Building and Sustaining Total Quality Organizations

Prof. Rushen Chahal

Prof.Prof. Rushen Chahal Rushen Chahal

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Why Adopt TQ Philosophy?

Reaction to competitive threat to profitable survival An opportunity to improve

Prof. Rushen Chahal

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Selling the TQ Concept

1. Learn to think like top executives 2. Position quality as a way to address priorities of stakeholders 3. Align objectives with those of senior management 4. Make arguments quantitative 5. Make the first pitch to someone likely to be sympathetic 6. Focus on getting an early win, even if it is small 7. Ensure that efforts wont be undercut by corporate accounting principles 8. Develop allies, both internal and external 9. Develop metrics for return on quality 10. Never stop selling quality 3 Prof. Rushen Chahal Page 3

Corporate Culture and Change

Corporate culture is a companys value system and its collection of guiding principles Cultural values often seen in mission and vision statements Culture reflected by management policies and actions
Prof. Rushen Chahal

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Baldrige Core Values and Concepts

Visionary leadership Customer-driven excellence Organizational and personal learning Valuing employees and partners Agility Managing for innovation Focus on the future Management by fact Public responsibility and citizenship Focus on results and creating value 5 Page 5 Systems
Prof. Rushen Chahal

TQ vs. Traditional Management

Organizational structures Role of people Definition of quality Goals and objectives Knowledge Management systems Reward systems Managements role Union-management relations Teamwork Supplier relationships Control Customers Responsibility Motivation Competition
Prof. Rushen Chahal

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Cultural Change
Change can be accomplished, but it is difficult Imposed change will be resisted Full cooperation, commitment, and participation by all levels of management is essential Change takes time You might not get positive results at first Change might go in unintended directions 7
Prof. Rushen Chahal

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Common Mistakes in TQ Implementation (1 of 3)

TQ regarded as a program Short-term results are not obtained Process not driven by focus on customer, connection to strategic business issues, and support from senior management Structural elements block change Goals set too low Command and control organizational 8 culture Page 8
Prof. Rushen Chahal

Common Mistakes in TQ Implementation (2 of 3)

Training not properly addressed Focus on products, not processes Little real empowerment is given Organization too successful and complacent Organization fails to address fundamental questions Senior management not personally and visibly committed
Prof. Rushen Chahal

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Common Mistakes in TQ Implementation (3 of 3)

Overemphasis on teams for cross-functional problems Employees operate under belief that more data are always desirable Management fails to recognize that quality improvement is personal responsibility Organization does not see itself as collection of interrelated processes
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Building on Best Practices

Universal best practices
Cycle time analysis Process value analysis Process simplification Strategic planning Formal supplier certification programs

Prof. Rushen Chahal

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Best Practices: Infrastructure Design (1 of 3)

Low performers
process management fundamentals customer response training and teamwork benchmarking competitors cost reduction rewards for teamwork and quality
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Best Practices: Infrastructure Design (2 of 3)

Medium performers
use customer input and market research select suppliers by quality flexibility and cycle time reduction compensation tied to quality and teamwork
Prof. Rushen Chahal

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Best Practices: Infrastructure Design (3 of 3)

High performers
self-managed and cross-functional teams strategic partnerships benchmarking world-class companies senior management compensation tied to quality rapid response
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Self Assessment: Basic Elements

Management involvement and leadership Product and process design Product control Customer and supplier communications Quality improvement Employee participation Education and training Quality information
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Implementing Total Quality: Key Players

Senior management Middle management Workforce

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Sustaining the Quality Organization without a View quality as a journey (Race

finish line) Recognize that success takes time Create a learning organization
Planning Execution of plans Assessment of progress Revision of plans based on assessment findings

Use Baldrige assessment and feedback Share internal best practices (internal benchmarking)
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