15 Apr 10 – WDM 204 – Session Seven

Cape AreaManagement Program

(CAMP)Sponsored by the Cape & Islands

Workforce Investment Board

15 Apr 10 – WDM 204 – Session Seven

Today’s Topics

Learning Objectives

Essential Elements of a Quality System

Sample Quality Systems

Leading Change

Some “Bad News”

Your Qualifications!

Questions and Comments?

15 Apr 10 – WDM 204 – Session Seven 4

Learning Objectives

In this class, students will learn the how to develop a structure and process for continuous quality improvement (C.Q.I.).

The class will understand the challenges essential to effective C.Q.I., and learn the potential solutions. Practical tool(s) will be provided.

They will demonstrate their learning by in class discussion of workplace experiences, and group discussion of case studies.

Additional reading reference(s) will be provided.

WDM 204: Continuous Improvement

Process ImprovementAnnouncing the Change

Recognizing & Rewarding the ContributorsPledge to Continuously Improve

15 Apr 10 – WDM 204 – Session Seven 6

Typical Quality “System”

Mission Statement,Goals & Objectives,

Key Metrics

Quality Tools

People & Processes

Stakeholder Feedback

We Know What Our C.Q.I. System Needs…

Now, How Do We Make It Happen?

Some Sample C.Q.I. Systems

Steal Shamelessly, Create You Own Best Practices

15 Apr 10 – WDM 204 – Session Seven 9

W. Edwards Deming (1900–1993)

Trained American industrialists during WWII (SPC)

Presented to JUSE – Japan’s Quality Organization

Deming’s Concepts– System of Profound Knowledge

– Prevention by Process Management

– Chain Reaction for Quality Improvement

– Common Cause and Special Variation

– 14 Points

– Deadly Diseases

15 Apr 10 – WDM 204 – Session Seven 10

Deming’s 14 Points

1. Constancy of purpose

2. Adopt the new philosophy

3. Cease dependence on mass inspection

4. End the practice of awarding business on the basis of price tag; instead minimize total cost

5. Improve constantly the system of production and service to improve quality and productivity

6. Institute training on the job

7. Institute leadership

15 Apr 10 – WDM 204 – Session Seven 11

Deming’s 14 Points

8. Drive out fear

9. Break down barriers between departments; optimize the organization as a system

10. Eliminate slogans, exhortations, and targets for the workforce

11. Eliminate work standards (quotas) and numerical goals

12. Remove barriers that rob employees of their right to pride in workmanship, including the annual, merit rating

13. Institute a program of education and self-improvement

14. Put everybody to work to accomplish the transformation

15 Apr 10 – WDM 204 – Session Seven 12

Deming — The Seven Deadly Diseases

1. Lack of constancy of purpose

2. Emphasis on short term profits, short term thinking

3. Evaluation of performance, merit rating or annual review

4. Mobility of management, job hopping

5. Management by use of visible figures only

6. Excessive medical costs

7. Excessive costs of liability

15 Apr 10 – WDM 204 – Session Seven 13

Levels of ACE* Competency

Improved Performance

Step-change in Business Performance

Baseline• Customer expectations quantified• Performance baselines and gaps identified• Savings demonstrated from waste eliminations

• Measurable improvements in key customer deliverables achieved• Business results positively impacted • Significant business performance improvement targets set for Silver

• Business performance targets for Silver sustained• Stretch business performance goals set for Gold

Delighted Stakeholders• Best-in-class customer

satisfaction and businessperformance

ACE Silver

ACE Gold

ACE Bronze

ACE Qualifying

15 Apr 10 – WDM 204 – Session Seven 14

Baldridge Business Self Assessment

15 Apr 10 – WDM 204 – Session Seven 15

People & Partners(Respect, Challenge &

Grow Them)

Philosophy(Long Term Thinking)

Process(Eliminate Waste)

Problem Solving

(Continuous Improvement & Learning

The Toyota Way*

15 Apr 10 – WDM 204 – Session Seven 16

People & Partners(Respect, Challenge &

Grow Them)

Philosophy(Long Term Thinking)

Process(Eliminate Waste)

Problem Solving

(Continuous Improvement & Learning

The Toyota Way

1. Base yourmanagement decisions on

a long-term philosophy, even at the expense of short-term

financial goals.

