1. Building and Sustaining Total Quality Organizations
Chapter 11
Building and Sustaining Total Quality Organizations
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2. Why Adopt TQ Philosophy?
Reaction to competitive threat to profitable survival
An opportunity to improve
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3. Successful TQ Organizations
Successful total quality organizations require:
Adoption of sound practices
Effective organization
Readiness for change
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4. Corporate Culture and Change
Corporate culture is a company’s value system and its collection of guiding principles
Cultural values often seen in mission and vision statements
Culture reflected by management policies and actions
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5. Organizational Infrastructure
organization’s management systems and practices
Vital to successful TQ implementation
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6. Best Practices: Infrastructure Design (1 of 3)
Low performers
process management fundamentals
customer response
training and teamwork
benchmarking competitors
cost reduction
rewards for teamwork and quality
Increasing levels of teamwork and participation tends to benefit low performers the most
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7. Best Practices: Infrastructure Design (2 of 3)
Medium performers
use customer input and market research
select suppliers by quality
flexibility and cycle time reduction
compensation tied to quality and teamwork
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8. Best Practices: Infrastructure Design (3 of 3)
High performers
self-managed and cross-functional teams
strategic partnerships
benchmarking world-class companies
senior management compensation tied to quality
rapid response
Seeking strategic partnerships and developing new products based on customer input benefit high performers
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9. Areas of Critical Self-Assessment
Self-Assessment – reviewing company’s current quality practices and procedures
Self-Assessment should involve:
Management involvement and leadership
Product and process design
Product control
Customer and supplier communications
Quality improvement
Employee participation
Education and training
Quality information
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10. ISO 9000 Standards
Adopted by International Organization for Standardization in 1987
Quality system standards that guide a company’s performance of specified requirements
Covers design/development, production, installation, and service
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11. Objectives of Standards (1 of 2)
The standards have five objectives:
Achieve, maintain, and continuously improve product quality
Improve quality of operations to continually meet customers’ and stakeholders’ needs
Provide confidence to internal management and other employees that quality requirements are being fulfilled
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12. Objectives of Standards (2 of 2)
Provide confidence to customers and other stakeholders that quality requirements are being achieved
Provide confidence that quality system requirements are fulfilled
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13. Structure of ISO 9000 Standards
The standards define three levels of quality assurance:
Level 1 (ISO 9001) - product design, development, production, installation, and service
Level 2 (ISO 9002) - production and installation
Level 3 (ISO 9003) - final inspection and test
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14. ISO 9001 Requirements Say what you do; Do what you Say!!
Management responsibility
Quality system
Contract review
Design control
Document & data control
Purchasing
Control of customer-
supplied products
Product identification and
traceability
Process control
Inspection and testing
Control of inspection, measuring, & test equipment
Inspection & test status
Control of nonconforming product
Corrective & preventive action
Handling, storage, packaging, preserving, & delivering
Control of quality records
Internal quality audits
Training
Servicing
Statistical techniques
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15. ISO 9000 in the U.S.
By 1993, only 550 U.S. company sites were certified as compared with 20,000 companies in United Kingdom
By 1997, over 12,000 U.S. company sites were certified as compared with over 200,000 throughout Europe
Avg. cost for ISO 9000 registration is $20,000 and costs companies $100,000 (must be recertified every 3 years)
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16. QS 9000 Standards Created in 1994 by automobile industry
Interpretation and extension of ISO 9000
Applies to all internal and external suppliers of production and service parts and materials
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17. ISO Standards
Established in 1996 to provide industries with structure for environmental management system
Unlike ISO 9000, does not require third-party registration
U.S. Environmental Protection Agency (EPA) not yet formally endorsed standards
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18. Implementing Total Quality Strategy: Key Players
Senior management
Middle management
Workforce
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19. Common Mistakes in TQ Implementation (1 of 3)
TQ regarded as a “program”
Short-term results are not obtained
Process not driven by focus on customer, connection to strategic business issues, and support from senior management
Structural elements block change
Goals set too low
“Command and control” organizational culture
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20. Common Mistakes in TQ Implementation (2 of 3)
Training not properly addressed
Focus on products, not processes
Little real empowerment is given
Organization too successful and complacent
Organization fails to address fundamental questions
Senior management not personally and visibly committed
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21. Common Mistakes in TQ Implementation (3 of 3)
Overemphasis on teams for cross-functional problems
Employees operate under belief that more data are always desirable
Management fails to recognize that quality improvement is personal responsibility
Organization does not see itself as collection of interrelated processes
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