IMENTATION PAGE D -A 9 1 9 se 9in aver time No. ad t e

IMENTATION PAGE F3rm ApprovedOMB No. 0704-0188

D -A 1 9 9 se ... ed to aver aq I0our bet response. ntdutni the time for reviewing. instuciOnl. searchtin e i in data owrc .9in ad reviewing t e coIledion of inormation. Send comments r arding this burlen e[Imate Ot any Othee as Oct 1sq this burden. to WaihintOni Headquarters Sevices. Oiretora eor fInormation Operaton and Reports. 12 IS Jefe on

d to the Olice of Manaqeert and Budget. Paperworck Reduction Proj ct (0704-188), Waihiqton. OC 20503.

REPORT DATE 3. REPORT TYPE AND DATES COVERED,. iJuly 1989

4. TITLE AND SUBTITLE 5. FUNDING NUMBERS

DCSC Total Quality Management Master Plan

6. AUTHOR(S)

7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) B. PERFORMING ORGANIZATIONREPORT NUMBER

Defense Construction Supply Center (DCSC)

Columbus, OH

9. SPONSORING/MONITORING AGENCY NAME(S) AND ADORESS(ES) 10. SPONSORING/MONITORINGAGENCY REPORT NUMBER

11. SUPPLEMENTARY NOTES

12a. DISTRIBUTION/ AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE

Approved for Public Release; Distribution is Unlimited.

13. ABSTRACT (Maximum 200 words)

This document discusses the implementation of TOM by D . It includes a DCSC TOM

charter and policy statement, TOM overview, structure, training plan, and short-,

mid- and long-range improvement initiatives. The goal of the DCSC TOM effort is

to provide the best supply support possible when and where it is needed by

customers, ensuring efficiency and effectiveness through commitment to continuous

improvement.

S EP 29 1989

14. SUBJECT TERMS 15. NUMBER OF PAGES

TQM (Total Quality Management), Continuous Process Improvement,

Management, Supply Support ... 16. PRICE CODE

17. SECURITY CLASSIFICATION 16. SECURITY CLASSIF.CATICN IQ. SECURITY CLASSIFICATION 20. LIMITATION OF ABSTRACTOF REPORT OF THIS PAGE OF ABSTRACT

UNCLASSIFIED I UNCLASSIFIED UNCLASSIFIED UL

NSN 754001-280-5500 Standard Form 298 (Rev. 2-89)Pttrcrbed by ANSI Std 139-I298. 102

TOTAL

QUALITY

MANAGEMENT

MASTER PLAN

,,0,

Defense Construction Supply CenterJuly 1989

89 9 29 023

MANAGEMENT'S COMMITMENT TO TQM

C /

Defense Construction Supply Center John P. Dreska, MG, USA

Deputy Commander rJ. 2,-'/T. J. Mil'er, Col, USAF

Chief of Staff & //1 4_

X~. H. Bernhardt, Col, OSAF

Executive Officer

Public Affairs

p

I Flewellen, Chief

Small Business Office J..M . "lerman, Chief

Military Personnel OfficeA. Mohr, Chief

Equal EmploymentOpportunity Gffice M. P McIntosh, .hief

Safety and Health Office

Internal Review Office ______________________

D. Kreimer, Chief

Office of Comptroller 3". (? - -D.C. Canterbury, A ingDirector

Office of Command Security 9 ?cG.M. Lutz,.Di~eclor

Office of Counsel G _ "T. M. Hiliin, Counsel

Office of Civilian i.tL_4A,/GPersonnel M. A.- kci; Director

,i I I | II

MANAGEMENT'S COMMITMENT TO TQM (Cont)

Office of Policy and Plans a2 -' 4'/ _A-H ng Director

Directorate of SupplyOperations R. L. ErayCap6, C, USN, Director

Directorate of Contracting ___ ____,_/_-___--_

and Production M. S. Barnett, Director

Directorate of Quality ______

Assurance T. .. enthorn Director

Directorate of Technical i !Y.- '."

Operations K. K. McLain, D' ecto,

Office of Installation &A.t. ~~t/c~Services . .Yarbrough, LTC, USA, Direct r

Office of Telecommunications klo-LC4

and Information Systems s Deputy Director

CommanderDefense Depot Columbus D. Stewart, COL

ii

CONTENTS

SECTION

DCSC TQM Charter 1

DCSC Policy Statement 2

The TQM Overview 4

DCSC TQM Structure 9

TQM Training Plan 14

TQM Short-Mid-Long Range Initiatives 19

Appendices

QUB Charters and Execution Plans A

Terms and Definitions B

DEFENSE CONSTRUCTION SUPPLy CENTERCOLUMBUS MIO

TOTAL QUALITy MANAGEMENT

OUR M1ISSION

To support the highest leveL of readiness through acquisition, storage n.rfdistribution of supply items requested by our military customers.

OUR aOALTo provide the best supply support possible when and where it is needed by

our customers, ensuring efficiency and effectiveness for our actions through acommitment to continuous improvement of our work and our end products.

OUR RESPONSIBhLITIESTo Our Customers:

A commitment by boti employees and management to improvement. Ac-tions speak Louder than philosophical words. The customer after aUL, is the sole

reason for our existence.

To Our Employees:

A commitment to our employees v'ho are the corporation - an investmentin excellence through education and training that wiLt provide the foundationnecessary for improving our support to our customers.

To Our Vendors:

A commitment to break down barriers and to streamline the acquisitionprocess while requiring a reciprocal commitment from our vendors to pursue

improvement in the goods and services they provide.

To Our Community:We will honor our obLigations to society by being an economic asset, partici-ig n community enrichment programs, and being a positive representa-

t e of the Federal Government.

0{N P. flRESKA CARflELITA tRIj~ JAM-ES R. MlURP{y

ajor General, USA President President

Commander AFGE Local 1148 IFPTE Local 7

D" C.1

DCSC

TQM POLICY STATEMET

2

TQM POLICY STATEMENT

In a constantly changing world, one idea mustendure--the commitment to ensure that DCSC'stimely support to the military customer is thebest it can be. This level of performancedemands an ongoing investment by the employees ofDCSC to promote constant improvement in buyingand supplying better quality items to ourmilitary customers at the best value to thetaxpayer.

