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Building and Sustaining Total Quality Organizations
Building and Sustaining Total Quality Organizations
Building and Sustaining Total Quality Organizations
BUILDING AND
SUSTAINING TOTAL
QUALITY
ORGANIZATIONS
Chapter 7
Overview
Brief Introduction American Express Qualty
Leadership Approach
Making the commitment to Total
Quality Cultural Change
Ten ways that middle manager or
quality professional can sell the TQ Building Best Practices
Concept to Senior Leaders
The Role Of Employees in
Organizational Culture and Total
Cultural Change
Quality
Synergies with Six Sigma Senior management, Middle
Four Principles of Superior Management, etc.
consumer Satisfaction
Page 04
Making Commitment to Total Quality
A survey Manufacturing firms cited the top three obstacles to total quality implementation among companies that do
not have a formal TQ effort as:
FUNCTION IDEOLOGY
01
A task or group of tasks to be
A set of Values or beliefs that guide
performed that contribute to the
mission or purpose of an
03 an organization in the establishment
of it’s mission, processes, and
organization.
Functions
PROCESS
02 A set of steps , procedures or policies that
define how a function is to be performed
and what results are expected.
Page 07
Culture
Often Called as “Corporate Culture”. Is an organization’s value system and
it’s collection of guiding Principles. A survey Conducted by the Wyatt
Company, a Washington D.C., Consulting firm, found that the barriers to
change cited most often were employee resistance and “dysfunctional
Corporate Culture” -- One whose shared values and behavior are at odds
with it’s long term health.
Cultural Values
Are often seen in the mission and vision statements of organizations. For
example, It is not unusual to see statements like ‘We will continuously strive to
improve the level of Quality in all our products “ or “Teamwork is essential to
our mutual Success” in corporate mission and vision statements. Culture is a
powerful influence on behavior because it is shared widely and because it
operates without being talked about, and indeed , often without being
though of.
Page 08
And Concepts
across the organizations. Most testimonials on why six sigma works on “continued
Visionary Leadership
top management support and enthusiasm”.
Core Values
One of the key reasons to pursue Six Sigma is to be ahead of, responsive to, and
focused on customers. Customer requirements, both external and internal, are
Customer Driven
paramount in choosing which six sigma projects undertake.
A key Aspects of Six Sigma is to create a learning environment where both the
Organizational and individual and the organization learn and act based on that learning, improving all
Personal Learning the time both from internal and external perspectives.
Valuing Employees and Besides hardware and software, people are needed to make Six Sigma work. Six
Partners Sigma supports a culture where every individual has opportunity to contribute not
only by doing their work, but also by improving their work.
Organizatons must have the ability to respond quickly and flexibility to changing
Agility customer needs, wants, and desires and in response to other internal factors and
changes in the business environment.
A company focuses on the future needs a goal, a plan for achieving that goal, and
Focus on the Future a working methodology to fulfill the plan.
Managing for Innovation
Within Six Sigma, both incremental change and breakthrough change are supported and expected, and this Page 10
change is directed not only at what the company produces but also how the company itself works internally
and interfaces with the rest of the world.
Management by fact
And Concepts
Six Sigma Demands the effective used of data to analyze business issues. Six Sigma uses measurement to
discover opportunities, to drive business results , and to drive improvement.
Core Values
Social Responsibilty
Although not specifically addressed in Six Sigma, it would be almost impossible for an organization to use all
the other principles and concepts of six sigma, deliver better products and services, and grow in revenue and
profitability without being a good
Systems Perspective
One of the characteristics stated and implicit in both Baldrige and Six Sigma is that efforts are expected to
encompass the whole organization. Although the pieces are important, taken in total, integrated, and in
relationship to one another, the system makes up the real value of the organization.
Page 11
Really know our customers and Consumers. Know those who resell our products
and those who finally use them -- and then meet and exceed their expectations.
Do the Right things right. This task requires hard data and sound statistical analysis
to select the “Right Things” and to direct continual improvement in how well we do
those things.
Concentrate on improving systems. In order to achieve superior consumer
satisfaction and leadership financial goals, we must continually analyze and improve
the capabilities of our basic business systems and subsystems.
Empower People. This principle means removing barriers and providing a climate in
which everyone in the enterpriseis encouraged and trained to make his or her
maximum contributions to business objectives.
Page 12
Cultural Change
Senior Management
Many Organizations today find themselves in a leadership vacuum
because the environment hs changed more rapidly than they ever
imagined. Their Leadership style have not kept pace, and they find
themselves falling back on approaches that were”Good Enough” for
their predecessors, but frequently inadequate today.
