Transcript ITED 434 Quality Organization & Management

PTTE 434 - Lecture 2
Quality Assurance,
Organization & Management Gryna:
Chapters 8, 9, & 12
Organization for Quality
Developing a Quality Culture
and Understanding Customer Needs
Lecture 2 - Objectives
 Understand the concepts of the organization for
quality
 Discuss the evolution of quality and new
approaches for coordinating and organizing
quality activities.
 Discuss concepts for developing a quality
culture.
 Discuss the importance of understanding
customer needs.
2
CH 8 - Evolution of Quality - 5 Major
Trends in the 1990s
 Transfer of Quality Management tasks to line
organizations.
 Scope broadened from operations (little Q) to
all activities.
 Expansion of quality teams
 Delegation of decision making authority to
lower levels
 Key suppliers and customers involved in
“parterning” and “virtual corporations.”
3
New Approaches for Coordinating and
Organizing Quality Activities
 Flatter organizations
 Increases in cross-functional teams
 Decrease in size and increase in output
(leaner organizations)
 Group rewards
 Lower-level employee participation
 Changing organizational boundaries
4
Coordination of Quality Activities
 Coordination for control achieved by regular
line and staff departments
 Formal procedures
 Feedback loops employed

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Forms
Audits
Sampling
Control Charts
Reports
 Creating change is coordinated through
project teams and other organizational
change agents.
5
Parallel Change Organizations
 Exist because quality department focuses mainly on
coordination for control.
 These may be permanent or ad hoc
 May be mandatory or voluntary
 Examples are process teams, quality councils, quality
project teams, integrated product teams, pip teams
etc. system.
6
Creating Change
 Creating change is coordinated through
project teams and other organizational
change agents.
 Three levels of control:

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Organization level: Broad view
Process Level: Cross-functional
Individual Level: Specific activities
7
Role of Upper Management
 Upper management must “walk the talk” if they
expect the organization to follow their leadership and
desire for quality improvement (active leadership).
 Upper management should provide the necessary
resources
 Upper management’s main role is to break
roadblocks and pave the way toward achieving
continuous quality improvement.
8
Importance of Management
Leadership
 In order for management to “inspire” a
commitment to quality, management must “walk
the talk.”
 Management must spend time improving quality.
 Management must commit resources and people
to quality improvement.
9
Provide evidence of management
leadership
 Management must spend time on quality
issues and programs
 Hard to convince management of the need 10% of their time is difficult to justify
 When upper management spends the time, it
provides evidence of leadership - “Walking
the talk!”
10
Things Upper Management can do to
“walk the talk”
 Establish and serve on a quality council
 Establish quality strategies
 Establish, align, and deploy quality goals
 Provide training
 Serve on an upper-management quality improvement
team
 Review progress and stimulate improvement
 Provide for reward and recognition
11
Quality Council (Leadership Team)
 Comprised of upper management
 May be at several levels



Corporate
Division
Business Unit
 Role is to develop the quality strategy and
facilitate its implementation.
 Individual council members can “champion”
key quality related projects.
12
Quality Council Charter
 Formulate quality strategies and policies
 Estimate major dimensions of the quality
issue
 Establish infrastructure

