BUS456/504 Question Set 2

Set of questions designed to show how to achieve TQM/TQ and provide a framework to
analyze a company to determine how they are doing relative to the goals of TQM/TQ  framework to
describe why they are where they are, what they need to do to get where they should go (description
of where they should be), and ‘how’ to get there and why the ‘how’ will work.

Quality management/leadership, assessment, design, conformance, and control are all

elements of TQM or TQ or Enterprise Quality (Juran). We have discussed what each is, and why
each is important, but we have not discussed how to achieve each. Understand that there are causal
relationships among each of the elements within and across the three levels of an organization. For
instance, you need to have Quality Management/leadership (QM) before you can have Quality
Assessment (QA), but if you want to improve QM you have to have QA of management processes,
which means that you have to have Quality Control (QCont) to understand the effectiveness of your
QA processes, and so forth. We are looking at the relationships in a two dimensional figure below and
it has 10 dyadic, depicted relationships. In reality, we should look at a sphere and have a QM, QA,
QD, Q Conformance, and QCont for each layer (organizational, tactical, and operational). In such a
figure, there would be a maximum of 105 possible dyadic relationships and it is not just the dyads that
are of interest. In other words, it is hard to get it correct and keep it correct if a firm ever did get there.

Quality
Management

Quality Quality
Control Assessment
TQ

Quality Quality
Conformance Design

Stakeholder Centric

Goal Congruent Continuous Improvement

TQM/TQ: focus on customer (customer centric, but really stakeholder centric), involve everyone (goal
congruency), and continuously improve
Conceptually, in the three levels of an organization (do not include statistics or other math modeling):
How would you achieve high levels of QM, QA, QD, QConf, QCont, five crucial constructs of success
in creating the correct product.

Understand humans how we make errors and our limitations and what we do well that will prevent or
effectuate TQM, then design firm organization and processes to circumvent human short comings
and promote/grow abilities:
List of short comings from evolving on the savanna as hunter gathers, or however we were created
Inattention/tunnel vision
Leaping to conclusions
Rationalization
Denial
Omission (forgetting),
Commission (performing act incorrectly),
Sequence (right-action, wrong order),
timing/rate (too fast, too slow,
Conservative/lazy (do not gather enough information),
Brain only capable of thinking about 3 to 4 hypotheses/arguments at one time,
Attention needs to be: Selective, focused, divided, sustained at the correct time. We
have trouble with the timing.
In group out group tendencies
Biases: attribution, power of perception, recency, early data, believe understand probability
when humans are inherently unable to do so, the more information the more confident, but not
necessarily more accurate, confirmation bias (look only for information that confirms opinion),
risk aversion (chance of loss is given greater weight than equal chance of gain), belief that
small +/- more likely than huge +/-, (Human Error will impact understanding of system)

Positives: creative, lazy, innovative, can change, can process, can communicate, can expand our in
group to include the out group….,

Organizational design policies and procedures will either lean towards Theory x or Theory y to
circumvent human frailties. Takes fewer resources to accomplish theory x, but long term results seem
to be greater with theory y.

Theory X (more management than leadership)

In this theory, management assumes employees are inherently lazy and will avoid work if they can.
Because of this, workers need to be closely supervised and comprehensive systems of controls developed.
A hierarchical structure is needed with narrow span of control at each level. According to this theory,
employees will show little ambition without an enticing incentive program and will avoid responsibility
whenever they can.

The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all
prospective employees are only out for themselves. Usually these managers feel the sole purpose of the
employees interest in the job is money. They will blame the person first in most situations, without
questioning whether it may be the system, policy, or lack of training that deserves the blame.
Furthermore, Theory X supervisors cannot trust any employee, and they reveal this to their support staff
via their communications constantly. A Theory X manager can be said to be an impediment to employee
morale and productivity.

Managers that subscribe to Theory X, tend to take a rather pessimistic view of their employees. A Theory
X manager believes that his or her employees do not really want to work, that they would rather avoid
responsibility and that it is the manager's job to structure the work and energize the employee. The result
of this line of thought is that Theory X managers naturally adopt a more authoritarian style based on the
threat of punishment.

One major flaw of this management style is it is much more likely to cause Diseconomies of Scale in large
businesses. Theory Y allows a business to expand while making more profit because factory-floor workers
have their own responsibilities.

