implementing total quality management in businesses

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Page 1: Implementing total quality management in businesses

Dr. Eddy Labban

Page 2: Implementing total quality management in businesses
Page 3: Implementing total quality management in businesses

Implementing TQM is challenging, keeping up

with its momentum is an on going process.

In implementing TQM, we often look for

benchmarks. One of them is the Malcolm

Baldrige Award Criteria.

Page 4: Implementing total quality management in businesses

It usually takes 3 to 5 years for an

organization (company, subsidiary, division,

or factory) to achieve a high level of total

quality management (TQM) in winning the

Deming Prize in Japan or the Baldrige Award

in U.S. TQM implementation involves four

phases:

1.Preparation

2.Introduction

3.Diffusion

4.Solidifying

Page 5: Implementing total quality management in businesses

Based on studies of companies that have won

the Deming Prize and the Baldrige Award,

systematic approach that should be

employed in the introduction of TQM, and a

time table for accomplishing TQM goals in a

step-wise fashion.

Page 6: Implementing total quality management in businesses

Conceptually, total quality management

consists of various components:

1) TQM from the top Hoshin or policy

management,

2) TQM from the bottom - small group

activities,

3) functional and cross-functional TQM, and

4) TQM for cooperating companies.

The phase-in implementation plan follows

this conceptual framework and develops an

implementation time table

Page 7: Implementing total quality management in businesses

In the preparatory phase, activities center around education and training, policy setting and organization.

The second phase involves the selection Of projects, presentations, initial QC diagnosis, and feedback.

The third phase, diffusion, takes on functional and cross-functional QC, including marketing, design, and production. TQM for cooperating companies becomes critical in this phase.

In the last phase, the company solidifies the implementation and makes TQM a way of corporate life.

Page 8: Implementing total quality management in businesses

A prototype phase-in timetable of 3 years is developed by specifying month-to-month activities. Barriers, pitfalls, and problems encountered in actual cases are discussed with the view of counteracting these obstacles. Special emphasis will be on TQM in small businesses. The most important key to success - Hoshin Management -- will be contrasted with Management By Objectives (MBO) to illustrate the differences in management styles under TQM. Moreover, American style TQM will be compared with Japanese style TQC.

Page 9: Implementing total quality management in businesses

A preliminary step in TQM implementation is to

assess the organization’s current reality.

Relevant preconditions have to do with the

organization’s history, its current needs,

precipitating events leading to TQM, and the

existing employee quality of working life. If

the current reality does not include

important preconditions, TQM

implementation should be delayed until the

organization is in a state in which TQM is

likely to succeed.

Page 10: Implementing total quality management in businesses

If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement.

If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents.

If this condition prevails, a comprehensive program of management and leadership development may be instituted. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change.

Page 11: Implementing total quality management in businesses

An organization should be basically healthy

before beginning TQM. If it has significant

problems such as a very unstable funding

base, weak administrative systems, lack of

managerial skill, or poor employee morale,

TQM would not be appropriate.5

Page 12: Implementing total quality management in businesses

However, a certain level of stress is probably desirable to initiate TQM.

People need to feel a need for a change.

Kanter (1983) addresses this phenomenon by describing building blocks which are present in effective organizational change.

These forces include:

1. Departures from tradition

2. A crisis or galvanizing event

3. Strategic decisions

4. Individual “prime movers”

5. Action vehicles

Page 13: Implementing total quality management in businesses

Departures from tradition are activities,

usually at lower levels of the organization,

which occur when entrepreneurs move

outside the normal ways of operating to

solve a problem.

Page 14: Implementing total quality management in businesses

A crisis, if it is not too disabling, can also

help create a sense of urgency which can

mobilize people to act. In the case of TQM,

this may be a funding cut or threat, or

demands from consumers or other

stakeholders for improved quality of service.

Page 15: Implementing total quality management in businesses

After a crisis, a leader may intervene

strategically by articulating a new vision of

the future to help the organization deal with

it. A plan to implement TQM may be such a

strategic decision.

Page 16: Implementing total quality management in businesses

Such a leader may then become a prime

mover, who takes charge in championing the

new idea and showing others how it will help

them get where they want to go.

Page 17: Implementing total quality management in businesses

Finally, action vehicles are needed and

mechanisms or structures to enable the

change to occur and become

institutionalized.