A model for TQM (eye based)

INTRODUCTION

The 1990's is the decade of Globalisation. In order for companies to be competitive in this environment they have seen the imperative need for Quality. However throu h the decades leadin to the 90's there have been many ! urus! who have e"plicitly underlined the need for Total Quality #ana ement $ystems in companies% but due to many factors these ideas have either one unheeded% or been bu&& word for a short time. It is possible that Total Quality #ana ement 'TQ#(% is once a ain a bu&& word and a mar)etin tool% but nevertheless it is a tool that is bein e"tensively used in the 90's to help companies ain and maintain a competitive ed e over their rivals. If the ideas and theories of such urus as *emin % *ale% +a)land% ,eters% and Hammond- to mention a few- are compared and studied one can see that while usin different terminolo y% their ideas are remar)ably similar. It would be unwise to chan e a company policy each time a new idea appears. However% in many instances this has been the case. .ot only does this adaptation of the !new flavour of the month! lead to confusion% but it can also stilt a company's rowth and cause them to lose their competitive ed e in the mar)et. The purpose of this assi nment is to combine the best ideas of these theories and develop them into a functional and user friendly model of TQ#. This model developed by /arnard% /osman% #anu% #artins% 0osin% $trotouda)is and Than)e is called1 !The 2ye on the 3uture.! It is our belief that companies need to be a ressive about the 4uality they build into their products and services. It is short si hted to shy away from 4uality and behave as if it is not a necessary commodity in strate ic business. If a company persists in this type of behaviour it will not be a profitable or anisation in the ne"t millennium. In the human body% the eye is the part that steers the body throu h its' course of life. The perfect eye has 50650 vision. If the eye does not function to its ma"imum potential- the individual in whose body it resides could resort to contact lenses or lasses to help improve the eyes' performance. 7nfortunately an individual can be born blind or develop Glaucoma in the course of their life and thereby affect their performance. 8i)ewise if an or anisation does not adhere to the principles laid out in The 2ye on the 3uture model% they could slowly develop !/usiness Glaucoma! which results in blindness and a crippled business. The principles laid out in the 2ye on the 3uture model include 9ision% Trainin % $trate y% :ontinuos Improvement% 8eadership% :ommitment% Trust% $ystems and Quality Tools with the focal point bein the 2mployees% $uppliers and :ustomers. If these principles are adhered to and effectively implemented in an or anisation% they will help the or anisation to develop a meanin ful vision for their current and future strate ic business plannin .

CHAPTER 1: SC ERA 1!1! "ISION

;ny company without vision is lost. ; comprehensive vision helps the company to set their purpose and course in the business arena. <ithout a vision the or anisation will not be able to foster rowth% will remain sta nant or wander around aimlessly% while their competition is purposefully stridin ahead. The purpose of a vision is to provide direction to the or anisation. It must be coupled with a mission statement that is clearly and easily understood by all staff members and e"ternal customers. The vision should have a unifyin effect in the company where all the people are involved in definin and settin the vision. .ot only will this provide ownership of the vision to the people% but will foster a sense of responsibility in each individual in the or anisation. In many cases the vision is set up by top mana ement and not clearly communicated to other staff members. However if each individual has the opportunity to contribute to formulatin the vision a cascade effect will occur. Invariably when a company is composin a new vision they have perceived the need for chan e. If the vision does not ive rise to chan es in the or anisation then it has not accomplished its' purpose. <e have already stated some purposes for a vision% but it is imperative to remember that the vision needs to be a facilitator of chan e in the or anisation.

