tqm[1]
DESCRIPTION
total quality managementTRANSCRIPT
1
TotaTotall QualitQualityy ManagementManagement
Steps Towards ContinuousImprovement
E.H. Aghezzaf- Vakgroep Technische 1Bedrijfsvoering (TW18V)
TotaTotall QualitQualityy ManagementManagement
• Total Quality Management is a comprehensive managerial philosophy and a collection of approaches and tools for its implementation.
• The term Total Quality Management conveys de company-wide effort through full involvement of the entire workforce and focus on continuous improvement that companies use to achieve customer satisfaction.
E.H. Aghezzaf- Vakgroep Technische 2Bedrijfsvoering (TW18V)
2
GoalGoalss ooff TQMTQM
• Satisfy the requirements and needs of customers.
• Prevent poor quality rather than correcting problems after fact.
• Develop an attitude of continuous improvementin operations.
• Understand the value of measuring performance in identifying opportunities and maintaining improvements.
• Identify and eliminate chronic sources of inefficiencies and costs.
E.H. Aghezzaf- Vakgroep Technische 3Bedrijfsvoering (TW18V)
FoundationFoundationss ooff TQM,TQM, ththee PrinciplesPrinciples
• Customer Focus:– Involves collection and analysis of customer needs, and
once understood and accepted these must be met.
• Continuous Improvement:– Involves work on the process to reduce the variability of
output and improve the reliability of the process.
• Total Involvement (Participation & Teamwork):– Begins with leadership of senior management, then
employees empowerment, and includes suppliers.
E.H. Aghezzaf- Vakgroep Technische 4Bedrijfsvoering (TW18V)
Insp
ect
Insp
ect
3
FoundationFoundationss ooff TQM,TQM, InfrastructuresInfrastructures,, PracticesPractices,, andand
ToolsTools• An integrated organizational infrastructure,• A set of management practices,• A wide variety of tools and techniques:
– Leadership,– Strategic Planning,– Data and Information Management,– Process Management,– Supplier Management,– Human Resources Management,
E.H. Aghezzaf- Vakgroep Technische 5Bedrijfsvoering (TW18V)
TowardTowardss aann IntegratedIntegratedProductioProductionn SystemSystem
Traditional Method
Product ManagementModern Method
Process Management
Suppliers Customers Suppliers Customers
input Work Process output inputWork
Processinput
Waste Waste
PeopleInformation Information
Processes
Quality assured through inspection:• Inspect incoming materials,• Inspect outgoing products,• Quality is the responsibility of QA
department,
Quality designed through prevention:
• Integrated customer-supplier chain,
• Improve quality through the system,
• Quality is responsibility of everyone,
E.H. Aghezzaf- Vakgroep Technische 6Bedrijfsvoering (TW18V)
MeasuremenMeasurementt DimensionsDimensionsIf this is … then this who … and these
your focus... you need to please are key Measures
• Customer Customers• Customer satisfaction,
• Output characteristics defined by customers,
• ShareholderBosses
Owners
Financial Analysts
• Financial indicators,– Cost, sales, and profits
– Cost of quality
• Goals and objectives defined by management ,
• Employee Employees
• Employee satisfaction,
• Factors contributing to job satisfaction,
• CommunityGovernment agents
Social services
• Regulatory compliance,
• Factors impacting on society,
E.H. Aghezzaf- Vakgroep Technische 7Bedrijfsvoering (TW18V)
ThThee TQTQMM SystemSystemTQM
Continuous Improvement
CustomerFocus
ProcessImprovement
TotalInvolvement
LeadershipEducation and Training Supportive StructuresRewards and recognition Communication
Measurement
E.H. Aghezzaf- Vakgroep Technische 8Bedrijfsvoering (TW18V)
ThThee TQTQMM SystemSystemTQM
Continuous Improvement
CustomerFocus
ProcessImprovement
TotalInvolvement
LeadershipEducation and Training Supportive StructuresRewards and recognition Communication
Measurement
E.H. Aghezzaf- Vakgroep Technische 9Bedrijfsvoering (TW18V)
CustomeCustomerr FocuFocuss --Leading Practices--
• Define, identify, and segment key customer groups and markets,
• Understand customer needs and expectations (the voice of the customer),
• Understand linkages between the voice of the customer and design, production, and delivery,
• Build relationships through commitments, provide accessibility and information, set service standards, and follow-up on transactions,
• Develop and implement effective complaint management processes,
• Measure customer satisfaction for improvement,
E.H. Aghezzaf- Vakgroep Technische 10Bedrijfsvoering (TW18V)
IdentifyinIdentifyingg CustomersCustomers
Key customer groups:
• Organization level:– Consumers,
– External customers,
– Employees,
– Society
• Process level:– Internal customer units or groups,
• Performer level:– Individual internal customers,
E.H. Aghezzaf- Vakgroep Technische 11Bedrijfsvoering (TW18V)
UnderstandinUnderstandingg CustomerCustomerExpectationsExpectations
• Guidelines:– What are the product and service characteristics
do customers want?
