse causes of these problems and recommend solutions to

management, and in areas within their jurisdiction, to take action to implement solutions

themselves. Normally, a circle will consist of from 4 to 10 individuals from the same or

related work area.

PURPOSE AND SCOPE OF QUALITY CIRCLES

To conduct continuous analyses of operating problems using the proven techniques of a

quality circle program within the company. The principles described herein apply to all

activities (engineering, administrative, manufacturing, etc) in the company.

PRACTICE AND PROCEDURES

Management will support circle activities by:

Allowing company time for regularly scheduled committee and circle meetings.

Providing adequate meeting areas and materials.

Providing effective publicity for the program via the EMSA newsletter, bulletin board notices, etc.

Replying to circle recommendations and requests in a timely manner.

Implementing approved circle recommendations expeditiously.

Respecting the autonomy of circles, eg. not intentionally independently resolving a problem that a circle has undertaken to solve.

Circles will ....

6 - 285

Circles will:

Assure that each member has a voice in the operation of the circle.

Set up schedules for meetings and presentations within the framework of known company workloads.

Not address the following subjects: benefits and salaries employment policies personalities organization-wide policies.

Have the option of accepting or refusing problems submitted from any source.

Have the opportunity to present periodic reviews of selected projects to top management.

Source: EMSA management : 1995 (e)

Information sessions were held with heads of departments, supervisors, artisans

and all hourly employees during which the following topics were discussed:

background of quality circles;

the EMSA quality circle policy;

the implementation plan;

training.

A full time coordinator was appointed to coordinate all quality circle activities and

to provide the relevant training to circle leaders and members.

The first quality circle was formed in September 1982. It consisted of black and

white boilermakers and welders and was known as the Fab circle. During the pilot

phase, September 1982 to February 1983, six quality circles were formed and

management decided to proceed with the quality circle programme. The following

important factors were taken into account in this decision:

six quality circles were formed during the pilot phase, and an additional

6 - 286

four circles were on the brink of being formed;

during the pilot phase, the six circles made eight presentations to

management, who were very impressed with the enthusiasm and creativity

of the members;

two of the eight projects had already been successfully implemented;

the cost of implementing all eight projects would be R6 800 for an annual

saving of R15 000.

The quality circle programme has been functioning effectively ever since. At the

end of 1995, 29 quality circles were active with a membership of 218. Since

1982, 267 quality circle projects were successfully implemented with a resulting

annualised saving of approximately R2,6 million. When the magnitude of savings

is examined, it must be taken into account that 179 of the quality circle members

are hourly paid employees, many of them being semi-literate black employees,

whose lack of advanced problem solving skills makes the achievements of their

quality circles even more significant and applaudable.

The main goal of implementing quality circles was to raise employee morale with

the belief that it would contribute to increased productivity. EMSA's management

is aware of the difficulty of determining what contribution quality circle participation

has made to raising morale, since there are other factors that influence it

simultaneously. One of the most important variables is the influence of external

political pressure brought to bear on black union representatives. Unions in

general are opposed to any programme aimed at increasing productivity, since

they believe that it will lead to a reduction in job opportunities and to strengthening

the capitalist system.

EMSA management, however, reasoned that, although it is difficult to measure the

contribution of quality circle participation to an improvement in morale, there is

sufficient literature and case studies that prove that employees in general have the

6 - 287

need to belong to a group, to use their minds as well as their hands, and to

receive recognition. Quality circles give employees the opportunity to become

part of a group, to use their practical capabilities for problem-solving, and to

receive recognition for their contribution. Quality circle activities thus lead to

employee satisfaction with a consequent improvement in morale. The fact that

participation in EMSA's quality circles is totally voluntary, with no monetary reward

attached to participation or achievement, also means that only those employees

who derive satisfaction from these activities will remain active members. The

growth and continued existence of quality circles could thus be seen as an indirect

indication that quality circles contribute to improving employee morale.

Quality circle participation also leads to improved productivity because members

carry out their routine tasks with more enthusiasm and interest. Members are

continuously trained, learn how to solve problems and make decisions, and

develop a better understanding of the operation and cost structure of the

company. This enables employees to execute their daily tasks more effectively

and with greater understanding. EMSA's management realised that this

improvement in effectiveness with which employees carry out their day-to-day

activities would make the greatest contribution to increasing productivity in the

long term. The implementation of quality circles is still regarded as a long term

investment in EMSA employees.

Additional to the improved productivity that results from quality circle activities,

union representatives, and members, learn what problem-solving and decision-

making techniques comprise, what consensus decision-making means and how

the organisation functions. This could make union negotiations much easier in the

future and lead to more realistic expectations.

EMSA managed to implement quality circles successfully and to involve lower

level employees in the problem-solving and decision-making process. This lead

the way to the implementation of TQM and for a new organisational culture.

A TQM programme based on the Deming philosophy was introduced in 1987.

6 - 288

!mai (1986: xxv) defines TQM as organised, gradual, unending improvement

activities involving everyone in the company - management and workers - in a

totally integrated effort towards improving performance at every level. This

improved performance is directed towards satisfying such cross-functional goals

as quality, cost, scheduling, manpower development and new product

development.

During December 1987, the plant manager wrote a memorandum to the managing

director regarding the implementation of TQM at EMSA:

"We should not encounter any major obstacles in the process of shaping a new

culture in the plant organisation since we have bee practising a more participative

management style and encouraging innovation for the past five years". (Barnard

1993: 182).

The success of the quality circle programme made a great contribution to the

creation of the new culture. Employees were used to participating in problem-

solving and decision-making and have confirmed that management is sincere in

its intention of establishing a participative management culture. This lead to

mutual trust between management, employees, and union representatives. Trust

in the workplace has serious implications for an organisation's ability to compete

effectively in the global economy.

Formal training in the Deming philosophy was presented to all managers, heads

of departments, supervisors and union representatives. Table 3.5 (p 3-73) is a

summary of Deming's 14 points of quality improvement for management. Points

6 and 13 emphasise the necessity of training and development of employees and

point 5 highlights the importance of the principle of never-ending improvement in

everything a company does and produces. All three these points have already

been addressed through participation in the quality circle programme. Employees

were offered the opportunity for training and development and to contribute to

never-ending improvements of EMSA by means of proposals on projects for

improvement and solving work related problems.

6 - 289

During 1988 EMSA management formulated the EMSA vision and introduced it to

all employees. The vision is reviewed regularly to ensure that it remains current

and applicable to the present operating environment, and that it remains fully

aligned with the corporate UCAR vision. The most current revision (Table 6.6)

took place during the second half of 1995 and included a new global approach for

the organisation as a whole.

Table 6.6 EMSA Vision

EMSA VOVON

This Vision statement is an expression of what we strive to be as a global company. For each of us to identify with this Vision requires considerable personal commitment. Realizing the Vision calls for innovation, inspiration, and dedication

We know where we are going and why

Every person is informed, and empowered, enabling us to reach our common goals.

We have pride of ownership in our jobs

Our environment encourages each of us to make our maximum contribution. Participation through team work enables every individual to be involved in, dedicated to, and benefit from the success of the business. We listen to and trust each other.

We continuously improve everything we do

Our dedication to total quality makes EMSA the high-quality, low-cost performer. Adaptability and innovation are vital parts of our continuous improvement effort.

We set the standards

Customers are the key to our success. They recognize us as the industry leader based on the value we deliver with our products and service.

We provide excellent value

We consistently provide attractive growth of shareholder value while meeting our commitment to our communities and employees in matters of health, safety, and the environment.

Source: EMSA management :1995 (f)

6 - 290

EWISA PRACTICES

.. .

Managing people by regularly communicating goals, strategy, changing priorities, and so on.

Helping people to understand how their jobs contribute to the overall effectiveness of your work unit.

Allocating resources in accordance with business priorities.

Being willing to make difficult decisions.

Demonstrating commitment and persistence in attempting to serve customers better.

Knowing the motivation and goals of the customers.

Being innovative and creative in response to business conditions.

Solving problems rather than escalating the problem upwards.

Giving employees a clear-cut decision when they need one.

Responding in a non-defensive manner when others disagree with your views.

Demonstrating high personal standards.

Encouraging innovation and calculated risk taking in others.

Encouraging your subordinates to initiate projects they think are important.

Supporting and reinforcing new ideas and techniques developed by employees.

Treating with an open mind requests to change plans and goals when circumstances seem to warrant change.

Being able to develop new, creative approaches and alternate solutions to problems.

Encouraging employees to take responsibility for actions and results, creating a sense of ownership.

Trusting your subordinates to do things right.

Giving your subordinates feedback on how they are doing their job.

Communicating your views honestly and directly during discussions with subordinates about performance.

Utilizing recognition and non-monetary rewards as well as financial compensation, to reward excellent performance.

Recognizing the value of bringing together people with different opinions.

Understanding which decisions can be made alone and which decisions need to involve others.

Evaluating the views of others according to their knowledge and competence.

Behaving in a way that leads others to trust you.

Emphasizing co-operation as opposed to competitiveness among members of your work group.

Concurrent to introducing the EMSA vision in 1988, management also introduced

a set of vision practices (Table 6.7). This vision practices are, in essence, a code

of conduct aimed at creating a corporate culture focused on the vision. The vision

practices support and encourage creativity and employee involvement in problem-

solving and decision-making.

Table 6.7 EMSA vision practices

Source: EMSA management : 1988

6 - 291

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During 1996, the vision practices will be replaced by a set of six corporate values

and practises. These values and practices (Table 6.8) were formulated to:

support the vision;

drive the actions required to satisfy the vision;

provide a simplified, more detailed description of the core beliefs which drive

the organisation.

After implementing the EMSA vision in 1988, the TQM policy (Table 6.9) was

formulated to support the vision and to fulfil the requirements of the

SABS ISO 9002 listing and UCAR quality standards.

Table 6.9 EMSA Total Quality Management policy

EMSA TOTAL QUALITY MANAGEMENT POLICY ''''''''''''''''''''''''''''''''

EMSA is committed to continual, never-ending improvement in Total Quality.

It is EMSA's goal to provide our customers with value and service to meet their needs at all times.

By maintaining constancy of purpose, with improvement of competitive position through Total Quality as a primary operating objective, and by using the powerful tools of Statistical Process Change, we shall make quality improvement a way of life and gain the long-term advantage that comes from reliable products.

