AGEMENT DIVISION of the AMERICAN SOCIETY FOR QUALITY QUALITY MANPHTHHSSOS SOTO SSSTC CSS CCOSSSSC OO OSES ESE SES OSE OOS THE CERTIFIED QUALITY MANAGER HANDBOOK Quality Management Division American Society for Quality ASQ Quality Press Milwaukee, WisconsinBsPTsTOTOLSSOSOTOSLOSSSSoSCOSSOSOSOSROSEETCOEOOS Contents ocd List of Figures... 0.02... a ae +e .. xix Dreftce trees see seer 2 axi Notes to the Reader = xt Acknowledgments... . a > Part 1 Quality Standards a Chapter1 Total Quality Management... .......0020005 3 What Is Total Quality Management (TQM)? . 3 Evolution of TQM .... 2-0-2005 3 Key Concepts of TQM... ... 4 The Primary Elements of [QM . . Customer Focused... 2... 5 ‘Total Employee Involvement . 5 Organization Centered... . . 3 Integrating System . . 5 Benefits of TOM... . . a an ate 6 Approaches for TQM Planning and Implementation ror Strategy #1: The TOM Element Approach . 7 Strategy #2: The Guru Approach ae 8 Strategy #3: The Company Model Approach . . 8 Strategy #4: The Japanese Total Quality Approach. . . 8 Strategy #5: The Prize Criteria Award... 2... 8 Common Mistakes and Barriers to Success in TOM Implementation .... 2.0.2.2... ane 8 Lack of Management Commitment... . . . 9 Inability to Change Organizational Culture. . 9 Plan Implementation Problems... ..... . eee 9 Ineffective Measurement Techniques or Misinterpretation OlDaka sees ie Bae Tea ato Other Common Problems 10 Additional Readings. ........ -10 Chapter 2 Continuous Process Improvement...........0...0.0- B What Is Continuous Process Improvement (CPI)? . ..2B Key Concepts of CPI. 2.2... ee it Cycle Time Reduction. . . . 15 Employee Involvement. . 15Chapter 3 Chapter 4 Chapter 5 Reengineering»... 0-0-0. eee eee Common Barriers to Successful CPI. . . Lack of Management Support . Fear of Change. . . . Additional Readings . Cycle Time Reduction . What Is Cycle Time Reduction? Identifying Opportunities and Implementing Cycle Time Reduction. .......0 200-00 e ee eee Renee Tracking and Reporting Cycle Time Reduction Performance... 62.0020 sence eee eee 2 Common Mistakes and Barriers to Success i in Achieving Cycle Time Reduction. : et Creation of a Bottleneck . Inattention to Other Issues... + Absence or Misinterpretation of Data. Additional Readings Supplier Management... 3°. - Managing Supplier Quality’. Supplier Selection Developing Supplier Criteria Identifying Prospective Suppliers . Assessing Supplier Capabilities - Approving a Supplier... . Supplier Certification . Objectives and Benefits of Supplier C Certification Supplier Rating System... - Customer-Supplier Relationships. . -. Additional Readings : Customer Service. What Is Customer Service? a Key Concepts of Customer Service... - Create a Climate for Service . Frontline Employees Are Key ‘The Manager Is a Coach . . . Everyone Serves the Customer Complaints Are Good. . . . . Not All Customers Are Equal... . - Do Not Argue with the Customer. . . . Keep Score on Actual Performance . - Benefits of Good Customer Service . . . How Is Good Customer Service Fostered? Create Culture for Service... ..-.CONTENTS vii SPSSPSSOSOT SLOSS SSS SOS SCS SOCCOCCSSCSSSCETTOO EEO 37 37 Create Service Strategy ore Apply Systems Approach to Service . . Common Mistakes and Barriers to Success in Servicing Customers........... - 38 Lack of Management Commitment... . 38 Lack of Employee Buy-In......... . 39 Failure to Create a Service Strategy . . 39 Lack of Management-by-Fact t Processes : - 39 Inadequate Resources. . . . 39 Additional Readings. . jeu .. 39 Chapter 6 Quality Awards /Quality Standards C Criteria... -41 Models for Assessing Quality.......... 2.41 ISO 9000 Series Quality Standards . 42 Purpose of ISO Standards .... . . 42 Summary of ISO 9000 and Related. Standards 42 The Registrati - 46 Common Criticisms of ISO 9000 Standards - 48 Myths Surrounding ISO 9000 Standards . - 48 Malcolm Baldrige National Quality Award pn) .49 MBNQA: Award Structure... . +49 MBNQ4A: Award Process . vee - 51 Benefits of Applying for the MBNQA . 54 Criticisms of the MBNQA. . oe oe ISO 9000 and the bee Award . 56 QS-9000...... 56 Additional Readings. . 58 Part 1 Endnotes... ... 60 = Part 2 : Organizations and Their Functions . . Chapter7 — Organizatiorfal Assessment . Purposes and Types of Organizational Assesoments, 65 Quality Audit Defined. ect 7 - 66 Phases of the Audit Process. . 67 Audit Preparation 67 Audit Performance . 68 Audit Reporting, Corrective Action F Fol low- Up and Closure... ... z 68 Benefits of Quality Audits. . . : - 68 Common Mistakes and Barriers to Success i in. \ Auditing EL Additional Readings.................., Bee azzvili CONTENTS ve cen ese eensseeseer atest Se eee e ee re ooo ee Oooo TS “‘Chapter 8 Organizational Structures 73 Defining Organizational Structure and Design. ... 2B Building the Organization’ Vertical (ierazeica D Dimension. . . 74 Unity of Command - 7% “Authority and Responsibility . 75 Span of Control - 76 ‘Contrasting Spans ‘of Control 77 Ehtratization/ Decentralization. -- 78 Building the Organization's Horizontal jimension . Teeeye. vision of Labor . . - - : : .. 79 Departmentalization ... 80 The Contingency Approach to Organizational Design « 1. 84 ‘Mechanistic and Organic Organizations - : Hee Strategy and Structure . - Poaceae esha eeted Size and Structure... . - .- 86 Technology and Structure ». 86 Environment and Structure . . .. 87 © Applications of Organizational Design . 87 Simple Structure. . 87 “Bureaucracy . . 87 ‘Team-Based Structures « ce . 88 ‘The Boundaryless Organization . - 89 po ‘Additional Readings... 6+ +++ - 90 ‘Chapter 9 Quality Functions within the Organization. 6... +--+ +> 93 History of the Quality Function 93 Functions of the Quality Group 93 Quality Assurance... . - 94 Reliability Engineering . - 4 Quality Engineering. . 