Theory Y (more leadership than manager)

In this theory management assumes employees may be ambitious, self-motivated, anxious to accept
greater responsibility, and exercise self-control, self-direction, autonomy and empowerment. It is believed
that employees enjoy their mental and physical work duties. It is also believed that if given the chance
employees have the desire to be creative and forward thinking in the workplace. There is a chance for
greater productivity by giving employees the freedom to perform at the best of their abilities without
being bogged down by rules.

A Theory Y manager believes that, given the right conditions, most people will want to do well at work and
that there is a pool of unused creativity in the workforce. They believe that the satisfaction of doing a
good job is a strong motivation in and of itself. A Theory Y manager will try to remove the barriers that
prevent workers from fully actualizing themselves .

Many people interpret Theory Y as a positive set of assumptions about workers. A close reading of The
Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more
positive view of workers and the possibilities that this creates.

How would you achieve Quality Management?

Understand that TQM is motivated by theory y: people want to do good; given resources,
realistic rules/constraints, and a goal they buy into, people will determine a way to accomplish
the goal on their own. Probably better and faster than some manager could dream up.

Have leaders who: Understand ethics, are fiscally responsible, protects all stakeholders
interests (including public responsibilities and community support and knows that there has to
be a balancing act)

True leaders have excellent analysis/assessment abilities (environment, industry, firm,

employees, self, competitors) understand attribution theory and biases (perspectives)
analyze/assess how the organization staff analyze and assess and adjusts as needed.

Organizational design that fits the industry, product, country/employee culture, and
characteristics of the firm (size, start up, old, static, dynamic, ownership, etc. It does come
down to lean, what can you do without and still make the correct product. If you do not need all
the employees to make the current product and meet demand, have the excess people create
another product or more demand for the current one)

Create a culture that you want Stakeholder centric (all) make sure the mission, vision,
strategy are stakeholder centric (includes customers, employees, owners, supply chain,
environment, and community) One of continuous improvement, we take care of you, you take
care of us (means it has to happen). Book (TQM) used to say you have to be customer centric,
too narrow, many ‘experts’ now say all stakeholders. One where zero defects is the
expectation. Doing it correct the first time. Where the mantra, relative to a goal, is 1. Know
where you are at. 2) Know why you are there 3) Know where you want to go. 4) Determine
how you are going to get there. 5) is it worth it to get there (NPV)

Leaders/managers that understand: asking how much will it cost is the wrong question. What
is the probable net present value is the question. Cost should not be the decision variable,
rather Y probability of x return (with life time value of customers calculated in) (effectiveness
vs. efficiency)

Walk the talk/take action (support in deeds, not just words) (lead (provide guidance, training
so that employees can/will do more faster with less work) do not manage/supervise
(overseeing work)) to determine how to do better, not to judge people as the sole purpose.
Judge why resources are not doing as expected.

Do not rely on exhortations (Deming) (slogans, speeches, goals (Share mission, vision,
and strategy), people are not the problem, they are the solution, give them the tools to
change the system, not whip or beg them to do better. Use goals only when they are
specific, holistic, and resources are provided to reach them. Do not use goals as
punitive or rewarding (such as sales goals or units made per day; unintended
consequences and frustration created by asking for goals when resources are not
provided) (need goals, so what kind of goals should we have, ones that are based on
stakeholders conditions being improved  improve product/process (P/P) relative to
correct product.

Continuous improvement of all products and processes, including management

processes.

Do not do it alone (teams, SCM, associations, network)

Know who is responsible for what (allocate responsibility allow/force autonomy) (know
the formal and informal ways that things get done) and let everyone know what they are
responsible for and how they will be evaluated

Willingness to train and be trained to maintain TQ/QM culture and perform tasks
correctly (Ishikawa, Deming)

Employee selection based on motivation, ability, and skill Note order

Positive work environment (safe physically and emotionally) Drive out fear (Juran) of:
reprisal from process failures, the unknown, losing control of uncontrollable process,
change, ambiguity (develop trust) (Crosby said fear is fine: fear of personal failure, fear
of failing the customer as promised, fear of screwing up a good process, fear of
competitors overtaking you)
Work (employees organized into formal and informal units) and job (tasks you do
and how you do them) design that enables, challenges, and grows people while
still making the correct product. Understand the power and limitations of teams,
cross training, responsible for product output, not task output. Cellular design vs.
line design (eliminate waste, Lean production).
Create jobs, appraisal system, and rewards that encourage pride in the job
 Use appraisals mainly for improvement, not categorization and punishment (may
have to fire someone)
Evaluation is for categorization relative to a standard
Tie rewards to desired outcome (if reward Purchasing manager based on cost,
will get low cost material that will probably not have the best outcome. Instead
reward based on SCM skills, cost/quality metric (how are their actions hitting the
bottom line), etc.)

