Organizing for Quality AgendaAgenda Review homework Desksides Organizing for Quality ...

Organizing for Quality

AgendaAgendaAgendaAgenda

Review homework Desksides

• Organizing for Quality Lecture/discussion

• Chapter 1 Organizing for Quality

• Chapter 1 TQM

Week 3

Week 4 Assignments• Read - Ch 2• Presentations:

• Deming• Crosby• Taguchi• Juran• Shewhart• Ishikawa• Feigenbaum• Tom Peters• Shigeo Shingo


Organizing for QualityOrganizing for Quality

Chapter One


Organizing for qualityOrganizing for quality ISO 9000/QS 9000 Continuous improvement Six sigma - DMAIC TQM - PDSA Quality circles


Concept of TQMConcept of TQM TQM foundation:

• Any product, process, or service can be improved.

• A successful organization is one that consciously seeks and exploits opportunities for improvement at all levels.

• The load bearing structure is customer satisfaction.

• The watchword is continuous improvement.


What must organizations do What must organizations do for quality to succeedfor quality to succeed

“Organizations must adopt a cultural change that appreciates the primary need to meet customer requirements, implements a management philosophy that acknowledges this emphasis, encourages employee involvement, and embraces the ethic of continuous improvement.”

International Economic Conference Board Report: May 1990


Transition to quality culture Transition to quality culture at Xeroxat Xerox

TransitionTeam

TrainingSenior

ManagementBehavior

XeroxCultureChange

Tools andProcesses

CommunicationReward andRecognition


Allaire’s approachAllaire’s approach


Managing-by-process principlesManaging-by-process principles1. Make all decision and perform all actions within the guidelines of the

"what to's" of the core business processes and their impact on other core processes.

2. Establish owners for all core business processes and sub-processes.

3. Designate these owners as responsible for the maintenance and use of that process, with their reward tied to the successful functioning of that process for all Xerox personnel.

4. Empower the owners of the process with the responsibility for continuously improving those core processes, and reengineering them when necessary.

5. Constrain core process and sub-process owners from making changes to their core processes that may affect other core processes that are owned by other managers.

6. Designate responsibility for a change in a core process to the highest-level owner of a core process that is being changed because core sub-processes are being changed by lower-level process owners.


IBM’s market driven quality IBM’s market driven quality programprogram

LeadershipVisionInvolvementPolicyManagement

SystemsInformationPlanningHuman resourceQuality assurance

Quality ResultsImproved qualityLower costs

Cu

stom

er

Satisfa

ction

MarketSuccess

“Driver” SystemMeasures

of Progress Goal


IBM’s “new” CEQ initiativeIBM’s “new” CEQ initiative“CEQ aims to instill a commitment in

organizations to embrace quality as a guiding principle that touches every phase of the software development and deployment cycle. Organizations must build quality in, not treat it as an afterthought. Every individual in an organization, from the business analyst to the IT operator, can improve application quality through vigilance and a shared sense of responsibility for business and customer success.”


What are some of the steps What are some of the steps organizations must take?organizations must take?

Effectively develop and communicate quality policy, procedures and requirements across all company functions.

Mobilize resources to solve quality-related problems.

Effectively coordinate quality requirements with suppliers. (feed forward)

Maintain direct contact with customers (feedback).


Communicating quality Communicating quality requirementsrequirements

Examples of formal communication:• Quality policy statement• Quality manuals• ISO 9000 quality standards

Examples of informal communication:• Word of mouth• Management actions


Quality - basic beliefsQuality - basic beliefsFord Quality is job one; there's a Ford in

your future Chrysler "If you find a better car, buy it!"

(Spoken by Lee Iacocca)Serta “We make the world's best

mattress” Caterpillar Strong dealer support; 24-hour

spare parts support around the world

McDonalds Fast service, consistent quality

Sprint You can hear a pin drop

Quality - basic beliefsQuality - basic beliefs Lion Apparel - Continuous Improvement

is a way of life at Lion. Sager Electronics - our constant goal is

to ensure that the services provided meet or exceed our customers' expectations.

Williams Advanced Materials - we are dedicated to providing ever improving exceptional products and services, and world-leading technologies.



Quality policy statementQuality policy statement Most companies today have a written quality policy or

mission statement • For example, “It is the established policy and

intention of this company to provide its customers with products which conform to customer requirements and are delivered on time. This will be ensured through a defined quality program as detailed in the company quality manual.”