94 Supplier Quality. . . 94 Quality Control 95 Inspection. . 95 Metrology - : 96 Internal Auditing - 96 Administration + 9% Customer Quality... . - 96 Consulting and Training 96 Common Misconceptions in Quality 97 Additional Readings... ----+-- oe Chapter 10 Communication within the Organization...» + - 2 9 Communication and Organizational Structure . - 100 Benefits of Open and Effective Communication : 100 Additional Readings . fee 102CONTENTS ix SPSSHSSSTO SSIS SSSOTECOSSSCSHOSEOOSSSeOREESSOTCTS Chapter 11 Chapter 12 Chapter 13 Change Agents and Their Effects on Organizations... .. . . 103 Types of Change Agents . . . 103 Internal Change Agents . - - 103 External Change Agents. =. 104 Change Agent Team . - 104 Change Agent Skills . . . » 104 Duties of the Change Agent - 105 Characteristics of the Change Agent-Client eat ontip - 107 Guidelines for Implementing Change ........... 107 Problems in Change Management . . . » - 108 Pervasive Change. a » 109 Additional Readings . . . 109 Management Styles . 11 Motivational Theories . . 2.1 Scientific Management. .. it Classical Organizational Theory .. 12 The Behavioral View. 12 Management Styles . . 113 3, 113 14 Autocratic Management... - Participative Management . . Charismatic Leadership . ‘Transactional and Transformational Leadership z 14 Management by Fact... . . . eee taie Coaching ...... oH 1s Contingency Approach . . . .. 15 Additional Readings . 5 Business Functions . . . -u7 External Functidns . 8 Safety . 118 Legal and Regulatory . 118 Voluntary Compliance. . . . 119 Product Liability . . 119 Environment . . . 119 Technology Process . 119 Internal Functions. lg Information Technology . .. 120 Finance... 0.0.0. -- 120 Human Resources . .. 120 Marketing . . 120 Sales and Customer Service. - 120 Materials . 120 . 120 Engineering~ CONTENTS aneeeeeannahnnannnaamnnn anne TTT TTT eee Research and Development 1 Production... .. 122 Quality co 122 Additional Readings . _ . - 122 Part 2 Endnotes 122 = Part 3 Quality Needs and Overall Strategic Plans... ....0..0.-0..0..,., 27 Chapter 14 Linkage between Quality Function Needs and Overall StrategicPlan oll 129 Defining Strategic Plan and the Quality Function... ... . 129 Developing a Strategic Plan.......... wees es 130 Define Mission and Guiding Principles. . . 131 Creating a Vision: :.. .. eas . 132 Levels of Strategic Planning - 132 Strategic Planning Process...» . .. 134 Tools Useful in Strategic Planning » 134 SWOT Analysis... 2.0... Scenario Planning... . Hoshin Planning... |. maa Quality Function Deployment |||... Management and Planning Tools . Benchmarking ....... 2. . Bartiers to Successful Strategic Planning. . Additional Readings... 0.0 ....00 101211! Chapter 15 Linkage between Overall Strategic Plan and Quality Plan. Linkage between Value Chain Activities Quality and Strategic Planning . ri Why Quality Plans Fail... . .. Communication Problems Problem Tolerance or Inaction . Additional Readings . . . Chapter 16 — Theory of Variation... . . . Factors Affecting Variation. . . Types of Variation... .. . Common Causes . Special Causes Achieving Breakthroug! Additional Readings .. . Chapter 17 Quality Function Mission»... 2.2.20... Elements of Quality Function Mission Statements Developing a Quality Function Mission.CONTENTS xi POOLE SSOLOS SOS SSE HOS OS ESSE ESET SET SOS TOSSES OSSOOS Chapter 18 Chapter 19 Chapter 20 Responsibilities and Goals of the Quality Manager. : -. 151 Customer Focused . . : -- 1 Known Quality Orientation... 152 Autonomous and Independent... . . . 152 ‘Common Problems and Benefits Associated with the Quality Function Mission +e 152 Additional Readings . : 2. 153 Priority of Quality Function within the Pu . 155 History of Quality Function . ». 155 Structure of the Quality Function . .. 157 Decentralization . : .. 157 Centralization. see . 157 Staff and Line Functions eee 158 Duties and Priorities of the Quality Function | .. 158 What the Quality Function Is Not . - 160 Product Prevention Squad . . 160 Protective Screen. . . - 160 One More Goal . - 160 Additional Readings . 161 Metrics and Goals That Drive Organizational Performance... . 2... ....0.0..0005 163 Differences in Planning and Measurement - 16s Metrics and Organizational Alignment 164 Frequency of Measurements (Periodicity) . 166 Benefits of Measuring : 167 Achieving Goals . 167 Detecting. Problems - 2 167 Understanding the Process . . 167 Best Practices. Benchmarking . . . Customer Focused Goals Business Goals . . . Policy Deployment. Common Mistakes . Goals Too Easy or Too Hard. Goals Only for the Top Wrong Frequency of Measurement 169 Too Many Metrics ......... +. 169 Pretty Metrics. 169 Metrics Not Clearly Defined - 169 Additional Readings 169 Formulation of Quality Principles and Policies Wt Defining Principles, Policies, and Procedures. . 2... . V1 Documentation of Principles, Policies, and Procedures... . . 171xii ~ CONTENTS nee eoe et PTSL SOLS OOPT OS SESS SESS SPSL SS SSO SOOT OT IS poss Formulating Principles, Policies, and Procedures. . . 175 Best Practices/Worst Mistakes - 5 : . 176 Additional Readings . oe + oe Chapter 21 Resource Requirement to Manage the Quality Function... . 179 Quality Function Resources . ..179 E People . 180 Hardware . . 180 Software ~ » 182 Money » . 183 Structure . 185 Summary... . 185 L ‘Additional Readings . 186 s Part 3 Endnotes . - 186 <> Part 4 Customer Satisfaction and Focus... --..-- +++ 20-- cee es 189 Chapter 22 Types of Customers. »- 191 Defining the Customer. . . . 191 Customer Types. . 191 Primary Customer 193 Secondary Customer. . 193 Indirect Customer - +193 External Customer Be +. 