Communication: multidirectional and lots of it, but not too much (employee involvement)
Listen to line workers to determine process effectiveness and improvements (bottom
up/participative view of quality (Ishikawa) Share mission, vision, and strategy and how
you are doing on reaching the mission and vision

Understand the difference between compensation and recognition and use adequate
amounts of both (Carrots instead of sticks, but be willing to use the stick when have to.)

Know employee as well as customer satisfaction levels and trends and reasons for
trends (drives changes in training, hiring, work and job design, products/processes)

Know the processes used to produce the output (support and production (backroom vs.
frontroom), subjective & objective views of customers (internal and external) of what
outputs should be and what product characteristic predicts level of satisfaction, then
measure that characteristic

Understand that process design and resource constraints constrain output, not people
85% of time, and as a leader/manager, you control resources thus processes. Exercise
process management
Sound planning, not reactions to failures (Feigenbaum)
Do it correct the first time (Deming, Crosby, Taguchi) there is no room for
variation from what is correct.
Quantify output through statistics processes (Deming, Crosby, Juran, Taguchi,
Feigenbaum, Ishikawa)
Shoot for zero defects (all but Juran, Juran insisted on cost benefit analysis)

Inspection does not add value, seldom tells the correct story, and does not prevent
defective product from reaching the market place. Thus, prevent defective units or test
everyone.

Enable people: reduces barriers to success

Feedback: what were the results, what was done correctly, what was done incorrectly,
what worked, what didn’t, adjust leadership/management/stewardship process/policy.

Train, Train, Train!! Train how to train, Train how to think, Train for skills: selection,
leadership/managing, SWOT, customer relations, work relations, torqueing a fastener
etc.

How would you achieve Quality Assessment?

Have necessary resources
Know what to assess by knowing:
 What you can do (what you want to do) (listen to the tactical and operational levels to
know what you can do and what they would like to do) and who that doing will help.
Create the mission, vision, and strategy.
Understand key success factors of your industry, what change agents effect and affect
those factors, and what is happening to those change agents.
Understand what characteristic of your products (internal and external) is the main
generator of satisfaction, understand how to assess that product characteristic, and
then asses/measure it. (those that drive satisfaction of stakeholders (ice-cream
measuring product instead of service delivery)
Understand there should be internal, external, and self assessment.
Understand human error/limitations and design to circumvent them: triangulation, statistics, run
the probabilities, training
Stakeholder centric, great assessment process;
Remember that what is assessed at the different levels can be different; Statistical &
Qualitative analysis
Organizational level
Tactical level
Operational level
Market research such as focus groups, surveys, comparison-shopping, observation, secret
shoppers, sales,
Reverse engineering, Competitive analysis, espionage, public information, suggestions,
returns, reading, TV, (hurricanes overtime at plywood mills)
Feedback: what were the results, what was done correctly, what was done incorrectly, what
worked, what didn’t, adjust assessment process/policy.
CH 6, 7, 8, & 9
How would you achieve Quality of Design (process and product)?
Have necessary resources
Know the goal/purpose (Stakeholder centric);
Understand human error/limitations and design to circumvent them
Congruent design by teams consisting of groups involved (Quality Functional Deployment
(QFD) pp 317-325)
Keep it simple (design for manufacturability),
Mistake proof,
Prototype early and often if possible, (virtual, and actual)
Utilize design tools (CAD, discrete event simulation,… avoid drift/scope creep),
Modeling (simulation, math, and physical)
Remember whom the product is for
Modeling (simulation, math, and physical)
Feedback: what were the results, what was done correctly, what was done incorrectly, what
worked, what didn’t, adjust design process/policy.

CH 6, 7, 8, & 9
How would you achieve Quality Conformance?
Have and provide necessary resources
Conformance of product to design. Through control, those in charge of a process monitor
output to make sure it matches some minimal state that satisfies the customers and delights
the customer if the state is greater than the expected state. Prototyping checks conformance of
design to wants/needs. Ask the customer: surveys, returns, observation, etc.
CH 6, 7, 8, & 9
How would you achieve Quality Control? CH 6, 7, 8, & 9
#.2 have and provide necessary resources
#1 determine what to measure
 #2 find the most effective way to measure (cost/return)
#3 measure
#4 take action
#5 report measure and action to appropriate people
#6 feedback: what were the results, what was done correctly, what was done incorrectly, what
worked, what didn’t, adjust control process/policy.