/y creatin a new vision and environment for chan e% communication and commitment is fostered. It is pointless to have developed a new vision where these three aspects are not present. ;ll members of the or anisation must realise that a new vision will force chan e in the or anisation and if this has not occurred then it must be a ressively sou ht after. The or anisation will have reached the sta e where the lessons learnt in the past must be remembered% but passed successes must be e"ceeded. If the or anisation continues to live in the past it will not survive in the future. The vision and mission statements should be concise% shared and understood by all employees. They should be developed% displayed and communicated. It is important that everyone in the or anisation can identify with the vision and mission statements since this will help to unite and focus employees on where the or anisation is headin . In order for the vision to be successful it must be customer% supplier and employee driven. The vision must be ali ned with corporate strate ies and oals and there must be a clear understandin of the business environment they are competin in.

1!#! MISSION
The mission will translate the abstractness of the vision into tan ible oals that will move the or anisation forward and ma)e it perform to its' optimum. It should not be limited by the constraints of strate ic analysis% and should be pro=active% not re=active. $trate y is subservient to mission% the strate ic analysis bein done after% not durin % the mission settin process.

1!$! STRATE%&
The strate ic placement of the or anisation must flow from the vision and mission that the or anisation wants to achieve. The strate y is initiated and developed by top mana ement with the input of each member in the or anisation. Thus the strate y will be accessible to the people wor)in in the or anisation and will ensure thatthrou h proper communication- it is understood and maintained throu hout the whole company. 0ememberin that with a shift in strate y also comes chan e. #ana in this chan e process is as important as the TQ# process itself. +nly if all the elements outlined in this model wor) to ether% will a state of TQ# be achieved. TQ# should be incorporated in the overall business strate y of the or anisation which should include all financial% mar)etin % production% human resources% servicin etc. strate ies. ; clear lon =term strate y for the process of 4uality improvement should be formulated and inte rated with other )ey business strate ies% departmental policies and ob>ectives. The strate y must then be developed into a series of 4uality improvement plans relatin to areas which have been identified as re4uirin improvement% ')ey success factors( and methods of monitorin and assessment developed.

CHAPTER #: THE IRIS

In this chapter it is important to remember that none of the followin points are e"clusive to each other% or more important than the other. They all wor) concurrently in the 2ye on Tomorrow model.

#!1! EADERSHIP
#ana ement as leaders should act as the catalyst to the 2ye on the 3uture model. 8eadership needs to be by e"ample. In order to achieve the vision% the leaders need to ali n the or anisation to common oals% communicate the need for shared values and foster an atmosphere of trust. It should be remembered that each department has those members present who are not appointed leaders% but stand out throu h peer respect and emer e as leaders. #ana ement should not overloo) these individuals when in the process of leadin the or anisation.

8eadership styles should also correlate with the or anisation ob>ectives. 8eaders need to be proactive people who command respect and don't demand respect.

#!#! TRUST 'The 3?:# ,rinciple(

;ccordin to the +"ford dictionary trust is a1 1. 3irm belief in honesty% veracity% >ustice% stren th% etc. of a person or thin 5. ,erson% thin confided in @. 0eliance on truth of statement% etc. A. :ommercial credit B. 0esponsibility arisin from confidence reposed in one C. :onfidence reposed in a person by ma)in him nominal owner of property to be used for another's' benefitproperty so held% le al relation between holder and property so held D. Thin % person committed to ones care% resultin obli ation E. +r anised association of several companies for purpose of defeatin competition% etc. 9. *eed by debtor conveyin property to trustee for payment of his debts. 10. ,lace trust in% rely on the character or behaviour of 11. :onsi n 'thin to person% etc.(% place or leave 'thin with person etc. in place etc.(% without mis ivin 15. ;llow credit to 'customer for oods( 1@. 2ntertain an earnest or 'rarely( confident hope 1A. ,lace reliance in. ;s seen there are 4uite a lar e amount of principles that can be associated with the word T07$T. If one carefully e"amines each of these in terms of human element and TQ#% one wonders why this is the missin component in all TQ# models. 8et us e"amine a few e"amples where trust is a )ey element of TQ#1 5.5.1. 2mployers e"pect of their employees to perform the various tas)s assi ned to them durin the span of their careers in order to achieve the oals of the company. +n the other hand employees e"pect to be paid on time. 5.5.5. /y the same to)en companies want to purchase from suppliers who deliver on time% and the suppliers need to be paid on time. 5.5.@. :ompanies and individuals e"pect that oods purchased from a supplier meet or e"ceed a certain standard of 4uality. 5.5.A. 2mployees need to be trusted by their employers and vice versa. :ompanies sell oods to customers on credit. They need to be sure that the oods will be paid for.