193 Consumer/End User . + 193 Intermediary . . . » 194 False Customer . - - 194 Internal Customer a .. 194 Importance of Identifying Castes pes +. 195 Additional Readings . # - 195 Chapter 23. Elements of Customer-Driven Organizations.......-. 197 Defining Customer Focus... . . 197 Creating a Service-Oriented Framework. -. 198 ‘Nurturing Service Leadership . a 198 Building a Service Quality Information System . . «200 Creating a Service Strategy... ......- ae + 201 Implementing the Service Strategy 201 Barriers to Becoming a Customer-Driven Organization . = 208 Additional Readings ...... - 204 Chapter 24 Customer Expectations, Priorities, Needs, and “Voice” . . 205 Determining Customer Satisfaction Levels 205, Analyzing, Customer Satisfaction Data 206Contents SPLSPS PSE SSO OSS OSES OOSOES OSS EESOCSEOCOSOOSOES Chapter 25 Chapter 26 The Kano Model... 2... . Quality Function Deployment . 207 208 Additional Readings wee # 209 Customer Relationship Management and Commitment 2n Managing Customer Relationships..............,., 2u Framework for Implementing Customer Relationship Management... .. . . 213 Identify Candidates... 2... Differentiate between Customers . - Interact with Key Customers = 213 Customize the System... 20200011, . 214 Customer Relationship Management: Making the Transition. _ 214 213 . 213 Benefits of Effective Customer Relationship Management. . 215 Creation of Learning Relationships + eee + 215 Increased Cross-Selling ...... +. 215 Reduced Customer Attrition . . . soe » + 215 Higher Customer Satisfaction Levels . . . . oe ++ 215 Reduced Transaction Costs and Faster Cycle Times . +215. Common Mistakes and Barriers to Success in Customer Relationship Management.......... . oe 2. 216 All Customers Seen as Equal... .. .- +. 216 Information Technology Systems Insufficient . |. +. 216 Lack of Cross-Functional Alignment . . +. 216 “Ownership” of a Customer . . + 216 Excessive Customization... . 216 Additional Readings . . . oe 217 Customer Identification and Segmentation . . 219 Identifying Customers . Core/Key Customers Non-Core Customers PotentiaCustomers . Segmenting Customers... . . Segmentation Variables . . . Segmentation Concepts . . . Patterns of Segmentation... .. . Choosing a Segmentation Strategy... . Barriers to Effective Customer Identification and Segmentation... 2... ee 225 Failure to Identify Customers ......0.0.00~2 02, 25 The “We Know Our Customers” Myth... . pee) Failure to Align Operations with Marketing Strategies... . 226 Failure to Distinguish Need for Separate Service Delivery Processes cree a . 26 Additional Readings 226ae | xiv” CONTENTS 4 | BT aoscerenssoosrsssesenosesoseaseseeesr ee Chapter 27 Partnerships and Strategic Alliances between Customers and Suppliers... see e eee e cece este - 27 ‘Trend Toward Customer-Supplier Relationship Hl Information : 207 4 Internal Customer-Supplier Relationships . . ». 28 Partnerships with Key Suppliers. . 228 Mutual Benefit . 230 Trust Building - » 230 Open and Complete Communication . . 230 Interdependence of Parties . . . 1. 230 Benefits Resulting from Customer-£ Supplier Relationships ». . 230 Cost/Time Savings... .. . +. 231 j Better Products and Services . . 231 Supplier Improvement . . - - 232 Barriers to Successful Partnerships - . 232 ! ‘Additional Readings ....-.- +--+ - 232 Chapter 28. Communication Techniques... -- +++ « - 235 information Gathering. ...---- +++ 236 i Communication Techniques /Tools - 237 lt Survey Research Applications 238 ‘i Survey Tools/Methods . . . He 239 / Mistakes Made in Determining Customer Sal sfaction. 243 : Benefits of Effective Communication Techniques. 243 a Barriers to Effective Communication... . + - 244 i Failure to Be Proactive... . +--+ . 244 ul Customer Does Not Know /Cannot Articulate Requirements .....- +++ . 24 Failure to Use the Customer’s Language 245 Poor Research Design . 245 Ineffective Use of Results - 245 I Directing Communications to Customers « . 245 ' ‘Additional Readings ...---.-- es 246 Chapter 29 Multiple Customer Management and Condlict t Resolution. .. . 247 Managing Multiple Customers . = 287 Resolving Conflict... - « +. 248 Additional Readings .:-....-. - 248 Chapter 30 Customer Retention and Loyalty . . 251 Benefits Arising from Customer Satisfaction ........-. - 251 Retaining Customers . . ae - 252 Resolving Customer Complaints « . 253 Common Mistakes Leading to Lost Customers . 253 Additional Readings - cee . 254 Part 4 Endnotes... - . 255CONTENTS xv SPSPoSSeSosooceeseseeseeserereseoeseeeEoeeseeee st Part S Project Management . 259 Chapter 31 Planning : : aoe + 261 Integrated Quality Initiatives . . . - 261 Developing a Mission Statement « 262 Identifying Stakeholders’ Reguiternents + 262 Selecting the Project Team . . . » 262 Designating Quality Checkpoints . 263 Providing Documentation . . 263 264 Short- and Long-Term Quality Plans and Objectives Feedback Loops 264 Status Reports... . 265 Customer Audits. . . 266 Performance Measures . ‘Timeliness. . Resources . . Methodology and Tools. Relevant Stakeholders Risk Assessment. . . . Benchmarking Budgeting . Benefit-Cost Analysis. 273 Characteristics of Benefit-Cost Analys . » 274 Linking Profitability and Quality . 275 Screening Project Proposals... . . . » 275 Ranking Projects with Capital Budgeting Decision Rules (Benefit-Cost Analysis Rules)... 2.0... - . 276 Evaluating Capital Budgeting Decision Rules 277 Performing the Postaudit . . . . 277 Additional Readings . 278 Chapter 32 Implementation... .... CHEE OBI. Management Support and Organizational Re Roadblocks - Hee BT Management Support: Overcoming Resistance . . . . + + 282 Organizational Roadblocks: Internal. see 283 Organizational Roadblocks: External 283 Short-Term (Tactical) Plans . . . . 