15 Apr 10 – WDM 204 – Session Seven

Cape Area Management Program (CAMP) Sponsored by the Cape & Islands Workforce Investment Board

15 Apr 10 – WDM 204 – Session Seven Today’s Topics  Learning Objectives  Essential Elements of a Quality System  Sample Quality Systems  Leading Change  Some “Bad News”  Your Qualifications!  Questions and Comments?

15 Apr 10 – WDM 204 – Session Seven 4 Learning Objectives In this class, students will learn the how to develop a structure and process for continuous quality improvement (C.Q.I.). The class will understand the challenges essential to effective C.Q.I., and learn the potential solutions. Practical tool(s) will be provided. They will demonstrate their learning by in class discussion of workplace experiences, and group discussion of case studies. Additional reading reference(s) will be provided.

WDM 204: Continuous Improvement Process Improvement Announcing the Change Recognizing & Rewarding the Contributors Pledge to Continuously Improve

15 Apr 10 – WDM 204 – Session Seven 6 Typical Quality “System” Mission Statement, Goals & Objectives, Key Metrics Quality Tools People & Processes Stakeholder Feedback

We Know What Our C.Q.I. System Needs… Now, How Do We Make It Happen?

Some Sample C.Q.I. Systems Steal Shamelessly, Create You Own Best Practices

15 Apr 10 – WDM 204 – Session Seven 9 W. Edwards Deming (1900–1993)  Trained American industrialists during WWII (SPC)  Presented to JUSE – Japan’s Quality Organization Deming’s Concepts – System of Profound Knowledge – Prevention by Process Management – Chain Reaction for Quality Improvement – Common Cause and Special Variation – 14 Points – Deadly Diseases

15 Apr 10 – WDM 204 – Session Seven 10 Deming’s 14 Points 1. Constancy of purpose 2. Adopt the new philosophy 3. Cease dependence on mass inspection 4. End the practice of awarding business on the basis of price tag; instead minimize total cost 5. Improve constantly the system of production and service to improve quality and productivity 6. Institute training on the job 7. Institute leadership

15 Apr 10 – WDM 204 – Session Seven 11 Deming’s 14 Points 8. Drive out fear 9. Break down barriers between departments; optimize the organization as a system 10. Eliminate slogans, exhortations, and targets for the workforce 11. Eliminate work standards (quotas) and numerical goals 12. Remove barriers that rob employees of their right to pride in workmanship, including the annual, merit rating 13. Institute a program of education and self-improvement 14. Put everybody to work to accomplish the transformation

15 Apr 10 – WDM 204 – Session Seven 12 Deming — The Seven Deadly Diseases 1. Lack of constancy of purpose 2. Emphasis on short term profits, short term thinking 3. Evaluation of performance, merit rating or annual review 4. Mobility of management, job hopping 5. Management by use of visible figures only 6. Excessive medical costs 7. Excessive costs of liability

15 Apr 10 – WDM 204 – Session Seven 13 Levels of ACE* Competency Improved Performance Step-change in Business Performance Baseline Customer expectations quantified Performance baselines and gaps identified Savings demonstrated from waste eliminations Measurable improvements in key customer deliverables achieved Business results positively impacted Significant business performance improvement targets set for Silver Business performance targets for Silver sustained Stretch business performance goals set for Gold Delighted Stakeholders Best-in-class customer satisfaction and business performance ACE Silver ACE Gold ACE Bronze ACE Qualifying

15 Apr 10 – WDM 204 – Session Seven 14 Baldridge Business Self Assessment

15 Apr 10 – WDM 204 – Session Seven 15 People & Partners (Respect, Challenge & Grow Them) Philosophy (Long Term Thinking) Process (Eliminate Waste) Problem Solving (Continuous Improvement & Learning The Toyota Way*

15 Apr 10 – WDM 204 – Session Seven 16 People & Partners (Respect, Challenge & Grow Them) Philosophy (Long Term Thinking) Process (Eliminate Waste) Problem Solving (Continuous Improvement & Learning The Toyota Way 1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. 2. Create continuous flow to bring problems to the surface. 3. Use “pull” systems to avoid overproduction. 4. Level out the workload (heijunka). 5. Build a culture of stopping to fix problems (Jidoka). 6. Standardized tasks and processes. 7. Use visual control, so no problems are hidden. 8. Use only reliable, thoroughly- tested technology. 9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. 10. Develop exceptional people and teams who follow your company’s philosophy. 11. Respect your extended network of suppliers by challenging them and helping them improve. 12. Go and see for yourself to thoroughly understand the situation (gemba, genchi genbutsu). 13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi). 14. Become a learning organization through relentless reflection (hansei) and continuous Improvement (kaizen).