Senior Manager’s
Responsibilities
1. Ensure that the organization 4. Identify the resources and Trade-offs that
focuses on the needs of the must be made to fund the Total Quality activity’
customer. 5. Review progress and remove any identified
2. Cascade the mission, vision, and barriers.
values of the organization
6. Improve the macroprocesses in which the are
throughout the organization.
involved, both to improved the performance of
3. Identify the critical processes
the process and to demonstrate their ability to
that ned attention and
use quality tools for problem solving.
improvement.
Page 18
Middle Management
Leonard Styles
A veteran leadership consultant and researcher, observed that middle
managers have traditionally not been expected to be leaders, but to
be guardians of “Generally Approved Management Principles”
(GAMP). GAMP rests on time -honored assumptions and practices:
The Workforce
The workforce is essential for implementing total quality in an organization and
achieving successful outcomes. An Employee-centered Approach is key
ownership , as it gives workers a voice in decision-making and the confidence
to take responsibility for their jobs. Self-managed teams are one way of
increasing ownership, while also creating trust and belief in each employee.
Companies like Wainwright industries promote job security for their employees
by providing them training and development so they become highly employable
and marketable, even in times of financial hardship. All of these elements are
important for developing loyalty among the workforce and achieving total
quality.
Page 21
Change Management
Change management is a process of managing a transition from an old state to a new one. it involves
identifying the current state and replacing accepted practices with new approaches. It consists of
Three Stages : Questioning the Current State, Entering a state of Flux, and Institutionalizing
the new behaviors and attitudes. Companies like American Express use a Five Steps Process to
Manage Change, Including;
Scoping the change
Creating A Vision
Driving Commitment
Accelerating the transition
Sustaining Momentum
Reward Systems may need to be adjusted to promote the desired culture.
Management’s Commitment to new culture is essential for successful change management.
Page 23
QUALITY AS JOURNEY
Quality is an ongoing process that requires commitment, planning and
discipline. The example of Techneglas, a company who produces glass
for television picture tubes, shows this journey in action. In the 1980s, the
company realized that the quality of their products had to be improved
to meet customer demands. To do this, they trained their employees in
SPC and later hired an outside consulting firm to help them create a
management steering committee. This committee focused on Deming's
principles, creating problem-solving teams, improving communication,
and creating standard operating procedures. By 1997, the company had
completed pilot programs and over 300 employees had received SPC
training. The journey to improve quality is ongoing, and by investing in
the basics, companies can reap the benefits of the Baldrige framework
and assessment process.
Page 28
QUALITY AS JOURNEY
Techneglas, a glass producer in Columbus, Ohio, realized in the 1980s
the need to improve their product quality to meet customer demands.
They implemented SPC training, a management steering committee,
and Deming's principles to accomplish this. They then created problem-
solving teams, improved communication between top management
and the workforce, and developed a quality mission statement. By 1997,
they had drafted a quality policy, trained 300 employees in SPC, and
written 100 standard operating procedures. This journey to quality is one
that is not taken lightly, as it requires discipline, time, and planning. The
example of Techneglas shows that it is possible to reach a level of quality
excellence, as many Baldrige-winning companies have done, with a
serious commitment to TQM.
TOTAL QUALITY TERMS Page 29
02 Experimental Design
03 Santayana Review
DIFFERENCE BETWEEN TOTAL Page 29
QUALITY CONTROL AND TOTAL
QUALITY LEARNING
SELF-ASSESSMENT PROCESS
One way y for organizations to build and subsequently
sustain a TQ organization is to conduct self-
assessments of where it stands relative to best practices
and key requirements. Self-assessment is the holistic
evaluation of processes and performance. The self part
of the term means that it should be conducted
internally rather than simply relying on an external
consultant, which promotes greater involvement of the
organization's people, yielding a higher level of
understanding and buy-in
Page 32
LEVERAGE SELF-ASSESSMENT :
THE IMPORTANCE OF FOLLOW UP
Organizations often conduct self-assessments in order to identify
improvement opportunities and gain a competitive advantage.
However, many managers fail to adequately follow up on these
assessments, either because they do not perceive a problem or
because they do not know what to do with the information. To
leverage self-assessment findings, managers must prepare to be
humbled, talk though the findings, recognize institutional
influences, and grind out the follow-up. This will help the
organization to take action and effect change, leading to improved
organizational effectiveness and competitive performance.
Page 35
IMPLEMENTING ISO 9000,
BALDRIGE, AND SIX SIGMA
ISO 9000, Baldrige, and Six Sigma are all processes used by organizations to
build a quality culture. ISO 9000 is the most common, as it is prescriptive and
process-oriented. Organizations must first establish a quality policy with
objectives, and then provide the necessary resources to achieve those
objectives. These resources could include special skills, equipment, and
computer software. People must be given the responsibility to prevent errors,
identify and solve quality-related problems, and verify solutions. An audit
program must also be established to ensure that the activities and results
comply with plans, and records must be kept to demonstrate conformance.