284 Cross-Functional Collaboration 284 Continuous Review and Enhancement of Quality Process... 0... ce es 285 Documentation and Procedures. . . Additional Readings Part 5 Endnotes... .xvi> “CONTENTS sete et ote SeT OSS SES SOLOOSS LES ISOS LOPES OOS E SS ES = Part 6 Continuous Improvement . - - 289 Chapter 33 Tools . - 291 Approaches to Problem Solving. . . : 291 Quality Control Tools... 2... 6. Se eee too Cause-and-Effect Analysis - 2s. 293 Checksheet ...... « 294 Control Charts . 25 Flowcharts . . 260i Histograms . - 296 | Pareto Analysis . 298 j Scatter Diagrams oe 299 | Quality Management Tools... . . » - 300 ‘Activity Network Diagram. . . - » 301 ‘ Affinity Diagram...) =... 302 | Interrelationship Digraph. ... . . « +s. 302 \ Matrix Diagram ......--.- . 304 i Priorities Matrix . 3 805 : Process Decision Program Chart . » . 307 Tree Diagram . . 307 Other Continuous Improvement Tools. . . . = 308 Brainstorming/Nominal Group Technique 308 Force-Field Analysis . +» 309 : | ‘The PDCA/PDSA Cycle ..310 | ‘Additional Readings . . 311 i \ Chapter 34 Cost of Quality ...... - 313 | | What Is Cost of Quality? . 313 : ! Designing a Cost-of-Quality Program, . .. 34 : | Categorizing Costs .. 314 : \ Focusing on Problem Prevention. . eee 315 | Establishing and Tracking Measurements... - 316 i Identifying Value-Added and Non-Value- g i Added Activities... 02.0.0... ee ..3170 Implementing a Cost rof-Quality Program . - 318 Additional Readings . - 319 Chapter 35 Process Improvement............. Identifying Areas for Improvement. Forming Process Improvement Teams . . . Corporate and Team Goals . 322 ‘Team Structure... .. . Guidelines for Process Improvenient. . 324 Analyzing the Current Process»... .. . ce . 324 E Creative Thinking versus Analytical Thinking»... . . . » 325 4Chapter 36 Chapter 37 Chapter 38 CONTENTS xvii seseoesooooosoosssoosenseteeeeeeseronesoeesesoee Team Development... . . Implementing and Monitoring Process Improvement |... _ 326 Common Mistakes and Barriers to Success in Process Improvement 2. 327 Unclear Goals. . ». 327 Inadequate Training - - 37 Insufficient Analysis of the Process . _ ae Inadequate Monitoring of the Project . Additional Readings . . 327 Trend Analysis. 329 Management by Fact . +. 329 Establishing Measurement Points. » 329 Using Measurement Data to Detect Trends .. 331 Uses and Types of Trend Analysis . - 332 Long-Range Trend Analysis. 332 Short-Range Trend Analysis... . . 333 Barriers to Successful Trend Analysis. . . 334 Additional Readings........ . 335 Measurement Issues... 2. .....000.0. Haste Eer Hoe Gaz: Reliability and Valiity. 337 Designing ; 337 Manufacturing . . . 338 Testing (Validation) . 339 Maintaining. . 339 System Effectiveness... . » 339 Failure Modes and Mechanisms . » 339 Reliability Statistics a 340 Failure Control...) 340 Sampling Plans and Other Statistical Analysis Techniques . . 341 Choosing ani Using a Sampling Table Other Methods of Statistical Analysis Specifications, Calibration, and Process ss Capability Specifications . Calibration... Process Capability Additional Readings . Concurrent Engineering and Process Mapping Concurrent Engineering and Process ® Mapping Defined . 349 Approaches to Process Mapping - - 350 Industrial Era cre Information Era»... 2.20.20...CONTENTS: SSL LT PIO LOS LIPO LOO LOLS SOO SOLO LOS LHP SOOO SOO LESS . 351 352 352 352 Uses of Process Maps. . ‘Analytical Purposes . Learning Purposes. . Auditing Purposes. . Developing a Process Map. . . 352 Defining the Work Process . . aes » 353 Diagramming the Process... 22... 0s » 353 Determining Ways to > Improve the Process . . 357 Additional Readings . . . 357 Part 6 Endnotes . 358 +e Part 7 Human Resource Management Chapter 39 Leadership Roles and Responsibilities . What Does a Leader Do?. Resolves Conflict . Adheres to Professional Ethics Additional Readings... . . . Chapter 40 Quality Staffing Issues. ... 2... 2. Selecting Staff . Evaluating Performance... . Encouraging Professional Development Goals and Objectives... 0... ou ereeeHe Additional Readings 6.0... .c eee ee Chapter 41 Quality Responsibilities in Job/Position Descriptions . . 377 Responsibilities for Quality . . 377 Additional Readings : 379 Chapter 42 Employee/Team Empowerment ... 381 What Is Empowerment? . . . . 381 Implementing Empowerment... . . ~ 382 Restructuring the Organization . . . - 383 Transferring Authority .. . = 383 ‘Training Personnel . . 383 Benefits of Empowerment . 385 Common Mistakes and Barriers to Empowerment, 385 Additional Readings » 386 Chapter 43 Team Formation and Evolution » 387 What Isa Team?... 02... . 387 Team Development Phases . . 388 Stage I: Forming... ... . 388 388 Stage I: Storming .> Part 8 Chapter 45 Training and Education CONTENTS xix $POPLOLOLOLOSOSSSEOS OSES SS ES OSE OSS ODOT SES OOOOED Stage Ul: Norming . . . Stage IV: Performing. . Types of Teams . . . Process Improvement Teams . . Work Groups... 2.2.2... Other Self-Managed Teams . . Fostering Good Teamwork. . . . Elements of Organizational Support. . Elements of Team Member Support. . The Benefits of Teams ... . . Benefits to Team Members . Benefits to Organizations . Common Mistakes and Barriers to Success . Process Improvement Teams... .. . Work Groups and Self- Managed Te Teams. Additional Readings... . . ‘Team Management Managing a Team. . . ‘Task-Type Activities Maintenance-Type ‘Activities Facilitation Techniques . as Maintaining the Team Process .. . . Providing Constructive Feedback « Determining the Decision-Making Process | Member Roles and Responsibilities ay Sponsor... ... Team Leader . . . Scribe and Recorder . Timekeeper . . Team Members . . Self-Facilitation. . Performance Evaluation - Recognition and Reward. Benefits of Good Team Management. Additional Readings . Part 7 Endnotes... . 