Implementing Total Quality Management Chapter 22 Implementing Total Quality Management

Objectives After reading the chapter and reviewing the materials presented the students will be able to: Understand the requirements for implementing total quality management. Understand implementation strategies for : ISO 9000 and Baldrige.

Rationale for change We are bound by a short term focus: Everything western organizations do has to have a measurable payback in the next quarter or next year, or it cannot be justified. The traditional approach tends to be arrogant rather than customer focused: Western organizations think they know more about what their customers need than their customers do. We seriously underestimate the potential contribution of our employees, particularly those in hands on functions: The result is that the brainpower of the people we employ is largely wasted.

Traditional approach equates better quality with higher cost Many traditional managers believe that if you want better quality you have to pay more for it. The market place has found that if you want better quality, you simply pick the supplier that has demonstrated superior quality at the same price.

Leadership or Bossmanship Western managers see their jobs as simply telling subordinates what to do and when to do it. Industry found ways to divide the labor and minimize the need for worker skill and knowledge. In this environment all you needed was simple work instructions, the right tool, and the requisite muscle to turn it.

Commitment by Top Management Top executives should plan on a third of their time being used in the total quality effort. Only the boss has the authority to solve an impasse. Changing a culture is very difficult even when everyone is willing.

Role of top management: Leadership Any person in charge of a group is a leader. 1. Leaders pull rather than push: The leader is visibly involved in the effort he or she is leading. 2. Leaders know where they want to go: They set the vision for their organizations and chart the course to achieve the vision. 3. Leaders must be courageous and trustworthy: Leaders must come to your aid when an obstacle springs up in your area. 4. A leaders most important role after forming the vision and setting the course is helping people do their jobs with pride: This is about training and nurturing.

Role of Middle Management The middle manager must deal with the facilities, processes, and equipment put in place by higher management. He or she must operate within budget constraints for training self and subordinates. The middle manager must be a facilitator, enabling his or her people to do their jobs better, easier, and with increased satisfaction. He or she must help, encourage, praise, and listen to the workers.

Implementation 1. Train the steering committee: Team building 2. Identify the organization’s strengths and weaknesses: What are we really good at and what do we lack? 3. Identify the probable advocates of total quality: Which departments are most likely to be advocates, and who will resist. 4. Identify customers both external and internal: Who are the ultimate customers. 5. Develop a means of determining customer satisfaction: Establish the current baseline against which you will measure improvement.

Implementation Approaches to be Avoided 1. Do not train all your employees at once: The right way to do it is to train small groups of your people just in time – just as they need it. 2. Do not rush into total quality by putting too many people in teams: Teams should be formed as needed to take on specific issues or problems as directed by a steering committee. 3. Total quality implementation must not be delegated: A successful total quality implementation requires both complete commitment and active, personal, day to day involvement by top management and staff. 4. Do not start an implementation before you are prepared: Be sure to become educated on the subject of total quality before attempting to implement. This must include the top manager and his or her subordinates.

An Implementation Approach that Works 1. The Preparation Phase: The top executive must make the commitment of time and resources and designates immediate staff to be the total quality steering committee, with himself or herself as chair. If a union is involved, the senior union official should also be a member of the steering committee. The steering committee will require training in total quality philosophy, techniques, tools, before it starts any work (two or three days of intensive training by consultant). Creation of organization’s vision statement that is short, and meaningful. Follow it with broad objective (become the dominant player in our market in 5 years by introducing new products on a 9 month cycle over the next 3 years). At this point, make sure everyone in the organization knows about the vision, guiding principle, objectives, and total quality. 2. The Planning Phase: The steering committee is responsible for selecting the initial total quality projects based on the strengths and weaknesses of the company. The early projects must be selected to assure success. Form teams that are cross functional, having representation from multiple departments as appropriate for the project. Provide team training (at least half a day). 3. The Execution Phase: The steering committee gives each team its direction and activates it. Teams use PDCA (plan, do, check, act) cycle. Teams close the loop with steering committee by providing feedback information on progress and results (weekly or monthly). Feedback will guide steering committee to make necessary changes to corporate infrastructure. Keep employees informed periodically on progress.

ISO 9000 ISO 9000 is a subset of total quality. ISO 9000 can get an organization started on a total quality implementation. ISO 9000 registration requires a lot of work – procedures, checks, and management involvement.

Baldrige The Malcolm Baldrige National Quality Award Program promotes awareness of the importance of quality improvement to the national economy. It recognizes organizations that have made substantial improvements in products, services, and overall competitive performance. It fosters sharing of best practices information among U.S. organizations. The list of evaluation criteria is shown in fig 22-11, page 439.

Summary We are bound by a short term focus: Everything western organizations do has to have a measurable payback in the next quarter or next year, or it cannot be justified. The market place has found that if you want better quality, you simply pick the supplier that has demonstrated superior quality at the same price. Top executives should plan on a third of their time being used in the total quality effort. Leaders pull rather than push: The leader is visibly involved in the effort he or she is leading. The middle manager must be a facilitator, enabling his or her people to do their jobs better, easier, and with increased satisfaction. Do not train all your employees at once: The right way to do it is to train small groups of your people just in time – just as they need it. Do not rush into total quality by putting too many people in teams: Teams should be formed as needed to take on specific issues or problems as directed by a steering committee. ISO 9000 is a subset of total quality. ISO 9000 can get an organization started on a total quality implementation. The Malcolm Baldrige National Quality Award Program promotes awareness of the importance of quality improvement to the national economy.

Home Work Answer Question 9 on page 441. 9. List and briefly explain implementation approaches that should be avoided.