The quality system must be documented in a quality manual, and maintained
and kept up to date through internal audits. While ISO 9000 is not as
complete a management framework as Baldrige, it can still be implemented
and result in significant benefits.
SEVEN STEPS FOR ACCELERATED
CONTINUOUS IMPROVEMENT
To sustain its efforts, Eastman uses seven steps for accelerated continuous improvement.
1. Focus and pinpoint. "Focus" is about get- ting everyone on the same page with regard to
goals; "pinpoint" is about specifying in measurable terms what is expected.
2. Communicate. Communication is done company wide by publicizing key result areas, the
vision, and the mission statement so that employees can answer the questions: What is being
improved? Why is it important to the customer, to the company, and to me? What has the
management team committed to do to help? And what, specifically, is the company asking
me to do?
3. Translate and link. Teams translate the company wide objectives into their own language
and environment.
4. Create a management action plan. Management creates a plan with specific actions to
reach a goal, including metrics to measure success. Each team member is asked to know
what tasks need to be done, why they are important, and what the team's role is in getting
them done.
SEVEN STEPS FOR ACCELERATED
CONTINUOUS IMPROVEMENT
5. Improve processes. Teams use a six-step process similar to those described in Chapter 10
6. Measure progress and provide feedback. Eastman is adamant about the importance of
unambiguous, visual feedback to employees and appropriate measures of performance.
Eastman's rules include:
Feedback should be visual, frequent, simple, and specific.
The baseline performance should be shown for comparison.
The past, current period, and future goals should be posted.
The best-ever score should be posted. A chart should be immediately understandable.
A good scorecard allows comments and annotations.
7. Reinforce behaviors and celebrate results. Eastman reinforces the learning that leads to
positive results by encouraging teams at celebrations to answer the questions: What did you
do? Why did it work? Why is it important for the customer, the com- pany, and the team?
How did the team accomplish its achievement?
Eastman points out that its formula cannot be blindly followed by others, but must be
adapted to the specific corporate culture. Nevertheless, the human principles are universal.
SIX SIGMA TOOLS TO EARN A
CERTIFICATION Page 38
Green Belt-A person with working knowledge of Lean Expert-A person who has completed four
Six Sigma Plus methodology and tools, who has weeks of lean training and one or more projects that
completed training and a project to drive high- have demonstrated significant, auditable business
impact business results. results and the appropriate application of Six Sigma
Black Belt-A highly skilled Six Sigma Black Plus Plus lean tools.
expert who has completed four weeks of Lean Master-A person highly skilled in
classroom learning and, over the course of four to implementing lean principles and lean tool
six months, demonstrated mastery of the tools utilization in diverse business environment
.Certification involves one year of intense study and
through the completion of a major process
practice in advanced tools, teaching, and mentoring.
improvement project.
ABM Expert-A person who has demon- started
Master expert Black Belt-The Six Sigma Plus
proficiency in activity-based management (ABM)
most highly skilled in the method- ologies of
through a business application involving product
variation reduction. After a year- long project-
costing process costing, or customer profitability
based certification program, Master Black Belts analysis. Certification involves attending an ABM
train and mentor Black Belts, help select and lead training course, defining a meaningful project,
high-value projects, maintain the integrity of the displaying knowledge of the ABM tools and using the
sigma measurements, and develop and revise Six data for key decision making. ABM experts
Sigma Plus learning materials. frequently link Six Sigma Plus tools to projected and
actual financial results.
SIX SIGMA TOOLS TO EARN A Page 39
CERTIFICATION
ABM Master-A person who has the skills of an expert plus the ability to develop and
deliver ABM learning courses. Certification typically takes one year and involves
demonstrating the use of ABM data for multiple purposes with repeatable and
sustainable results. ABM Masters are proficient in the use of advanced cost
management tools and have the ability to tailor cost data and analysis to a business's
vision and strategy.
TPM Expert-A person who applies total productive maintenance (TPM) and reliability
methodologies and tools to assist or lead teams in optimizing asset capacity-
productivity at minimum life cycle cost. A TPM Expert is responsible for determining
critical equipment and measuring its overall effectiveness, thus enabling growth and
productivity through opti- mum asset utilization.
TPM Master-A highly skilled individual experienced in the use of TPM and reliability
tools and methodologies. TPM Masters' responsibilities include assisting leadership in
identifying high-leverage asset improvement opportunities; leading critical, high-
leverage improvement projects in a business; and leading cultural paradigm shifts
from reactive to proactive asset management.