Transcript Quality Management Slides

MGMT 19105
Quality
Management
Geoff
Higgins
MGMT 19105
Quality Management
Week 6: Empowerment – Definitions

“Empowered employees are given ownership
of the processes they are responsible for,
and the products or services generated by
those processes.”
(Goetsch & Davis 2006)

“Empowerment requires individuals to make
appropriate and reasonable decisions that
result in an improved process or product.”
(Scarnati & Scarnati 2002)
Geoff
Higgins
MGMT 19105
Quality Management
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Week 6: How to Empower? (1)

Assess ‘workforce readiness’:
Critical thinking
 Knowledge of decision making processes
 ‘Big picture’ knowledge of the organisation


Do the basics:
Involve employees.
 Give ownership of success or failure.
 Allow employees to make decisions.
 Encourage initiative and risk-taking.

Geoff
Higgins
MGMT 19105
Quality Management
Goetsch & Davis (2006)
3
Week 6: How to Empower? (2)

Create a supportive environment:



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Management must suspend their egos.
Handover access to knowledge.
Have ‘people oriented’ managers.
De-layer the organisation.
Use vehicles such as:



MBWA (Management by Walking/Wandering Around)
Brainstorming
Quality Circles (or similar, eg Six Sigma Projects)
Geoff
Higgins
MGMT 19105
Quality Management
Goetsch & Davis (2006)
4
Week 6: Teamwork – Definition

Working together with others to achieve a
shared goal.
According to Goetsch & Davis (2006),
a team exists when:
Agreement exists as to the team’s mission.
 Members adhere to team ground rules.
 Responsibility and authority are fairly
distributed.
 People adapt to change.

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Higgins
MGMT 19105
Quality Management
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Week 6: Creating a Team (1)
1. The best way for a new team (or new members of an
existing team) to learn to work together is to work
together. Team-building exercises and events, although
they have some "getting to know you" value, do not build
the level of trust needed for high performance.
2. Focus first on the "what" before you worry about the
"how." If you allow time for the group to arrive at a
shared vision, the supporting processes will develop
relatively quickly.
3. Commit time and resources to structured continuing
education and cross-training. This investment will pay off
in the team's improved ability to function despite
changes in leadership and membership.
Geoff
Higgins
MGMT 19105
Quality Management
(Gregg 2005, page unknown)
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Week 6: Creating a Team (2)
4. As soon as possible, get the team up to speed on
strategic alignment and measurement. These are difficult
concepts, especially for knowledge workers. The sooner
they learn how to identify and measure key performance
indicators, the sooner you can demonstrate value to the
organization no matter who is on the team.
5. Stay the course in the face of distractions and conflict. It
helps to have one or more skilled facilitators on the
team.
6. Insist that everyone at any given time either lead, follow,
or get out of the way. To maintain high performance in a
constantly changing environment, team members need
role clarity-even as their roles shift from day to day or
project to project.
Geoff
Higgins
MGMT 19105
Quality Management
(Gregg 2005, page unknown)
7
Week 7
Quality Through
ISO9000
Geoff
Higgins
MGMT 19105
Quality Management
Module Objectives
1. Describe the purpose of ISO9000;
2. Name the three standards that comprise
ISO9000;
3. Describe the potential benefits of ISO9000;
4. Describe the relationship between ISO9000
and total quality management; and
5. Critically examine the value of ISO9000 in the
pursuit of total quality.
Geoff
Higgins
MGMT 19105
Quality Management
9
Readings
Study Guide Module 7
Textbook
Goetsch & Davis (2006)
Chapter 14. ISO9000 and Total Quality:
The Relationship
Electronic journal articles
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Scott, J 2005 ‘ISO 9000 in service: the good, the bad and the
ugly’. (About: Personal experience in a Medicare claims
processing organisation.)
Dalgleish, S 2002, ‘ISO 9000: More hindrance than help’. (About:
Pass/fail standard & paperwork – disincentive to continuous
improv’t.)
Douglas, A, Coleman, S and Oddy, R 2003, ‘The case for ISO
9000’. (About: European survey - advantages and
disadvantages.)
Geoff
Higgins
MGMT 19105
Quality Management
(Available on Proquest)
10
Reading ISO 9001
CQU Library provides access to ISO 9001.
To get there:
1. Go to SearchSMART website.
(accessible from CQU Library Homepage)
2. ‘Select Specific Databases’
3. Choose Standards Australia
(near the bottom of the list)
4. Enter e.rolment details.
5. Type 9001 in the search box.
6. Beside ‘AS/NZS ISO 9001:2000’,
press ‘View Document’.
Geoff7.
Press ‘Open Document’.
Higgins
MGMT 19105
Quality Management
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Purpose
Small Group
From your experience in this course so far,
answer the following questions:

What benefit could an organisation get
from being externally accredited as a
‘quality organisation’?