3

TQM

OVERVIEW

4

DCSC TQM OVERVIEW

The Total Quality Management (TQM) concept isbased upon the pioneering work of Dr. W. EdwardsDeming, Dr. Joseph H. Juran, Philip B. Crosby,and others.

TQM IS an integral part of and vitally importantto the overall DCSC Strategic Plan.TQM IS NOT a stand alone process initiated toresolve all of DCSC's problems.

TQM IS a systematic process for improvingproducts and services.TQM IS NOT a program or a fad.

TQM IS a structured, disciplined approach toidentifying and solving problems.TQM IS NOT crisis management.

TQM IS a participatory work style, conveyed byma;nagement actions and commitment, whichharnesses the creativity and ideas of allemployees.TQM IS NOT a dictatorial initiative conveyed byslogans.

TQM IS a long term commitment.TQM IS NOT a quick fix.

TQM IS practiced by each and every employee.TQM IS NOT assigned to subordinates.

TQM IS supported by Statistical Process Control.

TQM IS NOT driven by Statistical Process Control.

DCSC TQM OVET7IEW

KEY ELEkENTS

o COMMITMENT BY TOP MANAGEMENT

o AN ENVIRONMENT FOR CONTINUOUS IMPROVEMENT

o SATISFACTION OF CUSTOMER NEEDS

o INVOLVEMENT BY EVERY INDIVIDUAL AND FOCUSON TEAMWORK

o RECOGNITION OF THE IMPORTANCE OF PERSONNEL

COMMITMENT BY TOP MANAGEMENT

TQM is a DoD initiative for continuouslyimproving performance at every level and area ofDoD responsibility. Improvement is directed atsatisfying broad quality, productivity, cost andschedule initiatives, and at modifying managementtechniques. TQM brings together existingimprovement efforts and specialized technicalskills under a structured approach focused onimproving all DoD processes.

The Defense Logistics Agency (DLA) fully supportsDoD's TQM initiatives for continuous improvementat every level. DLA stands to realize majorgains from the implementation of TQM throughoutthe Agency. As a quality buyer, a substantialportion of these gains will be found in theproducts and services acquired from industry.Our Outreach programs will be oriented toencourage industry to adopt TQM, and to guideindustry, by example, in furthering TQMprinciples, practices, and philosophy. DLA willbe universally recognized as a 'World Class'logistics support activity. The DLA TQM MasterPlan serves as the foundation for theimplementation of TQM within the Agency.

6

DCSC TQM OVERVIEW

AN ENVIRONMENT FOR CONTINUOUS IMPROVEMENT

Continuous Improvement is the hallmark of TQM. Itis realized by focusing on the processes thatcreate products and services. Only after everyaspect of each process is mastered can analysis,measurement, and improvement efforts beintroduced. It is a basic precept of TQM thatall employees have a profound knowledge of eachprocess with which they are involved; therefore,consistent formal training in the appropriatetechniques and tools of process analysis must beprovided to each employee. It follows then thatmanagement must listen to employee suggestionsfor improvements to the process and, whereverpossible, empower employees to make thoseimprovements.

SATISFACTION OF CUSTOMER -EEDS

In the performance of every task, there is atleast one customer for the efforts expended.Whether our customers are co-workers,supervisors, organizations, activities, orServicemen and women, they expect, and deserve,the best we can provide. TQM embraces thisimportant customer/supplier relationship byfocusing attention on providing timely qualityproducts and services in everything that we do.Contractors are also customers, who deservequality, on-time services such as inspection,payment, etc.

Providing quality products or services requiresthat we know and thoroughly understand each ofour customer's needs. Likewise, customers mustunderstand the capabilities of the processes weuse to produce products and services. Bothparties in the customer/supplier relationshipmust work together to ensure that needs andcapabilities are c:orrelated to the maximum extentpracticable. It is vital to our survival that wereview the processes in each organization forthose critical points that influence customersatisfaction.

7

DCSC TQU OVERVIEW

INVOLVEMENT OF EVERY INDIVIDUAL AND FOCUS ON

TEAMWORK

Simply put, we need 100% involvement of everyindividual. We can't expect to get a processimproved unless the personnel who know theprocess best are part of the improvement effort.Teamwork is critical to successful improvement.The Executive Steering Committee (ESC) , QualityManagement Boards (QMBs) , Process Action Teams(PATs) and Quality Circles (QCs) all require theefforts of members to work together as a team.To stay competitive in todays' environment, DCSCwill strive to develop highly skilled work teams.

RECOGNITION OF THE IMPORTANCE OF PERSONNEL

It's been stated before: people are our mostimportant resource. Without the active involvementof each and every member of the DCSC family, TQMhas no chance to succeed. For each person to feelpersonally responsible for developing an attitudewithin themself that encourages constructivechange, identifies opportunities, and stimulatesinnovative ideas for continuous improvement, theyneed to feel they are part of the team.Supervisors are responsible for creating anenvironment which respects individuals and fosterstrust, which allows open communication, andencourages change. Another important aspect ofinstilling a feeling of worth is through personalrecognition. Individual and group achievement willbe appropriately recognized for contributions tothe process and quality of work life. The bestrecognition of the contribution is implementationof the idea itself.

8

DCSC

TQM STRUCTR

9

DCSC TQM STRUCTURE

KEY ELEMENTS

o DEVELOPING THE TQM APPROACH

o STRUCTURE

o RESPONSIBILITIES

DEVELOPING THE TQM APPROACH

Cultivating Total Quality Management as a way oflife for DCSC will require development of a TQMapproach, identification of responsibilitiesand establishment of initiatives. It will alsorequire follow-up by all levels of management totrack implementation and progress.

The DCSC TQM Master Plan contains thrustswhich provide a framework for Total QualityManagement at DCSC. These thrusts will besupported by specific process improvementactions.