406 . . 409 Importance of Top-Down Support a and site Pining for Quality Training... . . . 41 Distinguishing between Training and Education . .xx-~ CONTENTS, PoSPTESSSSSES LOL OOS LOSS IPP ES ELIT LEP OS OSS EELS S Chapter 46 Chapter 47 Chapter 48 Chapter 49 Appendix A Appendix B Appendix C ‘Top-Down Support and Strategic Planning in Quality Training... 6... = 413 What Training Can and Cannot Do. AIS Additional Readings . - : = AS ‘Training Subgroups and Topics - - 419 Management Teining - . 419 Employee Training -” 422 Facilitator Training - 423 Summary. *. = 424 ‘Additional Readings « = 424 ‘Training Needs Analysis 427 Pairposes of a Needs Assessment and Analysis. - 427 ‘Assessing Training Needs ......-.- = 428 Designing the Training Program . wee 429 Improving Job-Related Behavior 0b) Performance) Cae east Summary of Caveats . + 432 Additional Readings . Posttraining Evaluation and Reinforcement... ... - Evaluating the Quality Training Process Rationale for Training Evaluation. Reinforcing Quality raining « Additional Readings . Quality Training Tools . ‘Trend toward Learner-Controlled Instruction . Instructional Modes oe ‘Traditional Instructional Modes . . - cee Computer-Based Instructional Teeniques Ha Other Training Techniques . . . . Job Aids i Keys to Effective Training Additional Readings . Sources for Training Games and Simulations - ‘Additional Readings . cee Part 8 Endnotes... . - COM Body of Knowledge Leading Contributors to the Quality Field. . 463 Additional Readings .... 00. - 0 +++ ee ia0. Ce tan a hararavarareraratirirerieisersestaiaraestoitesececacecetecatiis 473SOSSTAPOSO SESS SOTOSSOCCOSSES OSC SESS OEE ESSESOETES Part 1 Table 4.1 Figure 6.1 Table 6.1 Table 6.2 Part 2 Figure 7.1 Figure 7.2 Figure 8.1 Figure 8.2 Figure 83 Figure 8.4 Figure 85 Figure 8.6 Figure 8.7 Figure 88 Figure 8.9 Figure 11.1 Figure 12.1 Part 3 Figure 14.1 Table 18.1 Table 19.1 Table 20.1 Table 21.1 Part 4 Figure 22.1 Figure 22.2 Figure 23.1 Figure 23.2 Figure 24.1 Figure 24.2 Figure 24.3 Figure 26.1 Figure 26.2 Figure 28.1 Figure 28.2 List of Figures and Tables oe Cost Comparison Baldrige criteria for performance excellence framework. 1999 MBNQA Criteria Categories and Point Values (Business) Contrasts between the Baldrige Award and ISO 9000 Registration Flowchart for quality audit. The four task elements. Chain of command. Line and staff authority. Functional departmentalization. Product departmentalization. Customer departmentalization. Geographic departmentalization. Process departmentalization. Matrix organization. Mechanistic versus organic organizations. Force-field analysis. Maslow’s hierarchy of needs. Design school model of strategy formulation. Staff and Line Functions Annual Closed-Loop Assessment Principles of Quality Management Key Attributes of Quality Function Personnel Juran’s quality planning road map. Harrington’s order entry customer profile. Customer satisfaction model. Berry's framework for customer service. System for utilizing customer feedback. Kano model. QED process matrix. Segmentation concepts. Preference segment patterns. Sources used to collect information on customer needs and expectations. Voice of the customer communications model,xxii. LIST OF FIGURES AND TABLES POSOSSE SESS E SOT ISISS SPSS SSSI ILOL OS OLO SOOO LISD Part 5 a Figure 31.1 Gantt chart. § Part 6 i Figure 33.1 Cause-and-effect diagram : Figure 33.2. Checksheet. 3 Figure 33.3 Control chart. Figure 33.4 Flowchart. Figure 33.5 Histogram. Figure 33.6 Pareto chart. Figure 33.7 Scatter diagram. Figure 33.8 Activity network diagram. Figure 33.9 _Interrelationship digraph. Figure 33.10 Matrix diagrams at various stages of completion. Figure 33.11 Priorities matrix: Evaluating options against decision criteria. Figure 33.12 Priorities matrix: Assigning a utility index to criteria. Figure 33.13 Process decision program chart. Figure 33.14 Tree diagram. Figure 33.15 Force-field analysis chart. Figure 33.16 The plan-do-act-check cy¢le. } Figure 36.1 Measurement points in a process flow diagram. Table 36.1 Common versus Special Cause Variation Figure 37.1 Weibull distribution. Figure 37.2. Sampling decisions. Figure 38.1 Process mapping symbols. i Figure 38.2 Asimple process map. ” : Figure 38.3 ANSI symbols. Figure 38.4 Flowchart: Nongrid format. Figure 38.5 Flowchart: Grid format. Part 7 Figure 39.1 Conflict-handling modes. Figure 39.2 ASQ Code of Ethics. Figure 42.1 Traditional versus empowered organizational structure. Figure 43.1 Team development phases. Figure 43.2 Supporting factors for effective teamwork. Part 8 Figure 45.1 Training versus education. Table 45.1 Deficiency Analysis Figure 47.1 _A training system model. Table 47.1 Distinguishing between Performance and Skill/Knowledge Issues Figure 48.1 Levels of training evaluation. Figure 48.2 Characteristics of evaluation levels. Figure 48.3 Conceptual view of the relative value of evaluated training. _ Table 49.1 Advantages and Disadvantages of LCI agp PESOCPLOS LOSS LISS L OOS LESSOL SOLOS LOS OSS OL SEL HOES Preface Oe oe When you purchased this handbook, you entesed into a select group of individuals who will sit for the Certified Quality Manager’s Examination. This exam was several years in the making; since its development and implementation, several thousand individuals have passed it and are now certified quality managers. This exam was developed because the Quality Management Division of the ‘American Society for Quality saw a huge void in other, more topical exams. Several hundred quality professionals participated in the development and review of the COM Body of