How would you implement TQ or some other framework What steps would you take to insure all of
the above, where would you start??
What are the greatest impediments for following the mantra of TQ? The mantra is to focus on
customers and other stakeholders, involve everyone (goal congruency), and continuously
improve.
Lack of strong motivation (doing OK as they are, or at least they think they are)
Lack of time (change initiatives do take time and it is hard to spring for resources when
concentrating on costquality is free, usually firms are spending time on rework,
nonvalue added process)
Lack of a formalized strategic plan for change (ignorance by design)
How to overcome impediments:
Understand and convince that returns are greater (culture change (Deming), and NPV
(Juran))
Then top management will be behind the initiative 100%
Change for a reason, have a plan and be willing to change it, it will take time to change.
Provide feedback on how the conversion to and use of TQ is helping the company
For a guideline to use to decide what needs to be changed, look at what is needed to win the
Baldrige and Deming awards, and qualify for such certifications as ISO9000, ISO14000. The
following are needed to win.
Visionary Leadership
Stakeholder centric
Customer centric/driven
Value employees and suppliers/partners
Social Responsibility
Agility/dynamic
Focus on future
Manage for innovation (allow it, train for it, reward for it)
Management by fact, look at the numbers do not guess, know what drives cash flow
and what that flow really is
Focus on results and creating value
Systems perspective
Organization (take tacit knowledge of individual and embed in policy and
procedure/process) and personal learning
There is no sure fired way to get the whole firm practicing TQ or other framework except by
‘walking the walk’.

At the website http://www.enchantedlearning.com/graphicorganizers/ and from Evans &

Lindsay pp 572-579 on the class website under BUS456>Supplements> Seven Management and Planning
Tools you will find ways of organizing constructs and data (The “Seven QC Tools). Below you will find
what I would call a macro causal diagram (cause and effect) that depicts the relationships between
some of the macro constructs we have talked about up to this time. Such a diagram may help you
understand these relationships better. The ability to explain the arrows (arguments of how one
construct affects the next construct) between the constructs would show that you do indeed
understand the relationships. Of course, before a person can explain the relationships, that person
must be able to describe the constructs.
 There are many more relationships than the arrows shown in the diagram presented. There
are relationships between each of the elements within each set of constructs. The arrows indicate
that the elements of one set of constructs affect the elements of the next set and so on.
Another causal diagram is the Malcom Baldridge Award (missing a supply chain, environment, owner,
society aspect) depicted below the Stakeholder Satisfaction Causal Model.
Leadership: senior leadership, governance and social responsibilities
Strategic Planning: Development, Deployment
Customer and Market Focus: Customer and Market Knowledge, Customer relationships and
Satisfaction
Measurement, Analysis, and Knowledge Management: measure of org performance &
improvement, mgt of information, IT & IS, knowledge
Workforce Focus: environment of workforce, engagement of workforce
Process Management: design and mgt/control, improvement (missing implementation)
Results: Product outcomes, customer focused outcomes, financial and mrk outcomes, process
effectiveness outcomes, leadership outcomes

Both models should be used to determine why stakeholders are not satisfied, or at least where one
would look to make that determination. In assessing effectiveness of an organization, work
backwards through the model. Ask yourself at what level the stakeholders are satisfied (give
evidence), then look upstream in the model and determine the root cause of those levels of
satisfaction, use the five whys lean tool.
Stakeholder Satisfaction Causal Model
 Quality
Leadership
Management

Knowledg Knowledge Product &

e of Industry Process
Quality
Of & Customer Knowledg
Quality MADCC
TQ e
Assessmen at Tactical
t Process
Level
Motivation
Motivation Motivation
to use
to use to
industry &
TQ Quality implemen
Customer
Design t
Knowledge
Processe
Correct s
Integration of Strategic
Motivation & Mix of
Knowledge Quality CFSQ
knowlege Conformance Integration of Integratio
K, M, and $ n of
to create Processe
Mission & s
Quality strategy
Control

This is at the
organizational
level

Task
Knowledg
e (TK)

Integratio Satisfying
n of Correct
Stakeholders
Processe Product
Wants and
Quality s & TK Needs
MADCC at
Operational
Level

Motivation to
implement
Processes & TK

The above relationships are more likely to be positive if there is a culture of stakeholder
centrism, goal congruency, and continuous improvement.
 Baldridge Award

Environment, Relationships, Challenges

Strategic Workforce
Planning Focus

Leadership
Results

Customer Process
and Market Management
Focus

Measurement, Analysis, and Knowledge Management