The company quality policy is thus directed towards achieving the following objectives:

To provide customers with an assurance, that is to say a high level of confidence, that the graphite products supplied to an order will comply with an agreed specification (or will perform satisfactorily).

To minimize the risk of failure or faulty performance of any product under specified or normal service conditions, for a predetermined period of operation.

To contribute to the profit objective of the Company by optimizing the direct costs of quality assurance against:

the cost of potential losses, defects and wastage. the implicit value of perceived goodwill and credibility.

To improve communication between all departments and functions.

To improve managerial and technical skills and to instill the need for self-discipline and attention to detail in all personnel in conducting the activities of the Company.

To increase quality assurance awareness in all Company personnel and to create an environment that will lead to the daily pursuit of better quality on the part of every person in the organisation.

Source: EMSA management : 1996 (b)

6 - 293

Groups play a particularly significant role in Elk/ISA. The successes of the quality

circle programme guided management into forming formal groups, or teams, at

different levels of management to address specific needs. The EMSA team

structure (Figure 6.10) consists of six main groups.

Figure 6.10 EMSA team structure

Source: EMSA management : 1995 (g)

Business team

The business team consists of the general manager and the eight functional

managers reporting directly to him:

human resources

finance

marketing

production

quality

HS&EP

engineering and maintenance

pipeline (production planning and materials)

6 - 294

The business team meets once per week to communicate and to formulate

policy and strategy.

Operations team

The operations team consists of the production manager, process managers,

and heads of departments. This team meets weekly to communicate

decisions from the business team and to share problems and opportunities

present in the facility.

TQM steering team

The TQM steering team meets once a month and consists of the business

team, operations team, TOM coordinator, quality circle coordinator, and union

representatives. This team formulates policy about training and all small

group activities. The review of TOM procedures and progress in quality

improvement are standard agenda items for the monthly meetings. The TOM

steering team also appoints breakthrough teams to address specific and

urgent quality issues.

Breakthrough teams

The TOM steering team appoints breakthrough teams on an ad hoc basis.

According to Juran (1964 : 2) a breakthrough is "... change, a dynamic, decisive

movement to new, higher levels of performance". The aim of the breakthrough teams

is thus to permanently improve existing standards. These teams are

appointed to work on complex and often multi-disciplinary projects. In

contrast with quality circles, membership of these teams is not voluntary and

the team is dissolved as soon as the problem has been solved.

Control teams

Control teams are permanent teams and meet at least once per month to

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work on the never-ending improvement in total quality. Every department has

a control team consisting of the head of the department, supervisors,

members of the quality assurance department, maintenance and engineering

department and also representatives from the shop floor. These teams make

extensive use of statistical techniques to gather data and to show progress

in their improvement efforts.

Quality circles

Quality circles consist mainly of hourly and supervisory personnel.

Membership is voluntary and there is no financial reward associated to

suggestions or improvements implemented by the circles. Circles meet two-

weekly in working time to work on the improvement of any work related issue,

relative to their area of interest, selected by the circle's members.

Every Friday there is a "Total Quality Hour" during which a control team is given

one hour to make presentations to management. This weekly session is attended

by all members of the business and operations teams. The control teams are

rotated to give each team the opportunity to make three presentations per year.

Shopfloor workers participate in the presentation of projects in which they are

actively involved.

The objectives of the Total Quality hours are the following:

to prove management's commitment to never-ending improvement in quality.

All employees can see that management is prepared to devote time to listen

and respond to their proposals;

to ensure that control teams are working on projects that are focused on the

goals and vision of the organisation;

to ensure continuous improvement in the activities of each department;

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to give control teams recognition for their contribution to continuous

improvement at EMSA.

The EMSA team structure also makes it possible to deal with the communication

needs of the organisation. The need for two way communication is stressed

during all team meetings and all employee proposals are dealt with in an ordered

fashion.

Communication between all departments and functions has been further improved

by the introduction of a quarterly state-of-the-business meeting where the general

manager addresses all salaried employees. The production manager then

addresses all hourly paid employees to convey the same information to the rest

of the workforce within 24 hours.

It is clear that every employee at EMSA is involved in the problem-solving and

decision-making process, and has the opportunity to participate in group activities.

The benefits of the experience and training that employees gain from group

activities will be illustrated in the discussion on continuous improvement.

6.2.3.2 Continuous improvement

Since 1972 a very active Operations Improvement Programme (01P) has been in

effect. The overall objective of this programme was to look for opportunities to

reduce operating cost and to improve overall operational productivity.

During 1986/1987 production demand approached production capacity in four of

EMSA's five production processes. This situation resulted in excessive overtime

being worked in an effort to meet production schedules. Support functions, eg.

maintenance resources, were also stretched to the limit and the low operating

efficiency in the forming facility had a negative impact on product quality and

uniformity.

EMSA decided to address capacity deficiencies in the forming, baking,

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impregnating and graphitising facilities through efficiency and unit capacity gains.

Multi-disciplined breakthrough teams were established to increase capacity by

investigating potential improvements and to limit capital expenditure as far as

possible. These teams had regular meetings and action plans were formulated

to implement identified improvement projects.

The success of the forming team is reflected by the reduced set-up and change-

over times achieved in the forming process: a die change which had previously

taken about five hours was significantly reduced to only sixteen minutes! Added

to this significant increase in facility capacity was an improvement of 20 percent

in overall facility efficiency.

A electrode length improvement programme achieved advancements in the baking

process by improving the packing methods used in order to avoid end deformities.

Further improvements in the baking process were attained by increasing payloads

and faster furnace turnaround, achieved through the use of cooling bays, to

remove electrodes from the furnace to cool, and thereby reducing furnace

occupancy.

Capacity improvements were made in the impregnation process by double

stacking short electrodes in the autoclaves. After extensive trial work it was found

to be possible to reduce the cycle time of the impregnation cycle by approximately

8 percent.

Until 1987 EMSA had been operating two different graphitising processes. The

one made use of current technology and the other was the original process used

when the plant was erected in the late 1960's. The latter was more time

consuming, required larger loads and greater expenditure on electricity, there was

greater risk associated with the production run, and electrodes produced were of

inferior quality. A decision was taken to remove the old conventional furnaces and

to replace them with smaller furnaces thereby shrinking space requirements and

increasing facility payloads. The shorter firing cycle enabled the process manager

to schedule furnace firing times so as to take advantage of cheaper electricity

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rates. The more uniform firing cycles and the smaller furnaces further enabled

EMSA to produce rush lots more readily.

Production costs were further reduced when it was realised that carbonaceous

waste, which had previously been dumped into landfills, could be sold as a by-

product. The market for dust waste, sold as pellets or bagged dust, extends from

the steel industry to the building industry and the product is used to increase the

carbon quality of manufactured goods.

Significant developments have been made in the use of computer technology.

Prior to 1993 EMSA operated a mainframe computer system. This system has not

been open to the manipulation of data and was thus unfriendly for useful data

retrieval. This resulted in employees using personal computers extensively to

compile reports. During 1993/1994 the whole plant was networked into an AS400

computer system. EMSA has always had a version of MRPII, however, as it was

a mainly manual system, the company has not been able to benefit from the real

advantages of MRPII. Under the new AS400 system the large amounts of paper

floating around have been reduced and data is captured at the source. These

improvements have brought EMSA to the point where it has implemented a fully

integrated production planning and control system - EMSA is currently working

towards reducing in-process buffer inventories through better scheduling and

improved production processing cycles. A large portion of the savings resulting

from reduced in-process inventories will be allocated to building finished goods

inventory to reduce delivery lead times and to assist customers to reduce their

inventory levels with minimal risk of stock-outs.

Many years of direct employee participation in day-to-day operating decisions has

stimulated the leadership qualities, personal initiative and original thinking

required to manage EMSA's operations. Despite a substantially reduced labour

force EMSA has managed to achieve significant labour productivity increases.

Given a production demand of 18 136 metric tons in 1983 compared to 27 973

metric tons in 1996, labour productivity improved from 27,7 metric tons per

employee in 1983 to 58,8 metric tons per employee in 1996.

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Throughout the implementation of TOM at EMSA, management has assured

employees that no retrenchments would be effected as a result of productivity

improvements achieved. General consensus is that this is the reason why the

active trade unions in the plant have not objected to productivity improvement

programmes and have understood that these improvements have contributed

towards employment security. The reduction in labour force has been achieved

by natural attrition and voluntary separation packages.

Over the four year period, from 1987 to 1991, efficiency improvements of

approximately 20 percent were achieved in EMSA's forming and impregnating

facilities, and capacity improvements of just over 20 percent were achieved in the

forming, baking, impregnating, and graphitising facilities. Annual savings

amounted to R4,3 million over the same period. The capacity improvements

enabled EMSA to avoid further capital expenditures on plant and equipment with

resultant cost avoidance of R7,2 million between 1988 and 1990. As a result of

these improvements, EMSA has been able to keep within plant manufacturing

capacity up to 1995. The first additional capacity will be added towards the end

of 1996 as a result of a significant increase in product demand forecast for 1997

onwards.

The success of EMSA's continuous improvement effort is further evidenced by the

savings resulting from the 01P. During 1995 these savings amounted to a

significant 2,9 percent of total plant costs.

The achievements realised through EMSA's continuous improvement of all

aspects of the business, through the involvement of all employees, serves as clear

commitment to the concepts of TOM by EMSA management.

6.2.3.3 Customer focus

EMSA is the sole producer of graphite electrodes in South Africa. The demand

for graphite electrodes is largely dependant on the demand for steel which is

produced via the ultra high powered electric arc furnace process. For this reason

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the company's product is directly dependent on the derived demand of the steel

industry. These factors have a very definite effect on the strategy which EMSA

has formulated to be effective in its environment.

Strategic management requires a balance between environmental opportunities

and the company's resource base. Since both are continuously changing, the

profit growth balance of an organisation also changes continuously. This dynamic

situation challenges the survival of every business, but it can also be a renewing

process for businesses that can identify environmental opportunities within their

resource capabilities (Kollat, Blackwell & Robeson 1972: 10).

As EMSA can do very little to increase sales to customers directly, due to the

derived demand situation of its market, it has opted for a pull marketing strategy.

