1. Organizing for Quality
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

2. Organizing for Quality
Chapter One
Organizing for Quality

3. Organizing for quality
ISO 9000/QS 9000
Continuous improvement
Six sigma - DMAIC
TQM - PDSA
Quality circles
Organizing for Quality

4. 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

5. 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

6. Transition to quality culture at Xerox
Team
Training
Senior
Management
Behavior
Xerox
Culture
Change
Tools and
Processes
Communication
Reward and
Recognition
Organizing for Quality

7. Organizing for Quality

8. Organizing for Quality
Allaire’s approach
Organizing for Quality

9. 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 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

10. IBM’s market driven quality program
Measures
of Progress
“Driver”
System
Goal
Leadership
Vision
Involvement
Policy
Management
Systems
Information
Planning
Human resource
Quality assurance
Quality Results
Improved quality
Lower costs
Satisfaction
Customer
Market
Success
Organizing for Quality

11. IBM’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

12. 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

13. Communicating quality requirements
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

14. Quality - basic beliefs
Ford
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
Organizing for Quality

15. 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

16. 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

17. 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

18. 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

19. Identifying and resolving quality problems
Quality problems transcend individual and functional boundaries. Companies need multi-discipline problem solving.
Organizing for Quality

20. 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

21. 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

22. Strategies for supplier relationships
Organizing for Quality

23. 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

24. 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.
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

25. 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 product-quality information among all concerned employees.
means of participation for employees so employees feel they’re part of the system
Organizing for Quality

26. 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

27. Quality Improvement Teams
Organizing for Quality
Organizing for Quality

28. 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

29. Types of quality improvement teams
Project teams
Quality circles
Organizing for Quality

30. 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

31. 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

32. 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

33. Organizing for Quality
Implementation
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

34. Concurrent engineering project 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.
Organizing for Quality