At DCSC, our initiatives will be translated intoimproved products and services through therepetitive and continuous use of a processimprovement cycle. The process improvement cyclewill consist of the following:

- Identification and prioritization of

opportunities for improvement;

- Identification of work processes;

- Identification of relevant measurementpoints;

- Implementation of the best solutions;

- Monitoring effectiveness.

10

DCSC TQM STRUCTURE

STRUCTURE

A TQM structure will be established whichmirrors the current organization to themaximum extent possible. The basic TQM structurefor DCSC is diagrammed below:

COMMANDER

IExecutive FOCALSteering POINTCommittee STAFF

AS NEEDED

QUALITY QUALITY QUALITYMANAGEMENT MANAGEMENT MANAGEMENT

BOARD BOARD BOARD

PROCESS PROCESSACTION ACTION QUALITYTEAMS(S) TEAM(S) CIRCLES

The DCSC TQM structure will consist of anExecutive Steering Committee (ESC) , TQM FocalPoint Staff (FPS) and designated QualityManagement Boards (QMBs) consisting of at leastone ESC member. The QMB in turn will appointProcess Action Teams (PATs) with at least one QMBmember. The Quality Circle (QC) teams receivedirection from their directorates and offices,but are also responsible to the ESC through theQuality Circles QMB.

The ESC includes all major Directorate and OfficeHeads. The ESC will be co-chaired by onemilitary officer and one civilian. The FPS willcoordinate training and perform administrativeduties in support of the ESC.

11

DCSC TQM STRUCTURE

RESPONSIBILITIES

The overall DCSC TQM effort is the responsibilityof the ESC, which reports to the Commander. TheESC will:

- Advise the Commander on TQM matters;

- Establish TQM initiatives;

- Establish Quality Management Boards;

- Provide guidance and direction for TQMimplementation and develop the overallTQM vision;

- Oversee TQM;

- Participate and implement, through QMBs'analysis of the processes;

- Ensure total workforce involvement;

- Identify critical customer requirements;

- Prioritize products and services for qualityimprovement;

- Provide training resources;

- Integrate strategic planning and qualityimprovement efforts.

The ESC will meet when called by eitherco-chairperson, but no less than monthly, todiscuss, formulate, and refine TQM policy,initiatives, and achievements. The ESC issupported by Quality Management Boards and theTQM Focal Point Staff, who facilitate TQMimplementation at DCSC.

Our plan incorporates the methodology andinitiatives established by the Headquarters DLAESC, and applicable initiatives identified in theDLA Principal Staff Element TQM plans. The DCSCplan also contains unique/specific initiativesand procedures for tracking progress.

12

DCSC TQM STRUCTURE

Our methodology employs three types of teams thatwill work for process improvement. These teamsare QMBs, PATs, and QCs.

QMBs

- Identify the specific processes related tothe targeted products and services;

- Identify process problems and develop

solutions;

- Establish Process Action Teams;

- Ensure Process Action Teams are trained;

- Consolidate and interpret process data fromPATs;

- Document major results and report to theESC.

PATs/QCs

NOTE: Quality Circle team members are voluntary.PAT team members are appointed.

- Conduct process analysis for quality

improvement requested by QMB;

- Collect process data for QMBs;

- Recommend process corrections;

- Establish process monitoring systems;

- Document process analysis and improvementactivities, and report results to the QMB.

13

TQM

TRAINING PLAN

14

TQM TRAINING PLAN

KEY ELEMENTS

o TRAIN THE EXECUTIVE STEERING COMMITTEE

o TRAIN FACILITATORS

o TRAIN QUALITY MANAGEMENT BOARDS

o TRAIN PROCESS ACTION TEAMS

o TRAIN MANAGERS

o TRAIN EMPLOYEES

TQM succeeds only when managers and employees havethe tools to work together for continuous processimprovement. The education will begin with theExecutive Steering Committee. The education mustbegin at the executive level, and permeate theentire organization through an organized downwardtraining cycle. The reason for top-down educationis to avoid the program mentality of *here todayand gone tomorrow.' The TQM philosophy must beembraced and practiced by top leadership if theirexample is expected to move the workforce toaction. People are influenced by the actions ofleaders; not by their words. Once the ExecutiveSteering Committee has a fundamental grounding inTQM, their actions and decisions will shape andmold continuing process improvement. The TQM FocalPoint Staff (FPS) will also be trained with theESC. The FPS will support the ESC in all aspectsof implementing TQM to include training efforts.The FPS is responsible for consistency of lessonplans and training provided by the facilitators.The Training QMB will establish criteria forfacilitator selection.

15

TQM TRAINING PLAN

The ESC will bring in quality and productivityexperts from government and industry to talk withDCSC managers and supervisors. The exchange oflessons learned from other organizations willassist DCSC in implementing TQM.

Once projects are identified, QMB and PAT teamswill be given just-in-time training to use inconjunction with their process improvementefforts.

All managers and employees will receive TQMorientation training. This orientation willprovide an appreciation of TQM and the need forteams working on process improvement. Ultimately,TQM will become a way of life. The TQM philosophymeans every work group will be a team engaged incontinuous process improvement.

The specific types of training will consist of the

following:

INITIAL ORIENTATION FOR CURRENT EMPLOYEES

TQM orientation is designed to give allemployees a general appreciation of the TQMphilosophy. This will include an overview of Dr.W. Edwards Deming and the contributions of Dr.Juran and Phil Crosby.

TQM orientation will include discussions of theDoD, DLA, and DCSC TQM Master Plans, and eachemployee's responsibility in implementing andsustaining TQM. Success stories from bothgovernment and private industry will also be apart of this training.

PROBLEM SOLVING TECHNIQUES FOR TEAMS

This training is the cornerstone for continuousprocess improvement. It will consist of suchtools as Brainstorming, Flow Charts, ParetoAnalysis, Cause and Effect Diagrams, Nominal GroupTechnique, various types of charts, checklists,etc., to attack and analyze problems.

16

TQM TRAINING PLAN

STATISTICAL PROCESS CONTROL

Statistical Process Control (SPC) is the use ofstatistical techniques and graphical methods suchas control charts to analyze a process or itsoutputs. This approach requires appropriateactions to achieve and maintain a state ofstatistical control and to improve processcapability. Statistical process control virtuallyguarantees process improvement.

