TQM

Policy Management

At first, understand the position of policy management in TQM

and to learn the difference between the policy management and
the daily management that are both wheels of daily activities.
Next, Learn how to advance policy setting.
In this lecture, two cases in Japanese company are introduced.
It is impossible to aim at high level policy management at the
beginning stage. Let’s understand the image of the policy
management.
 Policy Management
Training Contents
1. Meaning of TQM
2. Policy management and Daily management
3. Standard steps of the Policy management
4. An example of the policy management system
( Japanese Large scale company : TAL company)
5. The case:
Policy management in Japanese small scale company
( KM company )
6. Important points in the diagnosis by top management

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１． Meaning of TQM
With all members
1.1 　 What is TQM
System In all departments

At all of the stages

In QC wise view and ideas

TQM Method
With QC techniques

Q(Quality) ： Quality enhancement

Attempt
them.
C(Cost) ： Cost reduction
D(Cost) ： Maintenance of delivery
Purpose date
S （ Safety) ： Maintenance of
safety
M(Moral):Morale uplift

E(Environment) ：
Maintenance of environment 2
 1-2 　 What is the QC wise view and ideas
Classification QC wise view and ideas
1 The overall idea (1) Strengthening of business structure
(2) Management of participation by all members
(3) Education and spread ④QC audit ⑤Human nature esteem
2 Statistic idea (6) Use of QC technique ⑦Control of dispersion
3 Idea of assurance (8) Quality the first ⑨Consumer orientation
⑩The post-processing is a customer.
4 Idea of management (11) Cycle of PDCA Thoroughly rotate management cycle.
(12) Fact control Talk with data based on the fact.
(13) Process control Manage not the result but the work process.
(14) Standardization Make standard, observe it and utilize it.
(15) Source control Manage things not at the downstream but at the
source.
Targeted for this (16) Policy Promote activities with uniformity by policy
lecture management management.
⑰ Cross-functional Improve management system by introducing
management cross-functional control .(Q/C/D/M/S/E)
Idea of improvement ⑱Priority oriented ⑲Problem solving procedure
⑳Recurrence prevention and Prevention 3
1-3 The way of thinking as the premise on the policy management activities.
1)The most important:
Sense of responsibility and consciousness
for the achievement by the all concerned
2) Change the current work system
3) Challenge always to find a way for better
work.
4) Maintain
　　 the daily management system.
（ This is an essential matter when introducing
the policy management)
5) Recognize that it is useless to aim at the
　 most high level from the beginning.
No use if all employees including the top
management have not the mind to assume a
motivation.
Not to chase a result but evaluate the practice
process and change structure of the work.
A better way and breakaways from mannerism
are always demanded
The system carrying out a cycle of PDCA should
be functioning in the daily management.
It should be taken the most appropriate
approach according to the each stage like
early period of introduction, the middle stage
and developing stage.
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2. Policy management and daily management
2-1 What is policy management
An organized emphasis
improvement activity to
achieve company policy (a
president policy)
2-2 What is daily management
Own works management
in an individual section.
A company policy (a president policy)
Bring important problems and results in each position on the
end of the last term.
Set policy and targets by work out with relative people.
Set measures and execute those
Evaluate the results by the control items
Take necessary actions
Works that should execute it naturally daily in each section
All works necessary to achieve the work purpose efficiently
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2-3 Matching of policy management and daily management

Policy management Daily management

Key activity is extracted

from daily
management .
Matching

Activity items done by Activity items done by

policy management daily management
Common items of daily
management and policy
management

Daily activity
6
2-4 Relations of policy Environmental Management
management and the information analysis 　 Management philosophy
　 daily management visions
Medium-and-long term management plan
Policy management
New management problems
Policy Management

Analysis
Policy management plan
Policy management activity
A P
出典 : 品質経営システム構築の実践集（細谷克也編著 日科技連 和

（ Breakthrough activity ）
C D

Standardization
Duties allotment rule
Chronic problems A S Work standard
Daily Management

Important problems Management items

Sudden problems C D according to the position
Minor problems
(Maintenance activity)
A P
文）

Activities on the action for (Daily improvement activity)

abnormality C D
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3. Standard steps of the policy management
Top managements should take the leader ship on the promotion of the policy management.

