quality management philosophy & concepts tools and techniques used in total quality management...

Quality Management 1

QUALITY MANAGEMENT

• Philosophy & Concepts• Tools and Techniques used in Total

Quality management• International Quality Standards and

Awards

January 2013


Literature

• Quality Management for Organizational Excellence – by David L.Goetsch and Stanley B.Davis

• Juran´s Quality Handbook– by Joseph M. Juran and Joseph A De Feo

January 2013

3Quality Management

Part 1Philosophy & Concepts

January 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management• Ethics • Partnering • Quality Culture• Customer Satisfaction• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork• Effective Communication• Training

January 2013


QM – Philosophy & Concepts

• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management• Ethics • Partnering • Quality Culture• Customer Satisfaction• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork• Effective Communication• Training

January 2013


Quality

• Quality has been defined in a number of ways. When viewed from a consumer’s perspective, it means meeting or exceeding customer expectations.…..providing him with superior value

January 2013


Dimensions of Quality

Dimension Product exampleMobile phone

Performance Signal, Battery chargeFeatures Internet, camera,......Conformance WorkmanshipReliability Mean-time-to-failureDurability Useful lifeServiceability Ease of repairResponse Courtesy of dealerAesthetics Surface finishReputation Customer report ranking

January 2013

http://www.t-mobile.com/shop/Phones/cell-phone-detail.aspx?cell-phone=Samsung-Gravity-TXT-Charcoal-Yellow-Refurbished


Two Views of Quality

• How well the features of a product or service meet the customer need and therefore provide them with satisfaction => higher quality costs (usually) more

• Freedom from failures => higher quality costs (usually) less

January 2013


Total Quality

• Total quality is an approach to doing business that attempts to maximize an organization’s competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments.

January 2013


Managing for Quality (Juran)

• A set of universal methods that any organization, whether a business, an agency, a university or a hospital can use to attain superior results by designing, continuously improving and ensuring that all products, services and processes meet customer and stakeholder needs.

January 2013


Juran´s trilogy

• Designing and planning for Quality• Compliance, controlling and assuring

quality• Improving quality

January 2013


Juran´s trilogy

• Creating processes to design goods and services to meet needs of the stakeholders (internal and external). Understand needs of customers

• Creating processes to control quality. Ensure compliance to design criteria

• Creating a systematic approach to improve continuously. Failures must be discovered and remedied.=> Create functions and skills to do the things above

January 2013


Financial trilogy

• Financial planning– Annual financial and operational budgets (revenues, costs and profits)– Financial goals for the organization and its divisions

• Financial control– Evaluation of actual financial performance and taking action on the

differences– Cost control, expense control, risk management, inventory control,

etc.• Financial improvement

– Improvement of financial results– Cost reduction projects, new facilities, new product development, M

&A, joint ventures, etc

January 2013


Quality planning

• Establish the project and design goals• Identify the customers• Discover the customer needs• Develop the product or service features• Develop the process features• Develop the controls and transfer to operations=> Customer – customer needs- product features

– process features- process control features

January 2013


Quality planning tools

• Benchmarking• Brainstorming• Competitive analysis• Control charts• FMEA• Flow diagram• Process capability• Scatter diagram• Etc.January 2013


Quality Control

• Assure Repeatable and Compliant Processes

January 2013


Quality Control Tools

• SPC (Statistical Process Control)• Problem Solving methods• Poka Yoke

January 2013


Quality Improvement

• Create breakthroughs in Performance

January 2013


Quality Improvement Tools

• Six Sigma– RDMAIC process• Recognize• Define• Measure• Analyze• Improve• Control

January 2013


Juran´s trilogy

January 2013


• Key characteristics of the total quality approach are as follows: – strategically based, – customer focus, – long-term commitment, – teamwork, – employee involvement and empowerment, – continual process improvement, – education and training,

The Total Quality Approach toQuality Management

January 2013


• The rationale for total quality can be found in the need to compete in the global marketplace.