How does ‘external accreditation’ fit in
with what you have learnt about TQM?
Geoff
Higgins
MGMT 19105
Quality Management
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Why Have External Accreditation?
According to ISO 9001, the benefits of ISO 9001
are not external accreditation, but come from
having a ‘process approach’, emphasising:
a) understanding and meeting requirements,
b) the need to consider processes in terms of
added value,
c) obtaining results of process performance and
effectiveness, and
d) continual improvement of processes based on
Geoff
objective measurement.
Higgins
MGMT 19105
Quality Management
13
Why Have External Accreditation?
According to Scott (2005), management like ISO9001
because:
 They know everyone will produce a consistent product if
he or she is following the work instructions.
 They have one central place to make process changes
and corrections.
 They understand their processes much better because
they are responsible for documenting, maintaining and
improving them.
 That understanding of the process helps managers know
what to measure, which is the basis for all improvement.
[And] our customers are impressed with the ease with
which we can provide information and data for their
numerous auditing requirements
Geoff
Higgins
MGMT 19105
Quality Management
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Why Have External Accreditation?
Remember – we can have all of this without
external accreditation!
Why have external accreditation?
 It keeps us honest with ourselves.
 Out clients expect/demand it.
 It seemed a logical extension of TQM.
Geoff
Higgins
MGMT 19105
Quality Management
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What is ISO 9000?
Small Group
Now you know why it exists, dive into your
textbook and answer the following questions:
Geoff
Higgins
1.
What is ISO?
2.
What is ISO 9000?
3.
What is ISO 9000:2000?
4.
What is ISO 9001:2000?
5.
What is ISO 9004:2000?
6.
What are the five documents in a
quality management system?
MGMT 19105
Quality Management
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What is ISO 9000?

A ‘family of international quality standards’.

3 main standards (& lots of derivative standards)

3 main standards: ISO9000:2005, ISO9001:2000
and ISO9004:2000.
(Source: International Organization
for Standardization).
(ISO9000:2005 is referred to under its old code of
ISO9000:2000 in Goetsch and Davis, 2006)
Geoff
Higgins
MGMT 19105
Quality Management
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ISO 9000 Quality Principles
From:
www.iso.org
Principle 1 Customer focus
Principle 2 Leadership
Principle 3 Involvement of people
Principle 4 Process approach
Principle 5 System approach to management
Principle 6 Continual improvement
Principle 7 Factual approach to decision making
Principle 8 Mutually beneficial supplier relationships
Geoff
Higgins
MGMT 19105
Quality Management
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ISO 9000 Quality Principles
From:
www.iso.org
Principle 1 Customer focus
Organizations depend on their customers and therefore
should understand current and future customer needs,
should meet customer requirements and strive to exceed
customer expectations.
[A sample of] Applying the principle of customer focus
typically leads to:
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Researching and understanding customer needs and
expectations.
Communicating customer needs and expectations throughout
the organization.
Measuring customer satisfaction and acting on the results.
Geoff
Higgins
MGMT 19105
Quality Management
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ISO 9000 Quality Principles
From:
www.iso.org
Principle 2 Leadership
Leaders establish unity of purpose and direction of the
organization. They should create and maintain the
internal environment in which people can become fully
involved in achieving the organization's objectives.
[A sample of] Applying the principle of leadership typically
leads to:
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