Step 1: Step 2: Step 3: Step 4:

The development of the The decision of the The development to The implementation
medium-and-long term president (company) each section in the and evaluation of
policy policy of this year company effects

Step 3-1 Set targets and allot targets to each positions Step 4-1
Diagnosis of the policy setting
Step 3-2 Grasp problems for achievement of the targets
Step 4-2
Step 3-3 Determine activity items Implement the policy

Step 3-4 Develop each activity items to detail contents Step 4-3
Review and modify the policy in
Step 3-5 Evaluate the importance of each activity the middle of the current year
and finalize activity items
Step 4-4
Step 3-6 Arrange the activity items on time series Grasp the results of all divisions
and all departments in the end of
Step 3-7 Put the division policy and the department policy the fiscal year.
together.
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4. An example of the policy management system (TAL company in Japan)
Step Company policy 　　　　 Division policy
President Division director General manager Manager Chief & staff

Management Financial resources, external environment,

philosophy a future image

Vision 2020 Group discussion

Planning of Long and mid-term plan / rolling

Plan

Year policy plan

Board meeting

Unofficially announcement of year policy

P
Division policy setting
1 3
Department policy setting
Development

2 4
Activity plan
5
Diagnosis by division director 1 4 5

Diagnosis by president 1 2 3 4 5
9
4. An example of the policy management system (continuation ) 　
Company policy 　　　　 Division policy
President Division director General manager Manager Chief & staff

Diagnosis by president
Development

P Board meeting

Notification of the Notification of the division policy

company policy
Implementation
D
Do

7 8
Check and follow-up in the department
Check ・ Follow

C Diagnosis by division director

・ 6 7 8
A
Diagnosis by president 6 8
up

Documentation:
① Policy setting list ② Company policy management item table ③ Division theme table
④ Department policy setting table ⑤Activity plan & follow up sheet ⑥Achievement state of Division policy
⑦Achievement state of department policy ⑧Achievement state of section activities 10
 Example : Document format ④and ⑤ used in TAL company
Date:
　Revision Date Activity Plan and Follow Up Sheet Year： 　The section Name
5 　Manager 　Chief

Issue Control Target Person in 　　Schedule and Progress

Activity Items
No. Items Value charge Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

Division theme： Date: Page /

Department ：
Upper U
Upper colum: Plan
Department Policy Setting Table Approved by
4
Lower colum: Actual Division Director General Manager
Year:

The way of thinking (Problems and New Subjects in Last Year) on the Policy Setting
1.Division Policy
2. Grounds on the Department Policy Setting 3. Grounds on the Activity Items Setting

Check
Monthly Progress Check
Approval

4. Activity items in the Manage- Target Due Control The results 　　　 Schedule & Progress
Charge
Department Policy ment items Value Date Document Middle End 4 5 6 7 8 9 10 11 12 1 2 3
Upper
UpperU colum: Plan

Lower colum: Actual

11
 Example : List of Policy Management Activity items
and List of Daily Management Items in TAL company
Revision General Date:
Director A
Symbol Date Content manager
List of Policy Management
Division Name
Activity Items in Year Department Name

Management Management Management

Policy・Activity item by Director/Division manager by General manager by manager Time
Remark
・Detail item Management Control Management Control Management Control limit
Target Cycle Target Cycle Target Cycle
item document item document item document

Revision General Date:

Director C
Symbol Date Content manager
List of Daily Management
Division Name
Items in Year Department Name

Management Management Management

Policy・Activity item by Director/Division manager by General manager by manager Time
Remark
・Detail item Management Control Management Control Management Control limit
Target Cycle Target Cycle Target Cycle
item document item document item document

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 5. The case :
Policy management in Japanese Small Scale Company (KM company)

Profile of the KM Company Establishment: October 1967

Small
Capital: 125 thousands US$
Products: Small press parts.
scale
Employee: 50 people press
ISO 14001 & ISO 9001 factory

KM delivers all of their products to

the parent company.

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5-1 Policy management organization and management system

5-1-1 Policy Committee

※1
Chair man He is the key man on
Senior advisor the policy management
※1 in KM company.
President He has been dispatched
from the parent
Quality control Production Dept. Production control company.
Manager General manager Section.

5-1-2 　 Procedure in the policy setting of 2010

Activities according Monthly following up Policy Making in
Notification
to the company in the policy committee detail of
committee
of the
policy 2009 President president
company
policy 2010 policy
policy to all
-The demand from employees
the parent company Results analysis and
reflection of the policy Important
-Environmental change management in 2009
14
5-1-3 Policy management system of KM company
Step ・ Chairman Senior 　　　　 Department or Section
・ President Advisor
Production Department Production Control Quality Control
(Consist of four sections) Section Section

Management philosophy

Financial resources, external environment, a future image

P Discussion (Chair man, President, Senior adviser, General manager , manager

Plan

President policy
Making in detail of the president policy
Activity plan in each department or section
Notification of the Implementation
Do

D
company policy
Following-up in the department or Sections
Check

C
1/month : Diagnosis by Chair man, President, Senior advisor

Correction instructions
Action

A
and advice
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 5-2 Setting of the Company Policy 2010 in KM company
5-2-1 Problems in 2009 (Last year) and new subjects for 2010
1) The evaluation of the results in 2009 ( last year) March 2010
Control items Targets Actual result Evaluation
Safety Occurrence of serious disaster 0 0 Good
Evaluation points for the safety Point 4.9 4.91 Good
management system by the outside
organization

