1. Managing Quality, Innovation and Knowledge Organizing for Quality and Innovation

2. Quality Fads Quality Circles Statistical Process Control Benchmarking Concurrent Engineering Kaizen Quality Function Deployment Hoshin Kanri Business Process Reengineering

3. Quality Circles (QC) Originated in America after WW II, but adopted and developed in Japan. The Quality system is a team-based method of solving work problems. Many of the methods of QC have been adopted by other processes, for example quality first teams, quality control circles, focus group or lead teams. While their scope may be different from that of QC, their central ideas and methods are very similar. e.g. BHP Billiton

4. Statistical Process Control (SPC) Statistical quality control refers to the use of statistical methods in the monitoring and maintaining of the quality of products and services. One method, referred to as acceptance sampling, can be used when a decision must be made to accept or reject a group of parts or items based on the quality found in a sample.

5. Benchmarking is the process through which a company measures its products, services, and practices against its toughest competitors, or those companies recognized as leaders in its industry. The idea behind benchmarking is to measure internal processes against an external standard. It is a way of learning which companies are best at performing certain activities and functions and then imitating—or better still, improving on—their techniques.

6. Concurrent Engineering (CE) “The simultaneous performance of product design and process design. Typically, CE involves the formation of cross-functional teams, This allows engineers and managers of different disciplines to work together simultaneously in developing product and process design.” Foster, S. T. (2001).Managing quality: An integrative approach. Upper Saddle River, NJJ: Prentice Hall.

7. Kaizen Japanese people have a word for continuous improvement, and its definition is as follows: …continuous improvement in personal life, home life, social life and working life. When applied to the workplace, Kaizen means continuous improvement involving everyone-managers and workers alike Nigam, S. (2005). Total quality management: An integrated approach. New Delhi : Excel Books. Kaizen is the practice of continuous improvement. Kaizen was originally introduced to the West by Masaaki Imai in his book Kaizen: The Key to Japan's Competitive Success in 1986. Today Kaizen is recognized worldwide as an important pillar of an organization's long-term competitive strategy “Change for better” ”Kaizen = Continuous Improvement by Everybody! Everyday! Everywhere!

8. Quality Function Deployment (QFD) “The House of Quality” QFD was invented in Japan by Yoji Akao in 1966, but was first implemented in the Mitsubishi’s Kobe shipyard in 1972, possibly out of the teaching of Deming. Then later it was adopted and developed by other Japanese companies, notably Toyota and its suppliers. QFD is a quality approach to new product design, development, and implementation driven by customer needs and values. QFD has been successfully used by many world class organizations in automobiles, ship building, electronics, aerospace, utilities, leisure and entertainment, financial, software, and other industries.

9. Hoshin Kanri Hoshin is a seven step planning and implementation process which gives direction to an organization when looking at future strategy. The analogy that is used is directing a fleet of ships to all arrive at the same destination, at the same time. Ho = direction, Shin = needle, Hoshin = compass Kan = control or channelling, Ri = reason or logic

10. Hoshin Kanri The seven-step Hoshin planning Cycle

11. Hoshin Kanri

12. Business Process Reengineering (BPR) is thorough rethinking of all business processes, job definitions, management systems, organizational structure, workflows, and underlying assumptions and beliefs. BPR's main objective is to break away from old ways of working, and effect radical (not incremental) redesign of processes to achieve dramatic improvements in critical areas (such as cost, quality, service, and response time) through the in-depth use of information technology.

13. Business Process Reengineering (BPR)

14. Failed Change Approaches Quality as an ‘Add-on’ program Quality as imitation of other businesses (airlines and discount retail) Quality as regulatory compliance

15. Reasons Quality often implemented as a separate and not as an inherent part of what organizations do/should Policies and procedures are not followed up with implementation. Procedures and processes help us know the best practices for managing/supervision, but it takes the understanding, leadership and continual commitment at all levels to make it happen Sometimes costly and unproductive activity Over abundance or lack of training

16. Reasons Lack of communication of all individuals involved in a project Barriers between departments (Lack of teamwork) Failure to link TQM strategically with business goals Although quality is conceptually applicable to all departments/ functional areas, but in actual practice it usually confined to quality assurance or quality control of products/services. A failure to measure quality/results

17. Reasons Over-institutionalized politics also can become a problem TQM implementation without quality culture Employees resistance to change TQM viewed as quick fix with focus on short term goals TQM overly complicated by SPC techniques

18. Cole’s Core Quality Values Sustained top management leadership Relentless focus upon the customer Systematic improvement of all processes Decentralisation of decision making Breakdown of organizational barriers Continuous improvement AND Breakthroughs Realignment of reward systems Decentralisation of information systems https://customers.microsoft.com/Pages/Download.aspx?id=48

19. Ways to Entrench Quality Make quality a core job responsibility for all employees Use existing organizational structures to undertake quality activities Devote time, regularly, to quality activities Change quality measurement and information systems

20. Problems with Functional structures Functional structures keep customers and employees apart Functional structures inhibit improvement activities Functional organizations make ‘Quality’ a separate function Functional structures slow response to environmental changes, thus, lagging innovation Functional structures create delay in making decisions Functional structures demotivate employees

21. Problems with Functional structures Functional structures create problems for managers, e.g. difficulty in pinpointing problems within departments Functional structures limit view of organisational goals by employees Functional structures limit general management training for employees

22. Features of Total Quality Organizational Structures There is a focus upon value-adding processes Structures are designed to serve internal customers Team work designs are used Hierarchy is reduced Temporary organizations are used https://vimeo.com/99876509

23. Additional Readings Hill, S. (1991). Why quality circles failed but total quality management might succeed. British Journal of Industrial Relations, 29(4), pp. 541-568. Prajogo, D. I., & Amrik, S. S. (2006). The relationship between organization strategy, total quality management (TQM), and organization performance––the mediating role of TQM. European Journal of Operational Research 168, pp. 35– 50. Spencer, B. (1994). Models of organization and total quality management: A comparison and critical evaluation. Academy of Management Review,1994 19(3), pp. 446-471 doi: 10.5465/AMR.1994.9412271807