Agenda

Review homework
Desksides

Organizing for Quality

Lecture/discussion

Chapter 1 Organizing for

Quality
Chapter 1 TQM

Week 3

Week 4 Assignments
Read - Ch 2
Presentations:
Deming
Crosby
Taguchi
Juran
Shewhart
Ishikawa
Feigenbaum
Tom Peters
Shigeo Shingo

Organizing for Quality

Organizing for Quality

Chapter One

Organizing for Quality

Organizing for quality

ISO 9000/QS 9000
Continuous improvement
Six sigma - DMAIC
TQM - PDSA
Quality circles

Organizing for Quality

Concept of TQM

TQM foundation:

Any product, process, or service can be improved.

A successful organization is one that consciously
seeks and exploits opportunities for improvement
at all levels.
The load bearing structure is customer
satisfaction.
The watchword is continuous improvement.

Organizing for Quality

What must organizations do

for quality to succeed

Organizations must adopt a cultural

change that appreciates the primary
need to meet customer requirements,
implements a management philosophy
that acknowledges this emphasis,
encourages employee involvement, and
embraces the ethic of continuous
improvement.
International Economic Conference Board
Report: May 1990
Organizing for Quality

Transition to quality culture

at Xerox
Transition
Team

Training

Senior
Management
Behavior
Xerox
Culture
Change

Tools and
Processes

Communication

Reward and
Recognition

Organizing for Quality

Organizing for Quality

Allaires approach

Organizing for Quality

Managing-by-process principles
1. Make

all decision and perform all actions within the guidelines of the
"what to's" of the core business processes and their impact on other
core processes.
2. Establish owners for all core business processes and sub-processes.
3. Designate these owners as responsible for the maintenance and use
of that process, with their reward tied to the successful functioning of
that process for all Xerox personnel.
4. Empower the owners of the process with the responsibility for
continuously improving those core processes, and reengineering
them when necessary.
5. Constrain core process and sub-process owners from making
changes to their core processes that may affect other core
processes that are owned by other managers.
6. Designate responsibility for a change in a core process to the
highest-level owner of a core process that is being changed because
core sub-processes are being changed by lower-level process
owners.
Organizing for Quality

IBMs market driven quality

program
System

Leadership

Systems

Vision
Involvement
Policy
Management

Information
Planning
Human resource
Quality
assurance

Quality
Results

Improved quality
Lower costs

Market
Success

Organizing for Quality

Goal
Customer
Satisfaction

Driver

Measures
of Progress

IBMs new CEQ initiative

CEQ aims to instill a commitment in
organizations to embrace quality as a guiding
principle that touches every phase of the
software development and deployment cycle.
Organizations must build quality in, not treat it
as an afterthought. Every individual in an
organization, from the business analyst to the
IT operator, can improve application quality
through vigilance and a shared sense of
responsibility for business and customer
success.
Organizing for Quality

What are some of the steps

organizations must take?

Effectively develop and communicate quality

policy, procedures and requirements across all
company functions.
Mobilize resources to solve quality-related
problems.
Effectively coordinate quality requirements with
suppliers. (feed forward)
Maintain direct contact with customers
(feedback).
Organizing for Quality

Communicating quality
requirements

Examples of formal communication:

Quality policy statement

Quality manuals
ISO 9000 quality standards

Examples of informal communication:

Word of mouth
Management actions

Organizing for Quality

Quality - basic beliefs

Ford

Quality is job one; there's a Ford in

your future
Chrysler

"If you find a better car, buy it!"

(Spoken by Lee Iacocca)

Serta

We make the world's best

mattress

Caterpillar

Strong dealer support; 24-hour

spare parts support around the world

McDonalds

Fast service, consistent quality

Sprint

You can hear a pin drop

Organizing for Quality

Quality - basic beliefs

Lion Apparel - Continuous Improvement is
a way of life at Lion.
Sager Electronics - our constant goal is to
ensure that the services provided meet or
exceed our customers' expectations.
Williams Advanced Materials - we are
dedicated to providing ever improving
exceptional products and services, and
world-leading technologies.