• Countries that are competing successfully in the

global marketplace are seeing their quality of living improve. Those that cannot are seeing theirs decline.

The Total Quality Approach toQuality Management

January 2013


• W. Edward Deming is best known for his Fourteen Points, the Deming Cycle

• Joseph M. Juran is best known for the Pareto Principle, and the Juran Trilogy.

• Armand V. Feigenbaum is best known for his Total Quality Control.

• Philip B. Crosby is best known for his Quality is Free and the Zero Defects program

The Total Quality Pioneers

January 2013


QM – Philosophy & Concepts• The Total Quality Approach

• Quality and Global Competitiveness• Strategic Management• Ethics • Partnering • Quality Culture• Customer Satisfaction• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork• Effective Communication• Training

January 2013


• Several factors can inhibit competitiveness, including those related to business and government, family, and education.

• In a global marketplace quality is the key to competitiveness.

• Total Quality approach minimizes the Cost of Quality, making products or services more competitive

Quality and Global Competitiveness

January 2013


Costs of Quality

• Prevention• Appraisal and inspection• Internal failure • External failure

• COPQ = Costs of Poor Quality

COPQ

January 2013


Prevention Costs

• Quality Planning activities– FMEA analysis– Control Plans

• Quality training• Product design Verification

January 2013


Appraisal and Inspection Costs

• Testing product • Reviewing documents• Inspecting equipment and supplies• End of line inspection• Product audits• Etc.

January 2013


Internal Failure Costs

• Rework on product• Scrap of non conforming product• Correcting database errors• Stocking extra parts to replace defective

components• Etc,

January 2013


External Failure Costs

• Warranty claims• Product recalls• Investigating complaints

January 2013


Direct Cost of Poor Quality (4 – 8% of Sales)

Indirect Cost of Poor Quality (15 – 25% of Sales)

ScrapReworkWarrantyCustomer Return

Loss of Customer LoyaltyEngineering changeExcessive inventoryLate deliveryExcessive overtimeExcessive employee turnoverExpediting costs

January 2013


Cost of Quality

Freedom from failures

Failure

Appraisal & Prevention

Total

Cost

s

100%

Juran´s Cost of Quality

January 2013


Cost of Quality

Excess Quality

Customer Value of Quality

Cost

of Q

ualit

y

Junk Zone Profit

Zone

Quality Costs

Freedom from Failures 100%

January 2013


Quality Cost as % of Sales

January 2013


Cost distribution as a % of total cost of Quality

Prevention Appraisal Internal FailureExternal Failure

3,5 %

26 %

2,5 %

68 %

January 2013


COPQ – car recalls USAJanuary 30, 2013

• Toyota Motor on Wednesday announced recalls involving more than 1 million vehicles in the U.S

• Combined, it's one of the largest recalls so far this year– Most are Corollas, some are Lexus IS sedans– One recall involves airbags and the other focuses on wipers

• Last month, Toyota agreed to pay more than $1 billion in the U.S. to settle lawsuits where vehicle owners said the value of their cars and SUVs plummeted after the company recalled millions of vehicles because of sudden-acceleration issues

January 2013


Investment in Quality Cost

January 2013


Quality and Global Competitiveness

• The most important key in maximizing competitiveness is the human resource.

• The Competitive Edge is in the Quality of the People

January 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness

• Strategic Management• Ethics • Partnering • Quality Culture• Customer Satisfaction• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork• Effective Communication• Training

January 2013


Strategic Management

• Strategic management is management that bases all actions, activities, and decisions on what is most likely to ensure successful performance in the marketplace.

• The two major components of strategic management are strategic planning and strategic execution.

• Part of strategic planning is thinking creatively to eliminate “sacred cows” that work against competitiveness.

January 2013


Strategic planning

• Who are we?• Where are we going?• How will we get there?• What do we hope to accomplish?• What are our core competencies?• What are our strengths and weaknesses?• What are our opportunities and threats?

