Total Quality Management - Start to Midterms

Total Quality Management

by

Nicanor B. Lazaro Jr.

Definition: Total Quality Management Total Quality Management (TQ, QM or TQM) and Six

Sigma (6 ) are sweeping culture change efforts to position a company for greater customer satisfaction, profitability and competitiveness.

TQ may be defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.

We often think of features when we think of the quality of a product or service; TQ is about conformance quality, not features.

Total Quality Is Meeting Our Customers Requirements

Doing Things Right the First Time; Freedom from Failure (Defects)

Consistency (Reduction in Variation)

Continuous Improvement

Quality in Everything We Do

A Quality Management System Is A belief in the

employees ability to solve problems

A belief that people doing the work are best able to improve it

A belief that everyone is responsible for quality

Elements for Success

Management Support

Mission Statement

Proper Planning

Customer and Bottom Line Focus

Measurement

Empowerment

Teamwork/Effective Meetings

Continuous Process Improvement

Dedicated Resources

The Continuous Improvement Process

Quality Managementfor Organizational Excellence

By:Dr. David L. Goetsch and Stanley Davis

Based on the book Quality Management for Organizational Excellence

(Sixth Edition)

Employee Empowerment

MAJOR TOPICS

Employee Empowerment Defined

Rationale for Empowerment

Inhibitors of Empowerment

Managements Role in Empowerment

Implementing Empowerment

How to Recognize Empowered Employees

Beyond Empowerment to Enlistment

Employee Empowerment Empowerment means engaging employees in the thinking

processes of an organization in ways that matter, involvement

means having input. Empowerment means having input that

is heard and used, and it means giving employees ownership

of their jobs. Empowerment requires a change in

organizational culture, but it does not mean that managers

abdicate their responsibility or authority.


The rationale for empowerment is that it is the best way to increase creative thinking and initiative on the part of employees. This, in turn, is an excellent way to enhance an organizations competitiveness. Another aspect of the rationale for empowerment is that it can be an outstanding motivator.

The primary inhibitor of empowerment is resistance to change. Resistance may come from employees, unions, and management. Management-related inhibitors exclude insecurity, personal values, ego, management training, personality characteristics, exclusion, organizational structure, and management practices.


Managements role in empowerment is best described as commitment, leadership, and facilitation. The kinds of support managers can provide include having a supportive attitude, role modeling, training, facilitating, employing MBWA, taking quick action on recommendations, and recognizing the accomplishments of employees.

The implementation of empowerment has four broad steps: creating a supportive environment; targeting and overcoming inhibitors; putting the vehicles in place; and assessing, adjusting, and improving. Vehicles include brainstorming, nominal group technique, quality circles, suggestion boxes, and walking and talking.


A workforce that is ready for empowerment is accustomed to critical thinking, understands the decision-making process, and knows where it fits into the big picture.

Enlistment is empowerment in which ownership is not just allowed, but expected.

Modern History of Quality Management

Frederick W. Taylor wrote Principles of Scientific Management in 1911.

Walter A. Shewhart used statistics in quality control and inspection, and showed that productivity improves when variation is reduced (1924); wrote Economic Control of Manufactured Product in 1931.

W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in 1950; began transformation from shoddy to world class goods.


WHY JAPAN?


Post Second Sino-Japanese War (July 7, 1937 September 9, 1945) Era. (Age of Recovery and Japanese Economic Takeoff)

Government Assistance in forms of loans

Removal of the Zaibatsu & Keiretsu (Monopoly)(Mitsui, Mitsubishi, Sumitomo, Fuyo, Dai-ichi Kangyo, Sanwa, Nissan, Toyota, Hitachi, Matsushita, Sony, etc.)

Modern History of Quality Management : Guru Deming & Guru Juran

Deming: the best known of the early pioneers, is credited with popularizing quality control in Japan in early 1950s.Today, he is regarded as a national hero in that country and is the father of the world famous Deming prize for quality.

Juran defines quality as fitness for use in terms of design, conformance, availability, safety and field use. He focuses on top-down management and technical methods rather than worker pride and satisfaction.


Demings 14 Points

1. Create constancy of purpose for improvement 2. Adopt a new philosophy 3. Cease dependence on mass inspection 4. Do not award business on price alone 5. Work continually on the system of production and service 6. Institute modern methods of training 7. Institute modern methods of supervision of workers 8. Drive out fear 9. Break down barriers between departments 10. Eliminate slogans, exhortations, and targets for the work force 11. Eliminate numerical quotas 12. Remove barriers preventing pride of workmanship 13. Institute a vigorous program of education and retraining 14. Take action to accomplish the transformation


Demings Concept of Profound Knowledge

Understanding (and appreciation) of Systems- optimizing sub-systems sub-optimizes the total system - the majority of defects come from systems, the responsibility ofmanagement (e.g., machines not in good order, defective material, etc.