Establishing a clear vision of the organization's future.
Setting challenging goals and targets.
Establishing trust and eliminating fear.
Geoff
Higgins
MGMT 19105
Quality Management
20
ISO 9000 Quality Principles
From:
www.iso.org
Principle 3 Involvement of people
People at all levels are the essence of an organization and
their full involvement enables their abilities to be used for
the organization's benefit.
[A sample of] Applying the principle of involvement of
people typically leads to:
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People accepting ownership of problems and their responsibility
for solving them.
People evaluating their performance against their personal goals
and objectives.
People openly discussing problems and issues.
Geoff
Higgins
MGMT 19105
Quality Management
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ISO 9000 Quality Principles
From:
www.iso.org
Principle 4 Process approach
A desired result is achieved more efficiently when activities
and related resources are managed as a process.
[A sample of] Applying the principle of process approach
typically leads to:
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Systematically defining the activities necessary to obtain a
desired result.
Establishing clear responsibility and accountability for managing
key activities.
Evaluating risks, consequences and impacts of activities on
customers, suppliers and other interested parties.
Geoff
Higgins
MGMT 19105
Quality Management
22
ISO 9000 Quality Principles
From:
www.iso.org
Principle 5 System approach to management
Identifying, understanding and managing interrelated
processes as a system contributes to the organization's
effectiveness and efficiency in achieving its objectives.
[A sample of] Applying the principle of system approach to
management typically leads to:
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Structuring a system to achieve the organization's objectives in
the most effective and efficient way.
Understanding the interdependencies between the processes of
the system.
Continually improving the system through measurement and
evaluation.
Geoff
Higgins
MGMT 19105
Quality Management
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ISO 9000 Quality Principles
From:
www.iso.org
Principle 6 Continual improvement
Continual improvement of the organization's overall
performance should be a permanent objective of the
organization.
[A sample of] Applying the principle of continual
improvement typically leads to:
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Employing a consistent organization-wide approach to continual
improvement of the organization's performance.
Providing people with training in the methods and tools of
continual improvement.
Establishing goals to guide, and measures to track, continual
improvement.
Geoff
Higgins
MGMT 19105
Quality Management
24
ISO 9000 Quality Principles
From:
www.iso.org
Principle 7 Factual approach to decision making
Effective decisions are based on the analysis of data and
information
[A sample of] Applying the principle of factual approach to
decision making typically leads to:
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
Ensuring that data and information are sufficiently accurate and
reliable.
Making data accessible to those who need it.
Making decisions and taking action based on factual analysis,
balanced with experience and intuition.
Geoff
Higgins
MGMT 19105
Quality Management
25
ISO 9000 Quality Principles
From:
www.iso.org
Principle 8 Mutually beneficial supplier relationships
An organization and its suppliers are interdependent and a
mutually beneficial relationship enhances the ability of
both to create value.
[A sample of] Applying the principles of mutually beneficial
supplier relationships typically leads to:
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Establishing relationships that balance short-term gains with
long-term considerations.
Identifying and selecting key suppliers.
Establishing joint development and improvement activities.
Geoff
Higgins
MGMT 19105
Quality Management
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Quality Management System
Five (5) Documents:
1. A quality policy.
2. A quality manual.
3. Quality objectives.
4. Quality procedures.
5. Forms, records, etc.
Geoff
Higgins
MGMT 19105
Quality Management
Goetsch & Davis (2006, pages 469-470)
27
Quality Management System
Small Group
Going a little further:

Describe each of the five (5)
documents in a Quality
Management System.
Geoff
Higgins
MGMT 19105
Quality Management
Goetsch & Davis (2006, pages 469-470)
28
Clinivation (at www.clinivation.com)
Productivity software and solutions for
[organisations involved in] medical
devices, pharmaceuticals, and
diagnostics.
 Including a template for a quality manual
that is downloadable from the site by
becoming a member (for free).

Geoff
Higgins
MGMT 19105
Quality Management
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Clinivation Quality Manual
1.0 Purpose
2.0 Scope
2.1 Introduction
2.2 Company Contact
Information
3.0 Definitions
4.0 References
5.0 Quality Policy and Mission
Statement
5.1 Quality Policy
5.2 Mission Statement
6.0 Quality System Requirements
6.1 Management
Responsibility
6.2 Quality System
6.3 Contract Review
6.4 Design Control
Geoff 6.5 Document and Data
Higgins Control
MGMT 19105
6.6 Purchasing
Quality Management
6.7 Control of Customer Supplied
Product
6.8 Product Identification and
Traceability
6.9 Process Control
6.10 Inspection and Testing
6.11 Control of Inspection, Measuring,
and Test Equipment
6.12 Inspection and Test Status
6.13 Control of Nonconforming Product
6.14 Corrective and Preventive Action
6.15 Handling, Storage, Packaging,
Labelling, Preservation, and
Delivery
6.16 Control of Quality Records
6.17 Internal Quality Audits
6.18 Training
6.19 Servicing
6.20 Statistical Techniques
7.0 Organization Chart
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Relationship Diagram
Level 1. Quality Policy and Business Objectives
Level 2.
Quality Manual
Level 3.
Quality Procedures
Management & Administration
Pre-Production
• Product Design and
Development Management
Procedure
• Customer Communication
and Feedback Procedure
• Product Change Control
Procedure
• Safe Design Policy
Geoff
Note:
Higgins
• Quality Manager Appointment Procedure
• Management Review Procedure
• Purchasing Procedure
Production & Service
• Cleanliness of Product
Procedure
• Instructions for Use
• Labelling Procedure
• Final Release Procedure
• Tracking Procedure
• Packing, Storing and
Transporting Procedures
• Promotional Material
Procedure
Measurement, Analysis
and Improvement
• Control of Non Conforming
Product Procedure
• Preventative Action Procedure
• Reportable Events Procedure
• Test/Inspection Program
• Customer Communication and
Feedback Procedure
• Product Change Control
Procedure
Level 4. Actions and Level 5. Records are embedded in the Quality Procedures.
MGMT 19105
Quality Management
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ISO 9001 Quality Procedures
ISO 9001 "procedures" may be:

Text-based procedures

Flow-charts aka process maps

Customer specifications

Australian or International standards

Product-related legislation (eg mandatory
Child Safety incident response.)