Rather than attempting to address the problem at the primary level, it has opted

to approach the situation at the secondary level by providing a technical service

to arc furnace operators. This service is directed at the EMSA : customer to reduce

furnace operating cost by more efficient use of graphite electrodes. To enable the

customer to reduce the consumption of graphite per ton of steel produced, EMSA's

technical service engineers, employed by the marketing department, call on the

customer not to sell electrodes but rather to provide a technical service to the

customer to ensure that the furnace is operating efficiently and that graphite

consumption is kept to the minimum. Further, arc furnace specialists from UCAR

visit South Africa regularly to advise EMSA's customers on new furnace

technology and to assist with any operating inefficiencies they may be

experiencing.

These service activities result in the customer reducing the amount of graphite

electrodes consumed per ton of steel produced. It may be argued that this

approach to customer satisfaction causes a reduction of graphite electrodes sold

by EMSA. This is quite correct in the short term, but EMSA's approach has a long

term focus. The long term goal of this strategy is to ensure that the electric arc

furnace process remains more cost efficient with respect to all other processes of

producing steel.

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When analysing the statistics of the steel industry it becomes very clear that this

strategy has resulted in the expected benefits, to both the electric arc furnace

operators as well as for EMSA.

During the period 1990 - 1995:

graphite electrode consumption decreased by 17,2 %;

total steel demand increased by 1,08 %;

electric arc furnace steel demand increased by 22,8 %;

EMSA electrode sales increased by 13,4 %

(Source: EMSA management);

It is clear that the electric arc furnace method of producing steel has gained'

preference over the other methods of steel making. This trend is expected to

continue, and even to increase, as the older steel shops are being replaced with

new, modern ultra high powered electric arc furnaces.

Being the only producer of graphite electrodes in South Africa implies that EMSA's

customers are almost completely reliant on EMSA's ability to supply quality

products on time. EMSA has thus always kept large quantities of inventory. Both

contractual and gentlemen's agreements have been entered into with customers

to the effect that EMSA is committed to reliable supply of product at all times. The

reduction of processing lead times since the introduction of TOM has increased

the confidence of EMSA's customers in its ability to supply products timeously.

EMSA has received various certificates, citations, recognition awards, and letters

of commendation related to customer satisfaction from its customers. Some

customers have gone so far as to submit articles on EMSA's customer focus to

newspapers and magazines. The following is an extract from one such article,

published in 21 publications (Davies 1992 : 1):

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"As more companies tighten reins, Atlantis Diesel Engines and Atlantis Foundries have

been quick to appreciate that one of their suppliers, EMSA (Pty) Ltd, has gone out of its

way to educate them in the most efficient and cost-effective use of its products.

"EMSA has also kept the price increases of its electrodes and recarburisers well below

the inflation rate through its commitment to continuous improvement.

"Since EMSA is the only producer of these products in South Africa, they could be

complacent about their customers", says Mr John Davies, senior general manager of

Atlantis Foundries.

"But this is not so. They are aware of the long-term benefits of good customer relations

and have introduced a [TOM] policy that brings them closer to their customers.

"EMSA's recommendations following the evaluation of our melting practices and

operations, resulted in a reduction in the amount of electrodes in our arc furnaces.

"This was done by reducing the amount of electrodes used per ton of metal from 5,1 kg

to 3,2 kg. Since this is one of the most expensive products used by the foundry, our

savings are great."

Significant improvements in product quality and uniformity resulted in reduced

graphite consumption and major cost savings by EMSA's customers. The fact that

the company has maintained its market share, even in the face of a growing threat

of foreign competitors trying to enter the South African market, is a clear indicator

of very high level of customer satisfaction.

6.3 CONCLUSION

The active involvement and participation of all EMSA's employees in problem-

solving and decision-making is regarded as essential for the achievement and

maintenance of a low cost producer status. Employees are actively participating

in EMSA's voluntary quality circle programme. Currently 48 percent of the work-

force are active members of this programme. A team based system of control and

breakthrough teams is provided as a structure for employees to contribute to TQM

by continuously looking at ways to improve systems, processes, services, and

products supplied to internal and external customers.

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Participative management is one of the cornerstones of the EMSA TQM process.

Management provides leadership and direction and only where necessary is

directly involved in the planning, control and execution of activities. However,

once the strategy is defined, the authority for execution is delegated to the

employees best qualified for the execution of the projects or programmes.

Regular feedback sessions, in the form of Total Quality hours, are scheduled for

communication purposes and to ensure that the overall strategy is maintained.

Continuous improvements in product quality and reliability has resulted in reduced

electrode consumption and great cost savings by EMSA's customers. A clear

indication of customer satisfaction is the fact that EMSA has maintained its market

share, even in the face of increased international competition.

6.4 SIAM RY

In this chapter, a multinational South African company, EMSA, was used to

illustrate the TQM process in a South African manufacturing environment. The

TQM process at EMSA was examined and analysed according to the TQM model

proposed in Chapter 4.

In Chapter 7, the experience gained and lessons learned, in the quest for

continuous improvement, during the past decade will be extrapolated to sketch the

future requirements and challenges of the TQM process.

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CHAPTER 7

TO

MAGI LE

SYNOPSIS 7-306

LIST OF FIGURES, GRAPHS AND TABLES 7-307

7.1 INTRODUCTION 7-308

7.2 E1SIPOWERED TE MS: ELEW, TING TOTAL QUALITY MANAGEMENT TO A NEW LEVEL 7-309

7.2.1 Wealth creation - a prerequisite for growth 7-309

7.2.2 Making the transition to an empowered team-based organisation 7-316

7.2.2.1 Group and team taxonomy 7-319

7.2.2.2 Converting to empowered teams 7-325

7.2.2.3 Continuum of empowerment 7-331

7.2.2.4 New roles for managers 7-340

7.2.2.5 Benefits of empowered teams 7-344

7.3 CONCLUSION 7-348

7.4 SUGGESTIONS FOR FUTURE RESEA F CH 7-350

7.5 SUMMARY 7-350

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ENT

CH PTER 7

TO

SYNOPSIS

South African organisations are facing new and often disturbing challenges. The power of modem production capabilities and the efficiency of global transportation have heightened competition, threatening many organisations and present ways of marketing. Yet the traditional ideas of commitment to serving customers and working together are the keys to meeting new challenges. Fancy slogans and hype will not create productive organisations. Organisations have to review their pledge to work together to serve others.

TQM initiatives have increased organisations' emphasis on and commitment to teamwork and team development by orders of magnitude. Teamwork has been demonstrated to be the single consistent strategy for continuous improvement in quality and for increased competitiveness. The movement towards empowered teams has taken on the proportions of an avalanche roaring through organisations and sweeping most traditional resistances before it. Traditional distinctions between supervisors and employees, management, and labour are being swept away, but where these distinctions still remain, they account for most shortfalls in the performance of organisations.

The challenges that organisations face to remain competitive are enormous. The competitive game is tough, and it will - without question - get tougher. The organisations that will be winning are those that are using team development and empowered teams to make the leaps in innovation, quality, and efficiency that they must make to contribute to wealth creation and growth - both of the organisation and its employees, and the country as a whole.

Empowered teamwork is what leverages the potential of an organisation into superior results. It is the vehicle for integrating information, technology, competence, and resources - starting with the human. TQM is the fundamental requisite for continuous improvement. When further enhanced by empowered teams, it can leverage the potential of any organisation to unimagined levels of sustained superior performance and continuous improvement.

Serving others helps to develop human potential. Co-operative teamwork stimulates spirited controversies, lively support of individuals, and honest discussions of conflicts. Creating this kind of teamwork is possible. Man's capacity to work together distinguishes it from other species and helps account for its dominance.

Management needs to capture traditional team work and put it to work meeting untraditional challenges and conditions. Professionals with diverse training and orientations, people from different countries and cultures, and employees in different cities must work together to solve new, complex problems under the pressures of budgets and time constraints. Expansive knowledge and persistent work are needed to develop procedures, skills, and forums of organisational teamwork suitable for the next century.

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ENT

CHAPTER 7

TO TA

MA GEM

LIST OF FIGURES, G PISS AND TABLES

Figure 7.1 STAR system 7-332

Figure 7.2 Team development continuum 7-337

Figure 7.3 Progression of empowerment and responsibilities 7-337

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CH PIER 7

SAGE

7.1 INTRODUCTION

TQM is sweeping the industrialised world, and with good reason. TQM is helping

to remove unnecessary and costly waste, to locate and eradicate sources of error,

and to provide the consumer with reliable products. It also makes people's jobs

more meaningful. TQM makes common sense.

Serving people is both an obligation and a privilege; it is the foundation for a

humane society. In a world that delivers quality service, parents entrust their

children's development and welfare to teachers and administrators; patients in

hospitals confidently rely on physicians and nurses to help them recover; and

consumers are assured that manufacturers develop effective, safe products.

People who serve well enhance the quality of the lives of others.

For an organisation, serving customers is a moment of truth, an opportunity for the

company to demonstrate its credibility and capability. Delivering value to

customers earns the organisation respect and ensures that customers will return.

It also binds employees together in a meaningful common mission; it is the

essence of a shared vision and the ultimate "bottom line".

This chapter summarises the study and shows how managers and employees, in

the current TQM environment, can work together to elevate TQM to a new level

of magnitude to serve customers well when approaching the year 2000 - a new

century with new demands, challenges, and opportunities. It provides the

rationale for investing in work relationships, stipulates the nature of productive

teamwork, and describes how to develop empowered teams throughout the

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company hierarchy. It shows how developing people and "bottom line" success

go together, and how service within the company is needed for effective service

with customers.

7.2 ERED TEAMS: ELEVATING TOTAL QUALITY MAN GEIVIENT TO NEW LEVEL

7.2.1 Wealth creation - a prerequisite for growth

South Africa is at a very interesting stage of its human resource and economic

development. The perspectives of the 1990's are crystallising into a scenario that

will be fundamentally different from anything yet known, and with such speed that

it leaves one breathless and perhaps a bit perplexed.

O re-1980

Up to the end of the 1970's, South Africa had an enviable record of labour peace.

Many believed this was because it was based on a structure of intimidating,

powerful management who had limitless control of their "subjects" - the workforce.

This was true only to the extent that the workforce was a disorganised, perhaps

voiceless, group. It is also true that it gave expression to and entrenched an

unhealthy and disconcerting "commodity" view of labour which is very difficult to

counter at operational management level, despite its rejection at corporate

executive level.

