Tqm ch 09

1 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

Chapter 9Chapter 9

Organizing For

Total Quality Management:

Structure And Teams

2 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

Organization

The process of creating a structure for the organization that will enable its people to work together effectively toward its objective. Thus the process recognize a structure as well as a behavioral or “people” dimension.

3 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

Why Adopt TQ Philosophy?

• Reaction to competitive threat to profitable survival

• An opportunity to improve

4 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

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 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

5 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

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

6 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

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

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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

8 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

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

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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

10 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

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

11 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

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

12 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

Building on Best Practices

• Universal best practices– Cycle time analysis

– Process value analysis

– Process simplification

– Strategic planning

– Formal supplier certification programs

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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

14 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

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

15 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

Top

Mgmt.

Middle

Mgmt.

Front-line supervisor.

Functional

Mgmt.

Employees

Customer

Employees

Front-line supervisor

Functional Mgmt.

Middle Mgmt.

Top

Mgmt.

Quality Circles

QualityImprovement Teams

Cross Functional Teams

Steering Committees

Quality

Council

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Firm infrastructureHuman Resource Management

Technology Developmentprocurement

In bound logistics operations

Sales Force Administration

Sales Force Operations

Service

Margin

Margin

Marketing management

Service

advertisingSales Force administration

Sales forces operations

Technical literature

Promotion

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Technical Skills

People

dimension

ActivitiesMoney

Human

Resources

Machines

Technology

Inputoutput

Objective

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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

19 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

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

20 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

Implementing Total Quality:Key Players

• Senior management

• Middle management

• Workforce

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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”

– 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)