January 2013


Strategic Planning Process

Step 1 SWOT Analysis (environmental assessment)

Step 2 Develop the Vision

Step 3 Develop the Mission

Step 4 Develop the Guiding Principles

Step 5 Develop the Broad Strategic Objectives

Step 6 Develop the Specific Tactics (action plan)

January 2013


SWOT analysis

• SWOT analysis is defined as a structured approach to evaluating the strategic position of a business by identifying its strengths, weaknesses, opportunities and threats

• SWOT analysis identifies the core competencies of the organization

January 2013


Core competencies

• Core competencies are things an organization does so well they can be viewed as providing a competitive advantage.

January 2013


SWOT analysis

• Opportunities • Threats– => apply to External Factors

• Strengths• Weaknesses– => apply to Internal Factors

January 2013


SWOT analysis

January 2013


Vision

• An organization’s vision is its guiding force, the dream of what it wants to become and its reason for being.

January 2013


Mission

• An organization’s mission describes who an organization is, what it does, and where it is going.

January 2013


Guiding Principles

• An organization’s guiding principles establish the framework within which it will pursue its mission. Together, the guiding principles summarize an organization’s value system, the things it believes are most important.

January 2013


Broad strategic objectives

• An organization’s broad strategic objectives translate its mission into more specific terms that represent actual targets at which the organization aims. The objectives are more specific than the mission, but they are still broad.

January 2013


Action plan

• Well defined, finite projects and activities undertaken for the purpose of specific desired outcomes in support of the broad objectives.

January 2013


Strategic Management • Strategies that organizations can adopt for gaining a

sustainable competitive advantage are – cost leadership, – differentiation, and – market-niche strategies.

• Total Quality can be the most effective cost leadership or differentiation strategy– improve efficiency, cut costs – continuous improvement of the product features

January 2013


Strategic Management

• Integration of Quality programs in strategic plan is important for their success

• This includes annual quality goals and subgoals

January 2013


Strategic Execution

• Even the best strategic plan will serve no purpose unless it is effectively executed.

• Progress of achieving goals is measured by:– KPI´s (Key Process Indicators)– Quantitative reports on performance– Audits

January 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management

• Ethics • Partnering • Quality Culture• Customer Satisfaction• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork• Effective Communication• Training

January 2013


Ethics

• Ethics is about doing the right thing within a moral framework.

• The most common impediment to ethical conduct is human nature because people tend to behave according to perceived personal interest.

January 2013


Ethics

• The Total Quality approach cannot be successfully implemented in an organization that fails to subscribe to high standards of ethical behavior

January 2013


Ethics

• Many of the fundamental elements of total quality depend on trust and ethical behavior, including – communication, – interpersonal relations, – conflict management, – problem solving, teamwork, – employee involvement and empowerment, and – customer focus.

January 2013


Ethics

• Sarbannes – Oxley (SOX) Federal law in the US.• Top management must now individually

certify the accuracy of financial information.• Penalties for fraudulent financial activity are

much more severe

January 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management• Ethics

• Partnering • Quality Culture• Customer Satisfaction• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork• Effective Communication• Training

January 2013


Partnering

• Partnering means working together for mutual benefit. It involves pooling resources, sharing costs, and cooperating in ways that mutually benefit all parties involved in the partnership.

• Partnerships may be formed – internally (among departments) and – externally with suppliers, customers

January 2013


Partnering with suppliers

• 85% of the added value comes from suppliers (automotive industry)

• Traditional model (based on price only)• Total Quality model – partnership from design

to delivery

January 2013


Partnering with Customers

• The rationale for forming customer partnerships is customer satisfaction.

• The best way to ensure customer satisfaction is to involve customers as partners in the product development process.

• Doing so is, in turn, the best way to ensure competitiveness.

• Customer-defined quality is a fundamental aspect of total quality.