But it is certainly not true to the extent that it is interpreted as having been based

on a solidly autocratic group of slavedrivers of a chain gang. No-one has such

limitless power of his fellowman. Already, in those what today may seem as

primitive and crude times, there must have been a smattering of sound leadership

which kept the average employee reasonably content, albeit on much lower

expectations that today, and on a kind of perverse paternalism that kept people

small and immature.

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But for it to have been sustainable to any extent, without massive, perhaps even

revolutionary response from the broad employee mass, there must have been at

least an element of legitimate power.

1980 - 1990

This period saw the growth of employee structures in the form of organised unions

and their umbrella bodies. To many, this has represented the panacea of human

resource development because it creates a comfort zone wherein relationships

can be defined according to set parameters. However, the growth and

development of trade unions was a solution sought as much by management as

it was by the growingly frustrated employee.

Without doubt it was also a necessary step in the South African history of labour

relations. But what this period did was to entrench the "structural view": that

sound industrial relations are achieved merely by playing the game according to

certain rules established by people who run those structures. It has also, of

course, promoted centralisation and power group formation, with perhaps the

worst spinoff being that of fuelled expectations.

Those who continue to seek long lasting industrial peace in the structure of our

time, whose focus in on, and preoccupation with, the debate between the high

profile representative bodies at the top, run the risk of missing the next critical and

highly exciting wave that is growing by the moment.

. 1990 and beyond

The decade of the 1990's is witnessing a singular focus on the critical role of

individual relationships in the workplace. It can be seen in the growing emphasis

on reassessing the role of leadership; on empowerment; affirmative action;

participative management; quality circles; TQM, and all the other plethora of

modern management jargon. Unfortunately, many relegate these wonderful

concepts and processes to unauthentic techniques that do little more than

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enhance suspicion and try to entrench the old order of control, but this time

through manipulation rather than strict, narrowly defined procedures and systems.

It has to be realised that emphasis on relationships in the workplace goes far

beyond techniques. It must be genuine, deeply felt, and not merely addressing

behaviour or styles.

The exiting thing about this era is that it will eventually make super structures far

less relevant than they appear to be today. This is something that has always

been implicit in the Japanese management style, but when really considering it,

the true achievement of Thatcher's battles with the unions in the United Kingdom

was not that she strengthened anti-union structures, but indeed that she

weakened the union structures, thereby allowing for greater emphasis on

individual relationships in the workplace.

The other, perhaps most exciting dimension of all of this era, is that it will create

those conditions that will finally allow South Africa to address the economically

critical development of human resources at individual level; and, more

importantly: encourage and empower each individual to give the best of him or

herself.

Clearly there can only be one overriding economic aim: "the creation of maximum

sustainable wealth."

The decade of the 1990's has also dawned with greater consensus about

achieving this. However, it also urgently demands that some popular assumptions

that are often held out as leading to wealth creation be revisited for clarification.

Skills development: only true to the extent that it encourages individual

aspirations. The Soviet Union put the first man into space and East

Germany has had a very skilful workforce.

- Systems: the most misleading assumption is that a system automatically

leads to maximum wealth creation. It is often assumed that a free

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market, or a capitalist system automatically creates those conditions

where individuals aspire to their highest potential, or that a socialist

system automatically discourages people from giving the best of

themselves.

Low government participation or low tax rates

Minimum government intervention

Self interest and competitiveness

The profit motive. A favourite focus for the free market protagonists.

Mineral resources. Japan clearly proved this to be irrelevant.

A quick glance at the performance records, or wealth generating abilities of

various countries shows that all of the popular assumptions about what makes for

maximum, sustainable wealth creation does not hold true on their own.

The key that has been identified, to be a prerequisite for maximum sustainable

wealth creation is the development of human potential with strong values and

commitment (Hammer 1995: 103-105; Harrington 1995 : 269; Wilson & George

1996: 10-13).

In chapter 2, TQM was defined as:

"... a management philosophy that seeks continuous improvement in all processes, products and services of an organisation. It requires a solid customer focus, a preventative approach to quality, a profound understanding of variation, decisions based on measurement, and the creative involvement of employees at all levels".

Many people believe that economies are about things, and not about people. The

most popular misconception is that the whole economic structure revolves around

money. What is missed in these arguments is that markets are made up of

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people, and the transactional base of society is in fact one of people serving

people.

Even in a TQM organisation, it is possible to find the working environment to apply

undue pressure on resources, conflicting ideologies largely about systems, and

societies that are mostly need driven and not value driven. This is the result

mainly of the imbalance between expectations and aspirations. Expectations are

those things people believe to have a right to simply by being born into, or working

in, a specific society or organisation. Aspirations are those things people realise

they have to work for or achieve for themselves. The former translates into a

"take" on the economy and the latter a "give". Clearly, the more given, and the

less taken, the more likely the economy will be to generate surpluses and wealth.

The converse is also true.

South Africa not only has growing expectations that are translating into a "take"

from society and destroying wealth, but it also has a critical gap between

expectations and what the economy can deliver. This has serious implications:

economically, politically, and socially.

There is probably a lot more hope than many may think in bridging the seemingly

endless gulf between management and the employee. If South Africa is to survive

at all as an economic force that can meet the demands placed on it, then it simply

cannot tolerate this gap, let alone that ideological differences widen further and

continue to spill over on the workforce. There is at least one point that all can

agree on: South Africa has to create maximum wealth to ensure a prosperous

future, and that all other issues have to be made subservient to the overall aim of

creating maximum wealth.

A broader focus on wealth creation allows management to recognise its key

contribution towards enriching the employee, shareholder, and community not only

through taxes, but also as a servant to the market and in its response to the needs

and wants of mankind.

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It also puts emphasis on leadership and empowerment because it makes logical

sense to uplift the partners in wealth creation to adulthood and maturity.

Management should care for employees because they are indeed the most

valuable part (as illustrated by any value-added-statement) of wealth creation.

One of the key elements required for this broadened focus is leadership.

Implementing a shift in focus not only implies being more comfortable with

something that brings meaning and spirit to an enterprise, but it is also simply a

question of recognising and communicating the truth.

Popular discontent with the South African establishment, with the leadership at the

workplace and with the state, has made the debate around the legitimacy of the

current status quo the single most important current concern. And rightly so, since

the outcome of this debate will have fundamental implications for the future of the

sub-continent and the well being of its inhabitants. Unfortunately, must of what

goes into the current debate is based on a misunderstanding of the nature of

discontent, and on precisely what is creating a workforce who distrust their

leadership.

Coming to grips with the issues of trust in management has been a major problem.

Misunderstanding, and a lack of broad, worthwhile research, confused by external

forces and facile assumptions that often reflect the vested interests of those

involved, have compounded the problem.

However, extensive and fundamental research concerning the problem of trust in

management was conducted under the auspices of the Chamber of Mines

research organisation and confirmed by ongoing survey work by Schuitema

Associates (Schuitema 1994: 13-15). This research has disproved a number of

popular misconceptions regarding trust. For instance, it was found that factors

such as rates of pay, working conditions and service, and the so-called racial

problem were not the fundamental issues affecting trust at all (Schuitema 1994 :

12). Rather it was found that trust in management was either granted or withheld

on the basis of very simple, absolutely imposed criteria. These criteria were

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concerned with whether management was seen to have an interest in employee

welfare, and whether this interest was demonstrated by the quality of

management's attention to employee grievances and problems (Schuitema 1994 :

15-25). Management stood or fell on the basis of these criteria. Where the

manager was seen to have an interest in employee welfare he was entirely

trusted, but where this was not seen to be the case he was entirely distrusted.

To bring meaning and commitment into the workplace and to address

misconceptions and rising expectations, management has to address some critical

elements.

A leadership style that is authentically nurturing, uplifting, and empowering will

accept that this goes hand in hand with information disclosure and enhancement

of this information.

The foundation of understanding should be focused on the key elements of:

market principles, including basic laws of supply and demand;

wealth creation and distribution.

It must be underpinned by an ethical foundation that states:

that economic success comes from economically active individuals

giving more than what they take.

An organisation - wide set of business principles should encompass the following:

serving the market is its overall purpose;

the main goal is to create maximum sustainable wealth;

the employee focus is at all times to enhance their wealth creation

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potential;

there should always be a fair return for risk;

reduction of company complexities;

enhancing productivity;

0 enhancing employee awareness of company issues.

Service unites employees, managers, and customers in co-operative relationships.

Many hourly paid workers, for example, do not find it rewarding to work hard to

give shareholders a fair return on their investment, but they can take pride in

producing a high-quality, high-value product or service. Then they proudly

introduce themselves at gatherings and relish the gratitude of satisfied customers.

But when their product is of inferior quality, they hide their employment, suffer the

criticisms of friends and acquaintances, and blame their managers. They stand

divided from managers and customers.

The concept of co-operative, empowered team relationships is the central

organising principle that will give a company credibility and make it consistently

responsive to customers. These relationships provide a unifying thrust that

improves customer satisfaction and will ultimately lead to the desired levels of

wealth creation and growth.

7.2.2 Malking the transition to an empowered team-based organisation

Most employees manage: a house with financial obligations; rearing and

parenting children; founding, managing, and maintaining any number of social,

religious, and activity-centred groups, institutions, and organisations. The fact

that they do not do this on the job is more a statement of management

assumptions than the motivation of workers. What employees do at work was

once an extension of what they do at home. With modern work organisation there

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is complete separation of these two spheres. They need not be separated

completely. People can still gain emotional gratification from their work, and the

people they work with, just as they do from their family and neighbours.

Integration of people into meaningful work groups completes the emotional cycle

for many people and gives them the security and gratification that is necessary to

obtain high productivity.

A basic assumption for the next level of TQM, is that the art of managing is in

empowering individuals and groups to do what they already do for themselves in

their private lives.

The need for empowered teams may be the result of several issues that

organisations now face. Market forces may be squeezing employers so hard that

the need for profound change in the way the workplace is managed is seen.

Perhaps reformed regulations, the new labour relations act, or challenging labour

negotiations show the weakness of traditional management structures.

