Transcript Chapter 14 Building and Sustaining Total Quality Organizations THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM.

Chapter 14
Building and Sustaining
Total Quality
Organizations
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Why Adopt TQ Philosophy?
• Reaction to competitive threat to
profitable survival
• An opportunity to improve
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Selling the TQ Concept
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Learn to think like top
executives
Position quality as a way to
address priorities of
stakeholders
Align objectives with those
of senior management
Make arguments
quantitative
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 won’t 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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Corporate Culture and Change
• Corporate culture is a company’s
value system and its collection of
guiding principles
• Cultural values often seen in mission
and vision statements
• Culture reflected by management
policies and actions
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
• Systems perspective
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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TQ vs. Traditional Management
• Organizational
structures
• Role of people
• Definition of quality
• Goals and objectives
• Knowledge
• Management systems
• Reward systems
• Management’s role
• Union-management
relations
• Teamwork
• Supplier relationships
• Control
• Customers
• Responsibility
• Motivation
• Competition
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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 culture
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Common Mistakes
in TQ Implementation (2 of 3)
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Self Assessment: Basic Elements
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Management involvement and leadership
Product and process design
Product control
Customer and supplier communications
Quality improvement
Employee participation
Education and training
Quality information
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Implementing Total Quality:
Key Players
• Senior management
• Middle management
• Workforce
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Sustaining the Quality Organization
• View quality as a journey (“Race without a finish
line”)
• Recognize that success takes time
• Create a “learning organization”
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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)
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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