January 2013


Partnering with Suppliers & Customers

Suppliers Customer End Users

Suppliers Customer End Users

Invisible wall

January 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management• Ethics & Corporate Social Responsibility• Partnering and Strategic Alliances

• Quality Culture• Customer Satisfaction• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork• Effective Communication• Training

January 2013


Quality Culture• One of the greatest obstacles in implementing Total Quality is the cultural

behavior

Why?

• Successful Total Quality implementation requires cultural change• People do not like to change!• Resisting change is natural human behavior

– Fear– Uncertainty– Loss of control– More work– ……

• Emotional transition

January 2013


Total Quality culture

• Short vs long term objectives• Managers as coaches vs bosses• Finger pointing vs problem solving• Supplier cooperation• Continuous improvement

January 2013



• Behaviour matches slogans• Customer input is actively sought and used to

continually improve quality• Employees are both involved and empowered• Work is done in teams• Executive level managers are both committed and

involved, responsibility for quality is NOT delegated• Sufficient resources are made available where and

when they are needed to ensure the continuous improvement of quality

January 2013



• Education and training are provided to ensure that employees at all levels have the knowledge and skills needed to continuously improve quality

• Reward and promotion systems are based on contributions to the continual improvement of quality

• Fellow employees are treated as internal customers• Suppliers are treated as partners

January 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management• Ethics • Partnering • Quality Culture

• Customer Satisfaction• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork• Effective Communication• Training

January 2013


Customer Satisfaction

(

Every organization has both internal and external customers. –An external customer is the one referred to

in the traditional definition. –An internal customer is any employee

whose work depends on that of employees whose work precedes his or hers.

January 2013



The Company and its processesSupplier

Supplier

Customer

Customer

Customer & Supplier

Customer & Supplier

Customer & Supplier

Customer & Supplier

Customer & Supplier

Customer & Supplier

January 2013


• In a total quality setting, customers define quality. Therefore, customer satisfaction must be the highest priority.

• Customer satisfaction is achieved by producing high-quality products that meet or exceed expectations.

=>It must be renewed with each purchase.


January 2013


• The key to establishing a customer focus is to put employees in touch with customers so that customer needs are known and understood.

• Once the customer needs and expectations are defined they need to be translated into product specification.

• One of the tools to do so is Quality Function Deployment (QFD)


January 2013


Quality Function Deployment (QFD)

• Quality Function Deployment (QFD) is a structured approach to defining customer needs or requirements and translating them into specific plans to produce products to meet those requirements.

• The "voice of the customer" is the term to describe these stated and unstated customer needs or requirements.

• The voice of the customer is captured in a variety of ways: direct discussion, surveys, customer specifications, observation, warranty data, field reports, etc.

January 2013


Quality Function Deployment (QFD)

• This understanding of the customer requirements is then summarized in a product planning matrix or "house of quality".

• These matrices are used to translate higher level "what's" or requirements into lower level "how's" or means to satisfy the requirements

January 2013


QFD example - computer mouse

January 2013



• Customer requirements: – Easy to move – Does not jam – Easy to click – Contoured to hand – Easy to clean

January 2013



• Customer requirements: – Easy to move – Does not jam – Easy to click – Contoured to hand – Easy to clean

• Importance to customer:– 8– 5– 4– 4– 2

January 2013



• Engineering Characteristics: – Energy needed to move – Button resistance – Dismantling capabilities – Easy to use – Product dimensions – Sealed ball

January 2013



January 2013


QFD example - computer mouseA = Company AB = Company BX = Us 5 is the best

January 2013



January 2013



Strongly positive

Positive

Negative

January 2013


QFD Matrices

January 2013


Kano model

• The Kano model is a theory of product development and customer satisfaction developed in the 80s by Professor Noriaki Kano which classifies customer preferences/expectations into following categories:

– Must-Be– One-Dimensional– Attractive

January 2013


Kano model• Must-be / Basic Quality

These attributes are taken for granted when fulfilled but result in dissatisfaction when not fulfilled.