– What level of performance is required to satisfy customers expectations?
– What is the relative importance of these characteristics?
– How satisfied are customers with performance at the current level?
E.H. Aghezzaf- Vakgroep Technische 12Bedrijfsvoering (TW18V)
UnderstandinUnderstandingg CustomerCustomerExpectationsExpectations
Delight!
Level 3
LatentValue-added
characteristics and features thatcustomer did not expect
Level 2
Level 1
Explicit Options and trade-offs available for selection by
customers
Implicit Minimum performance levels
always assumed present
Specifications and
Requirements
BaseExpectations
Implicit, Explicit, and Latent Customer RequirementsRef- TQM, A.R. Tenner & I.J.DeToro
E.H. Aghezzaf- Vakgroep Technische 13Bedrijfsvoering (TW18V)
UnderstandinUnderstandingg CustomerCustomerExpectationsExpectations
Customer needs and expectations(Expected quality)
Identification of customer needs
Translation into product/service specifications(Design quality) Output
(Actual quality)
Customer perceptions (Perceived quality)
measurement and feedback
PERCEIVED QUALITY = ACTUAL - EXPECTED14
LinkinLinkingg VoicVoicee ooff CustomeCustomerr totoDesignDesign,, ProductionProduction,, anandd DeliveryDelivery
Interrelationships
Technical requirements
Customer requirement
priorities
Voice of the
customer
Relationship matrix
Technical requirement priorities
Quality Function Deployment HOQ
E.H. Aghezzaf- Vakgroep TechnischeBedrijfsvoering (TW18V)
Competitive evaluation
15
LinkinLinkingg VoicVoicee ooff CustomeCustomerr totoDesignDesign,, ProductionProduction,, anandd DeliveryDelivery
ThThee QualitQualityy FunctioFunctionn DeploymentDeployment
ProcessProcess
Technical requirements
Component characteristics
Process operations
Quality plan
E.H. Aghezzaf- Vakgroep Technische 16Bedrijfsvoering (TW18V)
BuilBuildd CustomeCustomerr Relationships:Relationships: GatherinGatheringg InformationInformation
• Comment cards and formal surveys: These approaches concentrate on measuring customer satisfaction.
• Focus groups: A panel of individuals who answer questions about a company’s products and services.
• Direct customer contacts: Hearing complaints directly by top-executives is an eye-opening experience.
• Field intelligence: Conversing with customers and observing their behavior helps in gaining useful information.
• Study complaints: Helps in understanding de gaps between expectations and performance
E.H. Aghezzaf- Vakgroep Technische 17Bedrijfsvoering (TW18V)
CustomeCustomerr RelationshipsRelationshipsManagementManagement
• Accessibility and commitments,
• Selecting and developing customer contact employees through empowerment and training,
• Customer focused service based on relevant customer contact requirements,
• Effective complaint management,
• Strategic partnerships and alliances,
E.H. Aghezzaf- Vakgroep Technische 18Bedrijfsvoering (TW18V)
EffectivEffectivee ComplainComplaintt ManagementManagementProcessesProcesses
High
Maximum Level of
Undestanding
Level 3
Personal interviews, Focus GroupsDesigned Suveys
Benchmarking
Level 2
Service Desk NetworksHot Line Sales Data Analysis
Unstructured Surveys Customer Representatives
FullUnderstanding
Level 1
Unsolicited Complaints
Low
Ref- TQM, A.R. Tenner & I.J.DeToro
Reactive Proactive
Approach
E.H. Aghezzaf- Vakgroep Technische 19Bedrijfsvoering (TW18V)
MeasurinMeasuringg CustomerCustomerSatisfactionSatisfaction
• Discover customer perceptions of company’s performance through identification of appropriate quality dimensions and measurement schemes,
• Compare company’s performance relative to leading competitors,
• Measure potential and former customers and identify areas for improvement,
• Track trends to determine if changes result in improvements,
20
MeasurinMeasuringg CustomerCustomerSatisfactionSatisfaction
• Product and service quality dimensions– Access
– Communication
– Competence
– Courtesy
Word ofMouth
PersonalNeeds
ExpectedPerformance
Quality
PastExperience
External Communication
to Customers
Perceived
– Credibility
– Reliability
– Responsiveness
PerformanceGap
PerceivedPerformance
Product/ServiceQuality
E.H. Aghezzaf- Vakgroep Technische 21Bedrijfsvoering (TW18V)
MeasurinMeasuringg CustomerCustomerSatisfactionSatisfaction
Word-of-Mouthcommunications Personal Needs Past Experience
CustomerExpected Performance
Gap 5
Perceived Performance
Gap 1 Delivery Performance
Gap 3Gap 4
External Communication
to Customers
ProviderProduct/Service Quality Specifications
Gap 2
Management Perceptions of Customer Expectations
E.H. Aghezzaf- Vakgroep Technische 22Bedrijfsvoering (TW18V)
ThThee TQTQMM SystemSystemTQM
Continuous Improvement
CustomerFocus
ProcessImprovement
TotalInvolvement
LeadershipEducation and Training Supportive StructuresRewards and recognition Communication
Measurement