5.5.B. 2mployers place responsibility on the shoulders of their employees for their own actions. 2mployees need to accept that responsibility. 5.5.C. 2mployers must have confidence in their employees to perform their daily tas)s. 5.5.D. 2mployees must have confidence in their employers to ta)e ood care of the business and to ensure that their wor)in career at the company is well ta)en care of. 5.5.E. 2mployees put themselves in the care of their employers. 2mployers must entrust their business to their employees. 5.5.9. :ustomers put themselves in the care of their suppliers. 5.5.10.:ompanies perform strate y sessions% sometimes in alliance with other companies to defeat opposition companies or to ain more mar)et share. 5.5.11.2mployees% employers% suppliers and customers ali)e all have to rely on inte rity of character of people. These are but a few e"amples where trust is a )ey issue in TQ# and our daily lives. It applies to all the elements of The 2ye on the 3uture model. !<ithout this element any improvement initiative and thus TQ# would fail% and so often it does because the T07$T principle is overloo)ed.! #artins '199D(

#!$! Sys'ems
The purpose of control systems is to increase the probability that an or anisation will meet its or anisational oals and standards. There are si" ma>or control systems usually found in an or anisation% namely1 3inancial :ontrol /ud etary :ontrol Quality :ontrol Inventory :ontrol +perations #ana ement Information $ystems :ontrol systems tend to differ in the de ree that they are used by different mana ement levels e. . 3inancial control systems are primarily used by top mana ement because they relate to the overall financial health of the or anisation. #iddle mana ement ma)es more use of bud etary controls% since it is typically their >ob to ensure that various bud ets are met. #a>or control systems also lean toward different emphases on timin . 3inancial control systems tend to constitute feedbac) control because data is usually evaluated at the end of a particular period. /ud etary control as well as Quality :ontrol can be thou ht of as concurrent control since chec)s are often made durin the actual production process to be sure that standards are bein met. Inventory :ontrol can be thou ht of as feed forward control because it is eared toward ensurin that materials will be available when needed. ; fully documented 4uality system should ensure two important re4uirements1 5.@.1. The customers re4uirements = confidence in the ability of the or anisation to deliver the re4uired product or service consistently.

5.@.5. The or anisation's re4uirements = both internally and e"ternally% and at an optimum cost% with efficient utilisation of the resources available. The 4uality system serves as a communication tool% as a trainin aid and as a powerful ali nin force within the or anisation. ; 4uality system may be defined then% as an assembly of parts such as or anisational structure% responsibilities% procedures% processes and resources for implementin total 4uality mana ement. The 4uality system should apply to and interact with all activities of the or anisation. It be ins with the identification of re4uirements and ends with their satisfaction% at every transaction interface. The 4uality system must be a practical wor)in document. 8oo) for a document that is well fin ered in use. ; useful uide in the operation of any process is1 1. .o process without data collection 5. .o data collection without analysis @. .o analysis without decisions A. .o decisions without actions 'which can include doin nothin ( This discipline is built into any ood 4uality system primarily throu h the audit and review systems. The overridin re4uirement is that the systems must reflect the established practices of the or anisation% improved where necessary to brin them into line with current and future re4uirements. In implementin a 4uality system the established national standards such as the I$+ series can serve as a useful uide and framewor).