• One-dimensional/ Expected Quality These attributes result in satisfaction when fulfilled and dissatisfaction when not fulfilled. These are attributes that are spoken of and ones which companies compete for.

• Attractive /Exciting Quality These attributes provide satisfaction when achieved fully, but do not cause dissatisfaction when not fulfilled. These are attributes that are not normally expected,.

.

January 2013


Kano model

January 2013


Customer expectations vs. customer satisfaction

V = R – E

• Value = Results - Expectations• (There is no perceived value when customers

expectations are only met)

Karl Albrecht formula

January 2013


Customer expectations vs. customer satisfaction

Customer expectations

Actual performance

Customer satisfaction

Product B

Product A

January 2013


Value Analysis / Engineering

• Value Analysis (VA) and Value Engineering (VE) is a systematic method to improve the "value" of goods or products and services by using an examination of function

• Value, as defined, is the ratio of function to cost.

• Value can therefore be increased by either improving the function or reducing the cost

January 2013


Value Analysis / Value Engineering VALUE ANALYSIS

Interpreting existing design for greatest utility at least cost using or optimizing current manufacturing methods.

Methodology is applied after capital expenditures.

“Find and Fix” - remove unnecessary cost.

VALUE ENGINEERING Understanding design requirements/intent to guide new design and

manufacturing methods.

Methodology is applied prior to capital expenditure on facilities, equipment or tooling.

Prevent unnecessary cost.

January 2013


Value, Price and Function

Price

Function(Value)

Cost

ProfitMarketShare

Efficiency

January 2013


Traditional Approach:

Best-In-Class Approach:

PRICE - PROFIT = COSTPRICE - PROFIT = COST

COST + PROFIT = PRICECOST + PROFIT = PRICE

FIXED BY THE CUSTOMER

FIXED BY YOU

Cost versus Price and Profit

January 2013


Value ? Function ? Cost ?

Function

Value = --------------------- Cost

Function = Things products / processes do to reliably satisfy the customer (performance, reliability, durability, appearance, etc.)

Cost = All expenditures in time, people, materials, energy, ....

January 2013


Basic and Secondary functions

• Basic function– Primary purpose for the product or service

• Secondary function– Not directly accomplishing the primary function– Could be supporting the primary function– Could exist to meet specifications and requirements– Could be a result of existing design

=> Almost always, every product or service has only one basic function

January 2013


Basic and Secondary functions

Description Function B S Make marks #Eraser Remove marks #Band Secure eraser #

Improve appearance #Body Support lead #

Transmit force #Accomodate grip #Display info #

Paint Protect wood #Improve appearance #

Pencil

January 2013


Cost Drivers• Materials: - complexity, uniqueness, ...

- transport, packaging, ...• Production method:- complexity, uniqueness, ...

- labor, scrap, ...• Machines / tools: - complexity, uniqueness, ...

- wear, indirect labor, ...• Specifications: - complexity, uniqueness, ...

- unbalanced tolerances, ...

January 2013


VA thinking process

• What is the product or service in question?• What functions are being performed?• What does it cost to perform each function?• In what other ways might we accomplish the

functions?• What will those alternatives cost?• What is feasible?

January 2013


Total Cost Module & Supply Chain

3rd Qtr

Labour

Capital

Material

YOURCOMPANY

2 TIERSUPPLIER

1 TIERSUPPLIER

1 TIERSUPPLIER

LOGISTICS

2 TIERSUPPLIER

LOGISTICS

2 TIERSUPPLIER

2 TIERSUPPLIER

LOGISTICS

CUSTOMER

January 2013


Customer Satisfaction and Retention

• Quality Function Deployment (QFD) and • Value Analysis/ Value Engineering (VA/VE)

are two important tools to enhance Customer Satisfaction and Customer Retention

January 2013


Customer Satisfaction, Retention and Loyalty

• Measuring customer satisfaction alone is not enough. => Many customers who found a defect can be satisfied.