E.H. Aghezzaf- Vakgroep Technische 23Bedrijfsvoering (TW18V)
ScopScopee ooff ProcesProcesss ManagementManagement
• Process Management: involves planning and administering the activities – design, control, and improvement – necessary to achieve a high level of performance,
• There are four types of key processes:– Design processes,– Production/delivery processes,– Support processes,– Supplier processes,
24
ProcesProcesss ManagemenManagementt --Leading
PracticePracticess--• Translate customer requirements and internal
capabilities into product and service design requirements early in the process,
• Ensure that quality is built into products and services and use appropriate tools during development,
• Manage product development process to enhance communication, reduce time, and ensure quality,
• Define, document, and manage important production/delivery and support processes,
25
ProcesProcesss ManagemenManagementt --Leading
PracticePracticess--• Define performance requirements for suppliers and
ensure that they are met,• Control the quality and operational performance of
key processes and use systematic methods to identify variations, determine root causes, and make corrections,
• Continuously improve processes to achieve better quality, cycle time, and overall operational performance,
• Innovate to achieve breakthrough performance using benchmarking and reengineering,
26
ProcesProcesss ImprovemenImprovementt StepsSteps
• Defining key processes: Identify the processes that have the greatest impact on customer-driven performance standards .
• Planning: Establish a structured and disciplined approach to define and document the major components in the process and to understand their interrelationships.
• Control: Assure effectiveness so that the output is predictable and consistent with the customers’ expectations.
E.H. Aghezzaf- Vakgroep Technische 27Bedrijfsvoering (TW18V)
ProcesProcesss ImprovemenImprovementt StepsSteps
• Measurement: Map performance attributes to customers’ requirements and establish criteria for accuracy, precision, and frequency of data acquisition.
• Improvement: Increase effectiveness of the process by permanently embedding identified improvements.
• Optimization: Increase efficiency and productivity of the key processes by optimizing the resources.
E.H. Aghezzaf- Vakgroep Technische 28Bedrijfsvoering (TW18V)
IdentifyinIdentifyingg KeKeyy ProcessesProcesses
Developing & Understanding
Markets
Finance & Accounting
BusinessPlanning
Management Information
Systems
Marketing & Sales
Producing
Distributing & Delivering
Installation & ServicesProducts & Services (Maintenance + Repair )
Developing & Designing
(R&D - Engineering)
Attracting Developing and
Retaining PeopleLegal Services
E.H. Aghezzaf- Vakgroep Technische 29Bedrijfsvoering (TW18V)
PlanninPlanningg anandd DocumentinDocumentingg aaProcessProcess --Flow Diagrams--
Service visible to customer
Repair authorized
Service not visible to customer
Parts available
Customer drops off
car
Mechanic makes
diagnosis*
Discuss needed
work with customer*
Check parts
availability†
Perform work†
Parts not available
Repair not authorized Order parts
Inspect/ test and
repair
Customer departs with car
Collect payment
Notify customer
Repair complete
Corrective work
necessary
Perform corrected
work
* = Points critical to the success of the service † = Points at which failure is most often experienced
E.H. Aghezzaf- Vakgroep Technische 30Bedrijfsvoering (TW18V)
SummaryProcess: Emergency room admission Subject: Ankle injury patient Number Time DistanceBeginning: Enter emergency room Activity of steps (min) (ft) Ending: Leave hospital
Operation 5 23 —
Insert Step Transport 9 11 815
Inspect 2 8 — Delay 3 8 — Store — — —
Append Step
Remove Step
Step Time Distance
no. (min) (ft) Step description
12345
0.50 1510.0 -0.75 403.00 -0.75 40
XX
X
XX
Enter emergency room, approach patient window, Sit down and fill out patient history,Nurse escorts patient to ER triage room, Nurse inspects injury,Return to waiting room,
6789
10
1.00 -1.00 604.00 -5.00 -2.00 200
X
XX
X
X
Wait for available bed, Go to ER bed,Wait for doctor,Doctor inspects injury and questions patient, Nurse takes patient to radiology,
1112131415
3.00 -2.00 2003.00 -2.00 -1.00 60
X
X
X
X
X
Technician x-rays patient, Return to bed in ER,Wait for doctor to return,Doctor provides diagnosis and advice, Return to emergency entrance area,
16171819
4.00 -2.00 1804.00 -1.00 20
X
XX
X
Check out,Walk to pharmacy, Pick up prescription, Leave the building,
PlanninPlanningg anandd DocumentinDocumentingg aaProcessProcess --Process Charts--
E.H. Aghezzaf- Vakgroep Technische 31Bedrijfsvoering (TW18V)
Evaluating a Process-Diagnosis-
• Are steps arranged in a logical sequence?• Do all steps add value? Can some be eliminated
or added? Can some be combined? Should some be reordered?