2. Createcontinuous flow to bring problems to the surface.

3. Use “pull” systems to avoid overproduction.

4. Level out the workload(heijunka).

5. Build a culture of stopping to fix problems (Jidoka).

6. Standardized tasks and processes.

7. Use visual control, so no problems are hidden.

8. Use only reliable, thoroughly-tested technology.

9. Grow leaderswho thoroughly understand the work,

live the philosophy, and teach it to others.

10. Develop exceptional people and teams who follow your company’s philosophy.

11. Respect your extended network ofsuppliers by challenging them and

helping them improve.

12. Go and see foryourself to thoroughly understand thesituation (gemba, genchi genbutsu).

13. Make decisions slowly by consensus, thoroughlyconsidering all options; implement decisions rapidly (nemawashi).

14. Become a learning organization through relentless reflection (hansei) and continuous

Improvement (kaizen).

15 Apr 10 – WDM 204 – Session Seven 17

How Do You Lead Change?

The Eight Stage Process of Creating Major Change*– Creating A Sense of Urgency– Creating the Guiding Coalition– Developing a Vision & Strategy– Communicating the Change Vision– Empowering Broad Based Action– Generating Short Term Wins– Consolidating Gains and Producing More Change– Anchoring New Approaches In The Culture

15 Apr 10 – WDM 204 – Session Seven 18

Creating A Sense of Urgency

Examining the market and competitive realities

Identifying and discussing crises, potential crises, or major opportunities

How could you do this?

15 Apr 10 – WDM 204 – Session Seven 19

Creating the Guiding Coalition

Putting together a group with enough power to lead the change

Getting the group together to work like a team

How could you do this?

Who would this group be?

15 Apr 10 – WDM 204 – Session Seven 20

Developing a Vision & Strategy

Creating a vision to help direct the change effort

Developing strategies for achieving that vision

How could you do this?

What are some of the requirements?

15 Apr 10 – WDM 204 – Session Seven 21

Communicating the Change Vision

Using every vehicle possible to constantly communicate the new vision and strategies (your C.Q.I. Program)

Have the guiding coalition role model the behavior expected of employees

How could you do this?

15 Apr 10 – WDM 204 – Session Seven 22

Empowering Broad Based Action

Getting rid of obstacles

Changing systems or structures that undermine the change vision

Encouraging risk taking and nontraditional ideas, activities, and actions

Who’s role is this?

15 Apr 10 – WDM 204 – Session Seven 23

Generating Short Term Wins

Planning for visible improvements in performance, or “wins”

Creating those wins

Visibly recognizing and rewarding people who made the wins possible

How could you do this?

15 Apr 10 – WDM 204 – Session Seven 24

Consolidating Gains and Producing More Change

Using increased credibility to change all systems, structures and policies that don’t fit together and don’t fit the transformation vision

Hiring, promoting, and developing people who can implement the change vision

Reinvigorating the process with new projects, themes and change agents

Who, and how could this be done?

15 Apr 10 – WDM 204 – Session Seven 25

Anchoring New Approaches In The Culture

Creating better performance though customer and productivity oriented behavior, more and better leadership, and more effective management

Articulating the connections between new behaviors and organizational success

Developing means to ensure leadership development and succession

How could you do this?

15 Apr 10 – WDM 204 – Session Seven 26

Some Bad News?

Most organizations adopt C.Q.I. only as a last resort, and then it is “too late.”

You can’t do this as a “pilot program,” as the entire system needs to be aligned.

It takes most organizations a minimum of five years to reach world class “Quality.”

You will always have unnecessary waste and the attendant hardships if you don’t adopt a C.Q.I. system.

You Are Now Qualified to Change All The Things You

Don’t Like at Work!“'But I don’t want to go among mad people,' Alice remarked.'Oh, you can’t help that,' said the Cat. 'We’re all mad here. I’m mad. You’re mad.''How do you know I’m mad?' said Alice.'You must be,” said the Cat. 'or you wouldn’t have come here.'”

Lewis Carroll, Alice’s Adventures in Wonderland

Class Discussion

Your Workplace’s Root Cause Analysis

15 Apr 10 – WDM 204 – Session Seven 29

Personal Practicum ChecklistProject Charters

What do I need to know to try this at work?

When before the next class will I try?

What is my greatest concern in doing so?

15 Apr 10 – WDM 204 – Session Seven 30

Discussion of Personal Practicum Checklists

Any questions on the how?

Let’s hear a couple of examples of the when?

Let’s hear a couple of examples of concern?

Let’s practice working through those concerns…

Questions or Comments Before We End?