• Organizations should, in addition, measure customer retention.

• It costs much more to find a new customer than to retain one.

• Customer loyaltyJanuary 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management• Ethics • Partnering • Quality Culture• Customer Satisfaction

• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork• Effective Communication• Training

January 2013


Employee Empowerment

• Empowerment means engaging employees in the thinking processes of an organization in ways that matter

• Empowerment means giving employees ownership of their jobs ( they are the best experts)– but it does not mean that managers abdicate their

responsibility or authority

• Division of labor between managers and workers changes with empowerment

• Empowerment requires a change in organizational culture (resistance to change)

January 2013


Employee Empowerment

Task –OrientedManagers

People –OrientedManagers

BalancedManagers

Best Managersfor Empowerement

January 2013


Empowerement

• Why empowerment?– it is the best way to increase creative thinking

resulting in enhancing an organization’s competitiveness.

– it can be an outstanding motivator.• Vehicles:– Quality circles– Kaizen groups– Suggestion Boxes– Etc.

January 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management• Ethics • Partnering • Quality Culture• Customer Satisfaction• Employee Empowerment

• Leadership and Change• Teambuilding and Teamwork• Effective Communication• Training

January 2013


Leadership and Change

• Implementing Total Quality in an organization is in most cases a significant change

• The success of this change is depending on many factors but the most important one is the involvement and commitment of the Leadership!

January 2013



• Leadership is the ability to inspire people to make a total, willing, and voluntary commitment to accomplishing or exceeding organizational goals.

• Good leaders overcome resistance to change • Good leaders are committed to both the job

to be done and the people who must do it. • They are good communicators and they are

persuasive.January 2013


Management vs. Leadership

• Management– Coping with complexity– Planning and budgeting

for complexity– Developing the capacity

to carry out plans through organizing and staffing

– Ensuring the accomplishment of plans through controlling and problem solving

• Leadership– Coping with change– Setting the direction for

change thtrough the creation of a vision

– Aligning people to work towards the vision

– Motivating and inspiring people to want to accomplish the plan

January 2013



• To facilitate change in a positive way, leaders:– must have a clear vision and corresponding

goals,– exhibit a strong sense of responsibility,– understand what change management is –be effective communicators, –have a high energy level, and –have the will and ability to change–have the skills to lead the change

January 2013


Change Management

• Change management is a process of systematically identifying and facilitating the implementation of new methods and systems in an ongoing organization to minimize the pain and resistance that normally comes with such change

January 2013


TIME

PRO

DU

CTIV

ITY

Acceptance

Renewal

/ Confusion

January 2013


Change Management

• Transition model of change– Transition is the state that change puts people into– Transition is NOT automatic (not everybody will

make it)– Reaction to change:• Embrace immediately• Take time to adopt• Never accept

January 2013


Change Management

ADVOCATES OF CHANGE - Desired change - Benefits of Change

RESISTERS OF CHANGE - Desired status quo - Potential Negative Consequences of Change

January 2013


Change Management

• Resistance can occur because people fear:– Loss of credibilty or reputation– Lack of career or financial advancement– Possible damage to relationships with boss– Loss of employment– Interpersonal rejection– Change in job role– Job transfer or demotion

January 2013


Change Management

• People will support change if they:

– believe the change will improve the situation– expect personal gain in security, money, status– had some input in the decision– respect the person or people who are behind the

change

January 2013


Change Management

• Force-field analysis– Management technique for diagnosing situations– In any situation there are both driving and

restraining forces that influence any change

Driving forces:tend to initiate change and keep it going

Restraining forces:are acting to restrain or decrease the driving forces

January 2013


Change Management

• Driving forces examples:– Pressure from supervisor– Incentive earnings– Competition

• Restraining forces examples:– Apathy– Hostility– Poor maintenance of equipment

January 2013


Change Management

January 2013


Change Management-Reactions to change-

Bystander• Reluctant to get involved• Waits to see if another will take lead

Victim• Resists• Feels angry or depressed• Will not ask for help• Goes back to old ways of doing things