But, even in the current TQM environment, the traditional, century-old system of

managing employees, in which the daily evidence of waste and inefficiency is

ignored, or at best tolerated, is still the norm. Many organisational leaders are

tempted to blame workers for problems. People will be laid off or transferred and

managers reorganised to gain more control over failing enterprises. At times,

contemporary organisations appear remarkably like the old Soviet Union under

Brezhnev rule. The worse things get, the tighter the control - and the less is

actually spoken about the true condition of the company.

The empowerment embraced by the empowered teams concept is in many ways

an organisational Glasnost. Opening up corporate life to all so that workers can

fully participate is, for most people, a wholly new way to work.

This is not the first management technology to suggest solutions to the

management morass. It started with statistical quality control in the 1960's, total

quality control in the 1970's, and quality circles in the late 1970's. The

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participative management concepts evolved into TOM during the late 1980's with

a corresponding improvement in productivity, quality, and customer satisfaction.

It is widely accepted that the opportunities for management to increase

productivity, improve morale and company loyalty, and to improve quality, will not

be realised by simple techniques. Rather, what is required is a further extension

to the current TOM technologies and processes.

Like any technology, the whole is greater than the sum of its parts. For example,

the invention of the steam engine was the impetus for developing railroad

technology. The steam engine was simply a technique for moving railroad stock.

That technique has long since disappeared in favour of highly efficient and

powerful diesel electric engines. This new addition to the TQM technology makes

permanent and penetrating change possible.

Implementing empowered teams requires the concurrent development of the

human resource infrastructure which will support team behaviour. Compensation,

recognition systems, performance appraisal, union-management relations,

marketing, purchasing, accounting, and many more will all be dramatically

affected. The old human resource technology was designed to control individuals

(not groups), to manage people closely, and to ensure compliance with a centrally

planned corporate economy. To simply designate empowered teams and not

change the old mind set is a formula for disaster. Where the complete new

management technology is implemented, teams have a high probability for

success. When the new technology is not confirmed with a total system change,

the team concept is due for failure.

The lack of supporting human resource technology is the primary reason teams

have had great difficulty getting a foothold in bureaucratic organisations such as

large corporations, agencies, and government. These organisations tend to have

centrally administered reward and recognition systems and centrally planned

economies, which are not easily changed at the local or team level. Unless the

entire organisation, from the top all the way down, moves to change its human

resource technology, it is unlikely teams will add any great long term value.

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Empowered teams is about changing the patterns of communication in

organisations. It is about teaching employees and managers how to take control

of their own culture and destiny. It is about Glasnost in the workplace - treating

teams and people like full partners in the business of doing business.

7.2.2.1 Group and team taxonomy

Team is one of those easy little words people use all the time, thus causing an

expansion of its definition. Many managers say "My group is a real team" or "I

believe in the team concept and that is how I run my organisation". Any grouping

of people is not necessarily a team, nor is every team an empowered team.

Metaphors could be built from sports teams and symphonies, examples could be

found of coaches and conductors who cover the gamut of styles from autocratic

and dictatorial to democratic and self-directed. More goes into the development

of a team environment than most managers dream. To set the record straight, the

difference between a team and the more common work group will be clarified. The

approach is to examine the continuum of group structures, moving from the

traditional leader-focused work group to a vision of an empowered team.

Type 11 : Leader centred/leader focused

The traditional work group is highly leader dependant (Wilson et al. 1994: 60).

It has a manager who is responsible for goal setting, decision making, making job

assignments, performance appraisals, and, in many organisations, hiring and

firing. The work is generally segmented into many different parts, and no one

person really sees the entire process or finished product, except the manager.

The manager is often a person who was promoted because of job performance,

not necessarily because of the ability to manage a group of people effectively.

The manager is often good at the work and knows more than most others about

that work.

The manager may involve the work group in decisions, ask them to do other things

a team might do, but is still in charge, and when leaving, the next manager can

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supervise in any manner of choice. The group has only the authority the manager

gives it. They are not seen as an entity which has a core identity independent of

the manager. Decisions and assignments all go through the manager to some

degree, and, more often than not, the manager can choose that degree. The

group serves in an advisory capacity only, and then only at the behest of the

manager. Regardless of how much the manager wants to think of the group as.a

team which works together, the inescapable fact remains - the manager is in

charge.

This fact reveals the true nature of the work group. If the method of work is so

dependent upon a single person, there is little hope of the group becoming a true

team.

Type 1 work groups function well when the work is highly routine and unchanging

in a low-wage, low-skill environment. When production techniques and

technologies include a predominance of simple manufacturing processes and the

worker has very little opportunity to add value or improve the process, Type 1

groups are often most effective. However, the need for central coordination along

with the low skill level of workers makes this a very low and unresponsive type of

group. When there are rapidly changing market conditions, this type of work

design may be a liability to the organisation.

El Type 2 : Leader centred/function focused

These groups have historically functioned well in professional settings like

advertising, engineering, law, and architecture. These groups have an appointed

or assigned leader who coordinates and assign work, does performance

appraisals, and makes many of the major decisions, and who is himself a

specialist. The leader of this group leads the team but does not exercise the day-

to-day direction a more traditional manager (like one represented in Type 1) would

over a group (Wilson et al. 1994: 61).

This type of manager can be totally autocratic, as the traditional top-down model

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usually suggests, or be involving and slightly more open to suggestions from the

group. Because of the creative and/or knowledge-based nature of the work, the

manager's style may not be quite as powerful an influence over the group as the

traditional manager's. Nevertheless, when leaving, the next manager could

manage the group in a wholly different style. Once again, the work group is

subject to whims or management style of a single individual. The cohesiveness

of the group is dependent upon this one manager's skills and styles.

Type 2 groups work well when knowledge, creativity, and central control are

valued. The leader of the group provides control through job assignments,

performance appraisal, and mentoring for junior members. In some cases, a

group of managers may provide performance appraisals to group members.

Managers become a valued resource within the organisation and the choice of

leader can often play a significant role in the failure or success of the particular

group. A senior group leader who has seen the process many times can provide

valuable guidance for the group and provide a superior product. Some senior

project leaders become legendary, and assignments to their groups are highly

sought after by junior members. In the absence of highly skilled senior leader

types, or an unskilled, abrasive senior partner in the group with minimal leadership

skills, the results can be disastrous. Much of the success of the group depends

upon the skills of the leader rather than the pooled creative ability of the group.

Type 3: Leader centred/integrated-task focused

In this type of group, individuals are encouraged by management to make many

of the on-line decisions and are often completely cross-trained to do the work of

others in the group should the need arise. Management may set goals, apportion

resources, and do performance appraisals. Much more employee involvement is

encouraged than in the first two group types (Wilson et al. 1994: 61-62). There

may be group incentives and the group may attain a high degree of cohesiveness,

especially when compared to Types 1 and 2. Japanese companies are often seen

as having been highly successful with this type of management. This is typical of

a TOM environment. This system depends upon large amounts of training in

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quality tools and problem solving methods. It is a much more sophisticated

structure than that of Types 1 or 2. The major limitation is that it does not

fundamentally redesign the human infrastructure. It is largely skills-and process-

centred, without giving sufficient attention to the human systems needed to

support employee empowerment.

The Type 3 system works well when the organisation shows high commitment to

quality processes in every aspect of the business. This is accompanied by an

environment where there is a well-engineered assembly line work process, a

homogeneous work force who share similar personal and cultural goals, and

labour-management relations which are carefully cultivated at every level. Type 3

groups succeed in an environment where employees are empowered through

quality circles or other involvement and problem-solving forums to improve the

process and ensure high quality products and services.

o Type 4: Self-lleditime and task focused

The fourth group is often found in project or task force environments. It is a group

with a clearly defined charge or purpose, and it is time-limited. Group members

may have clearly defined functions, but boundaries become blurred as goal-

directedness and time pressure dictate much of the group's experience.

The group may have a formal leader, but the necessarily high degree of team

member co-operation often leaves the leader on the sidelines (Wilson et al. 1994 :

63-64).

This is the first level of a true team, according to the self-imposed empowered

team definition. The group has an identity independent of the leader, and its own

set of agreed-upon norms and goals. The Type 4 group most closely resembles

the much-touted sports-model metaphor, in which highly skilled players commit to

play together for the season to win a championship; when the season is over, the

team may disband or change a great deal before the next season. Clear goals

and well-understood time constraints tend to bring cohesiveness in the Type 4

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group. But there are no procedures in place that encourage and reinforce team

behaviour after the assignment has been completed.

Type 4 groups work well when there is a critical planning task to be done in a finite

period of time, for example, planning a new plant or redesigning an established

product to reposition it in the market place. By definition, Type 4 groups are

groups with a limited lifespan, for example, breakthrough teams that disband as

soon as the objective has been achieved. The leader tends to behave more like

a coach, and may even change or disappear during the life of the project, yet the

group continues to function, often achieving surprising results in an unusually

short period of time.

Persons who work in these types of groups typically experience the development

of a real esprit de corps, and once they have this experience, they see it as a

powerful tool to be reproduced in every work group. Management attempts to

reproduce it generally fail, because the larger organisational system does not

support this type of behaviour. Top management tends to use this type of group

because the normal organisational structure cannot, or will not, allow enough

creativity or rapid enough development. Group members are often handpicked

and given exceptional authority and resources to accomplish their task. In other

words, Type 4 groups are often formed to work outside the rules of the greater

organisation - but are expected to go back to following those same stifling rules

when the project is finished.

Type 5 : SeOf-lled/task focused

Self-led work groups have common, group-determined goals, make most of the -

decisions about how to achieve the goal, and require little, if any, formal

leadership in getting the work done (Wilson et al. 1994: 64-65). These groups

are permanent, remaining together for years with only routine membership

changes. They provide most of their own leadership, and managers function as

outside resources. The group is responsible for a whole piece of work and is

expected to measure its own performance, correct problems, and report on results

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directly to management.

The larger system encourages and rewards these team behaviours independent

of the manager. Rewards are focused more on the group than the individual, and

performance appraisals are done with major input from the team as well as internal

and/or external customers. Management provides only major sanctions such as

punitive discipline and the broadest outline of resource availability, leaving all

other aspects of team functioning up to the team.

In these groups members have high levels of training in one another's jobs and

are often expected to rotate tasks according to the workload. Even when

functional titles are maintained, the boundaries become fuzzy as members learn

more and more about one another's specialities and cross over the boundaries to

help.

