Total Quality Management (TQM)

CHAPTER 4
Policy and Strategy
Total Quality Management (TQM)

Integrating TQM into the policy and strategy

The Question
? Of course, time and the world around us do not
stand still, so the policy and strategies must be
reviewed, updated and generally developed to meet
the changing needs of the organization.
? How the organization implements its mission and
vision via a clear stakeholder focused strategy,
supported by relevant policies, plans, objectives,
targets and processes?
Six steps for implementing vision/mission via clear strategy
supported by relevant policies, plans, objectives and process
that provide good foundation for TQM implementation.

? Step 1 Develop a shared vision and mission for the business/organization

? Step 2 develop the ‘mission’ into its critical success factors (CSFs) to coerce and move it
forward
? Step 3 define the key performance outcomes as being the quantifiable indicators of success
in terms of the mission and CSFs
? Step 4 understand the core processes and gain process sponsorship
? Step 5 Break down the core processes into sub processes, activities and tasks and form
improvement teams around these
? Step 6 Ensure process and people alignment through a policy deployment or goal
translation process
Step 1 Develop a shared vision and mission for the
business/organization
? top team develop vision and mission statements that will help to
define process-alignment, roles and responsibilities.
? The mission statement should answer the questions
? ‘what are we here for?’ or
? ‘what is our basic purpose?’ and
? ‘what have we got to achieve?’

? The statement must be understandable, communicable, believable, and usable.

? If the mission statement is wrong, everything that follows will be wrong too, so a clear
understanding is vital.
Step 2 develop the ‘mission’ into its critical
success factors (CSFs)
• The development of the mission is clearly not enough to
ensure its implementation.
• This is the ‘danger gap’ which many organizations fall
into because they do not foster the skills needed to
translate the mission through its CSFs into the core
processes.
• Hence, they have ‘goals without methods’ and change is
not integrated properly into the business.
Step 2 develop the ‘mission’ into its critical
success factors (CSFs)
• The CSFs may now be defined – what the organization must
accomplish to achieve the mission, by examination and
categorization of the impacts. This should lead to a balanced
set of deliverables for the organization in terms of:
• 1. financial and non-financial performance;
• 2. customer satisfaction
• 3. internal organization satisfaction
• 4. environmental / societal satisfaction
• There should be no more than eight CSFs, and no more than
four if the mission is survival.
 Step 2 develop the ‘mission’ into its critical
success factors (CSFs)
Some examples of CSFs may clarify their understanding:
• We must have right-first-time suppliers.
• We must have motivated, skilled workers.
• We need new products that satisfy market needs.
• We need new business opportunities.
• We must have best-in-the-field product quality.
Step 3 define key performance outcomes as being the
quantifiable indicators of success in terms of the mission and
CSFs

• The CSFs provide the what of the organization, but they

must be supported by measurable key performance
outcomes (KPOs) that are tightly and inarguably linked.
• clear targets,
• The KPOs will be used to monitor progress and as
evidence of success for the organization,
• Each CSF should have an ‘owner’
Step 4 understand the core processes and gain
process sponsorship
• Top management have to consider core business
processes describe what actually is or needs to
be done so that the organization meets its CSFs.
• Ensure that appropriate resources are made
available to map, investigate and improve the
process;
• Assist in selecting the process improvement
team leader and members;
• Remove blocks to the team’s progress;
Step 5 Break down the core processes into sub processes,
activities and tasks and form improvement teams around these
Step 5 Break down the core processes into sub processes,
activities and tasks and form improvement teams around these

• Core Process: Promote, advertise, and

communicate the company’s business capability.
• Sub Process: Prepare the company’s information
pack.
• Activity: Prepare one of the subject booklets
• Task: Write the detailed leaflet for a particular
seminar
Step 6 Ensure process and people alignment through a
policy deployment or goal translation process
Design for quality

design is defined as: ‘the way in which

something has been planned and made,
including what it looks like and how well it
works’.
Design for Quality

• If the QC is convinced that the process has been improved

and expected results are achieved, then the Act phase
commences. In this phase procedures are modified and issued.
• If design quality is taking care of all aspects of the customer’s
requirements, including cost, production, safe and easy use,
and maintainability of products and services, then designing
must take place in all aspects of:
Design for Quality

1. Identifying the need (including need for

change).
2. Developing that which satisfies the need.
3. Checking the conformance to the need.
4. Ensuring that the need is satisfied.
Designing covers every aspect, from the
identification of a problem to be solved,
usually a market need, through the
development of design concepts and prototypes
to the generation of detailed specifications or
instructions required to produce the artefact or
provide the service.