Chapter 9

Organizing For
Total Quality
Management:
Structure And Teams
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 Organization
The process of creating a structure for the
organization that will enable its people to
work together effectively toward its
objective. Thus the process recognize a
structure as well as a behavioral or people
dimension.

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 Why Adopt TQ Philosophy?
Reaction to competitive threat to
profitable survival
An opportunity to improve

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 Selling the TQ Concept
1. Learn to think like top 6. Focus on getting an early
executives win, even if it is small
2. Position quality as a way to 7. Ensure that efforts wont be
address priorities of
stakeholders undercut by corporate
accounting principles
3. Align objectives with those
of senior management 8. Develop allies, both
4. Make arguments quantitative internal and external
5. Make the first pitch to 9. Develop metrics for return
someone likely to be on quality
sympathetic
10. Never stop selling quality

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 Corporate Culture and Change
Corporate culture is a companys
value system and its collection of
guiding principles
Cultural values often seen in mission
and vision statements
Culture reflected by management
policies and actions
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 Baldrige Core Values
and Concepts
Visionary leadership Focus on the future
Customer-driven excellence Management by fact
Organizational and Public responsibility
personal learning and citizenship
Valuing employees and
Focus on results and
partners
creating value
Agility
Systems perspective
Managing for innovation

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 TQ vs. Traditional Management
Organizational Union-management
structures relations
Role of people Teamwork
Definition of quality Supplier relationships
Goals and objectives Control
Knowledge Customers
Management systems Responsibility
Reward systems Motivation
Managements role Competition
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 Cultural Change
Change can be accomplished, but it is difficult
Imposed change will be resisted
Full cooperation, commitment, and participation
by all levels of management is essential
Change takes time
You might not get positive results at first
Change might go in unintended directions

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 Common Mistakes
in TQ Implementation (1 of 3)
TQ regarded as a program
Short-term results are not obtained
Process not driven by focus on customer,
connection to strategic business issues, and
support from senior management
Structural elements block change
Goals set too low
Command and control organizational culture
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 Common Mistakes
in TQ Implementation (2 of 3)
Training not properly addressed
Focus on products, not processes
Little real empowerment is given
Organization too successful and complacent
Organization fails to address fundamental
questions
Senior management not personally and visibly
committed
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 Common Mistakes
in TQ Implementation (3 of 3)
Overemphasis on teams for cross-functional
problems
Employees operate under belief that more data are
always desirable
Management fails to recognize that quality
improvement is personal responsibility
Organization does not see itself as collection of
interrelated processes

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 Building on Best Practices
Universal best practices
Cycle time analysis
Process value analysis
Process simplification
Strategic planning
Formal supplier certification programs

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 Best Practices:
Infrastructure Design (1 of 3)
Low performers
process management fundamentals
customer response
training and teamwork
benchmarking competitors
cost reduction
rewards for teamwork and quality
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 Best Practices:
Infrastructure Design (2 of 3)
Medium performers
use customer input and market research
select suppliers by quality
flexibility and cycle time reduction
compensation tied to quality and teamwork

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 Customer

Employees
Top
Mgmt. Front-line Quality
supervisor
Council
Middl Functional
e Mgmt. Steering
Mgmt. Committees
Functional Middle
Mgmt. Mgmt. Cross Functional
Teams
Front-line Top
supervisor. Mgmt. Quality
Employees Improvement Teams
Quality Circles

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 Firm infrastructure Margin
Human Resource Management
Technology Development
procurement

In bound Sales Force Sales Force Service

logistics operations Administrat Operations
ion Margin

Sales Sales
Marketing advertising Force Technical
forces Promotion
management administrat operations literature
ion

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 People
dimension output
Input
Activities Technical
Money Skills
Objective
Human
Resources
Machines
Technology

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 Best Practices:
Infrastructure Design (3 of 3)
High performers
self-managed and cross-functional teams
strategic partnerships
benchmarking world-class companies
senior management compensation tied to
quality
rapid response
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 Self Assessment: Basic Elements
Management involvement and leadership
Product and process design
Product control
Customer and supplier communications
Quality improvement
Employee participation
Education and training
Quality information
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 Implementing Total Quality:
Key Players

Senior management
Middle management
Workforce

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 Sustaining the Quality Organization
View quality as a journey (Race without a finish
line)
Recognize that success takes time
Create a learning organization
Planning
Execution of plans
Assessment of progress
Revision of plans based on assessment findings
Use Baldrige assessment and feedback
Share internal best practices (internal benchmarking)

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