Type 5 groups, the true empowered teams, have been known to work well in some

very unlikely environments. Wellins, Byham & Dixon (1994) report the successes

of empowered teams in industries ranging from health care to consultancy, from

beer brewing to customer service, and from heavy manufacturing to the computer

industry. These successes were also achieved across international borders, and

range from across the United States to Malaysia, Australia, and Ireland.

From the preceding discussion it is now possible to formulate a definition for an

empowered team. This definition will be used as base and reference for further

discussion.

An empowered team is a group of interdependent, highly trained employees

who are responsible for managing themselves and the work they do in a

"whole" work process. They set their own goals, in cooperation with

management, and the team plans how to achieve those goals and how their

work is to be accomplished.

The central organising fact of an empowered team is that is has a common

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purpose and measurable goals for which the team can be held accountable,

independent of its individual members. Employees on an empowered team handle

a wide array of functions and work with a minimum of direct supervision.

7.2.2.2 Converting to empowered teams

There are right and wrong reasons for converting to empowered teams. A careful

examination of organisational motives will tell whether such a conversion is likely

to be successfully implemented. This examination can only begin by listening to

the voices within an organisation. There must be a structure to this listening that

will support a decision, regardless of what that final decision turns out to be. A

mechanism for organisational listening can take the form of a readiness survey.

Is an organisation ready for empowered teams? Perhaps some amount of

preparation is appropriate. The readiness survey can be viewed as a checklist,

like the one an airline pilot goes through before taking off. Listening is the method

of going over that list. To continue the metaphor, the pilot is looking at, examining,

listening to the air plane to ascertain its flight readiness. At the end of this

process, the plane usually goes on its way. But if a problem, challenge, or

contraindication is "heard", the adjustments and repairs are made, or the flight is

cancelled. The point to remember: no trip is begun without some questions being

asked - and answered.

The questions to be asked are in the context of the above definition of an

empowered team. This definition also fits the Type 5 group (self-led/task focused)

discussed earlier. For an organisation to make the transformation to empowered

teams, major system changes in the organisation are needed. True empowered

teams require these fundamental changes to ensure their long-term survival.

These system changes cannot, and will not, come overnight. Switching metaphors

from an air plane to a supertanker, one can see how difficult the task of change

can be. Like a supertanker at sea in a storm, the ship must be turned slowly and

with great care into the wind or it may get out of control, even capsize.

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❑ The readiness survey

The readiness survey beings by looking at the reasons for making the

transformation to empowered teams. There are right and wrong reasons for the

intended conversion, and a careful examination of the organisation's motives will

predict the organisation's probability for success.

. Four right reasons for converting an organisation to empowered

teams

TOM efforts and employee involvement processes have shown the

power of teamwork (breakthrough teams, control teams, and quality

circles). People in the organisation speak of these team efforts in

favourable language and they engender more honest effort than

discomfort. The organisation has used Type 4 groups (self-lead/time

and task focused) many times and sees very positive results. Those

results are referred to in words and actions that are positive and seem,

by most of the organisation's members, to be well received. An even

higher level of employee involvement will reap greater rewards in

customer responsiveness and organisational efficiency.

Competition has increased in the industry. The old command-and-

control methods using Type 1 or 2 (leader centred/leader focused and

leader centred/function focused, respectively) are too slow and

cumbersome to effectively manage what the organisation wants to

accomplish. Empowered teams will give greater flexibility in responding

to customers, and markets.

There is a great deal of potential in the workforce that is being wasted

or used ineffectively. This is frustrating to the workforce because it

wishes to produce a quality product and/or service as much as

management does. The language used and the things said are about

wanting to do more, be accountable for more, have a greater say in how

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their work is accomplished. Empowered teams will help employees

focus their efforts on value-added activities and take greater pride as

they gain more control over the work they do. Empowered teams will

also give increased ownership in the products made and the processes

by which those products are created.

iv) There is a visible need for stronger management-employee partnership.

Can an emphasis on win-win cooperation, while reducing or eliminating

adversarial labour-management relationships, be realised? If vast

amounts of energy are focused on fighting among organisation

members, competitors gain a great advantage in the marketplace. Can

management and labour find a way to work together towards

accomplishing the work of the organisation? If the answer seems to be

yes, empowered teams could be that new way.

The above are all strong reasons for making the change. More important, they are

positive reasons, based on affirmative judgements, that suggest a proactive

course of action. Any major change gains momentum if an organisation and its

employees all believe the change is being made for positive reasons. When the

discomfort and challenges this change can bring are viewed in the light of the

above, solutions can be found that assure everyone's benefit.

Just as there are positive, proactive, and right reasons for an organisation to

"team-up", there are negative, reactionary, and wrong reasons for attempting to

convert to empowered teams.

Four wrong reasons for converting an organisation to empowered

teams

i)

The organisation has downsized and there are not enough supervisors

to supervise everyone. Thinking that empowered teams are an

appropriate response to personnel shortfalls is the ultimate in

organisational shortsightedness. With this attitude, it is impossible to

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create the systems in the organisation which are needed to support

empowered teams, and an organisation with this attitude which plunges

into an empowered team structure has a very high probability of failure.

The transition to empowered teams requires a massive change in the

sub-systems of the organisation; otherwise the teams will rapidly wither

and die on the vine. This will leave surviving managers with twice as

much work as they had before!

The "boss", "headquarters", or "the corporate executives" instructs the

organisation to implement empowered teams. When the driving force

for implementing empowered teams is based on autocratic instruction

from top management, middle managers may be found to actively

undermine the process out of fear for losing their jobs. When forming

teams by assigning people to them, without effectively training the

teams, or management, in how to use the new systems, chaos can be

expected. Worst of all, top management's behaviour continues to be

highly autocratic - the opposite behaviour required for effective

teamwork. Most often when there is a corporate edict, it comes from

excitement over the prospect of increased productivity and with little

thought given to the major changes actually required to get the expected

increase.

The organisation's management believes its people are already

empowered, and with some minor changes it is believed it can move into

empowered teams. Without system wide support, a true implementation

is not possible and employees will view the failure as yet another

management-whim aimed at exploitation of the workforce.

The transition to empowered teams to undermine unionisation. Of all

the wrong reasons, this is the most sinister and can actually get the

organisation into major legal troubles. When an organisation seems

fearful of unionisation, there are issues that must be resolved before

empowered teams can be considered. Any effort to improve quality and

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market competitiveness will require the best of both labour and

management. The energy expended in labour-management conflict puts

a severe strain on the organisation's ability to prepare, design, and

support empowered teams. Without positive labour relations before, an

even worse climate will be the result of an attempt to try empowered

teams in the workplace. Employees will see it for what it is - an attempt

to preclude their right to collective bargaining. Strong, positive

management-employee relationships, which can be independently

documented, have to be established before beginning the team process.

The transition may not be possible without them.

If any of the "right" reasons seem to fit an organisation, then it is well positioned

to begin the implementation of an empowered team structure. If any of the

"wrong" reasons is a match, an organisation may not be ready to proceed. It must

be emphasised that an organisation that is not ready for this substantial change,

may do real harm to the organisation if it proceeds with the implementation of

empowered teams.

Implementing empowered teams is seen as the next higher level of TQM. As

such, some positive indicators can be expected to be visible to show readiness for

the change. Five positive indicators are listed below:

A recent history (at least one year) of positive and improving labour

relations as documented by some reliable independent survey or

assessment. Independent documentation is important. Many

management teams have little idea about the real perceptions of the

workforce. Indicators like decreasing grievances or improvement on

previous surveys would help in assessing this area. Companies which

are enjoying improving labour relations are also building greater trust

and a fund of goodwill to draw upon when converting to empowered

teams.

A history of management flexibility and willingness to implement

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employee empowerment processes (eg., quality circles, TOM) with

objective results.

A history of management ability to stick with a process for long periods

of time (eg., just-in-time manufacturing, breakthrough teams, control

teams) until results are seen. Management which has a reputation for

hopping on every bandwagon will not be taken seriously by the

workforce. This "flavour of the month" approach to change is deadly to

long-term improvements because it inoculates the workforce against any

real efforts to improve the system.

An already functioning "pay for performance", "pay for knowledge", or

"skill-based" compensation system. Having such systems already in

place makes it easier to adjust the rewards system to reinforce the new

team behaviours early in the process. It is also a sign that management

is aware of the shortcomings of traditional pay systems and has taken

steps to bring pay in line with corporate team philosophy.

A management group which has consistently involved the work force in

strategic planning, workplace training, or multilevel problem-solving.

When management systematically gets workers in the same room with

management to solve problems and make plans, there is an opportunity

for growing trust and understanding which will make the transition to

empowered teams smoother.

If an honest assessment of an organisation reveals no wrong reasons, and several

right reasons and positive indicators present, the transition to empowered teams

can be considered. Honestly looking at the results of the readiness survey should

give any organisation additional information about itself. Whether or not the

decision is made to implement a transition, the information should be used and

acted upon. The negatives should be addressed and ameliorated; the positives

should be rewarded and accentuated.

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7.2.2.3 Continuum of empowerment

Empowering a team to manage the performance of the unit implies a transition of

responsibilities and duties from the supervisor or manager to the team members.

A successful transition requires a plan.

When a team becomes an empowered team, it assumes additional responsibility

for planning, controlling, coordinating, and improving the work. In short, the team

takes responsibility for managing its own performance. But how, when, and in

what way?

Without answers to the following questions, a team cannot really being to take

responsibility for managing its own performance and the result is often confusion

and frustration:

which areas of its performance will the team manage?

what are the standards of performance they are accountable for?

0 what are the boundaries?

how will the team monitor progress?

which planning and coordinating tasks will need to be done by team

members?

who will they be trained to do them?

These questions and their possible answers are potential stumbling blocks which

can all be avoided with a systematic approach to empowerment that beings with

a plan. A well thought out plan, complete with measures, feedback mechanism,

and defined roles, provides a framework for managing empowerment. This

framework is popularly referred to as a STAR (Donovan 1994: 13).

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A STAR system provides the critical elements needed to empower a team. These

elements are:

0 accountabilities;

0 measures;

0

boundaries;

0

feedback.

Figure 7.1 STAR system

Source: Donovan 1994: 13

In addition, a STAR system clarifies the roles and responsibilities team members

will assume for tracking, monitoring, coordinating, improving, and administering

their day-to-day work.