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Select quality projects
Assign project team leaders and members
 Provide resources including support for the
teams
13
Quality Council Charter (Cont’d)
 Plan for training for all levels
 Establish strategic measures of progress
 Review progress and remove roadblocks
 Provide for public recognition of teams
 Revise the reward system to reflect progress
in quality improvement
14
Role of the Quality Director
 Administer the quality department
 Assist upper management with strategic
quality management (SQM)
 Administer both technical and strategic
quality activities.
 Large organizations may have both quality
engineering and quality management
organizations e.g., INEEL.
15
Kelly Services Quality Council
Charter est.1995 (example)
 Identified key responsibilities as:
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Set and deploy vision, mission, shared values,
quality policy, and quality goals
Review progress against goals
Integrate quality goals into business plans and
performance management plans
 Bottom line - “Providing evidence of upper-
management leadership is clearly important in
establishing a positive quality culture.” i.e. “walk-thetalk”
16
The Quality Department of the Future
 Plan Quality (Company wide)
 Set-up quality measurement (at all levels)
 Audit (Outgoing) Quality
 Conduct quality projects
 Assist quality projects
 Participate in supplier partnerships
 Establish training
 Consulting for quality
 Develop new quality methodologies
 Transfer activities to line departments
17
Role of the Workforce
 Nominate quality problems for solution.
 Serving as members on quality teams.
 Identify elements of own jobs that don’t meet
self-control criteria.
 Become knowledgeable of the needs of their
internal and external customers.
18
Role of Middle Management
 Nominating quality problems for solutions.
 Serving as leaders of various types of quality teams.
 Serving as members of quality teams.
 Serving on task forces to assist the quality council develop
elements of the quality strategy.
 Lead quality activities within their own area through personal
commitment and employee encouragement.
 Identify customers and suppliers
 Meet with customers and suppliers to identify and address their
needs
19
Role of Teams - General
 “Organization of the future” concept
 Two systems (Sociotechnical systems, STS):
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technical (equipment, procedures, etc.)
social (people, roles, responsibilities, etc.)
 Benefits include significant cost savings, improved
customer satisfaction, reduced cost, increased
revenues, better communication between employees
and management.
 Three types of teams: quality project teams, workforce
teams, and self-managing teams.
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Types of Quality Teams
Quality
project team
Workforce
team
Purpose
Solve crossfunctional quality
problems
Solve problems
within a department
Membership
Combination of
managers,
professionals, and
workforce from
multiple departments
Mandatory; 4 - 8
members
Primarily workforce
from one department
Team disbands after
project is completed
Quality improvement
team
Basis and
size of
membership
Continuity
Other names
Business
process
quality team
Self-managing
team
Plan, control and
improve the quality of
key cross-functional
processes
Primarily managers and
professionals from
multiple departments
Plan, execute and
control work to achieve a
defined output
Voluntary; 6 - 12
members
Mandatory; 4 - 6
members
Mandatory; all members
in the work area (6 - 18)
Team remains intact,
project after project
Employee
involvement group
Permanent
Permanent
Business process
management team;
process team
Self-supervising team;
semiautonomous team
Primarily workforce from
one work area
21
Team Member Responsibilities
 Project Champion - Upper management member who provides
leadership, support, and mentoring. He/she follows progress
and removes roadblocks.
 Project team leader - Steers team, provides knowledge of the
project area, teambuilding skills. Usually comes from the
organization most affected by the problem.
 Project recorder - Handles documentation, agendas, minutes,
reports, etc.
 Project team members - Cross-functional, may include
consultants, must have sanctions from organization manager to
be relieved from usual duties while on the team.
22
CH 9 - Developing a Quality Culture
 To become superior in quality a company
must develop technologies that meet
customer needs, and develop a culture
committed to quality.
 A positive quality culture must flow from top
down.
 Management must recognize people’s needs
and know how to meet them.
23
Management Philosophies
 Mazlow - Hierarchy of needs.
 McGregor - Theory X, Theory Y
 Hertzberg - Satisfiers and Dissatisfiers
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Mazlow’s Hierarchy of Needs
For more information, click on the picture.
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Abraham Mazlow’s hierarchy of needs
Hierarchy of human needs and forms of quality motivation
Mazlow's list of human needs
Usual forms of quality motivation
Physiological needs: i.e., need for food,
Opportunity to increase earnings by
shelter, basic survival. In an industrial
receiving a bonus for good work.
economy, this translates into minimum
subsistence earnings.
Safety needs: i.e., once a subsistence level Job security: e.g., quality makes sales; sales
is achieved, the need to remain employed at make jobs.
that level.
Belongingness and love needs: i.e., the
Appeal to the employee as a member of the
need to belong to a group and be accepted. team -- he or she must not let down the
team.
Esteem needs: the need for self-respect
Appeal to pride of workmanship, to
and for the respect of others.
achieving a good score. Recognition
through rewards, publicity, etc.
Self-actualization needs: i.e., the urge for
Opportunity to propose creative ideas, to
creativity, for self-expression.
participate in creative planning.
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Frederick Hertzberg: Satisfiers and
Dissatisfiers
 Dissatisfiers (hygiene factors):
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Depend on what the company does.
Can be changed.
Example - low pay, won’t attract the best
people.
Once improved hygiene conditions are
accepted as normal, they don’t modivate
behavior.
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Hertzberg: Satisfiers and Dissatisfiers
 Satisfiers (motivators): Satisfaction comes
doing the work, depends on your point of
view.