It may be paper-based or electronic
Geoff
Higgins
MGMT 19105
Quality Management
From:
www.iso.org
32
ISO 9001 Quality Procedures
ISO 9001 Mandatory Procedures

Document control procedure

Records procedure

Internal audit procedure

Control of non-conformance procedure

Corrective action procedure

Preventive action procedure
Geoff
Higgins
MGMT 19105
Quality Management
From:
www.iso.org
33
Opinions About ISO 9000
Inhibitors of Quality:

The structure of the ISO standard works as a
disincentive to doing more.

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
The inordinate and often unnecessary paperwork burden
that any ISO-auditable change brings with it.


ISO 9001 is a pass/fail standard. The certificate gives no
indication whether a company has world-class quality or "justbarely-- meeting-customer-requirements" quality.
This pass/fail structure breeds a just-enough-to-get-by mentality.
Every quality system enhancement triggers enormous
documentation changes.
Recommendation: get back to bottom-line, resultsproducing continual improvement efforts instead of
standards policing and paperwork.
Geoff
Higgins
MGMT 19105
Quality Management
Adapted from Dalgleish (2002)
34
Opinions About ISO 9000
Perceived Benefits:




Improved awareness of problems;
Organisational consistency;
Improved efficiency/performance; and
Improved customer service.
Geoff
Higgins
MGMT 19105
Quality Management
Adapted from Douglas, Coleman and Oddy (2003)
35
Opinions About ISO 9000
Negatives:

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
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Organisations that required them to have achieved ISO
9000 to do business were still using organisations that
had not achieved the standard;
Increased/ complex paper work;
The standard offers no added value to the organisation;
Knowledge of organisations that had become certified
but clearly did not deserve it;
The standard was not wholly applicable to the service
sector; and
Lack of emphasis on continuous improvement.
Geoff
Higgins
MGMT 19105
Quality Management
Adapted from Douglas, Coleman and Oddy (2003)
36
Opinions About ISO 9000
Disputed Past Criticisms of ISO 9000:




Respondents disagreed with the widely held belief that
ISO 9000 created unnecessary paper work;
Contrary to the belief that ISO 9000 was too costly, the
standard was judged to be value for money;
ISO 9000 was considered the first step on the road to
TQM; and
ISO 9000 was not considered to lead to sub-optimisation
of performance in the workplace.
Geoff
Higgins
MGMT 19105
Quality Management
Adapted from Douglas, Coleman and Oddy (2003)
37
TQM & ISO 9000
Small Group
Now you know a bit about
ISO 9000, close your
books and …

Describe the relationship
between ISO 9000 and the
TQM approach.
Geoff
Higgins
MGMT 19105
Quality Management
38
TQM & ISO 9000
Small Group
Now you know a bit about
ISO 9000, close your
books and …

Describe the relationship
between ISO 9000 and the
TQM approach.
Geoff
Higgins
MGMT 19105
Quality Management
39
TQM & ISO 9000



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
ISO 9000 and TQM are not interchangeable.
ISO 9000 can be a sub-set of TQM.
ISO 9000 can be implemented in a non TQM
organisation.
ISO 9000 can improve operations (especially
processes) in a non-TQM organisation.
ISO 9000 can be redundant in a mature TQM
organisation.
ISO 9000 and TQM are not in competition.
Geoff
Higgins
MGMT 19105
Quality Management
Goetsch & Davis (2006)
40
Conclusion
Assignment 2 (again)
 Recap of Module 6
 Module Introduction
 Why Have External Accreditation?
 What is ISO 9000?
 Quality Management System
 Opinions About ISO 9000
 TQM & ISO 9000

Geoff
Higgins
MGMT 19105
Quality Management
41
Next Week
Week 8
“Implementing Total Quality Management”.
 Study Guide
 Goetsch & Davis (2006)


Chapter 12. Implementing Total Quality
Management
Two (2) electronic journal articles (Proquest)
Geoff
Higgins
MGMT 19105
Quality Management
42
Questions?
Geoff
Higgins
MGMT 19105
Quality Management
43