Agenda

Week 3

Review homework Desksides

Organizing for Quality

Lecture/discussion

Chapter 1 Organizing for Quality Chapter 1 TQM

Week 4 Assignments Read - Ch 2 Presentations: Deming Crosby Taguchi Juran Shewhart Ishikawa Feigenbaum Tom Peters Shigeo Shingo

Organizing for Quality

Organizing for Quality

Chapter One

Organizing for Quality

Organizing for quality

ISO 9000/QS 9000 Continuous improvement Six sigma - DMAIC TQM - PDSA Quality circles

Organizing for Quality

Concept 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 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 at Xerox

Transition Team Training Senior Management Behavior Xerox Culture Change

Tools and Processes

Communication

Reward and Recognition

Organizing for Quality

Organizing for Quality

Allaires approach

Organizing for Quality

Managing-by-process principles
1. 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 subprocesses. 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

IBMs market driven quality program

Driver
Leadership
Vision Involvement Policy Management

System
Information Planning Human resource Quality assurance

Measures of Progress
Quality Results

Goal
Customer Satisfaction

Systems

Improved quality Lower costs

Market Success

Organizing for Quality

IBMs 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 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 requirements

Examples of formal communication:

Quality policy statement Quality manuals ISO 9000 quality standards Word of mouth Management actions

Examples of informal communication:

Organizing for Quality

Quality - basic beliefs

Ford Chrysler Serta Caterpillar McDonalds Quality is job one; there's a Ford in

your future "If you find a better car, buy it!" (Spoken by Lee Iacocca) We make the world's best mattress
Strong dealer support; 24-hour spare parts support around the world Fast service, consistent quality

Sprint

You can hear a pin drop

Organizing for Quality

Quality - 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

Quality 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 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 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 problems

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

Organizing for Quality

Organizational approaches for multidiscipline 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 requirements 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 relationships

Criteria
Philosophy Supply base Contract length Awarding contracts Supplier costs Cooperation

Traditional Approach
"keep suppliers on their toes" Large supply base Often short term contracts Low cost bid Either company or supplier wins Cooperation as needed; company protects knowledge

Long Term Partnership

"mutual dependence" Few suppliers - "single sourcing" Often long term contracts Negotiated Share cost savings (win-win) Frequent joint problem solving

Organizing for Quality

Managing human resources & 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 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. nurtures high-trust relationships. has a shared sense of commitment. believes that continuous improvement is for the common good.
Organizing for Quality

A quality culture that:

Establishing a quality minded culture

Formation of a quality minded culture is a human interaction issue. Therefore, quality management systems must provide:

channels of communication for productquality information among all concerned employees. means of participation for employees so employees feel theyre part of the system
Organizing for Quality

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

Quality Improvement Teams

Organizing for Quality

Organizing for Quality

Roles 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 teams

Project teams Quality circles

Organizing for Quality

Project 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 characteristics

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 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

Implementation

Japan- highly successful

Widely publicized quality circles Product development teams Product development teams have succeeded more so than quality circle teams

U.S. - marginal success

Organizing for Quality

Concurrent engineering project teams

Concurrent engineering teams are having success - examples: Boeing Chrysler

a concurrent process carried out by a multifunctional 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.
Organizing for Quality