#!(! CONTINUOUS IMPRO"EMENT

;s mentioned in our introduction that in today's era% for companies to e"pand their lobal mar)et they have to be radically competitive. Therefore a systematic% functional% 4uality model li)e TQ# should be enuinely e"plored and e"ploited. +ur 2ye on the 3uture model has already discussed most of the steps that should be followed to implement TQ#. These include topics li)e commitment% and leadership% trainin % teamwor) and trust% systems and tools% continuous improvements% etc. :ontinuous improvements are probably the most powerful concept to uide mana ement throu h the achievements of TQ# :ontinuous improvements are based on systematic% incremental and habitual improvements of processes rather than on brea)throu hs and innovative advances. The process concentrates on elimination of waste and non=value=added activities throu h collective and continuous involvement of all employees. This systematic approach to 4uality mana ement re4uires the followin components1 ,lannin the processes and inputs ,rovidin inputs +peratin the processes 2valuatin the outputs 2"aminin the performances of the processes

#odifyin the processes and their inputs. The continuous improvement process must be firmly tied to a continuous assessment of customer needs and flow of ideas on how to ma)e improvements% reduce variation and enerate e"cellent customer satisfaction. It also needs a hi h level of commitment and a sense of personal responsibility from all that are involved in the processes. The underlyin fact about continuous improvement is that it should be done to create a climate = a way of life = that permeates and survives in the whole or anisation. There are @ basic principles of never endin improvement% namely1 focusin on the customer% understandin the process and all employees bein committed to 4uality. 5.A.1. 3ocusin on customers In or anisations it must be understood that the main purpose of wor) is to serve customers better. Therefore it must be )nown how well outputs are performin % in the eyes of the customers% throu h measurements and feedbac). This chain of outputs and feedbac) should be continuously improved to broaden mar)ets and to improve the 4uality of products or services. 5.A.5. 7nderstandin the process 3or the successful operation of any process it is essential to understand what determines its performance and outputs. It is not possible to stand aside and mana e in never endin improvement. :ontinuous improvements in an or anisation means the use of detailed )nowled e of the processes and the ma)in of improvements. 5.A.@. ;ll employees committed to 4uality 2veryone in the process% top to bottom% admin. to factory% H+ to local sites% must play their part. ,eople are the source of ideas and innovation and their e"pertise% e"perience and contributions have to be harnessed in order to et more improvements ideas implemented. #ost of the wor) in the or anisation is done away from the immediate view of mana ement and supervision. If the co=operation of some of the people is absent there is no way that mana ers can cope with the chaos that will result. 2very phase of the operation must be sub>ect to continuous improvements% and for that everyone's co= operation is re4uired. ; commonly encountered 4uestion is1 !How will an or anisation )now when it has achieved Total QualityF! The answer is it will not. Total Quality is based on continual processes which are both chan in to the needs of customers% and the mar)et place. It is commonly described as !; road without a destination!. It is wise for an or anisation to understand that its competitors are continually ma)in advances. Therefore to catch up or e"cel further% it is necessary to develop 4uality processes at a faster rate than the competitors. /ecause the competitors' position can never be )nown with certainty% there is no prudent alternative other than to pursue perfection.

#!)! Q*al+'y Tools

5.B.1. Quality Improvement Teams These are small roups of employees who wor) on solvin specific problems related to 4uality and productivity% often with stated tar ets for improvement. Quality improvement teams are provin to be hi hly successful at trac)in down the causes of poor 4uality as well as ta)in remedial action. 5.B.5 /enchmar)in This is the process of identifyin the best practices and approaches by comparin productivity in specific areas within ones' own company to other or anisations both within and outside the industry.

5.B.@. $tatistical process control This is a statistical techni4ue that uses periodic random samples ta)en durin actual production to determine whether acceptable 4uality levels are bein met or whether production should be stopped in order to ta)e remedial action. /ecause most processes produce some variation% statistical process control uses statistical tests to determine when variations fall outside a narrow ran e around the acceptable 4uality level. The emphasis when usin $,: is on defect prevention rather than tryin to inspect the 4uality into the product. 5.B.A ,o)a Go)e This is a techni4ue that aims to ma)e the assembly process 3ail=$afe. This can be achieved in two ways namely by desi nin the product in such a way that it can only be assembled correctly% or by desi nin >i s% fi"tures and test e4uipment that will show up a fault when it has occurred.