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Assembly worker: Happy to leave at end of
the day to go home and do something more
appealing.
Researcher: May work overtime because his
work is more interesting than an outside
hobby, or other pastime.
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Douglas McGregor:Theory X and Theory Y
 Theory X (Autocratic): Negative view of workers.
 lazy, uncooperative, etc.
 Managers combat decline in motivation through
incentives and penalties.
 Gives some workers security
 Theory Y (Participative): Improve work conditions and
the workers will improve.
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Improves human relations
Permits normal human drives to assert themselves.
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Theory X Assumptions
 People dislike work, so they must be controlled and threatened
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before they work hard enough.
The average person prefers to be directed, dislikes
responsibility, is unambiguous, and desires security above
everything.
These assumptions result in both “tough” management with tight
controls, and “soft” management which aims at harmony.
Both are wrong because man needs more than financial
rewards - the opportunity to fulfill himself.
Theory X managers don’t provide this opportunity.
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Theory Y Assumptions
 Physical and mental effort is as natural as play or rest.
 Control and punishment are not the only ways to make people work.
 A satisfying job will result in commitment to the organization.
 The average person learns not only to accept, but to seek
responsibility.
 A large number of workers use imagination, creativity, and ingenuity
to solve work problems.
 The intellectual potentialities of the average worker are only partially
utilized.
(See: http://www.accel-team.com/human_relations/hrels_03_mcgregor.html)
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Corporate Culture
 Corporate Culture: Habits, beliefs, values,
and behavior.
 Management defines and creates the
necessary culture for success.
 Quality culture is an integral part of corporate
culture.
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Eight primary values that promote employee
loyalty
 Purpose: Vision stated in terms of product or
service and benefit to the customer.
 Consensus: 3 decision making styles - command,
consultative, and consensus - should be matched
to particular circumstances.
 Excellence: Management creates an environment
in which pursuit of knowledge for improvement is
pervasive.
 Unity: The emphasis here is on employee
participation and ownership of work.
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Eight primary values that promote
employee loyalty
 Performance: Focus on individual and team
rewards along with performance measures.
 Empiricism: Management by fact and use of
the scientific method.
 Intimacy: Sharing ideas, feelings, and needs in
an open and trusting manner without fear of
punishment.
 Integrity: Managers act as role models for
ethical practices.
34
Actions necessary for change
 7 dimensions of culture:
 risk orientation
 relationships (people)
 information
 motivation
 leadership
 organizational structure
 organizational focus
 Define, determine current state, define desired
state, develop an action plan to close the gap,
measure progress
35
Organizational Change Curve
Denial/resistance
Performance
• High performance team
•Dynamic environment
•Extraordinary trust and
communication
• Resistance to change
•“No problem” attitude
•Improved teamwork
and productivity.
• Higher trust
• “Breakthrough” successes
• Building optimism
• Lack of trust pervasive
• Fear of change
• Active and passive
resistance to change
• Organizational
incompetence
Emotional
Acceptance
Time
36
Quality Culture (Values)
 Negative - “hide the scrap”
 Positive - “Climb the ladder to delight the
customer.
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Values - Employee’s Role
OLD
Permission to be right
Rote
Orderly
Unimaginative
Quiet
Obedient
Trained
Be hidden
Somber
A commodity
Don’t make waves
Paid by position
Don’t rock the boat
Stable
NEW
Permission to be wrong
Conceptual
Productive
Creative
Communicative
Assertive
Educated
Posting of performance
Wit, humor
A vital problem solver
Experiment
Paid by skills
Never be satisfied
Innovative
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Values -Manager’s Role
OLD
Hold power
Authority figure
Go on hunch
Avoid blame
Quota set by manager
An obstacle to change
Holder of knowledge
Do
Status quo
Central control
Demand compliance
Boss knows best
Territory is everything
Restrict
NEW
Give power
Role model
