TQM

Designing Organizations for Performance Excellence andImproved Organizational Processes

Key Elements of Organizational Behavior

Focus on Processes

TQM principle that focus on improving

processes and not on blaming or punishing

the people. Rather than a fixed body of

knowledge or method of management.

Focus on Processes

Process - a series of steps that take inputs from

suppliers and transforms them into outputs that are

delivered to customers. The steps required to carry out

the process are defined, and performance measures are continuously monitored in order to detect unexpected

variation.

Focus on Processes

Supplies Equipment Information People Training Capital

Service Product Information Paper Works Waste

Value-added task

Cost-added (Waste, Rework, Inspection, etc.)

Continuous improvement

Input OutputProcess

Quality culture refers to the complete awareness,

commitment, attitude, and behavior of the organization

with respect to quality. Corporate leadership must

effectively communicate and more importantly demonstrate quality as an inherent value of

the organization.

Make quality everyone’s job

With quality being the job of everyone, information

about the company’s sales, customer needs, orders,

finances, delivery of parts, productivity, efficiency, the activities of different people

and teams, and how one team affects another, are

vital.

Make quality everyone’s job

The term customer is most commonly associated with

someone who purchases goods or services, but Joseph Juran,

the famous management consultant, taught that

organizations have both internal and external customers, and

internal customers have a direct link to a positive external

customer experience.

Recognize internal customers

The external customer is the person who purchases the

goods or services, while the internal customer is anyone

within an organization who at any time is dependent on

anyone else within the organization.



Impact on External Customers Internal customers have a direct link

to the external customers and the quality of product or service they

receive. Whether the internal customer is the receptionist (the

supply chain starts with her so it’s best not to overlook her), the

warehouse manager or the call center representative, every person in the

supply chain is important to delivering a great product or service.


• Cultural Working ExperienceTaking care of internal customers impacts an

organization’s culture and working environment.

Employees need to feel valued and appreciated for what they bring to the table. How other employees meet these needs

influences this experience.


Speed Up Systems and Processes

Bottlenecks occur when employees are waiting for

other employees to provide the necessary product, service or information

necessary to perform their job duties.

What is team-based organization?

- a group of people working cooperatively to achieve shared goals via differentiation of roles and using elaborate system of

communication.- to cooperate with others by

expressing both our collective identity and our individuality in

groups and organizations.

Create a team-based organization

How to create a Team-Based Organization or Workplace

Stage 1. Deciding on Team Based Organization

-understanding the value and benefits of TBO and conducting an

organizational review. Before introducing TBO it is important to understand the existing structure,

culture and extent of team working in the organization. This stage also involves developing a plan for the

implementation of TBO.


Stage 2. Developing Support System

-this stage requires an examination of support

systems relevant to TBO such as training, reward systems,

communication, and inter team relations, and making plans to adapt or develop

them for TBO.


Stage 3. Team Leader and Team Member Selection

-establishing criteria for team leader and team member selection

and implementing appropriate recruitment and selection

processes. Team leader training is important – leading teams is very

different from other kinds of leadership so team leaders need to

be equipped with the necessary knowledge skills and attitudes.


Stage 4. Developing Effective Teams

-understanding and enabling the team development

process, which includes clarifying objectives, roles, communication processes

and decision-making processes.


Stage 5. Reviewing and Sustaining Team

Effectiveness-in this stage, teams must

be coached to set criteria for the evaluation of team

performance and to identify required changes to improve

performance.


Stage 6. Reviewing Team-Based Organization

-the final stage involves evaluating the contribution of

TBO to the organization’s effectiveness and making any necessary changes to ensure

the continued and optimal contribution of TB the

organization.


Reduce Hierarchy

•The flatness of an organization is proportional to

the required level of shared purpose.

•In a hierarchical organization orders come from above.

•In a hierarchical organization you always know which way

is up, and from where the orders are coming in.

Reduce Hierarchy

How to recognize reduce hierarchy?

•The purpose of the organization is known and

kept at the top.•It doesn't matter if those

ranking low in the hierarchy do not share the purpose.

Reduce Hierarchy

•The less hierarchical, and more flat an organization

wants to be, the more important it is that everyone

in the organization shares the purpose of the organization, its reason for existence, its

direction and its goals.

Reduce Hierarchy

•A shared purpose allows the organization to work without the burden of hierarchy, as knowledgeable workers are trusted and empowered to

make the small daily decisions that are needed for

the organization to run efficiently.

Reduce Hierarchy

•Shared purpose is rare. Without shared purpose a

flattened organization could become busy and without direction, or stagnated and

without motivation.

Reduce Hierarchy

CONCLUSIONThe flattening of organization is the future, but it requires a real increase in shared purpose and empowerment. To create more

value from the organization and to reduce hierarchy for real, a strong

sense of purpose needs to be instilled in the organization first

before reducing hierarchy.

Defining Process Management

Process management involves (1) control,

planning and administering the activities necessary to

sustain a high level of performance in a process,

and (2) improvement, identifying opportunities for

achieving continuously higher levels of quality in operational performance.

Process Management

Process Management

Processes:

Core processes- drive the creation of product and

services.

Support processes- are critical to production and

delivery.

Process Management

To apply techniques of process management, processes must be (1)

repeatable and (2) measurable. Being

repeatable means that the process recurs over time. Obviously, the processes must be measurable for

such data to be obtained.

Process Management

Types of Processes

Projects

Projects represent one-of-a-kind production for an individual customer.

They tend to involve large sums of money

and last a considerable length of time.

Making products one-at-a-time and treating their production as a project can be time consuming and cost-prohibitive.

Batch Production

Mass production is used by producers who

need to create more standardized products

in larger quantities than batch production can economically handle.

Mass Production

Continuous processes are used for very high-

volume commodity products that are very

standardized.

Continuous Production

This type of process produces small batches

of many different products. Each batch is usually customized to a specific customer order, and each product may require different steps and processing times.

Job Shops

Process Control andIts Component

It requires a good measurement system to

track quality and operational performance.

It’s measurement provides the ability to capture important quality and

performance indicators to reveal patterns about process performance.

Process Control

Control is the activity of ensuring conformance to

the requirement and taking corrective action

when necessary to correct problems and

maintain stable performance.

Process Control

1. a standard or goal

2. a means of measuring accomplishment

3. a means of comparing actual results with the standard, along with feedback to form the basis for corrective action.

Its Component

Documents

TQM