Knowledge of Statistics (variation, capability, uncertainty in data, etc.)- to identify where problems are, and point managers and workerstoward solutions

Knowledge of Psychology (Motivation)- people are afraid of failing and not being recognized,so they fear how data will be used against them

Theory of Knowledge- understanding that management in any form is a prediction, and isbased on assumptions


According to Dr. Joseph M. Juran (1991):

On the assembly line at the Ford Motor Company in 1923,most of the workers producing Model Ts were immigrantsand could not speak English. Many were also illiterate.Workers learned their trade by modeling the actions ofother workers. They were unable to plan, problem-solve,and make decisions. As a result, the Taylor scientific schoolof management flourished, and MBAs and industrialengineers were invented to do this work. Today, however,the workforce is educated. Workers know what is needed toimprove their jobs, and companies that do not tap into thissignificant source of knowledge will truly be at acompetitive disadvantage

Modern History of Quality Management : The Guru, Philip Crosby

Author of the book, Quality is Free.

Quality is defined as conformance to requirements, not goodness

The system for achieving quality is prevention, not appraisal.

The performance standard is zero defects, not thats close enough

The measurement of quality is the price of non-conformance, not indexes.

Modern History of Quality Management : Commonality of Themes of Quality Gurus

Inspection is never the answer to quality improvement, nor is policing.

Involvement of leadership and top management is essential to the necessary culture of commitment to quality.

A program for quality requires organization-wide efforts and long term commitment, accompanied by the necessary investment in training.

Quality is first and schedules are second.

Quality

The concept and vocabulary of quality is elusive. Different people interpret quality differently.

When asked what differentiate their product or service, the banker will answer service, health care worker will answer quality health care, the hotel restaurant employee will answer customer satisfaction, and the manufacturer will simply answer quality product.

Quality

Product-based definitions are different. Quality is viewed as a

quantifiable or measurable characteristic or attribute. For

example, durability or reliability can be measured (e.g., mean

time between failure, fit, and finish), and the engineer can

design to that benchmark. Quality is determined objectively.

Although this approach has many benefits, it has limitations

as well. Where quality is based on individual taste or

preference, the benchmark for measurement may be

misleading.

Quality

Manufacturing-based definitions are concerned primarily

with engineering and manufacturing practices and use the

universal definition of conformance to requirements.

Requirements, or specifications, are established by design,

and any deviation implies a reduction in quality. The concept

applies to services as well as products. Excellence in quality is

not necessarily in the eye of the beholder but rather in the

standards set by the organization. requirements.

Quality

Value-based quality is defined in terms of costs and prices as

well as a number of other attributes. Thus, the consumers

purchase decision is based on quality (however it is defined)

at an acceptable price.

User-based definitions are based on the idea that quality is an

individual matter, and products that best satisfy their

preferences (i.e., perceived quality) are those with the highest

quality.

TQM - Leadership

Getting quality results is not a short-term,

instant-pudding way to improve

competitiveness; implementing total quality

management requires hands-on, continuous

leadership.

-Armand V. Feigenbaum

TQM - Leadership

Characteristics of TQM Leader

Visible, Committed and Knowledgeable

A Missionary Zeal

Aggressive Targets

Strong Drivers

Communication of Values

Organization

Customers Contact

TQM - Leadership

Total Quality Requirements:

TQM - Leadership

Leadership Communication:

Communication is defined as the exchange of information and

understanding between two or more persons or groups.

Communication is inextricably linked in the quality process,

yet some executives find it difficult to tell others about the

plan in a way that will be understood.

TQM - Leadership

Avenues of Information:

Rumor mill

Monthly town meeting between the CEO and staff

Monthly departmental meeting

Email

Members of the inner circle

Company newsletter

Memos

External customers who call with questions

Voice mail

Verbal and/or written feedback from a manager or superior

TQM - Leadership

Biggest Difficulties with Communication:

Filtering Communication from top management

often gets filtered with every department

it passes through.

Language Barrier Top management often communicate in a

professional & technical manner, this is

weathered down as positions level lowers

TQM - Leadership

Biggest Difficulties with Communication:

Technical Difficulties Mechanical problems disrupting

the channels of communication

Sabotage Premeditated actions performed to

tamper or manipulate the flow of

communication

TQM - Leadership

Communication is defined as the exchange of information and

understanding between two or more persons or groups.

*Note: Unless the sender gets feedback that the receiver

understands the message, no communication

takes place.

TQM - Leadership

(Management Guru) Peter Drucker's

approach to managerial communication;

1. One can only communicate in terms of the recipients

language and perception, and therefore the message must be

in terms of individual experience and perception. If the

employees perception of quality is do a better job or keep

the customer happy, it is unlikely that the message of TQM

will be understood. Measures of quality are needed to ensure

agreement on the meaning of the message.

TQM - Leadership



2. Only the recipient can communicate the

communicator cannot. Thus, management systems (including

training) should be designed from the point of view of the

recipient and with a built-in mechanism for feedback.

Feedback and thus the exchange of information should be

based on some measure, target, benchmark, or standard.

TQM - Leadership



3. All information is encoded, and prior agreement must bereached on the meaning of the code. Quality must be carefullydefined and measures agreed upon.

4. Communication downward cannot work because it focuses onwhat we want to say. Communication should be upward.

5. Employees should be encouraged to set measurable goals..

TQM - Leadership

The vehicles for communicating about quality are selected components

of the TQM system:

Training and development for both managers and employees.

