Introduction to Quality

Organizing for QualityOrganizing for Quality

Munif Ahmad

Organizing for Quality

Organizing for qualityOrganizing for quality

ISO 9000/QS 9000Continuous improvementSix sigma - DMAICTQM - PDSAQuality circles

Organizing for Quality

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.

Organizing for Quality

What must organizations do for What must organizations do for quality to succeedquality 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

Organizing for Quality

Transition to quality culture at Transition to quality culture at XeroxXerox

TransitionTeam Training

Senior Management

Behavior

XeroxCultureChange

Tools andProcesses Communication Reward and

Recognition

Organizing for Quality

Organizing for Quality

Market driven quality programMarket driven quality program

LeadershipVisionInvolvementPolicyManagement

SystemsInformationPlanningHuman resourceQuality assurance

Quality ResultsImproved qualityLower costs

Customer

Satisfaction

MarketSuccess

“Driver” SystemMeasures

of Progress Goal

Organizing for Quality

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.”

Organizing for Quality

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).

Organizing for Quality

Communicating quality Communicating quality requirementsrequirements

Examples of formal communication:Quality policy statementQuality manualsISO 9000 quality standards

Examples of informal communication:Word of mouthManagement actions

Organizing for Quality

Quality - basic beliefsQuality - basic beliefsFordFord Quality is job one; tQuality is job one; there's a Ford in here's a Ford in

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

 (Spoken by Lee Iacocca) (Spoken by Lee Iacocca)SertaSerta ““We make the world's best mattress” We make the world's best mattress”

CaterpillarCaterpillar Strong dealer support; 24-hour spare Strong dealer support; 24-hour spare parts support around the worldparts support around the world

McDonaldsMcDonalds Fast service, consistent qualityFast service, consistent quality

SprintSprint You can hear a pin dropYou 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.

Organizing for Quality

Organizing for Quality

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.”

Organizing for Quality

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.”

Organizing for Quality

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 demonstrate what Deming termed “constancy of purpose”.

Organizing for Quality

Identifying and resolving quality Identifying and resolving quality problemsproblems

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

Organizing for Quality

Organizational approaches for Organizational approaches for multidiscipline problem solvingmultidiscipline problem solvingForm cross functional teams.

Quality improvement teamsQuality circles

Adopt matrix versus functional organizational structure.Co-locate engineering resources to open communication channels.

Engineering technical centers/Centers of expertise

Organizing for Quality

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.

Organizing for Quality

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

Organizing for Quality

Managing human resources & Managing human resources & TQMTQM

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.

Organizing for Quality

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.

Organizing for Quality

Establishing a quality minded Establishing a quality minded culturecultureFormation 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

Organizing for Quality

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.