Get hard data
No excuses, no blame
Common goal - customer
Remove obstacles
Teacher
Delegate - follow up
Experimental
Decentralize wherever possible
Teach participation
Boss listens best
Territory is irrelevant
Cross train, enhance
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Values - Customers
OLD
Prescribed product
Treat like an account
Outsider
Win - who cares
Reactive contact
Special requests - ROI
Current sale
Remote
In the dark
On their own
Ridiculed
Tolerated
NEW
Accommodate needs
Treat like a person
partner
Win-win
Proactive contact
Ok, if it doesn’t hurt other cust.
Lifetime value
Engaged
Informed
Supported
Respected
Enjoyed
40
Values - Production Process
OLD
Standardize
Focus - keep busy
Manager does stats
Automate anything
Rule by seat of pants
Price first
Quality inspectors
Quality costs
Buy new equipment
Productivity thru technology
Rigid
Push
Ignore setup time
Accept cycle time
NEW
Customize
Focus - value added
Stats controlled by line
Automate non-value added
Measure what you want to occur
Quality first
Build in quality
Quality is free
Improve equipment first
Productivity thru process
Flexible
Pull
Minimize setup time
Reduce cycle time
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Communicating Quality
 Different languages at different levels:
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Upper Management: Language of money
Middle Management: Bilingual
Lower Management and Supervisors:
language of products.
 Employees understand “job security” best.
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3 Elements of Self-Control
 Knowledge of what is supposed to be done.
 Feedback on how we are doing
 Means of regulating a capable process.
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5 Key Drivers for Developing a
Quality Culture
 Provide quality goals and measures at all levels.
 Provide evidence of management leadership
 Provide for self-development and empowerment
 Provide participation as a means of inspiring action.
 Provide recognition and rewards
44
Culture can be changed - Feedback
mechanisms
 Define the desired factors to measure - measurements are
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the vital signs of progress
Units of measure must be carefully defined to inspire a
positive priority for quality - e.g., count only good output.
Use reports and scoreboards of quality measures and
output
Remember that steps that are “obvious” to management
may not be obvious to employees.
Maintain awareness through highly “employee” visible
means - quality newsletter, announcements, etc.
45
Technology and Culture
Goals
Recognition;
Awards
Participation
Leadership
Selfdevelopment
46
Quality Goals and Measurements at All
Levels
Organizational
Goals
Process Goals
Functional Goals
Job Goals
47
Quality policy deployment
Setting direction
Vision mission
and priorities
RX 3- to 5-year goals
and strategies
“Catchball”
Participative
step at each level
to ensure
capability and
commitment
Plan the work
RX annual objectives and
vital few actions
Deployment
Cascade objectives and
agree on vital few actions
Do the work
Check the work
Management
Execute and implement
Act - action and
countermeasures
Regular reviews
Annual review/diagnosis
48
CH 12 - Understanding customer needs -
 Quality and competitive advantage - All departments
have a role in the quality effort
 Identify the customers - External, internal, suppliers,
some obvious, others not so obvious.
 Strive to “delight the customer.”
 Understand customer needs.
49
RUMBA - Verifying Requirements
 Reasonable: Can you meet the requirements?
 Understandable: Do you understand the requirements?
Verify with the customer.
 Measurable: Can it be determined if, and when you have met
the requirement?
 Believable: Do you and your employees agree with the
requirement and that it can be met?
 Achievable: Can the process meet the requirement? Is it
realistic? If not, renegotiate with the customer.
50
Sources of market quality information
 Customer complaints
 Customer returns
 Published data on quality
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Some internal
Databases on sales volume, price
changes,customer ratings, etc.
 Special market research studies
51
“Voice of the customer”
 Continuous process of collecting customer views,
needs, expectations, satisfaction, and perception
 Addresses the three main purposes of market
research for quality
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Determine customer needs
Measure current customer satisfaction
Analyze customer retention and loyalty issues
52
Needs related to product features
 Identify attributes important to the customer
 Learn how your product compares with the
competition’s

