Agenda

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Week 3

Review homework Desksides

Organizing for Quality

Lecture/discussion

Chapter 1 Organizing for Quality Chapter 1 TQM

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

Organizing for Quality

Concept of TQM  TQM foundation: • • • • Any product. process. The watchword is continuous improvement. A successful organization is one that consciously seeks and exploits opportunities for improvement at all levels. or service can be improved. Organizing for Quality . The load bearing structure is customer satisfaction.

What must organizations do for quality to succeed  “Organizations must adopt a cultural change that appreciates the primary need to meet customer requirements.” International Economic Conference Board Report: May 1990 Organizing for Quality . implements a management philosophy that acknowledges this emphasis. encourages employee involvement. and embraces the ethic of continuous improvement.

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 .

Allaire’s approach Organizing for Quality .

5. Designate these owners as responsible for the maintenance and use of that process. Establish owners for all core business processes and subprocesses. 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. and reengineering them when necessary. Empower the owners of the process with the responsibility for continuously improving those core processes. with their reward tied to the successful functioning of that process for all Xerox personnel. 4. 2.Managing-by-process principles 1. 3. 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. 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 . 6.

IBM’s market driven quality program “Driver” Leadership Vision Involvement Policy Management System Information Planning Human resource Quality assurance Measures of Progress Quality Results Goal Customer Satisfaction Systems Improved quality Lower costs Market Success Organizing for Quality .

can improve application quality through vigilance and a shared sense of responsibility for business and customer success. Every individual in an organization. not treat it as an afterthought.IBM’s “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. from the business analyst to the IT operator.” Organizing for Quality .

procedures and requirements across all company functions. Effectively coordinate quality requirements with suppliers. Organizing for Quality .What are some of the steps organizations must take?     Effectively develop and communicate quality policy. (feed forward) Maintain direct contact with customers (feedback). Mobilize resources to solve quality-related problems.

Communicating quality requirements  Examples of formal communication: • • •  Quality policy statement Quality manuals ISO 9000 quality standards Word of mouth Management actions Examples of informal communication: • • Organizing for Quality .

consistent quality Sprint You can hear a pin drop Organizing for Quality . 24-hour spare parts support around the world Fast service. there's a Ford in your future "If you find a better car. buy it!" (Spoken by Lee Iacocca) “We make the world's best mattress” Strong dealer support.basic beliefs Ford Chrysler Serta Caterpillar McDonalds Quality is job one.Quality .

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

This will be ensured through a defined quality program as detailed in the company quality manual.” Organizing for Quality .Quality policy statement   Most companies today have a written quality policy or mission statement • For example. for example.” Some companies rely on verbal quality policies. • “our goal is to ensure customer satisfaction and minimize rejects. “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 is the only means to business success for Goodyear and prosperity for its investors and employees.” Organizing for Quality .Other examples  Goodyear: “our mission is constant improvement in products and services to meet our customers’ needs.

Every day.” The bottom line: Organizations must demonstrate what Deming termed “constancy of purpose”.Other examples   Motorola . No excuses.“all employees at Motorola must consistently strive for a six sigma target. Organizing for Quality .” Motorola – “Doing the right thing.

Companies need multi-discipline problem solving.Identifying and resolving quality problems  Quality problems transcend individual and functional boundaries. Organizing for Quality .

Co-locate engineering resources to open communication channels. • Engineering technical centers/Centers of expertise Organizing for Quality . • •  Quality improvement teams Quality circles  Adopt matrix versus functional organizational structure.Organizational approaches for multidiscipline problem solving  Form cross functional teams.

Suppliers often represent a large % of manufacturing costs. Organizing for Quality .Coordinating quality requirements with suppliers  Importance of supply chain management • • Many quality problems are caused by defective purchased material (Crosby 50%).

Strategies for supplier relationships Criteria Philosophy Supply base Contract length Awarding contracts Supplier costs Cooperation Traditional Approach "keep suppliers on their toes" Large supply base Often short term contracts Low cost bid Either company or supplier wins Cooperation as needed."single sourcing" Often long term contracts Negotiated Share cost savings (win-win) Frequent joint problem solving Organizing for Quality . company protects knowledge Long Term Partnership "mutual dependence" Few suppliers .

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. create a quality-minded culture among employees. Organizing for Quality  A quality culture that: • • • . nurtures high-trust relationships. has a shared sense of commitment. Thus. believes that continuous improvement is for the common good. the task of top management is to: • • provide workers with the necessary skills and knowledge.

quality management systems must provide: • • channels of communication for productquality information among all concerned employees. Therefore. means of participation for employees so employees feel they’re part of the system Organizing for Quality .Establishing a quality minded culture   Formation of a quality minded culture is a human interaction issue.

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. many others do not want any increased responsibility. some want to have input.

Quality Improvement Teams Organizing for Quality Organizing for Quality .

Roles for QI teams     In addition to solving quality problems. lead to quality awareness which is essential for organizational culture change. problem-solving skills. QI teams help: provide a means of participation for employees in quality decision-making. aid employee development: leadership. Organizing for Quality .

Types of quality improvement teams  Project teams Quality circles  Organizing for Quality .

generally mandatory temporary in nature participation is cross-functional team leaders have varying degrees of authority Organizing for Quality .Project team characteristics  Teams address key organizational issues • •     concurrent engineering ISO 9000 implementation membership .

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. .S.marginal success • Organizing for Quality .highly successful • •  Widely publicized quality circles Product development teams Product development teams have succeeded more so than quality circle teams U.

they avoid potential quality problems by integrating upstream and downstream functions in the preliminary design phase. 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.