ChangeCritic

• Actively looks for reasons it will not work• Will not see the positive side• Challenges appropriateness

ChangeAgent

• Attempts to minimize negative reactions• Accepts explanations of causes and reasons• Asks to help implement• Nurtures others and forms relationships

Reac

tion

to S

tres

sAD

APT

FIG

HT

AVO

ID

January 2013


Change Management

Low High

Innovators EarlyAdapters

Change Agents

20 %

Late Adapters

Bystanders

50 %

Resistors

Critics/Victims

30 %

Level of Resistance

January 2013


Change Management

Perception of Advocates

• Improved productivity

• More resources available for CI

• Mutually beneficial business alliances

• More knowledgable, more highly skilled workforce

Perception of Resisters

• Threat to job security

• Loss of authority

• Disruption of established purchasing networks

• Too expensive

Proposed Change

• Automate production processes

• Initiate employee empowerement

• Establish a supplier partnership

• Establish and employee training and education program

January 2013


Change Management

• It is the task of the leaders to understand what happens during a change

• It is also their task to assure– Communication– Emotional support– Direction and Guidance

January 2013


Commitment of Top Management

Our feedbacks have made clear that the most influential factor in successful quality leadership has been the active participation of upper management. In fact to our knowledge, every successful quality revolution has included the active participation of upper management. We know of no exceptions.

J.M.Juran

January 2013



It is not enough that top management commit themselves for life to product quality and productivity. They must know what it is they are committed to – i.e. what they must do. These obligations cannot be delegated. More resolutions or approval are not enough.

W.Edwards Deming

January 2013



The heart of quality is not technique. It is a commitment of management to its people and product – stretching over a period of decades and lived with persistence and passion.

Tom PeetersA Passion for Excellence

January 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management• Ethics • Partnering • Quality Culture• Customer Satisfaction• Employee Empowerment• Leadership and Change

• Teambuilding and Teamwork• Effective Communication• Training

January 2013


Team Building and Teamwork

• A team is a group of people with a common, collective goal.

• The rationale for the team approach to work is that “two heads are better than one”

January 2013


Teamwork

• Quality Circles• Kaizen• Team oriented problem solving – 8D methodology (Ford)

January 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management• Ethics • Partnering • Quality Culture• Customer Satisfaction• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork

• Effective Communication• Training

January 2013


Communication

Message received Message understood

Communi

cation

January 2013


Effective communication

• Communication is the transfer of a message that is both received and understood.

• Effective communication is a higher order of communication. It means the message is received, understood, and being acted on in the desired manner.

• Communication is the oil that keeps the total quality engine running. Without it, total quality breaks down.

January 2013


Effective communication

• In Total Quality, the success of the following elements is depending on effective communication:– Customer focus– Leadership– Decision Making– Teamwork– Problem solving– Employee empowerment

January 2013


QM – Philosophy & Concepts• The Total Quality Approach• Quality and Global Competitiveness• Strategic Management• Ethics • Partnering • Quality Culture• Customer Satisfaction• Employee Empowerment• Leadership and Change• Teambuilding and Teamwork• Effective Communication

• TrainingJanuary 2013


Training

• Training is an organized, systematic series of activities designed to enhance an individual’s work-related knowledge, skills, understanding, and motivation.

.

.

January 2013


Training

• Benefits of training– Fewer production errors– Increased productivity– Improved quality– Decreased turnover rate– Improved safety and health– Increased flexibility of employees– Better response to change– Improved communication– Better teamwork

January 2013


Training

• Chinese proverb:

You hear – you forgetYou see – you rememberYou do – you understand

January 2013

quality management philosophy & concepts tools and techniques used in total quality management...

Documents

quality managementpart

quality jurana

views of quality

quality managementmanaging

higher quality costs

philosophy conceptsjanuary

stakeholder needs

customer need