Knowledge. Several hundred more have participated in the develop- ment of the exam and the grading of the constructed response questions. This handbook is not the first, but it is one of the most comprehensive collections based on this Body of Knowledge. Although no book can ensure your success in passing this exam, we are proud to say that many leading quality practitioners vol- unteered their time and energy to what we believe is a very important cause: creat- ing this work to assist others in preparing for the Certified Quality Manager’s Exam- ination. I urge you to use this work beyond the purpose of attaining an award or cettification to any quality system. This handbook will enhance your ability to per- form your job, challenge what you do on a daily basis, and, it is hoped, inspire you to lead your organization on the ultimate quality journey. ‘To those of you undertaking the exam, I say good luck! To those of you who have contributed time and energy to the Certified Quality Manager Handbook development process, I say thank you! Rickey Bowen Chair, Quality Management Division ‘ American Society for QualitySES SSSISOSS ESOS LOS POLLO SILOS OLDE SLL ILI SOO SIS ODS Notes to the Reader Oe << DISCLAIMER ‘The Body of Knowledge (BOK) for quality manager certification (see Appendix A) is largely based on conceptual ideas and models rather than on exact mathematical formulas or tangible items that can be held up as “correct.” For some of the areas of the BOK, there may be multiple “correct” views because of differences in industry, organizational maturity, geographic location, competitors’ strategies, and so on. Even the “gurus” of quality (see Appendix B) differ in their philosophies, priorities, and approaches to quality. Furthermore, ASQ. policy maintains a strict separation between people who prepare'the examination and people who present material for candidates. Success as a quality manager requires experience and a mature under- standing of the various concepts as well as the specific knowledge obtained from this or any other source. . DESIGNING THE HANDBOOK CONTENT ‘This handbook was designed as a study aid for those preparing to take the Certified Quality Manager Examination administered by the American Society for Quality (ASQ). Therefore, the subject matter is aligned with the Certified Quality Manager BOK, published by ASQ. * ‘The supplementary section of this handbook contains sample test questions, both multiple choice and constructed response, similar in structure to those on the examination. Early in the design phase of this handbook, like publications were compared and customer satisfaction levels researched. From this, it was learned that readers preparing for the examination considered the applicability and the depth of most of the topics covered inadequate. Specific feedback suggested that material presented in like publications was reflective of the knowledge base and skills required for a quality engineer, with an emphasis on the tactical and technical requirements for performing quality engineering types of tasks. Missing were the critical-thinking, elements associated with strategic, managerial types of decision-making activities that a quality manager would be expected to perform and that are the focus of the examination. Keeping these factors in mind, the authors of each BOK subject area researched and collected information to describe the following: * historical perspectives relating to the evolution of a particular aspect of quality management, including recognized experts and their contributions @ key concepts or terminology relevant in providing quality leadership, applying quality management principles, and communicating quality needs and resultsNOTES TO THE READER xxv SPPOSPOPOOSS SSS DSO SSS SOS TOSS SS SES SOTESSSESEESES + benefits associated with the application of key concepts and quality management principles + best practices describing recognized approaches for good quality management + barriers to success, including common problems that the quality manager might experience when designing and implementing a quality management system and insights as to why some quality initiatives fail The Certified Quality Manager Study Guide Committee and the contributing authors have strived to provide readers with a more holistic perspective of the qual. ity manager's role within the context of the subject matter specified in the BOK. Not every quality manager possesses expertise in each subject area, so the content of this handbook can be used to help readers properly direct their study efforts, THINKING LIKE A QUALITY MANAGER The roles and responsibilities of the quality manager and approaches toward qual- ity management vary, depending on the type of industry or the size of the business entity. The BOK is a product of inputs from all these sources and reflects areas of common interest and importance. The development of actual examination questions is intended to measure the level of knowledge and skill that a person possesses rel- ative to each area of the BOK, regardless of individual job design, industry practice, or company culture. For individuals planning to take the ASQ Certified Quality Manager Examina- tion, getting into the mind-set of the role for which the certification was designed can be key to a successful outcome. Some recommendations for establishing the proper mindset.in using this study guide and preparing for the examination include: 1. Think of yourself as a corporate director of quality for a multiplant business entity. In businesses in which products and services are not highly regulated by govern- ment legislation and in smaller business enterprises, the quality manager is less likely to have a support staff to perform quality engineering-related tasks and make day-to-day quality decisions, Asva result, he or she might spend the majority of his or her time acting in the capacity of an engineer and carry that mind-set in studying for and taking the Examination Individuals taking the Certified Quality Manager Examination need to place themselves in the context of having to think strategically. After placing yourself in the role of a corporate director of quality for a multiplant business, envision addressing such questions as “What can the quality function do to help the com- pany identify or implement new initiatives that will enable it to break into new markets?” 