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Quality Management:Organising for Quality
Presented by:
Dr. Husam Arman
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 watchword is continuous improvement.
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
Transition to quality culture at Xerox
TransitionTeam
TrainingSenior ManagementBehavior
XeroxCultureChange
Tools andProcesses
CommunicationReward andRecognition
IBM’s market driven quality program
LeadershipVisionInvolvementPolicyManagement
SystemsInformationPlanningHuman resourceQuality assurance
Quality ResultsImproved qualityLower costs
Cu
stom
er
Satisfa
ction
MarketSuccess
“Driver” SystemMeasuresof Progress Goal
IBM’s “new” Continuously Ensure Quality (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.”
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).
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
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
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.”
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.”
Other examples
Motorola – “Doing the right thing. Every day. No excuses.”
Organizations must demonstratewhat Deming termed “constancy of purpose”.
Identifying and resolving quality problems Quality problems transcend individual and
functional boundaries. Companies need multi-discipline problem solving.
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
Coordinating quality requirements with suppliers Importance of supply chain management
Many quality problems are caused by defective purchased material.
Suppliers often represent a large % of manufacturing costs.
Strategies for supplier relationships
Criteria Traditional Approach
Long Term Partnership
Philosophy "keep suppliers on their toes" "mutual dependence"
Supply base Large supply base Few suppliers - "single sourcing"
Contract length Often short term contracts Often long term contracts
Awarding contracts
Low cost bid Negotiated
Supplier costs Either company or supplier wins
Share cost savings (win-win)
Cooperation Cooperation as needed; company protects knowledge
Frequent joint problem solving
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.
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.
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 product-quality
information among all concerned employees. means of participation for employees so
employees feel they’re part of the system
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.
Quality Improvement Teams
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.
Types of quality improvement teams
Project teams
Quality circles
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
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 timeframe
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
Teamwork game
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