Slide 4.1 Chapter 4 Managing for Quality and High Performance

TQM l Total Quality Management (TQM) –Is a total, company wide effort that companies use to achieve customer satisfaction Slide 4.2

Slide 4.3 Core Principles of TQM l Focus on the customer l Participation and teamwork l Continuous improvement and learning...supported by an integrated organizational infrastructure, a set of management practices, and a set of tools and techniques TQ should be embodied in the culture of an organization

Slide 4.4 Customer Focus l Customer is principal judge of quality l Organizations must meet and exceed customer expectations l Strategic decisions must be customer-driven l Customers include employees, and society at large

Slide 4.5 Participation and Teamwork l Employees know their jobs best and therefore, how to improve them l Management must encourage participation and teamwork l Empowerment better serves customers, and creates trust and motivation l Teamwork and partnerships must exist both horizontally and vertically Juran credits Japanese managers use of the entire workforce as one of the reasons for Japan’s rapid quality achievement

Slide 4.6 Continuous Improvement and Learning l Integral part of management of all systems and processes l Refers to both incremental and breakthrough improvements l Learning is adapting to change, leading to new goals and approaches l Fredrick Taylor, the father of Scientific Management, believed that management had the responsibility to find the best way to do a job

Slide 4.7 Infrastructure, Practices, and Tools Leadership Strategic HRM Process Data and information Planning mgt. management Planning mgt. management Performance Training appraisal appraisal Trend chart Tools Practices Infrastructure

Slide 4.8 TQM Infrastructure l Leadership l Strategic planning – Who are our customers? – What is our mission? – What principles do we value? – What are our long-range and short-range goals? – How do we accomplish these goals? l Human resources management – Employee selection – Training – Determining employee satisfaction l Process management – Involves designing and developing the processes to deliver products and services that meet and exceed customer needs l Data and information management – Operations performance – Market assessment – Supplier performance

Slide 4.9 TQM and Traditional Practices (1 of 2) l Organizational structures l Role of people l Definition of quality l Goals and objectives l Knowledge l Management systems l Reward systems l Management’s role

Slide 4.10 TQM and Traditional Practices (2 of 2) l Union-management relations l Teamwork l Supplier relationships l Control l Customers l Responsibility l Motivation l Competition

Malcolm Baldrige National Quality Award l The Baldrige award was established by congress and signed into law on August 20, 1987 l Award was named after President Reagan’s Secretary of Commerce, who was killed in an accident l Very similar to Japan’s Deming Prize l The Baldrige award recognizes U.S. companies (small business, mfg, service) that excel in quality management practices and performance –Doesn’t exam the government entities Slide 4.11

Slide 4.12 Malcolm Baldrige National Quality Award l Helps improve quality in U.S. companies l Recognizes achievements of excellent firms and provide examples to others l Establishes criteria for evaluating quality efforts l Provides guidance for other American companies Malcolm Baldrige, former U.S. Secretary of Commerce

Slide 4.13 MBNQA Categories l Leadership l Strategic Planning l Customer and Market Focus l Information and Analysis l Human Resource Development and Management l Process Management l Business Results Baldrige Award trophy

Self Assessment A primary goal of the Baldrige program is to encourage many organizations to improve on their own by equipping them with a standard template for measuring their performance and their progress toward performance excellence. Boeing Airlift & Tanker Programs – 1998 winner Slide 4.14

Slide 4.15 Baldrige Award Criteria Framework 1 Leadership 2 Strategic Planning 5 Human Resource Development & Management 7 Business Results 3 Customer and Market Focus 6 Process Management 4 Information and Analysis Customer and Market Focused Strategy and Action Plans

Slide 4.16 Evaluation Process Receive applications First stage review First stage review (5-8 examiners) (5-8 examiners) Select Select for consensus for consensus review? review? Consensus review (6-8 examiners) Select Select for site visit ? Site visit Site visit (5-8 examiners) Recommend Recommend winners (judges) Feedback report no yes no yes

Slide 4.17 Scoring Process Bases upon the following three dimensions: 1. Approach : methods used to achieve requirements in criteria 2. Deployment : extent to which approaches are applied to all relevant areas and activities 3. Results : outcomes and effects in achieving purposes addressed in criteria

Quality Awards Around the World Programs in place No programs Slide 4.18

Slide 4.19 Other Quality Award Programs l European Quality Award l Canadian Awards for Business Excellence l Australian Business Excellence Award

Slide 4.20 Critics and Debate “Quality Programs Show Shoddy Results” Shoddy Results” “TQM is as Dead as a pet rock” “TQM is Alive and Well” and Well” “TQM failures just prove that bad management is alive and kicking”