TEAM STRUCTURE AND COMMUNICATIONS

The role of teams is extremely important toimplementation of TQM. Through group interaction,a synerey is formed which enables a team toaccomplish more than its individual members couldaccomplish on their own.

Supervisors will learn the importance of becominga leader of the team rather than the boss. Teammembers will find their varying personality typesand backgrounds bring a wealth of opinions andideas to share with their fellow team members.

This training will explore the processes andattitudes necessary to build an effective team.Topics will include team characteristics,individual and group behavior, communication,leadership strategies, and conflict identificationand resolution.

17

TQM TRAINING PLA"

INVESTMENT IN EXCELLENCE

This course provides the tools to change ourmindsets. It will help DCSC bridge the gapbetween the program mentality of today and theProcess Improvement Philosophy of tomorrow.

Investment In Excellence, simply put, is a threeday journey into an experience that mirrors thetitle. This curriculum was chosen due to itspowerful content and logical linkage to a TotalQuality Management philosophy. This is anopportunity for attendees to learn and shareconcepts, examples and proven techniques, whichallow each trainee to bring all of hiz or herabilities and talents to the surface. Each unit ofthe curriculum takes the student through ajourney, and provides powerful tools for success.With this cooperative, self-discovery approach,the course provides a powerful and constructiveframework to improve decision making and bring outmore of the employee's potential.

OTHER TRAINING

As TQM evolves in both government and privateindustry, our training material will be updated.

18

TQM

SHORT - MID - LONG

RANGE INITIATIVES

19

TQM SHORT-MID-LONG RANGE INITIATIVES

KEY ELEMENTS

o DCSC TQM THRUSTS

o SHORT RANGE INITIATIVES

o MID RANGE INITIATIVES

o LONG RANGE INITIATIVES

DCSC TOTAL QUALITY MANAGEMENT THRUSTS

The Commander, DCSC, has defined four major areasof concentration which will enable us to live upto our corporate TQM policy statement. Those fourthrusts are:

INCREASE SUPPLY AVAILABILITY

REDUCE COSTS

IMPROVE PROCUREMENT PROCESS

INVEST IN AND INVOLVE PEOPLE

All initiatives at DCSC support the four majorthrusts mentioned above. They are categorizedbelow to reflect the primary thrust which theysupport. Initiatives are classified as shortrange (I year) , mid range (3 years) , and longrange (7 years). Several of the short rangeinitiatives are currently linked with QMBcharters found in the appendix. The mid and longrange initiatives are written in more generalte-ms so that flexibility exists for change andimprovement as they are implemented.

There are several broad initiatives which do notlend themselves to categorization under one ofthe four thrusts, but which will be necessary toachieve our goals. These include actions such asdeveloping a better undors ,nding of our

20


customers' needs through increasing the number ofpeople involved in customer support liaison. Wemust also ensure that all policy documents,existing and proposed, include informationdefining specific TQM involvement and support.Finally, we must adopt a management philosophy oflearning the cost of doing business, and theestimated cost under any changes contemplated.Every management decision should consider thecost/benefit trade-offs of taking that particularaction. The analysis must consider not justcosts peculiar to a specific organizationalelement, but the effect on the entire Center.This is not to say that the lowest cost solutionis always appropriate. In many cases, higherquality service to our customers may dictateextra cost. Long range benefits may outweighshort term cost increases. The bottom line isinformed decision making in a cost consciousenvironment.

INCREASE SUPPLY AVAILABILITY

SHORT RANGE (1 YEAR)

IMPROVE CATALOGING - Review and develop improvedpolicies and procedures for the catalogingprocess (applicable to DCSC-O and -S functions).

DEVELOP BUY GUIDANCE - Review and developimproved methods to determine selection, timing,and quantity of items to be bought to reduce theimpact of future stock fund reductions.

INCREASE LONG-TERM CONTRACTS COVERAGE - Makemajor gains in the percentage of stock fundobligations which are placed againstlong-term contractual instruments. Such anapproach yields tremendous benefits indeveloping a stable vendor base of high quality,reliable sources. Available techniques includeIndefinite Delivery Type Contracts, RequirementsContracts, and Co-located Operating Parts Depottype contracts. Particular emphasis will beplaced on the Paperless Ordering PurchasingSystem, which not only yields the benefits of along-term contractual approach, but takescommercial items out of inventory.

21


Our initial effort will identify a core group ofitems that exhibit long-term demand stability,technical stability, and relatively high stockfund dollars for long term contracts and advancedacquisition planning purposes.

IMPROVE PROCESSING OF DISCREPANCIES/CUSTOMERCOMPLAINTS - Review and improve methods relatingto the processing of actions and responsivenessto our DoD customers.

IMPROVE MANAGEMENT OF FIRST ARTICLE TEST (FAT)INFORMATION - A new procedure has beenestablished by the Contracting and Production andQuality directorates to manage First ArticleTests (FATs) . The procedure will monitor,follow-up, and evaluate future FATs. QualityAssurance Specialists are now reviewing currentcontracts with FAT clauses to troubleshootpotential problems.

ESTABLISH MINI-ICP

The MINI ICP Project began 1 April 1989 withrepresentatives from DCSC-P and -0, with -Q and-S participation as needed. This team isresponsible for monitoring 302 NSN'S cradle tograve; reducing production and administrativelead time; and reducing the number of backorders.

22


MID RANGE (3 YEARS)

FOSTER THE IMMEDIATE IMPROVEMENT INITIATIVES 13 -

Modernize SAMMS in conjunction with input fromDLA HQs, DSAC, the integration contractor and theother DLA Supply Centers.

LONG RANGE (7 YEARS)

Our long range goal is to achieve supplyavailability in the mid to high nineties.Dramatic process improvements will beaccomplished to overcome funding short falls.Backorders will be significantly reduced. Theworkforce will be sensitive to customer needs.

