04 Organizing for Quality

7/28/2019 04 Organizing for Quality

1/33

ME 04 801: QUALITY ENGINEERING & MANAGEMENT (Jinto A J jintoaj.webs.com)

Organizing for Quality


2/33


Organizing for Quality

ISO 9000/QS 9000

Continuous improvement

Six sigma - DMAIC TQM - PDSA

Quality circles


3/33


Concept of TQM

TQM foundation:

Any product, process, or service can be

improved.

A successful organization is one that

consciously seeks and exploits opportunities

for improvement at all levels.

The load bearing structure is customersatisfaction.

The watchword is continuous improvement.


4/33


What must organizations dofor quality to succeed Organizations must adopt a cultural

change that appreciates the primary

need to meet customer requirements,

implements a management philosophy

that acknowledges this emphasis,

encourages employee involvement, and

embraces the ethic of continuous

improvement.International Economic Conference Board

Report: May 1990


5/33


Transition to quality cultureat Xerox

Transition

TeamTraining

Senior

Management

Behavior

Xerox

Culture

Change

Tools and

ProcessesCommunication

Reward and

Recognition


6/33



7/33ME 04 801: QUALITY ENGINEERING & MANAGEMENT (Jinto A J jintoaj.webs.com)

Allaires approach



Managing-by-process principles1. Make all decision and perform all actions within the guidelines of the

"what to's" of the core business processes and their impact onother core processes.

2. Establish owners for all core business processes and sub-processes.

3. Designate these owners as responsible for the maintenance anduse of that process, with their reward tied to the successfulfunctioning of that process for all Xerox personnel.

4. Empower the owners of the process with the responsibility forcontinuously improving those core processes, and reengineeringthem when necessary.

5. Constrain core process and sub-process owners from makingchanges to their core processes that may affect other coreprocesses that are owned by other managers.

6. Designate responsibility for a change in a core process to thehighest-level owner of a core process that is being changedbecause core sub-processes are being changed by lower-level

process owners.



IBMs market driven qualityprogram

Leadership

VisionInvolvement

Policy

Management

Systems

InformationPlanning

Human resource

Quality

assurance

Quality

ResultsImproved quality

Lower costs

Customer

S

atisfaction

Market

Success

Driver System Measuresof Progress Goal



IBMs new CEQ initiative

CEQ aims to instill a commitment inorganizations to embrace quality as a guidingprinciple that touches every phase of the

software development and deployment cycle.Organizations must build quality in, not treat itas an afterthought. Every individual in anorganization, from the business analyst to the

IT operator, can improve application qualitythrough vigilance and a shared sense ofresponsibility for business and customersuccess.



What are some of the stepsorganizations must take? Effectively develop and communicate quality

policy, procedures and requirements across all

company functions.

Mobilize resources to solve quality-relatedproblems.

Effectively coordinate quality requirements with

suppliers. (feed forward) Maintain direct contact with customers

(feedback).



Communicating qualityrequirements Examples of formal communication:

Quality policy statement

Quality manuals ISO 9000 quality standards

Examples of informal communication:

Word of mouth Management actions



Quality - basic beliefs

Ford Quality is job one; there's a Ford inyour future

Chrysler "If you find a better car, buy it!"

(Spoken by Lee Iacocca)Serta We make the world's best

mattress

Caterpillar Strong dealer support; 24-hourspare parts support around the world

McDonalds Fast service, consistent quality

Sprint You can hear a pin drop


14/33

Quality - basic beliefs

Lion Apparel - Continuous Improvement

is a way of life at Lion.

Sager Electronics - our constant goal isto ensure that the services provided meet

or exceed our customers' expectations.

Williams Advanced Materials - we arededicated to providing ever improving

exceptional products and services, and

world-leading technologies.ME 04 801: QUALITY ENGINEERING & MANAGEMENT (Jinto A J jintoaj.webs.com)



Quality policy statement

Most companies today have a written quality policy ormission statement

For example, It is the established policy andintention of this company to provide its customers

with products which conform to customerrequirements and are delivered on time. This will beensured through a defined quality program asdetailed in the company quality manual.