Managers must understand the processes they manage as well as the basic concept of systems optimization. Employee training should focus on the integration and appropriate use of statistical tools and problem-solving methods.

Participation at all levels in establishing benchmarks and measures of process quality. Involvement is both vertical in the hierarchy as well as horizontal by cross-functional teams.

TQM - Leadership

The vehicles for communicating about quality are selected components

of the TQM system:

Empowerment of employees by delegating authority to make decisions regarding process improvement within individual areas of responsibility, so that the individual owns the particular process step.

Quality assurance in all organization processes, not only in manufacturing or operations but in business and supporting processes as well. The objective throughout is continuous improvement.

Human resource management systems that facilitate contributions at all levels (up and down and across) the organizational chart.

Techniques of TQM

Joint problem solving

Brainstorming (Process)

Brainstorming (Data collection)

Methods of analysis

Planning for just-in-time (JIT) management Aims of JIT

The operation of JIT

Joint Problem Solving

The key to success in introducing total qualitywithin an organization, involving task groupsand quality circles in seeking ways ofcontinuous improvement to quality, is basedon a systematic approach to joint problemsolving. While details often vary, the principlesare based on:

Joint Problem Solving

Depersonalizing conflicts by diluting emotions and do systematic approach

Providing a logical framework which encourages the facts come to the surface so that the facts rather than the individuals determine the solution

Integrating the objectives of the organization and the people working in it.

Action Oriented Problem Solving Process

To achieve this an action oriented problem solving process can used as set out with the following main components:

1. Problem Identification - using brainstorming, a full list of current operating problems including quality problems should be identified. In selecting a project to work on, groups should take account of factors such as:

Is the problem in their own area?

Does it affect the whole group?

Does it occur frequently?

Will it save man hours and time?

Will it improve quality - reduce waste?


2. Establish a goal : On the principle of continuous improvement, whatever goal is set to be reviewed continuously. The importance of setting is that it provides a basis for focusing the group's activity establishing whether success has been achieved.

3. Priorities and plan : this should provide an indication to the group of the priorities in achieving a goal and the plan of action which is developed in order to enable them to achieve it.

4. Brainstorm the current conditions and likely causes of particular problems


5. Statistical Data Gathering

6. Data Organization

7. Analysis of Causes

8. Discussion on Primary &

Alternative Solutions

9. Decision Making

10. Implementation

11. Results / Outcome Analysis

12. Recommendations

BRAINSTORMING

Brainstorming is a way of getting as many ideas as possible on a problem or a solution in the shortest possible time. Brainstorming works most effectively when there is a group of people responding within the following framework:

BRAINSTORMING

Dont discuss: just concentrate on writing up ideas as quickly as possible without criticizing anything that is said

Build on others suggestions: by using the thoughts of others to trigger ones own thought processes - the classic lateral thinking approach

Go for quantity: by trying to write up as many ideas as possible within a period of time, say five or ten minutes

Be imaginative: quite often the most creative solutions come from initially daft ideas; avoid creating an environment where people are inhibited from putting forward ideas because others criticize or laugh at them.

BRAINSTORMING

NOTE: Brainstorming is based on the principle that

discussion can be helpful not only in solving problems but

in changing attitudes, obtaining commitment and, perhaps

most important, in developing ideas.

A Modern Filipino Marketing Guru

Roberto Bobby C. Caballero

Only Filipino whove won consecutively

two (2) CLIO Awards at New York for

Philippine Airlines Ad Campaign:

Shining Through

President & CEO: Caballero & Associate

in Advertising & LUXE Strategic Consult

Author: Yena Tam Ngamin (A Mother to

Us All) & Decorating with Flowers

My Mentor & Business Adviser

A Modern Filipino Marketing Guru

Roberto Bobby C. Caballero

2002: Coined the concept of:

Functional & Emotional Agendas

The foundation for all modern

marketing strategies.

Functional VS Emotional

Agenda is defined as:

A plan or goal that guides

someone's behavior and

that is often kept secret.


Functional Agenda is defined as:

A plan or goal that is directlyaddressing an issue or situation resulting to a successful end result. Product improvement on term of

physical usage

Well-rounded service adhering to the customers requirements

Esthetic innovation on the work place or products highlighting changes or improvements

Improvement in the operational process in the work place resulting to optimization and efficiency in people performance


Emotional Agenda is defined as:

A plan or goal that reaches out to customers inner most

desires, curiosity, passion and ideals. It influences the

customer by presenting experiences out of the ordinary

that they could connect or relate with.

TQM Success is dictated by the proper combination of the

two essential elements.


Examples:

Issue 1: Melbourne, USA (2010).

High accident rate at the train station.

High pedestrian accident rate

High fire related incidents

Solution: Reeducation advocacy but with a twist


Examples:

Issue 2: USA (2011).

Kleenex release a new product line of

scented soft tissues. Initial release was just

the addition of a sticker to the original

white packaging stating the scent of the

content.

Solution: Emotional Approach to packaging


Other Examples:

Total Quality Management - Start to Midterms

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