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Multi-attribute study
Customers select 5 most important services
Focus on the relative important attributes
53
Discovering needs and opportunities Market research
 Observation - Observe customers carrying out

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normal routines.
Capturing data - Relatively few data are gathered
through questions - use photography and video tape.
Reflection and analysis - Team review data to
identify possible problems and needs.
Brainstorming for solutions - Observations are
transformed into visual representations of possible
solution.
Developing prototypes - Prototypes clarify the
concept of the new product or service and stimulate
discussion.
54
Jerky Processor Quality
Improvement Project
Example
“See freequality.org” for ideas:
http://www.freequality.org/
Purpose of Study
 The Quality Improvement Project is an opportunity to
apply TQM principles to actual conditions in industry.
 The TQM principle represents profound change in
operating philosophy.
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No activity or process is ever as good
as it can be.
Every activity and process has the potential
for constant improvement.
56
Discussion Topics
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
Tour of Plant and Current Building Layout
Brainstorming Ideas – Problem Areas
Quality Tools Used to Organize Ideas
Recommended Solutions
Proposed Building Layout
57
Process Flow Diagram
SLICED JERKY
STICK JERKY
SCRAPE JERKY
INTO STORAGE BINS
SCRAPE JERKY INTO
BINS
RECEIVE FROZEN
MEAT
COOK MEAT
COOK MEAT
PACKAGE JERKY IN
PLASTIC BAGS
STORE FROZEN MEAT
IN FREEZER
PLACE MEAT IN
SMOKEHOUSE
PLACE MEAT ON
SCREENS
PLACE BAGS IN
CASES
THAW FROZEN MEAT
IN WATER BATH
SCREEN MARINATED
MEAT FOR COOKING
POUR MEAT INTO BINS
AND CHILL OVERNIGHT
TRANSPORT TO
STORAGE
TRANSPORT MEAT
TO TRIMMING ROOM
MARINATE MEAT
PLACE MEAT IN
TUMBLER WITH SPICES
SHIP TO CUSTOMER
MOVE MEAT TO
SLICING ROOM AND
SLICE
CUT MEAT INTO
STICKS
BREAK FROZEN MEET
AND SIZE FOR SLICING
COMPLETELY DETHAW
MEAT
58
Plant Tour Observations
 Product Flow Inefficiencies
 Personnel / Discipline Interference
 Space Utilization
59
Brainstorming Ideas – Problem Areas
•
Product

Product Receipt Condition
 Currently Receives Product at 28°F
 Product Surrounded by Ice
 Ice Debris on Floor
 Employee Slipping Hazards
 Waste of Water to Defrost
 Waste of Space
60
Brainstorming Ideas – Problem Areas
•
Product (Continued)

Product Flow Congestion
 No Logical Flow Path
 Product Not Collectively Located
 Raw and Cooked Products Intermixed
 Inefficient Packaged Product Flow Path
61
Brainstorming Ideas – Problem Areas
•
Work Force Productivity