Some companies rely on verbal quality policies. for example, • “our goal is to ensure customer satisfaction and

minimize rejects.”


Other examplesOther examples Goodyear: “our mission is constant

improvement in products and services to meet our customers’ needs. This is the only means to business success for Goodyear and prosperity for its investors and employees.”


Other examplesOther examples Motorola - “all employees at Motorola

must consistently strive for a six sigma target.”

Motorola – “Doing the right thing. Every day. No excuses.”

The bottom line:Organizations must demonstratewhat Deming termed “constancy of purpose”.


Identifying and resolving Identifying and resolving quality problemsquality problems

Quality problems transcend individual and functional boundaries. Companies need multi-discipline problem solving.


Organizational approaches for Organizational approaches for multidiscipline problem solvingmultidiscipline problem solving

Form cross functional teams.• Quality improvement teams• Quality circles

Adopt matrix versus functional organizational structure.

Co-locate engineering resources to open communication channels.• Engineering technical centers/Centers of

expertise


Coordinating quality Coordinating quality requirements with suppliersrequirements with suppliers

Importance of supply chain management• Many quality problems are caused by

defective purchased material (Crosby 50%).• Suppliers often represent a large % of

manufacturing costs.


Strategies for supplier Strategies for supplier relationshipsrelationships

Criteria Traditional Approach

Long Term Partnership

Philosophy "keep suppliers on their toes" "mutual dependence"

Supply base Large supply base Few suppliers - "single sourcing"

Contract length Often short term contracts Often long term contracts

Awarding contracts

Low cost bid Negotiated

Supplier costs Either company or supplier wins

Share cost savings (win-win)

Cooperation Cooperation as needed; company protects knowledge

Frequent joint problem solving


Managing human resources Managing human resources & TQM& TQM

Growing research indicates that TQM has not achieved its objectives due to human resource management (HRM) problems.

Failures occur when management falls short in their efforts to adopt a corporate culture fully embracing TQM.


What makes TQM an HR What makes TQM an HR problem?problem?

TQM requires employee development & employee cooperation.

Thus, the task of top management is to:• provide workers with the necessary skills and

knowledge.• create a quality-minded culture among employees.

A quality culture that:• nurtures high-trust relationships.• has a shared sense of commitment.• believes that continuous improvement is for the

common good.


Establishing a quality minded Establishing a quality minded cultureculture

Formation of a quality minded culture is a human interaction issue.

Therefore, quality management systems must provide:• channels of communication for product-

quality information among all concerned employees.

• means of participation for employees so employees feel they’re part of the system


Some HR challenges?Some HR challenges? Is company culture a subset of national

culture? Should companies encourage TQM

participation via monetary incentives? Do workers want to be involved in the

quality management process - • Actually, some want to have input.• many others do not want any increased

responsibility.


Quality Improvement Quality Improvement TeamsTeams



Roles for QI teamsRoles for QI teams In addition to solving quality problems, QI

teams help: provide a means of participation for

employees in quality decision-making. aid employee development: leadership,

problem-solving skills. lead to quality awareness which is

essential for organizational culture change.


Types of quality improvement Types of quality improvement teamsteams

Project teams

Quality circles


Project team characteristicsProject team characteristics Teams address key organizational issues

• concurrent engineering• ISO 9000 implementation

membership - generally mandatory temporary in nature participation is cross-functional team leaders have varying degrees of

authority


Quality circle Quality circle characteristicscharacteristics

Voluntary groups of 6-8 members Quality circle teams are semi-permanent Teams are from single functional

department Members have equal status and select

their own project Minimum pressure to solve problems with

a set time frame


Implementing quality circlesImplementing quality circles Quality circles require top management

support Personal characteristics of facilitators are

critical Scope of project needs to be small

enough to be capably addressed by the team

Success of other teams has positive peer pressure effect


ImplementationImplementation Japan- highly successful

• Widely publicized quality circles• Product development teams

U.S. - marginal success• Product development teams have

succeeded more so than quality circle teams


Concurrent engineering Concurrent engineering project teamsproject teams

Concurrent engineering teams are having success - examples: Boeing Chrysler• a concurrent process carried out by a multi-

functional product development team.• intended to replace sequential development

process.• they avoid potential quality problems by

integrating upstream and downstream functions in the preliminary design phase.

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