REDUCE COSTS


CONSOLIDATE SMALL DOLLAR VALUE PURCHASES - DCSCwill test aggregating multiple small purchasestock buys where the cumulative annual buy willstill fall below the small purchase threshold.Minimal stock fund impact is expected, as arereduced costs through less procurement labor,reduced paper clog in the system, and attainmentof more economic ordering quantities.

REDUCE LEAD TIME - We are also looking at asample of the over 225 days population ofpurchase requests and purchase orders. We haveflow charted the procurement process andpin-pointed potential problem areas for furtherexamination.

REVIEW A BACK TO BASICS APPROACH - All ICP goalsas they relate to accuracy, efficiency, quantityand timeliness are under review and analysis.This initiative will also focus on executivejudgement on our current goals, the goal settingprocess, and begin the strategic planningprocess.

23


MERGE THE OFFICE OF COMPTROLLER WITH THE POLICYAND PLANS DIRECTORATE - The merger will integratethe team concept in support of DCSC/DDCOcustomers. The organization will be flatter toimprove communications and reduce managementlayers between the team and the customer.

MID RANGE (3 YEARS)

REVIEW ORGANIZATION STRUCTURE - The overallorganization structure of the ICP will bereviewed to ensure that we are organized in thebest possible way to achieve mission objectives.We want to look at the results of the MINI-ICPtest and other possible applications of teamconcepts. We will review all structures toensure elimination of unnecessary managementlayers, maintenance of one face to our externalcustomers, and maximize opportunities forprofessional growth of the workforce.

ENHANCE DEFENSE STANDARDIZATION - This initiativewill focus on management's efforts to establishaccountability and assure compliance byidentifying current policies and implementingcontinuous improvement. This initiative, willenhance our interface with non-governmentstandards bodies.


Long-range initiatives include focusing on theautomation of standardization databases.Additional cost reduction objectives will includeequipping all of the TQM teams with thetools needed to identify and reduce the cost ofour products. These tools might include trainingin value added analyses, economic analyses, etc.

24


IMPROVE PROCUREMENT PROCESS


EXPAND THE DCSC QUALITY VENDOR PROGRAM -

Significant expansion of the QVP is necessaryto ensure placement of DCSC contracts with highquality, dependable vendors. During the nextyear we will expand the current test program tothose Federal Supply Classes which will affordthe most benefit for the resources invested.Screening of QVP applicants to assess whetherthey meet the criteria of a proven track recordof on-time delivery, and an absence of qualitydeficiency reports will continue. Contractingofficers will have the option to pay up to a 20%higher price to buy quality and delivery.

We are reviewing the potential selective use ofthe QVP philosophy in an individual contractingsituation. This approach will allow us toaccelerate implementation where we've hadproblems in the past.

REDUCE PROCUREMENT ADMINISTRATIVE LEAD TIME - Weare undertaking a review of Automated SmallPurchase Phase I failures to determine the typeof failures received, vendors involved, and theage of the PRs when they are processed as manualbuys. Our review will encompass alternatives toachieve more timely and cost effectiveprocessing.

25


ESTABLISH A DCSC VENDORS OUTREACH PROGRAM - Acore group of individuals will be established towork with our vendor community. The purpose istwofold. First is the opportunity for us to tellour contractors about the TQM implementation weare pursuing at DCSC. Secondly, is the continuousfeedback from private industry such a programwill offer. The communication afforded by such aprogram will allow both the private sector andthe government to improve our respectiveprocesses.

INCREASE AND INTEGRATE THE PROGRAM 400 AUTOMATEDSYSTEMS - The short-term goal is to addthe Contracting Technical Data File (CTDF)prototype to Cataloging Tools On Line (CTOL).

MID RANGE (3 YEARS)

INTEGRATE THE PROGRAM 400 AUTOMATED SYSTEMS -

Midterm, the production CTDF will be added toCTOL.

USE BEST VALUE CONTRACTING - We will take intoconsideration a number of different sourceselection criteria, such as those vendors usingSPC and TQM to put good products in our pipeline.

INCREASE PROCUREMENT AUTOMATION - Improve the DLAAutomated Solicitation Preparation System(DPACS). Improve SPEDE use for the BPA/AutomatedPhase I system to set up a PC to PC link andexpand SPEDE to accommodate POPs. Three yearsfrom now we want to complete implementation ofthe DPACS systems throughout the ICP.

REACH OUT TO SHELTERED WORKSHOPS - NIB/NISHhas a short-term goal of awarding $2 milliondollars worth of business to the developmentallydisadvantaged. The midterm goal is to establishup-front coding that will direct new items andSupply Support Requests (SSRs) directly into theprogram.

OBTAIN A TQM IMPLEMENTATION COMMITMENT FROM AT

LEAST 25 DCSC VENDORS - DCSC must define, by yetto be established criteria, our top 25contractors, similar to the top 25 in DoD andextract a commitment from them to implement TQMphilosophies in their companies.

26



As an extension of the SAMMS 11 initiatives, wewill establish a common work-station in theInventory Control Point that will use a data baseenhanced with artificial intelligence and expertsystems that will culminate in the development ofthe one-stop knowledge engineer. Likewise, allbuying and contract administration personnelwill perform in a work-station environment whichwill allow them instant access to all keyinformation required to do their job. Themajority of the interface with the vendorcommunity, DCAS and DCAA will be by ElectronicData Interchange means.

Rule-based contracting policy will increasinglybe replaced by flexible contracting policy whichenables professional contracting officers toexercise sound business judgment.

INVEST IN AND INVOLVE PEOPLE


DEVELOP TEAM BUILDING

DCSC is meeting the challenge of todays'environment where organizations need a highlyflexible work place. To ensure our employeescontinue to achieve as high performers and showconstant improvement, existing teams are beingtrained to become self-managing. In the shortrange, we are planting such seeds with a Mini-ICPand proposed -L and -C organizational merger.These two areas will provide the environment tofurther ensure successful team building in thecorporation. We will foster and integrate ourcurrent Quality Circles under our TQM philosophy.Other problem solving work teams will also beencouraged. Our short range initiatives includetraining members of the ESC in team building andproviding just-in-time training for QMBs as theyare formed.

