1. Copyright (C) 1993 – 2005 Michael Arthur Johnson mjohnson@redbead.com 371-923-8267 - - Riga, Latvia Beyond Total Quality Management Learn to live the talk ! Copyright (C) 1994 - 2005 Michael Arthur Johnson 5 June 2002

2. Copyright (C) 1993 – 2005 Michael Arthur Johnson Beyond Total Quality Management Learn to live the talk ! Copyright (C) 1994 - 2003 Michael Arthur Johnson The BEAD-BOX GAME tm Patricia LTD 371-923-8267 - - mjohnson@redbead.com 31 Aug 2000

3. Copyright (C) 1993 – 2005 Michael Arthur Johnson Note: Pause here and discuss several examples of customer satisfaction vs delight issues. Examples include dental office, BWM payoff, ordering flowers mothers day and what to be included

4. Copyright (C) 1993 – 2005 Michael Arthur Johnson Want to create delight not just satisfaction !

5. Copyright (C) 1993 – 2005 Michael Arthur Johnson Note: Pause here and have customers and suppliers brainstorm their expectations for each other and for today's meeting.

6. Copyright (C) 1993 – 2005 Michael Arthur Johnson Total Costs Are: The Sum Of: Tasks x hours x ($ - € - Ls) rate Rework Costs (training) Wasted tasks (planning) Changes in mind (expectations) What's really the issue

7. Copyright (C) 1993 – 2005 Michael Arthur Johnson Agenda Welcome - Agenda "buy-in" Introduction to Personal Satisfaction QUALITY is KEY - Total Quality Control Management Style - It is a process too Customer Focus - We are all customers People Focus - Listen, Act & Empower People and Customer - Combined effort Supplier Involvement - Total effort

8. Copyright (C) 1993 – 2005 Michael Arthur Johnson Cultural Change Attitudes & beliefs - Home, work System in which we work Way we manage people Environment in which we work Methods used to solve problems Customer supplier relationship

9. Copyright (C) 1993 – 2005 Michael Arthur Johnson Old Way New Way Continuous Improvement A New Way of Thinking a Paradigm Shift Time Value Time

10. Copyright (C) 1993 – 2005 Michael Arthur Johnson Customer - Supplier Relationships are important !

11. Copyright (C) 1993 – 2005 Michael Arthur Johnson What Supplier expects ?

12. Copyright (C) 1993 – 2005 Michael Arthur Johnson What Client expects ?

13. Copyright (C) 1993 – 2005 Michael Arthur Johnson What is Quality ? Quality is: as seen by the user Quality is not: preference Quality is not: technology or features Quality is not: backup systems Quality is not: overdesign Quality is: uniformity

14. Copyright (C) 1993 – 2005 Michael Arthur Johnson What TQM is not ? n Video tapes n Audio tapes n Text books n Flashy marketing tools n Four color sales brochures n Text books n Consultants n Soap boxes

15. Copyright (C) 1993 – 2005 Michael Arthur Johnson THE BEAD-BOX GAME (tm) A game with a message

16. Copyright (C) 1993 – 2005 Michael Arthur Johnson The BEAD-GAME Company n The company consists of the following "willing workers": – Plant manager – Controller or "bead counter" – Inspector – Chief inspector – Two "willing workers" - employees – A customer

17. Copyright (C) 1993 – 2005 Michael Arthur Johnson Follow script and play the game

18. Copyright (C) 1993 – 2005 Michael Arthur Johnson Game points n It is important to have a clear and measurable "operational definition" between a customer and supplier n A "willing worker" has little or no control over a process or system n If management is not satisfied with the results of the system then management must take action to change the system

19. Copyright (C) 1993 – 2005 Michael Arthur Johnson Every RED BEAD has a name on it......and a cost associated with it.

20. Copyright (C) 1993 – 2005 Michael Arthur Johnson Waste - Rework - Changes in mind n Waste - due to poor planning – Overtime costs – Re-planning – Accounts / collections n Rework - due to poor training – Supplier Claims – Customer claims – Re-training

21. Copyright (C) 1993 – 2005 Michael Arthur Johnson Who knows the name on the RED BEAD?

22. Copyright (C) 1993 – 2005 Michael Arthur Johnson The "willing workers"

23. Copyright (C) 1993 – 2005 Michael Arthur Johnson Why don't they tell us ?

24. Copyright (C) 1993 – 2005 Michael Arthur Johnson Fear !

25. Copyright (C) 1993 – 2005 Michael Arthur Johnson Whose responsibility is this?

26. Copyright (C) 1993 – 2005 Michael Arthur Johnson Management is responsible

27. Copyright (C) 1993 – 2005 Michael Arthur Johnson Game terms n A"process" - series of related tasks grouped in sequence n A "system"- interacting group of items forming a unified whole n A "stable process" - one with no indication of a special cause n Improvement of a stable system requires fundamental change in the system n Priority of system improvement should be to reduce variation

