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Chapter 7 (Abridged)Chapter 7 (Abridged)

Building and Building and SustainingSustainingTotal QualityTotal QualityOrganizationsOrganizations

Dr. John V. PaduaDr. John V. Padua

The Management & Control of Quality, 7e

Learning ObjectivesLearning Objectives

At the end of the discussion, students are expected to learn and understand the following:

• Why adopt TQ philosophy• Corporate Culture and Change• Best Practices• Team Players to Total Quality• Strategic vs. Process Change• Common Mistakes in TQ Implementation

Key IdeaKey Idea

Building and sustaining a TQ organization requires a readiness for change, the adoption of sound practices and implementation strategies, and an effective organizational infrastructure.

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Why Adopt TQ Philosophy?Why Adopt TQ Philosophy?

Reaction to competitive threat to Reaction to competitive threat to profitable survivalprofitable survival

An opportunity to improveAn opportunity to improve

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Corporate Culture and Corporate Culture and ChangeChange

Corporate cultureCorporate culture is a company’s is a company’s value system and its collection of value system and its collection of guiding principlesguiding principles

Cultural values often seen in Cultural values often seen in mission and vision statementsmission and vision statements

Cultural ChangeCultural Change

Change can be accomplished, but it is difficultChange can be accomplished, but it is difficult Imposed change will be resistedImposed change will be resisted Full cooperation, commitment, and participation Full cooperation, commitment, and participation

by all levels of management is essentialby all levels of management is essential Change takes timeChange takes time You might not get positive results at firstYou might not get positive results at first Change might go in unintended directionsChange might go in unintended directions

Building on Best PracticesBuilding on Best Practices

Universal best practicesUniversal best practices– Cycle time analysisCycle time analysis– Process value analysisProcess value analysis– Process simplificationProcess simplification– Strategic planningStrategic planning– Formal supplier certification Formal supplier certification

programsprograms

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Implementing Total Quality:Implementing Total Quality:Key PlayersKey Players

Senior managementSenior management Middle managementMiddle management WorkforceWorkforce

Key IdeaKey Idea

Organizations contemplating change must answer some tough questions, such as, Why is the change necessary? What will it do to my organization (department, job)? What problems will I encounter in making the change? and perhaps the most important one — What’s in it for me?

Strategic vs. Process Strategic vs. Process ChangeChange Strategic change is broad in scope and stems

from strategic objectives, which are generally externally focused and relate to significant customer, market, product/service, or technological opportunities and challenges.

Process change is narrow in scope and deals with the operations of an organization. An accumulation of continuously improving process changes can lead to a positive and sustainable culture change.

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Common Mistakes in TQ Common Mistakes in TQ Implementation Implementation (1 of 2)(1 of 2)

TQ regarded as a “program”TQ regarded as a “program” Process not driven by focus on customer, Process not driven by focus on customer,

connection to strategic business issues, and connection to strategic business issues, and support from senior managementsupport from senior management

Goals set too lowGoals set too low Management fails to recognize that quality Management fails to recognize that quality

improvement is personal responsibilityimprovement is personal responsibility Organization does not see itself as collection Organization does not see itself as collection

of interrelated processesof interrelated processes

Sustaining the Quality Sustaining the Quality OrganizationOrganization View quality as a journey (“Race without a View quality as a journey (“Race without a

finish line”)finish line”)

Recognize that success takes timeRecognize that success takes time Create a “learning organization”Create a “learning organization”

– PlanningPlanning– Execution of plansExecution of plans– Assessment of progressAssessment of progress– Revision of plans based on assessment findingsRevision of plans based on assessment findings

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Common Mistakes in TQ Common Mistakes in TQ Implementation Implementation (2 of 3)(2 of 3)

Training not properly addressedTraining not properly addressed Focus on products, not processesFocus on products, not processes Little real empowerment is givenLittle real empowerment is given Organization too successful and complacentOrganization too successful and complacent Organization fails to address fundamental Organization fails to address fundamental

questionsquestions Senior management not personally and Senior management not personally and

visibly committedvisibly committed