Quality Number of heavy defects 1st half year ： 3 times Good

found in the customer 3 times or less
2nd half year 5 times Un achieved
2 time or less
Quality audit points by the Customer 96 points or more 96 Good
Obtaining of ISO 9001 December 2010 Preparation are in progress
Cost Number of VA proposals in the year 350 items 290 items Unachieved

Delivery Delivery delay to the customer 0 0 Good

Environment Pass the ISO4001 update certification January 2010 January 2010 Good

More positive KAIZEN is required for quality defects reduction and cost reduction.
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 2)The evaluation of the activities in 2009 (last year)
Activities Evaluation Problems
Safety Implementation of the risk assessment Not enough Self follow-up in each group is
insufficient.
Quality Eradication of delivery errors by improving Not enough Errors of the delivery number
a shipment work process increased
Clarification of in-process self-inspection by Good More arrangement of the check
arranging quality check sheet sheet for the KANBAN parts
Prevention of defects in the own group by Not enough The review of the work sequence
promoting group activity sheet is late.
Cost Productivity up: 10% compared with the Not enough The grasp method of the
previous year productivity index is vague
Reduction of material costs: Plating Not enough Ordering unit price varies

Improvement of the materials yield Good

Positive VA suggestion Good Key problems:

Safety : Delay of the risk assessment
Delivery Reviewing of the production control system Good
Quality : Increase of the delivery mistakes.
Environment ISO14001:Preparation for the update audit Good Cost : Stagnation of productivity
enhancement.
Training Holding of the seminar : Improvement of Good
reader's ability for problems solving
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 5-2-2 New subject for 2010 　
　　　 A change of the market environment
台
・ Decrease in number of
the production

２．環境
Extreme decrease in output of the parent company ・ Low-priced competition
with the Chinese
の変化 manufacturer
Out put

・ The severe cost

The production at the low level is predicted in 2010
reduction is demanded from
the parent company
・ The reduction of the
10

011
9
Ma 09
00

0
0

r.2

r.2
quality problems
y.2
r.2

Ma

Ma
Ap

If we do not meet to the demand of the customer (Parent

company),
Our company cannot survive in the future.
Key activities :
Quality Improvement and Cost Reduction
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 5-2-3 The President policy ( for Year 2010)

Achieve all of the expectations from the customer (parent company)

and improve the trust from the customer(parent company) .

　・ Keep the position of customer assessment best 3 （ the 2009 3rd place) 　
・ Escape from quality worst 30 (the 2009 16th place)
　 　・ Acquire the ISO 9001 certification.

Improve productivity in multi-kinds and small volume production,

and connect it to order expansion from the customer
(parent company) by cost reduction.

Educate the talented persons who carries the next era

based on our management philosophy “ Use employee’s ability ".
19
 5-2-4 Making in detail of the President policy : Year 2010 ◎Charge
Company Policy Targets Section in Charge

Safety (1) Continue the current no disaster record by Closed disaster: 0 ◎ Production
removing factors of the danger. No closed disaster: 0 Production control
Quality control
Quality (2) Acquire ISO 9000 certification by constructing Certification
and managing the Quality Management system acquisition:
suitable for our company. March 2011 ◎ Quality control
Production
(3) Decrease rejections found in the customer Defects found in the Production control
(parent company) by strengthening horizontal customer:
development on defects reduction activity or 1st half year: 2 items
defects prevention activity. 2nd half year: 2 items
Sales (4) Challenge to order expansion by the sales New order: ◎ Production control
promotion that made a sale strategy clear. 1500Parts Production
Order failure : 0 time
Cost (5) Enhance productivity by grasping and improving Productivity up: 10% ◎ Production
obstructive factors. 30% in 3 years
(6) Challenge to cost down by promoting VA Cost down by VA: ◎ Production control
suggestion activity. XXXX yen/year Production
Educa- (7) Improve practice ability of group leaders by the KAIZEN exhibition: ◎ Production
OJT training. 3 themes/ year Quality control
tion Production control
(8) Inculcate standard work by intensive training. Skill level: 3 points ◎ Quality control 20
6. Important points in the diagnosis by top management
1. Use the results in the diagnosis by president for improving diagnosis
system.

2. Put more importance to the corporation between departments than

the corporation in department.

3. Top management must take the action when the problem related
the policy management comes through the diagnosis.

4. Top managements should diagnose the state of activities in each

department during fiscal year once.

★★ 5. Diagnose the state of activities at work site as much as possible.

★★ 6. Do not scold the result but diagnose how to advance it.

★★ 7. Fixing time limit, make improve the pointed out matters in the
diagnosis by top management.

8. The diagnosis by department head must be increased in

frequency further compared with the diagnosis by top management
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