• Are capacities in balance? What skills, equipment, and tools are required at each step?
• At which points might errors occur and how can they be corrected?
• At which points should quality be measured?• What procedures should employees follow where
customer interaction occurs?E.H. Aghezzaf- Vakgroep Technische 32
Bedrijfsvoering (TW18V)
Inspection & Measurement
Comparison with
Inspection & Measurement
Comparison with
Mat
eria
ls-r
elat
edC
orre
ctiv
es A
ctio
ns
Pro
cess
-rel
ated
Cor
rect
ives
Act
ion
s
ControllinControllingg aa ProcessProcess
• Process control consists in continually evaluating performance and taking corrective action when necessary,
• Components of control systems:– Standards and goals,
– Means of measuring accomplishments,
– Comparison of the results with the standard as a basis for corrective action,
• A well-controlled system is predictable,
33
GeneriGenericc QualitQualityy ControControll SystemSystem
Inputs(Materials) Processes Output
(Products)
Inspection & Measurement
Standards
Comparison with
Standards Standards
AcceptableQuality
Yes
AcceptableQuality Yes
AcceptableQuality Yes
No No No
Identify Causes
• What was supposed to happen? What actually happened?
• Why is there a difference? What can we learn?
E.H. Aghezzaf- Vakgroep Technische 34Bedrijfsvoering (TW18V)
ProcesProcesss ImprovementImprovement
• Productivity improvement,• Work simplification,• Planned methods change,
Traditional IndustrialEngineering
• Kaizen,• Stretch goals,• Benchmarking,• Reengineering,
New approaches from the total quality movement
35
ProcesProcesss ImprovementImprovementInput Supplier Output Input
Management &development
Outpu t Input Customer Output
Test, Evaluate & Implement Solutions
Identify Quality ProblemsCategorize & Set priorities
Remove the QualityProblem Causes Select a Quality Problem
Develop CorrectiveActions, Solutions& New Objectives
Analyze the QualityProblem Causes Collect
Relevante Data & Diagnose for Causes
Confirme the QualityProblem Causes
E.H. Aghezzaf- Vakgroep Technische 36Bedrijfsvoering (TW18V)
Nu
mb
er
of
de
fect
s
Po
or
Des
ign
Def
ecti
veP
art
s
Cu
mu
lati
ve
pe
rce
nta
ge
ThThee QualitQualityy CirclCirclee ProcessProcess
Presentation Implementation
monitoring
Organization8-10 members
Same area Moderator Training Group
processes Data collection
Problem analysis
SolutionProblem results
Problem analysis Cause & effect
Data collection & analysis
Problem ID List alternatives
Consensus Brainstorming
E.H. Aghezzaf- Vakgroep Technische 37Bedrijfsvoering (TW18V)
ToolToolss foforr ProcesProcesss ImprovementImprovement
Headliner Defects
Defect type Tally Total
A. Tears in fabric //// 4
B. Discolored fabric /// 3
C. Broken fiber board //// //// //// //////// //// //// / 36
D. Ragged edges //// // 7
Total 50
Checklists
20
50
40
30 C
20
10
0
100
80
60
40
20
0
15D
10 A B
5
01 2 6 13 10 16 19 17 12 16 20 17 13 5 6 2
1Histogram
E.H. Aghezzaf- Vakgroep TechnischeBedrijfsvoering (TW18V)
Defect type
Pareto Chart
38
Nu
mb
er
of
de
fect
sToolToolss foforr ProcesProcesss ImprovementImprovement
Scatter Diagram
Characteristics
20
15
10
05
00
First Second ThirdShift
values
Parameter
values
Bar Chart Control ChartsE.H. Aghezzaf- Vakgroep Technische 39
Bedrijfsvoering (TW18V)
ToolToolss foforr ImprovinImprovingg QualityQuality
Measurement Human Machines
Faulty testing equipment
Incorrect specifications
Improper methods
Poor supervision
Lack of concentration
Inadequate training
Out of adjustment