27


IMPROVE EMPLOYEE ORIENTATION AND CROSS TRAINING -

A number of initiatives are underway to provideimproved training and orientation to targetedgroups of the DCSC workforce. The common threadof all these efforts is to ensure all employeeshave an appreciation for how their job fits intothe overall DCSC mission and contribute toserving our customers. The training initiativesinclude:

ESTABLISH A WELCOME ABOARD PROGRAM - Theidea is to introduce new employees to a 'wecare about you* environment.

ORIENTATION TRAINING - A center orientationQMB will expand current orientation programswhich deal primarily with personnel-relatedissues to embrace ICP functions.

INTERN TRAINING - Currently a variety oftraining plans for Quality AssuranceSpecialists, Item Managers, and ContractSpecialists provide for orientation to otherICP functions. These plans will beintegrated to ensure equitablefamiliarization by all future ICP interns,and curricula will be expanded to include TQMtraining.

SUPERVISORY CROSS TRAINING - Providesopportunities for ICP personnel to receivecross training in other ICP Directorates.

SUPPORT PERSONNEL - A plan will be developedto familiarize clerical and P-900 personnelwith the mission of the ICP through 1-2 daytraining sessions.

PROVIDE AN EXCELLENT ENVIRONMENT - DCSC willprovide an excellent work environment bycontinually striving to improve the quality ofour facilities, services, equipment, andsupplies. An excellent environment encouragesconstructive change.

28


IMPROVE THE QUALITY OF WORK LIFE - There are

several short term projects budgeted andscheduled for completion in FY 89-90. Amongthese projects are: lighting upgrades forprimary office areas and warehouses, new messagesigns at all entrance gates, construction ofadditional classroom space, handicapped ramps anda chair lift for the walkway between Bldgs 11 &12. new vending/break areas, improved fire alarmsystems and removal of asbestos DCSC-wide.

ASSESS WORK ORDERS FOR CONTINUOUS IMPROVEMENT -

Improve the work order process to enhance thetimeliness and quality of work performed.

IMPROVE OUR WELLNESS - Enhance existing wellnessactivities so that every DCSC employee has theopportunity to achieve and maintain a healthylife and work style. Particular attention willbe devoted to physical fitness, nutrition, stressmanagement, smoking prevention and cessation,alcohol and drug abuse prevention/rehabilitationand early identification of hypertension.

CONSOLIDATE IDEA PROGRAMS - Consolidate theSuggestion, MIP and all other productivityprograms into one that more effectively enablesour employees to be innovative and creative.

TEST THE ALTERNATIVE WORK SCHEDULE - Increaseworkplace flexibility by testing and implementingan Alternative Work Schedule concept. Thisconcept enables employees to maximize theirproductive efforts on the job while allowing themto establish a better balance between work andpersonal needs.

29


MID RANGE (3 YEARS)

INFUSE TEAM BUILDING

As we move from our short range objectives to midrange, we will infuse successful teams throughoutthe total workforce,

Participative management is the wave of thefuture and DCSC will crest it with team memberswho are committed to quality and each other. Toaid in this organizational transition, we willclarify characteristics of the "types' of teamswe wish to encourage at DCSC and gain commitmentfrom Unions and middle management. By improvingteams and continuing to recognize theircontributions, the achievements of our teams willbecome the cornerstone to secure their employmentand survival of our organization.

BUILD TQM INTO PERFORMANCE - Incorporate theconcept of team work and continual processimprovement into all performance standards.

IMPROVE THE QUALITY OF WORKLIFE - Projectsrequiring engineering support throughout FY 90and beyond are:

Construction of AD? FacilityConstruction Operations FacilityConstruction Warehouse FacilityAsbestos removalOther projects identified to benefit the

workforce.

30



INSTITUTIONALIZE TEAMS

In the long range, DCSC will operate within aself-managing team concept. These multi-skilled,multifaceted employee teams will bring togetherthe unique and valuable contributions of currentemployees at all levels of the organization.

With teams operating in all areas of DCSC, wewill create a climate where creativity isencouraged, mission is first, and excellence is away of life.

Employees are and will continue to seek out newways to incorporate TQM into their everyday workactivities. The commitment to continuousimprovement will be found in all areas of theCenter. The workforce defines quality as whatthe customer wants and is very sensitive tocustomer needs. The emphasis on quality is self-imposed by the work teams/groups. We willcontinue to strive for more accountability andresponsibility within these teams/groups bycontinuously improving and reaching for self-management. In short, quality and the TQMphilosophy will become a way of life.

31

TQK SRORT-MID-LONG RANGE INITIATIVES

QMB CHARTERS AND EXECUTION PLANS

A

QUALITY MANAGEMENT BOARD (QMB)

SUBJECT: Back to Basics

CHARTER: To provide an in--depth review and additional analysis of themismatches between the ICP supervisors intuitive judgment and theDCSC-LO (OR) correlative analysis regarding impact on supplyavailability. Also to study/focus exicutive judgment on our currentgoals and begin a strategic planning process for our goals.

TASKS: 1. Goal workyear alignments.- Maximize workyears on HIGH activities.- Thoroughly review the process that goes into the goal.- Minimize workyears devoted to LOW activities.

2. Analyze the need for the goal.- How many workyears are devoted primarily to reporting andanalyzing data (check the checkers)?

3. How does the executive staff rate the goals?- Prioritize the ICP goals.- Rank by importance within Directorate then ICP.

4. Focus on strategic planning.5. Look at selected goals to increase productivity and reduce unit

cost by 20 percent.6. Analyze/develop specific strategie for goal process improvement

and attainment of the four TQM goals.

PROPOSED MEMBERSHIP:

ORG NAME* PRIMARY/ALTERNATE TITLEP

DCSC-S A ChairpersonP

DCSC-R A MemberP

DCSC-O A MemberP

DCSC-P A MemberP

DCSC-Q A MemberP

DCSC-LO A Statistical Promo.

* May be provided after approval by ESC.

MILESTONES: Required two weeks after ESC approved start date.