Personnel Flow Congestion

Job Disciplines Not Collectively Located
62
Brainstorming Ideas – Problem Areas
 Building Layout
 Inefficient Space Utilization
 Inefficient Doorway Locations
 Inefficient Wall Locations
 Non-Use of Existing Exit Door
63
Quality Tools Used to Organize Ideas
 Affinity Diagram
•
Four Major Groups
- Product Receipt Condition
- Product Flow Congestion
- Workforce Productivity
- Building Layout
Affinity Diagram For Quality Improvement
Problem Statement: Inefficient Operational Flow of Product and Personnel
Group 1
Product Receipt Condition
Received at 28° F
Enclosed in Ice
Ice Debris On Floor
Employee Slipping Hazard
Waste of Water
Waste of Space
Group 2
Group 3
Group 4
Product Flow Congestion
Workforce Productivity
Building Layout
No Logical Product Flow Path
Personnel Flow Congestion
Inefficient Space Utilization
Product Not Collectively Located
Job Disciplines Not Collectively Located Inefficient Doorway Locations
Raw and Cooked Product Intermixed
Inefficient Wall Locations
Inefficient Packaged Product Flow Path
Non-Use of Existing Exit Doors
64
Recommended Solutions – Product Receipt
Problems
Group 1
Raw Product Receipt Condition
Receive Product at 28° F
Enclosed in Ice
Ice Debris On Floor
Employee Slipping Hazard
Waste of Water
Waste of Space
Recommended Solutions
Receive Product at 38° F and Use JIT Receiving
Eliminates Majority of Ice
Move Receipt Area to Eliminate Ice in Working Area
No Ice in Major Walkways
No Water Needed Due to Receipt of Thawed Product
No Thaw Tubs Needed
65
Recommended Solutions – Product Flow Congestion
Problems
Group 2
Product Flow Congestion
No Logical Product Flow Path
Product Not Collectively Located
Raw and Cooked Product Intermixed
Inefficient Packaged Product Flow Path
Recommended Solutions
Rearrange Process Areas
Combine Similar Process in Same Room
Relocate Tree Wash
Open South Exit Door and Change Process Direction
Relocating labels in the warehouse
Relocate product staging from hallway to warehouse
Industrial Washing Machines
•
•
•
•
•
Rackwasher can process 20 – 40 racks pre hour.
Cabinet design pit or floor mounted.
Accommodates a variety racks.
Uses a timed wash and rinse cycle.
Double door option available for “straight through” operations.
66
Recommended Solutions – Workforce Productivity
Problems
Recommended Solutions
Group 3
Work Force Productivity
Personnel Flow Congestion
Re-Arrange Re-Locate Working Areas
Job Disciplines Not Collectively Located
Combine Disciplines in Same Room
67
Recommended Solutions – Building Layout
Problems
Group 4
Building Layout
Inefficient Space Utilization
Inefficient Doorway Locations
Inefficient Wall Locations
Non-Use of Existing Exit Doors
Recommended Solutions
Rearrange Relocate Working Areas
Add Doorways
Remove Walls to Open Up Rooms
Open South Exit Door for Use
68
Plant Tour / Current Building Layout
Tree Wash
Women
Break Room
Men
Smoke
House
Screening
Area
Locker Room
Business
Office
Smoke
House
Cooler No. 1
USDA
Smoke
House
Laundry
Smoke
House
Screening
Boiler
Screening
Cutting & Spicing
Room
Raw Product Path
Cooked Product Path
Mixing Area
Screening
Screening
Legend
Packaged Product Path
Cutting & Trimming
Room
Screen Tree Path
Raw Screened Product Path
Smoke
House
Sausage
Maker
Thaw
Tubs
Thaw
Tubs
Tub Thaw
&
Cutting Room
Kitchen
Freezer
Q C Lab Labeling Area
Scraping Area
To
Inventory
Packaging
69
Proposed Building Layout
Women
Sausage
Process
Area
Smoke
House
Business
Office
Cooler
Overnight
Marinate Area
Smoke
House
USDA
Smoke
House
Men
Laundry
Smoke
House
Break Room
Locker
Room
Clean Tree
Storage
Legend
Raw Product Path
Tumbler
Oil
Smoke
House
Cutting Table
Cutting Table
Cutting &
Trimming
Raw Product
Packaged Product Path
Screen Tree Path
Band saw
Cutting
Area
Semi-Frozen
Product
Cutting Table
Raw Screened Product Path
Cooler Short Term
Storage
Ice Removal
Area
Chemical
Shower
Wash & Rinse
Cooked Product Path
Cutting Table
Cutting Table
Boiler
Scale
Spicing
Area
Tree Wash
Area
Foot
Bath
Cutting Table
Mixing
Area
Cutting Table
Clean Trees
Screening Area
Screening Area
Clean Tree
Storage
Q C Lab
To
Inventory
Scraping Area
Packaging
70
Labeling
To
Inventory