15 Apr 10 – WDM 204 – Session Seven 17 How Do You Lead Change?  The Eight Stage Process of Creating Major Change* – Creating A Sense of Urgency – Creating the Guiding Coalition – Developing a Vision & Strategy – Communicating the Change Vision – Empowering Broad Based Action – Generating Short Term Wins – Consolidating Gains and Producing More Change – Anchoring New Approaches In The Culture

15 Apr 10 – WDM 204 – Session Seven 18 Creating A Sense of Urgency  Examining the market and competitive realities  Identifying and discussing crises, potential crises, or major opportunities How could you do this?

15 Apr 10 – WDM 204 – Session Seven 19 Creating the Guiding Coalition  Putting together a group with enough power to lead the change  Getting the group together to work like a team How could you do this? Who would this group be?

15 Apr 10 – WDM 204 – Session Seven 20 Developing a Vision & Strategy  Creating a vision to help direct the change effort  Developing strategies for achieving that vision How could you do this? What are some of the requirements?

15 Apr 10 – WDM 204 – Session Seven 21 Communicating the Change Vision  Using every vehicle possible to constantly communicate the new vision and strategies (your C.Q.I. Program)  Have the guiding coalition role model the behavior expected of employees How could you do this?

15 Apr 10 – WDM 204 – Session Seven 22 Empowering Broad Based Action  Getting rid of obstacles  Changing systems or structures that undermine the change vision  Encouraging risk taking and nontraditional ideas, activities, and actions Who’s role is this?

15 Apr 10 – WDM 204 – Session Seven 23 Generating Short Term Wins  Planning for visible improvements in performance, or “wins”  Creating those wins  Visibly recognizing and rewarding people who made the wins possible How could you do this?

15 Apr 10 – WDM 204 – Session Seven 24 Consolidating Gains and Producing More Change  Using increased credibility to change all systems, structures and policies that don’t fit together and don’t fit the transformation vision  Hiring, promoting, and developing people who can implement the change vision  Reinvigorating the process with new projects, themes and change agents Who, and how could this be done?

15 Apr 10 – WDM 204 – Session Seven 25 Anchoring New Approaches In The Culture  Creating better performance though customer and productivity oriented behavior, more and better leadership, and more effective management  Articulating the connections between new behaviors and organizational success  Developing means to ensure leadership development and succession How could you do this?

15 Apr 10 – WDM 204 – Session Seven 26 Some Bad News?  Most organizations adopt C.Q.I. only as a last resort, and then it is “too late.”  You can’t do this as a “pilot program,” as the entire system needs to be aligned.  It takes most organizations a minimum of five years to reach world class “Quality.”  You will always have unnecessary waste and the attendant hardships if you don’t adopt a C.Q.I. system.

You Are Now Qualified to Change All The Things You Don’t Like at Work! “'But I don’t want to go among mad people,' Alice remarked. 'Oh, you can’t help that,' said the Cat. 'We’re all mad here. I’m mad. You’re mad.' 'How do you know I’m mad?' said Alice. 'You must be,” said the Cat. 'or you wouldn’t have come here.'” Lewis Carroll, Alice’s Adventures in Wonderland

Class Discussion Your Workplace’s Root Cause Analysis

15 Apr 10 – WDM 204 – Session Seven 29 Personal Practicum Checklist Project Charters What do I need to know to try this at work? When before the next class will I try? What is my greatest concern in doing so?

15 Apr 10 – WDM 204 – Session Seven 30 Discussion of Personal Practicum Checklists  Any questions on the how?  Let’s hear a couple of examples of the when?  Let’s hear a couple of examples of concern?  Let’s practice working through those concerns…

Questions or Comments Before We End?