EstimatedStart Date: 1 Jun 89

Estimated MonthlyEnding Date: 31 Dec 89 Manhours 10

ESC Charter Approval Date: 26 Jun 89 TQM CONTROL NO. 0001

A. I.


SUBJECT: Center Orientation

CHARTER: To develop an integrated orientation program to provide aprogressively more detailed understanding of the DCSC mission andthe relationship among departments and personnel.

TASKS: I. Evaluate current orientation programs to determine the extent ofcoverage and areas needing further development.

2. Develop an outline to ensure progressively more in-depthorientation for employees. Identify affected grade levels,organizations and functions to undergo each level oforientation.

3. Establish a schedule for development of the various levels oforientation and a timeframe for providing such training to allaffected employees.

4. Appoint Process Action Teams (PAT) to develop specific segmentsof the orientation process. Review PAT recommendations toensure adequacy of coverage and integration with prior andsuccessor plans.

5. Establish a schedule for periodic review and revision of theCenter orientation plans to ensure adequacy of coverage based onfeedback and dynamics of mission.


ORG NAME * PRIMARY/ALTERNATE TITLE

PDCSC-O A Chairperson

PDCSC-K A Member

PDCSC-R A Member

PDCSC-P A Member

PDCSC-Q A Member

PDCSC-S A Member

PDCSC-W A Member

PAFGE A Member




Estimated MonthlyEnding Date: 31 Dec 89 Manhours 8 hours/members


A.2.


SUBJECT: Reducing Delinquencies

,HARTER: This QMB will lead multiple process action teams in examining manyaspects of resolving the DCSC delinquency problems. Initial effortwill be targeted at improving the handling of post-award technicalclarifications and waivers/deviation requests through better DCSC-P,DCSC-S and DCSC-Q interface. This 0MB will also oversee the DCSCQuality Vendor Program implementation.

TASKS: 1. Data collection by process action teams to establish benchmarkfor improvement of DCSC-S, DCSC-P DCSC-O, and DCSC-Q liaison.

2. Process flow analysis of existing methods.3. Establish QVP priorities for implementation.4. Design procedures to provide ongoing feedback as the basis for

further improvements.



DCSC-P A ChairpersonP

DCSC-S A MemberP

DCSC-Q A MemberP

DCSC-PR A MemberP

DCSC-O A MemberP

DCSC-LO A Member



EstimatedStart Date: Jul 89

Estimated MonthlyEnding Date: 30 Sep 90 Manhours 8


A.3.


,UBJECT: Reduce Costs of Procurement

CHARTER: This QMB will lead multiple Process Action Teams in examining manycomponents of the procurement process. The focus will be on reducedcosts either through reducing procurement leadtime; or throughimproving the efficiency of procurement operations. Initial processaction teams will concentrate in three areas:

- Improving manual small purchase process to reduce over 225day small purchase population.

- Examining feasibility of consolidating small dollar valuestock purchase.

- Improving support to vendors requesting solicitation copiesthrough eliminating requests for nonexistent solicitations.

TASKS: 1. Data collection by each of the Process Action Teams to pinpointspecific areas of improvement.

2. Process flow analysis of existing methods.3. Develop recommended courses of action and methods of measuring

results.4. Design procedures to provide ongoing feedback as the basis for

further improvements.




DCSC-PP A MemberP

DCSC-PO A MemberP

DCSC-PC A MemberP

DCSC-O A MemberP

DCSC-LO A Statistical Promo.

May be provided after approval by ESC.


EstimatedStart Date: Jul 89

Estimated MonthlyEnding Date: 30 Sep 90 Manhours 12

ESC Charter Approval Date: 26 Jun 89 TQM CONTROL NO. 000 t

A.4.


SUBJECT: Missing Data Work List (MDWL) Processing

CHARTER: To review the MDWL process for purposes of installing moreeffective/efficient procedures; monitoring and improving processes;and establishing feedback mechanisms to effect timely correctiveactions.

TASKS: 1. Review the MDWL process to determine how processing time can bestreamlined while expanding procedures to get the job done rightthe first time.

2. Analyze processing procedures and timeframes within eachelement to pinpoint bottlenecks.

3. Review manpower requirements to ensure efficient/effectiveutilization.

4. Determine if automation can be used to cut administrative andprocurement lead times; thus increasing productivity anddecreasing costs.



DCSC-Q A ChairpersonP

DCSC-R A MemberP

DCSC-O A MemberP

DCSC-S A MemberP

DCSC-P A MemberP

DCSC-R A Member




Estimated MonthlyEnding Date: 30 Oct 89 Manhours 15


A.5.


3UBJECT: TQM Facilitator Development and Training

CHARTER: The purpose of this QMB is to develop policies and criteriaregarding the selection, evaluation and training of TQMfacilitators.

TASKS: 1. Identify facilitator selection criteria. Separate criteriashould be identified for IIE facilitators.

2. Develop initial roster of facilitators for final approval by theExecutive Steering Committee (ESC).

3. Determine areas of responsibility for facilitators.4. Develop a generic addendum to position descriptions of TQM

facilitators.5. Develop evaluation criteria for facilitators.6. Develop policies regarding the progression and movement of

facilitators. e.g. Once a facilitator, always a facilitator?7. Determine selection and training policies for 2nd and 3rd

generation facilitators.8. Develop policies to ensure accountability for fulfilling

training requirements.9. Develop recommendations on minimum/maximum number of

facilitators.



DCSC-K A ChairpersonP

DCSC-KW A MemberP

DCSC-W -A MemberP

DCSC-P A MemberP

DCSC-R A MemberP

TQM FOCAL POINT A MemberP

UNIONS A MemberF

DDCO A Member


MILESTONES: To be furnished after ESC approval of the QMB.

EstimatedStart Date: 26-30 Jun 89

Estimated MonthlyEnding Date: 31 Aug 89 Manhours


A.6.


SUBJECT: Total Cost Budget System

CHARTER; To develop and implement an internal DCSC budget system thatreflects DLA/DCSC priorities and allocates scarce resources toachieve them. The system should provide visibility ofcost/performance data and provide incentives for managers andemployees to reduce the cost of our products and services withoutsacrificing quality, timeliness or responsiveness to our customers.