2. Think of yourself as having to integrate the needs of the quality assurance function with the needs of the management team. In addition to managing the quality department, the quality manager's role includes facilitating deployment of quality approaches in other functional areas, including Supplier quality in purchasing and customer satisfaction in marketing/sales{RRC STOR DOS SSSS SS OSO SCOOT SOS SESS SOOO SS OSES SOSSOSS 3. Always think Plan-Do-Check-Act. Constructed response questions are purposely designed to assess the ability of the test taker to integrate elements of the body of knowledge. Therefore, using Plan-Do- Check-Act (PDCA) to structure responses will help ensure more complete answers to the described situations. The role of the test taker in answering the problem statements described in the constructed response questions is not to solve the problem but to define a process on the basis of the principles of continuous improvement that would be appropriate to diagnose and correct the problem.-The planning step of the PDCA cycle often involves:assessing the current situation as well as past efforts to identify and elimi- nate the root cause. x 4. Develop an understanding of ow all the elements of the BOK are interrelated. A good way to practice the use of critical-thinking skills that will further aid in answering constructed response questions is to select two elements or subelements of the BOK arid consider how they are related, such as the linkages between quality standards and project management. g¢ itt Gne direction is that the quality of how a project has been managed could bé' evaluated ‘on ‘the basis of a standard, such as the design of a new product. Viewed froin another direction, when implementing a new quality standard, it is rent, will be a Hey tool for successful planning andgett POOOESSSO SSOP OS SSPE SSO TOES SSS ESOS ES SOS IOS IS Acknowledgments M ge ‘This project was several years in the making and is the result of a truly outstanding team effort on the part of many. Initially, volunteers contributed articles on sections of the Body of Knowledge; this material was supplemented by information obtained from phone interviews with quality professionals. ‘As the project began to take shape with the assistance of a professional writer, many individuals reviewed drafts of the manuscript; their comments and sugges- tions greatly enhanced the final output. In the end, a small group of volunteers ded- icated themselves to the task of improving and, where necessary, rewriting sections of manuscript. This publication is the result of their exceptional effort. Because it is impossible to compare the significance of one individual's contri- bution to another's, the following listing is strictly alphabetical and in no way indi- cates the size or value of that individual's contribution to the project. Judith J. Akers Ronald L. Akers Reggie Audibert Bill Baker Roger W. Berger Milton Boyd Gautam Brahma Eliot M. Dratch Richard Edelen Traci V. A. Edwards Richard A. Gould William V. Harper Missy Hartman Lynda J. Hunn Jeff T. Israel Ruby Ivens Terry Johnston Tim King Sylvia J. Makowski Brenda Malony Cindy Lee Miller Wayland Moore XxXVii Ly | creer reer res“xxviii ACKNOWLEDGMENTS LESSEE ES SESS HL LLOSOPSOSS SSS DOO LOOT LASS OSLO TL IOS Sandy Mundis K. A. Muralikrishnan Phil Mustaphi Earl E. (Ed) Nelson Duke W. Okes Oksana R. Orel John Pappachan Tom Peterdy Janet Raddatz Terry Regel John L. Schlafer James P. Schlichting Thomas I.-Schoenfeldt John C. Schottmiller William J. Smith Daniel M. Stowell Josh Tye Krishna Uppugonduri Raymond E. Urgo James E. Walters Russell T. Westcott Timothy Wiedman Many others might not have made a tangible contribution to the project but were actively involved in the planning stage or were invaluable to the project because ofACKNOWLEDGMENTS xxix bot tETPOOSOS SS OSE SLOSS TOSSES SOS SSS ESOS EOL OSEOSES their support throughout its development. This is a very large group, so it is impos- gible to recognize these individuals by name. The project team would like to thank ASQ author Thomas Cartin for permitting the modification and use of a draft of his glossary from Principles and Practices of Organizational Performance Excellence. Also, ASQ member Thomas Pyzdek was actively involved in the planning of this project and graciously provided many orig- inal pieces of artwork for inclusion in this handbook. We were also fortunate to have a competent and dedicated technical writer in Janice Smith, whose professionalism was indispensable to this project. It has been a difficult and very unique challenge to manage this project and to avoid conflict of interest for all concerned. We have taken great pains to keep the group who contributed to the development of the exar separate from the people who contributed to this book’s content. We are happy to report that we have been successful. As far as determining the value of this book, we will let you, our cus- tomer, be the final