#!,! COMMITMENT
In order for the 2ye on the 3uture #odel to be a success% each member in an or anisation must be committed to the chan e process. It cannot be viewed as the new flavour of the month% but should rather be re arded as an e"citin life chan in process. Too often peoples' enthusiasm wanes when they realise that the chan e process in an or anisation is not li)ely to occur overni ht. If the attitude of top mana ement% namely the :2+ and directors% is not positive% enthusiastic and committed then the 2ye on the 3uture model is not li)ely to succeed. ,eople need to pled e their support to ob>ectively analysin their >ob functions and procedures% and see)in new innovative ways to improve them. If necessary inspirational spea)ers should be employed to enthuse staff to a new attitude of commitment. +nce a ain% people are led by e"ample. If it appears that mana ement is not committed to the chan e process% this is the attitude the people will develop. However% if commitment is perceived to be the attitude of mana ement% then the people are most li)ely to follow.

#!-! TRAININ%
Trainin must be a part of the or anisations succession plannin . In today's business environment any trainin which is less than visionary will not help the or anisation meet its' future oals and ob>ectives. Trainin ob>ectives must be supportive of the company's vision and mission. In order to identify trainin % the employees must be involved. $ystem deficiencies includin non=conformance reports% customer complaints and >ob performance appraisals will hi hli ht the most ur ent areas for development. Trainin pro rammes must be devised and implemented to help brid e the ap identified previously. The results of the trainin must be evaluated to ensure that effective improvement has been achieved and that employees are competent to use the s)ills ac4uired. #ana ement must promote the need for continuous trainin % as it will facilitate the followin 1 1. 2mployees will be more confident and motivated in their wor) 5. 0educe staff turnover @. 0educe errors A. Improve productivity B. Improve the or anisation competitiveness.

Trainin must help each individual in the or anisation to maintain a rowin )nowled e of their business environment. It must be implemented to each individual% from the directors to the cleaners.

CHAPTER $: THE PUPI $!1! EMP O&EES

The most important practice in an or anisation is for mana ement to show their employees that they are hi hly valued and are an inte ral part of the or anisation. ,eople need to have a sense of self worth% and in order to be motivated and committed to the chan e process- they first need to feel secure and needed in their or anisation. If this is not the case there will be resistance to chan e. ;fter the vision has been established% mana ement and employees need to loo) at the current distribution of employees in their current >ob positions. It may be possible that the incorrect person is in a particular >ob% and it is at this sta e that a reshuffle of staff should occur under eneral consensus. :han in the culture is a )ey element in the process of 4uality improvement and has wide ran in implications for the whole or anisation- it re4uires the introduction and acceptance of individual% roup and or anisational chan e. The 2ye on the 3uture provides the opportunity to ma)e and influence behaviour and attitudes that have real effects on internal and e"ternal relationships and the way the or anisation conducts its business. Teamwor) should be established and become part of the or anisation's method of wor)in . Tas) forces or pro>ect teams and cross=functional improvement teams should be established to address the ma>or problems facin the or anisation. :ulture chan e is not >ust relevant to 4uality improvement% althou h the increased emphasis on customers and their needs within TQ# ma)es some form of culture chan e a must in most or anisations. ;n assessment% from both mana ement and employee perspectives% of the current status of the or anisational culture should be underta)en before firm plans for chan e are developed. The role of people within the or anisation should be reco nised. 2mployees must be empowered to ma)e decisions to serve the customer and their contributions must be reco nised% rewarded and encoura ed. The employees must be viewed by senior mana ement as an asset and not a liability. The same investment that is iven to a capital asset must be applied and broadened when applied to employees.