TASKS: PHASE I - Assess current system and develop a proposed concept ofoperations.

1. Define and understand the current DLA/DCSC resource system.- How are new and existing requirements identified and

validated?- How are requirements reflected in the budget?- What performance level (objectives) does the budget support?- How do we translate resources into program performance?

2. Identify our current problems with the resource system?- Incentives- Rewards/consequences- Meaningful linkages to day-to-day performance- goals/objectives- other areas

3. Identify and evaluate what we would (can) change about thesystem?

4. Develol. a way to get all managers/employees to *buy in' (i.e.control resources) to the system?

5. Develop and present to ESC by I Sep 89 a proposed resourcesystem concept that could be implemented in FY 90.

PHASE II - Develop detailed methods/procedures for implementing atotal cost resourcing system at DCSC. This wouldinclude, but not be limited to areas such as:Performance measures - workload/cost (organization,managers, employees), rewards/consequences, managementinformation systems, training, management tools,relationship/integration with other systems both internaand external to DLA/DCSC.

A.7.



DCSC-R A ChairpersonP

DCSC-O A MemberP

DCSU -P _ MemberP

DCSC-K A MemberP

DCSC-W A Member-P

DCSC-Z A MemberP

DCSC-Q A MemberP

DCSC-S A Member



Estimated 17 Jul 89 (PhaSe I)Start Date: 15 Sep 89 (Phase I)

L -imated 1 Sep 89 (Phase I) Monthly 10 (Phase I)Ending Date: 30 Sep 89 (Phase II) Manhours 10 (Phase II)


A.7.1.


,BJECT: Quality Circles

CHARTER: To review and develop policies, procedures, and criteriaregarding the operation of the DCSC/DDCO Quality Circle Programas well as integrating and reinforcing existing quality circleefforts into the DCSC Total Quality Management Plan.

TASKS: 1. Define and communicate the QC Program objectives up/down theorganization; i.e., Quality Circle theme, small groups,voluntary participation in solving work related problems.

2. Identify the differences between Quality Circles and ProcessAction Teams and communicate this to the workforce withemphasis that all are an important part of the TQM process.

3. Review and implement the Award of Excellence criteria andrecognition process.

4. Review and implement QC Regulation, DCSC 4155.002.5. Involve mid-management in building and sustaining support for

the QC Program.6. Identify additional training for QC participants.7. Develop a policy regarding Quality Circle presentations.8. Publicize success stories as well as the plan for

implementation of new circles.



DCSC-Q A ChairpersonP

DCSC-R A MemberP

DCSC-S A MemberP

DCSC-O A MemberP

DCSC-R A MemberP

DCSC-K A MemberP

DDCO A MemberP

AFGE A Member

PIFPTE A Member


A.8.


SUBJECT: Management Control First Article Tests (FAT)

CHARTER: To develop management system for the control of First ArticleTests within and among the Directorates of Contracting andProduction, Technical Operations, and Quality.

TASKS: The following are essential tasks for this system:

1. Determine the NSNs that require a FAT.2. Determine contracts that have a FAT.3. Determine which QAS has which FAT.4. Develop management control system within P.5. Develop management control system among P, S, and Q and back

to P.6. Develop management control system within Q.7. Test system.8. Implement system.

TOOLS: The following should be considered by the PAT.

1. Brainstorming.2. Flow Charting.3. Organizational Procedures.4. Management Indicators.




DCSC-PR A MemberP

DCSC-S A MemberP

DCSC-Q A MemberP

DCSC-QR A MemberP

DCSC -QE _______________A MemberP

DCSC-QF A Member



EstimatedStart Date: 3 Jul 89

Estimated MonthlyEnding Date: 30 Sep 89 Manhours a


A.9.


TERMS AND DEFINITIONS

APPENDIX B

TERMS

Crosby. Phillip - A consultant and formerDirector of Quality at IT&T: author of 'QualityTs Free.

Customer - The user of one's product orservice.

Deming, W. Edwards - A statistician andconsultant often called the *Father of JapaneseQuality Control.' Renowned for his 'FourteenPoints for Management, upon which much of theTQM philosophy is loosely based.

Juran, Joseph M. - A consultant and executive,the author of 'Quality Control Handbook, oftencalled the Quality Control 'Bible.'

Process - A systematic approach to accomplishinga specific task.

Process Flow Charts - A graphical tool used tostudy the sequences of a process by depictingeach action taking place in the process.

Process Improvement Cycle (also called ShewhartCycle or Plan. Do, Check, Act Cycle) - Ananalytical method for improving processes. Theimprovement cycle consists of: identificationand prorogations of opportunities forimprovement, identification of work processes,identification of the best solutions andmonitoring of effectiveness.

Quality - The extent to which a product orservice meets the customer requirements and isfit for its intended use.

Statistical Process Control - A measurementmethod used for assessing the performance ofprocesses.

Success Sharing - A DLA initiative which seeksto reduce costs and improve productivity byallowing employees to share in the savingsgenerated by the organization. Success sharingin the government is similar to profit sharing inthe private sector.

Tota] Quality Management - A strategy forcontinuously improving performance at everylevel and in all areas of responsibility.

B.I.


ABBREVIATIONS

AWS - Alternate Work Schedules

DLA - Defense Logistics Agency

DMINS - Distributed Miniature Computer System

DSC - Defense Supply Center

E4 - Excellence & Efficiency in an EnrichedEnvironment

ESC - Executive Steering Committee

IDTC - Indefinite Delivery Type Contract

PAT - Process Action Team

PLFA - Primaay Level Field Activity

PR - Purchase Request

PSE - Principal Staff Element

QC - Quality Circles

QMB - Quality Management Board

QVP - Quality Vendor Program

SAMMS - Standard Automated Materiel ManagementSystem

SPC - Statistical Process Control

SPD - Special Purpose Data

TQM - Total Quality Management

VE - Value Engineering

B.2.

Documents

IMENTATION PAGE D -A 9 1 9 se 9in aver time No. ad t e