A well-established STAR system allows members to learn a variety of new skills

as well as develop a broader appreciation of the work area as a business unit.

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Step one: Designing a STAR system

The first step in designing a STAR system is to decide which performance areas

the team will manage. This differs from team to team. Once the key areas of

performance are agreed upon, they become points of the STAR. The star shape

is strictly arbitrary. If a team has only three performance areas they might use a

triangle. Likewise, if they have more than five performance areas, they might use

a wheel or points on a compass.

Examples of STAR-point areas of performance are:

0 productivity;

0 safety;

0 quality;

0 administration;

0 personnel;

0 maintenance.

Step two: Measures, boundaries, and feedback methods

The second step is to decide what measures, boundaries, and feedback methods

will be used in each area of responsibility. These may include:

measures: first pass yield (number of units right first time);

boundary: maintain at least 95 %;

feedback: posted daily, reviewed weekly in team meeting;

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goal-setting: team sets quarterly goal and management reviews.

Step three: Specific team member responsibilities

Step three involves deciding the specific responsibilities team members will

assume to track and review performance data, plan and coordinate activities to

achieve their goals, and identify and solve problems.

These may include duties such as:

tracking unit quality performance (SPC charts);

leading team safety meetings;

interviewing new team members;

coordinating with maintenance on work orders.

A team member who assumes planning, coordinating, and improvement duties in

an area is called a STAR-point leader. Team members typically decide how the

STAR-point leader responsibilities will be handled:

will they be rotated?

how frequently?

0 will there be a lead person for each point?

will members be trained gradually as they rotate onto a point?

Step four: What training is needed?

The fourth step in designing a STAR system is to determine the training team

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members will need to carry out their STAR-point responsibilities.

Step five: Plan for transition

The final step in the STAR system design is the transition plan. New

responsibilities should be gradually implemented. One of the biggest pitfalls is to

transfer too much too soon. When this happens, things fall through the cracks

and management begins to pull back on various empowerments. The goal should

be to start slowly and expand the empowerments as people are trained and feel

confident in their new roles.

The STAR system provides an empowered team with a framework for self-

management. It allows team members to take responsibilities for planning,

controlling, coordinating, and improving their work.

Managers (especially first line managers) play an important role in the

empowerment process. To play this key role, they need skills for working with

their teams in building an empowerment plan (STAR) and providing the training

and coaching needed for effective transition of responsibilities. They also need

skills in team building and facilitation. It is important to realise that empowerment

is not the first step to creating an empowered team. It is the last step! The

transition beings with team building. It does not make sense to empower a group

that:

0

lacks common goals;

0 cannot communicate effectively;

0

has low trust levels;

0 runs poor meetings;

cannot resolve conflict or make decisions.

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The first step is to develop an effective team and then being the empowerment

process.

Empowered teams are small, functional units that are structured to manage their

own affairs. These 4-15 member teams are responsible for the daily routine of

clocking in and out, taking breaks, assigning work, and checking attendance, and

the less routine but more critical business of taking responsibility for work inputs

and outputs, quality, productivity, costs, and management functions including

budgets, personnel, discipline, and the very makeup of the unit itself through the

hiring and firing of team members.

There is no such thing as a typical empowered team. They vary in the degree of

self-direction or autonomy they adopt. Empowered teams operate on a continuum

with some handling only day to day activities such as scheduling and work

planning, while others actually hire and terminate services of their own team

members, and decide on salary levels and bonuses. Figure 7.2 illustrates the

development of empowered teams from traditional leader-directed groups to true

self-directed empowered teams.

In successfully implementing empowered teams, an organisation starts at level 1

or 2. Within two to three years, with training and guidance, teams reach level 4.

Within another year, the team may progress to level 5. By the end of five years

the team should achieve level 6 and begin moving beyond to establish new

directions for themselves.

While there is no perfect progression of training and development activities, there

is a relationship between the amount of empowerment the team has and the kinds

of duties the team takes on. Though the exact progression of team responsibilities

will vary considerably, it normally moves from a focus on production to a focus on

production and people.

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Am

oun

t of e

mp

ower

men

t

Dismissing team members Disciplining members

Pay and bonus allocation Team member appraisal

Rotating leadership Selecting new members

Equipment and production modifications

Budgeting

Equipment and supply purchasing Customer/supplier contracts

Vacation/shiti scheduling Quality responsibility

Cross-functional decision making Production scheduling

Safety training and monitoring Housekeeping

aily team meetings

Figure 7.2 Team development continuum

Mom • toward self-directed teams

The leader based team

The self-directed team

....__

I The leader is responsible

for daily operations and makes

most decisions that impact the team.

II

The leader is accountable

for team activities

but the team handles

day-to-day duties on their own.

III

The team is responsible for planning and organizing, and reports

to the leader on a regular

. basis.

IV

The team organizes its own work and

takes full responsibility

for quality and productivity.

V

The team handles all work inputs and outputs on its own authority.

VI

The team administers

functions like selection,

hiring, rewards and discipline.

Source: Adapted from DDI 1996: 7

It is normally suggested that they adopt a sequential growth progression based on

the progressive relationship between empowerment and responsibilities as noted

earlier, to help provide a degree of structure to their development activities.

Figure 7.3 is an illustration of the relationship between the level of empowerment

and the progression of skills and tasks within an empowered team.

Figure 7.3 Progression of empowerment and responsibilities

Skill and task progression

Source: Adapted from Wellins, Byham & Wilson 1991 : 26

7 - 337

There are a number of general principles or guidelines that can be considered

when developing and implementing training for empowered teams:

a core set of skills must be provided to all team members while they are

being organised into teams;

ongoing training must be provided on a just-in-time basis.

According to Wellins, Byham & Wilson (1991 : 168), skills for team members can

be categorised into:

job skills;

quality/action skills;

team/interaction skills.

o Job skills (highly job dependent)

Equipment operation: acquiring specific training in the operation of

equipment and production methods that are directly related to

performing the team's jobs.

Safety practices: following safety procedures and policies.

0 Maintenance basics: learning basic machine total preventive

maintenance.

Production processes: developing Just-in-Time and material

requirements planning systems.

Quality/action eldeDs

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Clarifying (internal and external) customer requirements: recognising

and defining customer needs.

Identifying improvement activities: analysing the root cause of any gap

in meeting customer requirements.

Developing and selecting solutions: creatively generating and sorting

alternative solutions to problems.

Planning for improvement: planning, monitoring, and measuring quality

improvement projects.

Ensuring ongoing quality: standardising improvements and identifying

ongoing opportunities.

o Team/interaction ski0Ds

Listening and feedback: summarising, checking for understanding, and

giving and receiving constructive feedback.

One-on-one communication: communicating with team members,

customers, suppliers, and leaders.

Handling conflict: identifying and resolving conflict and disagreements

within a team, with another team, or with a supplier or customer.

Influencing others: gaining the commitment or agreement of others.

Training skills: cross-training and coaching.

Team skills (participating in meetings): developing roles and

responsibilities, especially group process skills, of all participants in

meetings.

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Working in teams: understanding the stages of team development and

the factors needed for successful team performance.

Training must compliment the progression of empowerment and responsibilities

by providing the right development activities at the right time. The process for

training and development of empowered teams should be carefully planned and

executed. It will last for the full five year period and therefore must have

continuing management commitment and support. While there are no hard and

fast guidelines for developing empowered teams from level 1 or 2 to level 6 and

beyond, the formula below helps show the interaction between the three critical

skill sets (Wellins, Byham & Wilson 1991 : 165):

Job skills X Team/interaction skills

X Quality/action skills

= TOTAL

7.2.2.4 New roles for managers

As the team is learning and applying new skills, the role of the supervisor changes

dramatically. The leader moves from a controlling position, in the centre of

decision making, to a new role as a resource provider to more than one team.

As the team begins to co-opt traditional leader roles, the supervisor must adopt

a new role as well. He or she must move from the role of inspector to that of

coach, facilitator, coordinator, mentor, and sponsor (Wellins, Byham & Wilson

1991 : 128-129). Holpp (1993: 69) suggests six quality management roles that

characterise the successful manager in times of change. These roles are

exemplified by managers and supervisors that are able to succeed and indeed

thrive during the cultural transformation to empowered teams.

i) Coordinate team activities: rather than just supervising, the leader

learns to coordinate the team in its activities. That means providing

direction, support, and help. It means coaching and exercising

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influence. It does not mean day-to-day supervision and decision-

making.

Advise on opportunity selection: in keeping the team focused on

objectives of importance to the overall quality and business plan, the

leader plays an active tole in guiding the team to select and work on

specific priority projects that will contribute to the team and the

organisation as a whole.

Provide resources: without adequate resources, team members cannot

do their jobs effectively. Larger organisational goals are hard to keep

in focus when the group does not have the means to perform their daily

operations without stress and frustration. The leader plays a critical role

in keeping others in the organisation attentive to the needs and

capabilities of his or her group.

Coach on problem solving: the job of the coach in problem-solving is to

become an expert in the tools and techniques of continuous

improvement and quality. By working directly with the team to maintain

momentum and keep it focused on its tasks, the leader becomes a

consultant and advisor.

Assist in implementation: helping individuals and teams to make things

happen is one of the most vital roles of the leader. Many team members

need help in understanding the larger organisation, making

presentations, or working with other departments. The leader can pave

the way for this success by working outside his or her own functional

unit and by gaining support for his or her team throughout the

organisation.

Provide informal recognition: formal means of recognition available to

leaders are limited and rarely immediate enough to provide

reinforcement. Informal recognition is the best tool to keep team

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members motivated between pay raises or promotions.

As teams learn to operate as managers, managers need to learn to operate as

part of a team. Easy enough to say, but the process is a learning experience for

both groups. Some cautions need to be expressed as do's and don'ts for

managers in their new role as team leaders.

Don't expect the team to perform as well as the best performers in the

team

Like the iron ore train going to Saldanha, the team can only move as fast as its

slowest members. What this means is that a team will not develop as fast as the

fastest nor lag with the slowest. It will develop in a way that takes the different

skills and readiness of each member into consideration.

The team often seems to move in fits and starts. Some members move along

quickly and become leaders, taking responsibility gladly, while others need to be

convinced that this is the way to work and be given time to orient their thinking to

the new way of doing things.