judge! Arvind Tripathi Vice-Chair, Quality Management Technology Quality Management Division American Society for Qualitygeo tEOESOPOS SLES ELLOS LIPO LILO O LOPS SOO E LOTT H ETS Part 1 Quality Standards oe Se Chapter 1 Total Quality Management Chapter 2 Continuous Process Improvement Chapter 3 Cycle Time Reduction Chapter 4 Supplier Management Chapter 5 Customer Service Chapter 6 Quality Awards/Quality Standards Criteria % a SEER SEEL SESE EEL E ELLE L ELE L SELLE EEEESS OS OTT POS POSTOPSS OS SHOES ERE SSE TESTE EEOEOOES Chapter 1 Total Quality Management SSPSEP STORES SOS SEES OE EET OOS HETERO EE ES ESET This chapter should help you > Define Total Quality Management (TQM) and list its benefits > Describe and differentiate between Deming’s, Juran's, Feigenbaum’s, and Crosby's approaches to total quality '* Understand the Japanese model of quality improvement > Understand barriers to the successful implementation of TOM WHAT IS TOTAL QUALITY MANAGEMENT (TQM)? Total quality management (TQM), a term initially coined by the Naval Air Systems Command to describe its Japanese-style management approach to quality improve- ment, “is a customer driven, process improvement approach to management.” A holistic approach to management, TQM “involves a knowledge of the principles and techniques of the behavioral sciences, quantitative and nonquantitative analysis, economics, and system analysis to continuously improve the quality of all activities and relationships.” When understood clearly and applied properly, TQM results in many benefits. Before discussing the key concepts of TQM and the resulting bene- fits, itis necessary to examine the evolution of TQM and the changes that have influ- enced it. Evolution of TQM The first seeds of quality management were planted in the 1920s, when the princi- ples of scientific management were applied wholesale in U.S. industry. At that time, union opposition arose because Taylorism? had deprived workers of a voice in the conditions and functions of their work. Elton Mayo’s Hawthome experiments from 1927 to 1982 (see Chapter 12) showed the positive effects of worker participation on productivity. As a participa- tory management system continued to evolve during the period of automation in the 1930s, Walter Shewhart used probability mathematics to develop the concept of sta- tistical analysis for quality control in industries. In the 1950s, W. Edwards Deming aught these new methods to Japanese engineers and executives. Joseph M. Juran brought quality management and the concept of management breakthrough to Japan in 1950. Like Deming, Juran is considered one of the architects of the quality revolution in Japan. *UTyeemmT 1) Trt4 Quality Standards WLS geo SPE POSESILOL LOS LOLOL S LI SOS II POSH SILI LOSS, Armand V. Feigenbaum’s Total Quality Control, written in the 1950s, is a fore. 4 runner for the present understanding of TQM. According to Feigenbaum, total quality control is “an effective system for integrating the quality-development, quality-maintenance, and quality-improvement efforts of the various groups in an organization so as to enable marketing, engineering, production, and service at the {4 most economical levels which allow for full customer satisfaction.”* Likewise, Philip B. Crosby's four absolutes of quality management paved the way for many companies to improve their quality. Appendix B lists the basic tenets and briefly describes the philosophies of Deming, Juran, Feigenbaum, and Crosby as well as" those of other leading contributors to the. quality field (Ishikawa, Shewhart, and J Taguchi). : ‘The Japanese approach toward quality management, started in 1949 and influ- enced by Deming, Juran, and Feigenbaum, was promoted under several names: | integrated quality control; total quality ‘control, and so on. In 1968, the Japanese i agreed to call their approach to total quality control “Company-Wide Quality Con- ' trol.’ Kaoru Ishikawa’s synthesis of a company-wide quality control philosophy contributed to Japan’s ascendency as the quality leader of the world. Today, TOM is the popular name for the philosophy of encompassing a company-wide approach to managing quality. Well-known standards, such as the ISO 9000 series as well as the criteria for the Malcolm Baldrige National Quality ‘Award (MBNQA), Deming Prize, and other national and state quality award pro- grams, specify the processes that contribute to the implementation of TQM in an organization. Many others have contributed to the total quality philosophy, its awareness, and its methodology, and these numbers continue to-soar. As research on quality and its impact on business continues, changes to the existing tenets and their applications will be inevitable. Key Concepts of TQM To analyze and apply TQM, a few popular definitions need to be examined. Several are listed here: { * "TQMisa structured system for meeting and exceeding customer needs and ; expectations by creating organization-wide participation in the planning and j y org ip planning implementation of breakthrough and continuous improvement process.” * “TOMis the system of activities directed at achieving delighted customers, empowered employees, higher revenues, and lower costs.’” > “TQMis a customer-focused strategic systematic approach to continuous performance improvement.”* ; @ “TQMis.a management approach of an organization, centered on quality with a global strategy, based on the participation of all its members and aimed at long-term profitability through customer satisfaction, including benefits to the members of the organization and to society.”” ‘All:these definitions of TOM all reflect several key concepts, which are discussed in the following.