$!#! SUPP IER

; supplier is an or anisation that provides a product or service to the customer and can be either internal or e"ternal to the or anisation. The supplier may be a producer% distributor% importer% assembler or service or anisation. ,artnership should e"ist between customer and supplier. The purchaser should receive oods that meet re ulatory re4uirements and conform to a pre= determined specification laid down by the purchaser. ;ssessment and selection of suppliers is imperative% this will determine whether the supplier would be able to supply the services that the purchaser re4uires% will ive both parties the opportunity to learn each others business needs% and the assessor of the supplier can aid in improvin the suppliers 4uality system by ivin su estions to the supplier as to where the deficiencies are found. 3ollowin the approval of a supplier to supply oods or services to the customer% an effective wor)in relationship and feedbac) system should be established between the two parties. *o not buy products or services on price alone% loo) at total costs% includin delivery and 4uality. *emand and promote continuous improvement in everythin includin suppliers. Treat suppliers as partners% as your e4ual and train suppliers so that they can identify the role they have to play in improvin your or anisation.

$!$! CUSTOMERS

:ustomers are the focal point of any business bein in e"istence. ;ny individual who purchases anythin is uni4ue- therefore there is no such thin as an avera e customer. 2ven in today's modern a e of Globalisation% when dealin with customers% one has to consider their similarities and their differences. @.@.1. :ustomer similarities. :ustomer e"pectations must be e"ceeded. *eliver on promises made to the customer. If meetin customer re4uirements is oin to be a problem then do not ma)e any false promises. /uildin a trust relationship with the customer is a ma>or e"ercise that costs a lot of money and all it ta)es to destroy all the hard wor) is one silly moment of concentration loss by any individual within the or anisation. @.@.5. :ustomers want to be treated with respect. $pecial consideration needs to be iven to the customer's sensitivity and his needs. He must to be assured that solvin his problem is your number one priority. @.@.@ :ustomers want to be heard. The customer's representative within the or anisation is the sales team. Their primary focus in dealin with the customer must be to listen% listen and listen a ain to what the customer actually wants. @.@.A. :ustomers want to feel that the or anisation is on their side. 2very employee within our or anisation is a company representative and the customers deal only with individuals within the or anisation. It is for this reason that relationships between individuals and the customers need to be fostered. The basic principles of superior customer service1 @.@.B 2verythin done within the or anisation must be aimed at drivin up value to the customer whilst simultaneously drivin down costs within the or anisation. This needs to be wor)ed on% on a continuous improvement basis. The ?apanese call this !kaizen" which means do it 100H well today and do it better tomorrow. @.@.C. :ustomer care is everybody's business. :ustomer care must be a company wide obsession% everyone must et involved. :ustomer care must become a way of life- an attitude% a habit and a never endin 4uest to o that e"tra mile for the customer. #ichael ,orter refers to this value buildin process as the "value chain". @.@.D. Top mana ement must et involved. $uperior customer service must start with the top mana ement of the or anisation bein committed to the process of satisfyin and meetin the customer's e"pectations. Top mana ement must be the drivers of all chan e initiatives within the or anisation. :han in direction is never a simple process and chan in it from the bottom up is an even bi er tas) that is bound to fail. If and when top mana ement show total commitment and are seen to be wal)in the tal) then the employees will soon follow their e"ample. @.@.E. The role of people within the or anisation should be reco nised. $uperior customer service ta)es a total onslau ht. $uperior customer service be ins with a revolution in mana ement thin)in and behaviour. It must be monitored% measured% encoura ed and publicised. Individuals must be trained to provide value for the customer at all sta es of the process in meetin the customer's re4uirements.

/I/8I+G0;,HG /arrie *ale% #ana in Quality :hapter B Inow your customer- :arl $ewell Quality1 ;chievin e"cellence- 2d ar <illie

3owler and 3owler% H.<. and 3.G. '19C9(. The concise +"ford dictionary of current 2n lish. 8ondon1 +"ford 7niversity ,ress.