Do match management style to the development level of team members,

not the development level they would like for the team as a whole

Even if a team is in an early stage of development, some team members will be

able to work independently and behave in a proactive manner. By the same

token, even advanced teams sometimes have members who lag behind the group.

Managers and leaders must be able to provide support to the team at whatever

level they are. Thus, flexibility, responsiveness, and coaching skills are all critical

for the successful manager working with empowered teams.

Do spend time with the team

When attending meetings, the manager needs to listen, allow small errors to go

7 - 342

unchallenged, restrain the impulse to intervene and set things right. Assistance

in solving problems may be provided, but without removing responsibility or

authority. Managing and consulting with the team during breakthrough times

always comes easy.

During these honeymoon periods, members are excited about their new roles, and

are pleased both with management and themselves for the new opportunity and

initial positive feelings always associated with a fresh undertaking. As the team

becomes more a part of daily work and members settle down into a routine, the

facilitative manager must learn how to maintain momentum, deal with conflict,

provide adequate resources, and work with individual members to help them

complete their projects.

Don't forget management is a team too and must develop itself as it

develops others

Unless management can work as a team with various functional areas operating

in harmony, teams will constantly be running into organisational brick walls. Bad

structure will drive out good intentions and training every time. Improved

teamwork, communication, shared goals and responsibilities are all components

of management training that will facilitate teamwork at the line level.

Don't expect change overnight

Managers sometimes try to make the jump from the high control climate to one of

a high involvement without stopping in between. Yet when they make the jump,

they find themselves with neither high participation nor high involvement. Instead,

they land in a state of high confusion followed by high frustration. Traditional

structures should not be abandoned all at once. That is equivalent of going from

a level 1 to a level 6 on the development scale. Instead, plan changes and move

along the way gradually. Allow participation and new structures to evolve slowly

so they can go faster later on.

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7.2.2.5 Benefits of empowered teams

At this point it is useful to summarise the outcomes occurring because of

empowered teams. As might be expected, there are benefits and costs.

Commitment by employees to high performance is the key ingredient in the

success of empowered teams. Eight characteristics stand out that make

empowered teams different from normal work groups (Hampton 1987 : 130;

Wellins, Byham & Wilson 1991 : 10-15): They are:

broader, more flexible job design - broad based jobs;

planning and implementation are combined in one unit - increased

autonomy and integration;

ambitious performance expectations replace work standards - self

management;

compensation is given for learning and teamwork - pay for knowledge

and performance;

strong employee voice - greater involvement;

union/management or employee/organisation relations tend towards a

joined or mutual perspective;

employees have assurances of a secure future;

leaner, more flexible management - flat structure.

In sum, a team is not a group. While problem-solving groups are important, a

team shares common boundaries, interdependent tasks, articulated purpose, and

understood and owned goals. In addition, empowered teams seem to overcome

7 - 344

the three barriers faced by many problem solving groups.

Firstly, empowered teams help overcome the impact of individualised rewards

since empowered teams are designed to create member interaction and

interdependence. Rather than viewing colleagues as competitors, individuals

have powerful incentives for working together to maximize success. In addition,

empowered teams provide for group identification and increased job satisfaction

(Dalziel & Schoonover 1988 : 49-61). Task excellence is achieved because

employees identify with the issues and the solutions. Since they are part of the

solution, individuals feel a greater obligation and motivation to guarantee

successful implementation.

Secondly, the role of managers and supervisors is dramatically different in an

empowered team environment. In traditional organisations, leadership is based

on the manager having the decision-making power, the information, the rewards,

and in many cases, the expertise. The impact of this approach has already been

discussed. Shared responsibility and control take the place of the traditional

manager carrying the responsibilities and burdens of managing performance

alone. The primary role of the manager is that of a coach. The coaching role

includes setting high standards, forwarding of all knowledge, working with the

team members, while delegating increasing responsibility, and inspiring increased

collaborative effort. Empowered managers empower others, move decisions to

the proper levels, provide a vision and communicate it, and build trust and

openness.

Thirdly, empowered teams overcome segmentalism. The perspective of

subordinates and managers is broadened beyond a narrow concern for a

specialised area. Instead team members identify with the problems associated

with the overriding issues of productivity and quality. In addition, learning to solve

problems makes each team member even better qualified to solve future

problems.

7 - 345

While empowered teams are touted as solutions to a vast variety of organisational

issues, seven specific benefits consistently occur (Nora, Rogers & Stramy 1995 :

146-149; Olsaysky 1991 : 1-2).

They are:

improvement in work methods and procedures;

gains occur in attraction and retention of employees;

increases in staffing flexibility;

increases in service and product quality;

improvements in output;

enhanced quality of decision-making;

reduction in supervision and staff support.

These factors all lead to increased productivity. Teams set the production goals

which tend to be higher. Feedback is effectively employed to improve

performance. Cross-training enhances the ability of team members to help out

and replace each other. In manufacturing environments, empowered teams do

their own set up, thereby eliminating the need for supervisory and/or support staff

assistance.

There are at least six significant impediments for the implementation of

empowered teams. If the system is to be successfully implemented, these factors

must be considered carefully (Cutcher-Gershenfeld 1988: 24).

First, empowered teams increase training costs including the use of staff or

outside consultants to facilitate the implementation. Second, unmet expectations

7 - 346

for organisational change may occur. Third, conflicts between participants and

non-participants can occur if only a few empowered teams are formed. Fourth,

time is lost in team meetings and decision are slower. Fifth, some staff support

groups might resist the change. Sixth, the time required to set up the systems can

be longer than anticipated.

Along the same lines, there are at least seven potential pitfalls. Fortunately, these

are predictable and the impact can be diminished.

They are:

training for teams is insufficient or too late;

management is too impatient for results;

failure to acknowledge that team members will test the system;

trying to implement when the technology for the particular change is not

sufficiently known;

inadequate time is allowed for the experience to set before it is

evaluated;

inappropriate boundaries chosen for team membership or

responsibilities;

the corporate culture is radically counter to the empowered team

philosophy.

With empowered teams, the cultural and managerial shifts are substantial, even

in a productive and effective TQM environment. Any effort to implement

empowered teams must therefore include patience and a willingness to

experience false starts and some failures. Implementation of empowered teams

7 - 347

require a substantial investment in time and forethought in order to be successful.

Implementation can be difficult, but the successes of empowered teams make this

next level of employee involvement and organisational transformation exciting and

important. Under the very best of circumstances, change is difficult. When

attempting to redefine employment relations, identifying and pursuing common

interests seems to be a vital component. The learning process, which requires

management and employees alike to reconsider many underlying, and often

incorrect assumptions, might be one of the most important outcomes of any

empowering process.

Numerous authors have pointed to important shifts in operating paradigms for

organisations to flourish, or sometimes survive, this century. Organisations must

move from national to transnational orientations, maximise their use of technology,

become effective information processors, incorporate long-term thinking, pursue

constant innovation, change from structural to a process orientation, reduce

waste, and eliminate unnecessary levels of management (Bennis 1990: 28-30;

McCann 1991 : 76-93; Offerman & Gowing 1990: 95-108). New paradigms that

include employee involvement produce remarkable results because of the

motivation of its people. Quality, customer satisfaction, and efficiency are the

cornerstones for organisations to flourish and create the wealth required for

growth in the next century. Empowering employees through a high level of

involvement seems like a very viable and effective response (Kouzes & Posner

1990: 161-185).

7.3 CONCLUSION

The key to empowerment is a supportive environment - the kind of environment

typically found in a TQM organisation. It is a process for helping the right people

at the right levels make the right decisions for the right reasons. Empowerment

is the reciprocal for power. The benefits are many when employees are

empowered, they feel:

. that they are in charge of and in control of their job;

7 - 348

0 significant and important;

0 responsible for their actions;

that learning and competence really matter;

that their work is exciting and challenging;

energised by the tasks they perform;

part of a team and part of the organisation.

Empowered teams accept responsibility for their successes and their failures.

Being given a say in how things are done makes the team feel responsible for the

outcome, both in quality and quantity. In addition, team members show more

initiative, get more done, and enjoy the work more. The end result is increased

motivation, leading to higher performance and the accomplishment of exceptional

organisational objectives. As they use their influence in positive ways they gain

more power and formal organisational authority, creating a growth spiral that

carries them up the organisational career ladder.

The strategy of empowering teams is particularly effective in environments where

it is not possible to empower individuals alone. By accepting collective

responsibility for a meaningful output, as well as for making decisions on how to

reach that output, the level of responsibility of individuals in the team rises.

Too often, organisations have rewarded values such as "if it ain't broke, don't fix

it". Empowered teams under the TQM umbrella call for continuous improvements

with values such as "If it ain't broke, fix it anyway" or "Do your job well and find

ways to constantly improve it!" The goal is to create work environments where

power, knowledge, information, and rewards are shared. By assuming more

responsibility for quality and continuous improvement, employees ultimately

become self-managing through their empowered teams. Although implementation

7 - 349

is difficult, the rewards can be remarkable for the organisation and its members.

Empowerment is a vital part of the learning TOM organisation of the future.

Enlightened followership is what enlightened leadership is looking for. Leaders

have to learn how to disperse power so that self-direction can largely replace

imposed direction. Whether it is individuals or teams who are empowered,

employees feel the need to be in control and when they are, they contribute

successfully to the overall organisational goal of customer satisfaction.

7.4 SUGGESTIONS FOR FUTURE RESEARCH

While the shift to empowered teams represents one means for increasing

employee involvement, greater research is needed in areas such as

segmentalism, leading rather than managing, or power shifts. Secondly, can TOM

with empowered teams function in a wide variety of organisations? In a

manufacturing environment, the roles can be redefined relatively easy. However,

little research exists regarding the extensive use of parallel structures or in highly

regulated institutions (eg., financial institutions, schools). Finally, TOM offers

many opportunities for applied research. Given the numerous avenues for

continuous improvement and empowerment, studies can be conducted regarding

specific techniques, groups of employees, types of occupations, and

organisations.

7.5 SUIVIRRARY

For most organisations, preparing for the year 2000, change is inevitable. Faced

with increasing costs, uncertainty, complexity, and the pace of change,

organisations may turn to the next level of TOM by empowering employees to

enable then to operate in empowered teams. This chapter concluded that

empowered teams is a valued technology for organisational development and will

greatly enhance employees' contribution to wealth generation and growth.

7 - 350

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