Some companies rely on verbal quality policies. forexample,

our goal is to ensure customer satisfaction andminimize rejects.



Other examples

Goodyear: our mission is constant

improvement in products and services to

meet our customers needs. This is the

only means to business success for

Goodyear and prosperity for its investors

and employees.



Other examples

Motorola - all employees at Motorola

must consistently strive for a six sigma

target.

MotorolaDoing the right thing. Every

day. No excuses.

The bottom line:Organizations must demonstrate

what Deming termed constancy of

purpose.



Identifying and resolvingquality problems Quality problems transcend individual

and functional boundaries. Companies

need multi-discipline problem solving.



Organizational approaches formultidiscipline problem solving Form cross functional teams.

Quality improvement teams

Quality circles

Adopt matrix versus functional

organizational structure.

Co-locate engineering resources to opencommunication channels.

Engineering technical centers/Centers of

expertise



Coordinating qualityrequirements with suppliers Importance of supply chain management

Many quality problems are caused by

defective purchased material (Crosby 50%).

Suppliers often represent a large % of

manufacturing costs.



Strategies for supplierrelationships

Criteria Traditional

Approach

Long Term

PartnershipPhilosophy "keep suppliers on their toes" "mutual dependence"

Supply base Large supply base Few suppliers - "singlesourcing"

Contract length Often short term contracts Often long term contracts

Awardingcontracts

Low cost bid Negotiated

Supplier costs Either company or supplierwins

Share cost savings (win-win)

Cooperation Cooperation as needed;company protects knowledge

Frequent joint problem solving



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.



What makes TQM an HR problem?

TQM requires employee development &employee cooperation.

Thus, the task of top management is to:

provide workers with the necessary skills andknowledge.

create a quality-minded culture among employees.

A quality culture that: nurtures high-trust relationships. has a shared sense of commitment.

believes that continuous improvement is for thecommon good.


24/33


Establishing a quality minded culture

Formation of a quality minded culture is a

human interaction issue.

Therefore, quality management systemsmust provide:

channels of communication for product-

quality information among all concerned

employees.

means of participation for employees so

employees feel theyre part of the system


25/33


Some HR challenges?

Is company culture a subset of national

culture?

Should companies encourage TQMparticipation via monetary incentives?

Do workers want to be involved in the

quality management process - Actually, some want to have input.

many others do not want any increased

responsibility.


26/33


Quality Improvement

TeamsOrganizing for Quality


27/33


Roles for QI teams

In addition to solving quality problems, QI

teams help:

provide a means of participation foremployees in quality decision-making.

aid employee development: leadership,

problem-solving skills. lead to quality awareness which is

essential for organizational culture

change.


28/33


Types of quality improvementteams

Project teams

Quality circles


29/33


Project team characteristics

Teams address key organizational issues

concurrent engineering

ISO 9000 implementation membership - generally mandatory

temporary in nature

participation is cross-functional

team leaders have varying degrees of

authority


30/33


Quality circle characteristics

Voluntary groups of 6-8 members

Quality circle teams are semi-permanent

Teams are from single functionaldepartment

Members have equal status and select

their own project Minimum pressure to solve problems with

a set time frame


31/33


Implementing quality circles

Quality circles require top management

support

Personal characteristics of facilitators arecritical

Scope of project needs to be small

enough to be capably addressed by theteam

Success of other teams has positive peer

pressure effect


32/33


Implementation

Japan- highly successful

Widely publicized quality circles

Product development teams

U.S. - marginal success

Product development teams have

succeeded more so than quality circle teams


33/33

Concurrent engineering project teams

Concurrent engineering teams are having

success - examples: Boeing Chrysler

a concurrent process carried out by a multi-

functional product development team.

intended to replace sequential development

process.

they avoid potential quality problems byintegrating upstream and downstream

functions in the preliminary design phase.

Documents

04 Organizing for Quality