28. Copyright (C) 1993 – 2005 Michael Arthur Johnson Game terms....continued n A process in statistical control is random and predictable n To make fundamental change in a system may be complex and costly n A system may be stable, yet turn out faulty items and mistakes n A special cause may not occur again n It may not be cost effective to solve special causes

29. Copyright (C) 1993 – 2005 Michael Arthur Johnson Game terms....continued n Tampering is to take action to the system in response to faulty items n Tampering may cause an increase in future costs n Management should avoid tampering

30. Copyright (C) 1993 – 2005 Michael Arthur Johnson What's really the issue?

31. Copyright (C) 1993 – 2005 Michael Arthur Johnson Total Costs Are The Sum Of: Tasks x hours x ($ - € - Ls) rate Rework Costs (training) Wasted tasks (planning) Changes in mind (expectations)

32. Copyright (C) 1993 – 2005 Michael Arthur Johnson Make "sense" from Alphabet Soup Dollars and cents - make a profit ! Instead - get back to the basics

33. Copyright (C) 1993 – 2005 Michael Arthur Johnson What's wrong with many TQM programs? n Employees are tired of another soapbox n Implementation is fragmented n Support does not come from the top n Fear exists within the organization n Management doesn't see the fear n Two way communication is difficult n Dependent on specific people not process

34. Copyright (C) 1993 – 2005 Michael Arthur Johnson Old Way New Way Continuous Improvement A New Way of Thinking a Paradigm Shift Time Value Time

35. Copyright (C) 1993 – 2005 Michael Arthur Johnson Cultural Change Attitudes & beliefs - Home, work System in which we work Way we manage people Environment in which we work Methods used to solve problems Customer supplier relationship

36. Copyright (C) 1993 – 2005 Michael Arthur Johnson Beyond Total Quality Management Learn to live the talk ! December 12, 1993

37. Copyright (C) 1993 – 2005 Michael Arthur Johnson Management Cycle It's a process too !

38. Copyright (C) 1993 – 2005 Michael Arthur Johnson How do we overcome these issues? n Develop clear, measurable specifications n Calibrate your measuring techniques n Brainstorm the critical issues n Document the process flow n Collect data on the process performance n Analyze the process data n Outline improvements to the process n Repeat above steps (Plan,Do,Check,Act)

39. Copyright (C) 1993 – 2005 Michael Arthur Johnson Cultural Change Attitudes & beliefs - Home, work System in which we work Way we manage people Environment in which we work Methods used to solve problems Customer supplier relationship

40. Copyright (C) 1993 – 2005 Michael Arthur Johnson Total Quality Management – Management philosophy / operating methodology totally committed to QUALITY that..... Focuses on: Continuous Improvement Requires: Universal Participation Results in: Customer Satisfaction

41. Copyright (C) 1993 – 2005 Michael Arthur Johnson Leadership - A Vision Create a vision, a destination Build a level of trust, eliminate fear Communicate openly and carefully Understand and cooperate n Entrust responsibility, accountability n Personal involvement in training n Facilitate the process improvements

42. Copyright (C) 1993 – 2005 Michael Arthur Johnson Team Building - It's a result Team building is an element of: Quality improvement Pride of workmanship Morale Joy in work

43. Copyright (C) 1993 – 2005 Michael Arthur Johnson How do we really do it? Get back to basics Look at the issues differently Start with your Personal Satisfaction QUALITY is KEY - Total Quality Control Management Style - It is a process too Customer Focus - We are all customers People Focus - Listen, Act & Empower People and Customer - Combined effort Supplier Involvement - Total effort

44. Copyright (C) 1993 – 2005 Michael Arthur Johnson How to get started ? n Pick 4 to 6 key points to measure n Collect and plot data for past 60 days n Train each key manager n Brainstorm with willing workers n Prioritize the issues and fix the easy ones n Communicate the successes n Ask for more n PDCA the processes

45. Copyright (C) 1993 – 2005 Michael Arthur Johnson When to start ? Tonight !

46. Copyright (C) 1993 – 2005 Michael Arthur Johnson Remember What gets watched - gets fixed !

47. Copyright (C) 1993 – 2005 Michael Arthur Johnson Final thought Only our customers can tell us what they want and how they want it. We are all customers and suppliers of each other in this modern business world.