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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 Quality
Organizing for qualityOrganizing for quality ISO 9000/QS 9000 Continuous improvement Six sigma - DMAIC TQM - PDSA Quality 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 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
Organizing for Quality
Transition to quality culture Transition to quality culture at Xeroxat Xerox
TransitionTeam
TrainingSenior
ManagementBehavior
XeroxCultureChange
Tools andProcesses
CommunicationReward andRecognition
Organizing for Quality
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.
Organizing for Quality
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
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 statement• Quality manuals• ISO 9000 quality standards
Examples of informal communication:• Word of mouth• Management actions
Organizing for Quality
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.
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 demonstratewhat Deming termed “constancy of purpose”.
Organizing for Quality
Identifying and resolving Identifying and resolving quality problemsquality problems
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 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
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 & 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.
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 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
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.
Organizing for Quality
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.
Organizing for Quality
Types of quality improvement Types of quality improvement teamsteams
Project teams
Quality circles
Organizing for Quality
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
Organizing for Quality
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
Organizing for Quality
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
Organizing for Quality
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
Organizing for Quality
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.