Organizing for Quality

Quality policy statement

Most companies today have a written quality policy or

mission statement
For example, It is the established policy and
intention of this company to provide its customers
with products which conform to customer
requirements and are delivered on time. This will be
ensured through a defined quality program as
detailed in the company quality manual.
Some companies rely on verbal quality policies. for
example,
our goal is to ensure customer satisfaction and
minimize rejects.
Organizing for Quality

Other examples

Goodyear: our mission is constant

improvement in products and services to
meet our customers needs. This is the
only means to business success for
Goodyear and prosperity for its investors
and employees.

Organizing for Quality

Other examples
Motorola - all employees at Motorola
must consistently strive for a six sigma
target.
Motorola Doing the right thing. Every
day. No excuses.

The bottom line:

Organizations must demonstrate
what Deming termed constancy of
purpose.
Organizing for Quality

Identifying and resolving

quality problems

Quality problems transcend individual

and functional boundaries. Companies
need multi-discipline problem solving.

Organizing for Quality

Organizational approaches for

multidiscipline problem solving

Form cross functional teams.

Quality improvement teams

Quality circles

Adopt matrix versus functional

organizational structure.
Co-locate engineering resources to open
communication channels.

Engineering technical centers/Centers of

expertise
Organizing for Quality

Coordinating quality
requirements with suppliers

Importance of supply chain management

Many quality problems are caused by

defective purchased material (Crosby 50%).
Suppliers often represent a large % of
manufacturing costs.

Organizing for Quality

Strategies for supplier

relationships

Organizing for Quality

Managing human resources

& TQM

Growing research indicates that TQM has

not achieved its objectives due to human
resource management (HRM) problems.
Failures occur when management falls
short in their efforts to adopt a corporate
culture fully embracing TQM.

Organizing for Quality

What makes TQM an HR

problem?

TQM requires employee development &

employee cooperation.
Thus, the task of top management is to:

provide workers with the necessary skills and

knowledge.
create a quality-minded culture among employees.

A quality culture that:

nurtures high-trust relationships.

has a shared sense of commitment.
believes that continuous improvement is for the
common good.
Organizing for Quality

Establishing a quality minded

culture

Formation of a quality minded culture is a

human interaction issue.
Therefore, quality management systems
must provide:

channels of communication for productquality information among all concerned

employees.
means of participation for employees so
employees feel theyre part of the system
Organizing for Quality

Some HR challenges?
Is company culture a subset of national
culture?
Should companies encourage TQM
participation via monetary incentives?
Do workers want to be involved in the
quality management process

Actually, some want to have input.

many others do not want any increased
responsibility.
Organizing for Quality

Quality Improvement
Teams
Organizing for Quality

Organizing for Quality

Roles for QI teams

In addition to solving quality problems, QI
teams help:

provide a means of participation for

employees in quality decision-making.
aid employee development: leadership,
problem-solving skills.
lead to quality awareness which is
essential for organizational culture change.

Organizing for Quality

Types of quality improvement

teams

Project teams

Quality circles

Organizing for Quality

Project team characteristics

Teams address key organizational issues

concurrent engineering
ISO 9000 implementation

membership - generally mandatory

temporary in nature
participation is cross-functional
team leaders have varying degrees of
authority

Organizing for Quality

Quality circle
characteristics

Voluntary groups of 6-8 members

Quality circle teams are semi-permanent
Teams are from single functional
department
Members have equal status and select
their own project
Minimum pressure to solve problems with
a set time frame

Organizing for Quality

Implementing quality circles

Quality circles require top management
support

Personal characteristics of facilitators are

critical
Scope of project needs to be small
enough to be capably addressed by the
team
Success of other teams has positive peer
pressure effect

Organizing for Quality

Implementation

Japan- highly successful

Widely publicized quality circles

Product development teams

U.S. - marginal success

Product development teams have

succeeded more so than quality circle teams

Organizing for Quality

Concurrent engineering
project teams

Concurrent engineering teams are having

success - examples: Boeing Chrysler

a concurrent process carried out by a multifunctional product development team.

intended to replace sequential development
process.
they avoid potential quality problems by
integrating upstream and downstream
functions in the preliminary design phase.
Organizing for Quality