Tooling problems
Old or Worn
Inaccurate temperature
control
Dust andDirt
Defective from vendor
Not to specifications
Material- handling problems
Poor process design
Ineffective quality management
Deficienciesin product design
QualityProblem
Environment Materials Process
Cause-and-Effect Analysis
E.H. Aghezzaf- Vakgroep Technische 40Bedrijfsvoering (TW18V)
WorkPerformance Parameters
Operations that Control Products or Services
Produced and delivered
Requirements
Features, Values and Characteristics
Desired by Cusmoters
Capability
Features, Values and Characteristics
Delivered by Process
Customer Satisfaction
Degree to which Products or Services are Perceived to Meet Expectations
levelslevelsProcess
Output
Outcome
PerformancPerformancee MeasurementMeasurement
Suppliers Work Groups Customers
41Ref- TQM, A.R. Tenner & I.J.DeToro
ProcesProcesss MeasurementMeasurement
EfficiencEfficiencyy MeasuresMeasures
Process Cycle Time,
Resources used per unit ofoutput,
Value Added cost per unit of output,
Ratio of value added to non- value added time,
Cost of poor quality,
Wait and delay time per unit of output,
EffectivenesEffectivenesss MeasuresMeasures
Product Appearance, Performance,
Reliability,
Timeliness,
Usability,
Serviceability,
Durability,
Cost,
Responsiveness,
Dependability,
Accuracy,
Adaptability,
FlexibilitFlexibilityy MeasuresMeasures
Degree of empowerment,
Percentage of events in whichcustomers expectations are exceeded,
Degree of difficulty to respond to special requests,
Degree of authority people have to continuously improve the process,
Amount of time it takes to adjust the process to handle new requirements,
Number of pre-planned process scenarios,
E.H. Aghezzaf- Vakgroep Technische 42Bedrijfsvoering (TW18V)
Exp
ecte
d I
mp
ac
tIn
cre
am
en
tal
Bre
ak
thro
ug
h
Co
nti
nu
ou
sIm
pro
vem
en
t Ben
ch
mark
ing
Re
en
gin
ee
rin
g
BreakthrougBreakthroughh ImprovementImprovement
• Occasional change resulting from innovative and creative thinking,
• Benchmarking: The search of industry best practices that lead to superior performance,– Competitive benchmarking,
– Process benchmarking,
– Strategic benchmarking,
• Reengineering: Radical redesign of processes,
E.H. Aghezzaf- Vakgroep Technische 43Bedrijfsvoering (TW18V)
BreakthrougBreakthroughh ImprovementImprovement
Ongoing Periodic OccasionalApplication Frequency
E.H. Aghezzaf- Vakgroep Technische 44Bedrijfsvoering (TW18V)
ThThee TQTQMM SystemSystemTQM
Continuous Improvement
CustomerFocus
ProcessImprovement
TotalInvolvement
LeadershipEducation and Training Supportive StructuresRewards and recognition Communication
Measurement
E.H. Aghezzaf- Vakgroep Technische 45Bedrijfsvoering (TW18V)
TotaTotall InvolvementInvolvement
• Human Resources,– Leadership,
– Empowerment,
– Employee Involvement,
– Teamwork and work systems,
• Suppliers Quality,
E.H. Aghezzaf- Vakgroep Technische 46Bedrijfsvoering (TW18V)
LeadershipLeadership
• The ability to positively influence people and systems to have a meaningful impact and achieve results,
• Leadership System:– Refers to how decisions are made,
communicated, and carried out at all levels; mechanisms for leadership development, self- examination, and improvement,
– Effectiveness of leadership system depends in part on its organizational structure,
E.H. Aghezzaf- Vakgroep Technische 47Bedrijfsvoering (TW18V)
LeadershiLeadershipp –– LeadinLeadingg PracticePracticess ––
• Create a customer-focused strategic vision and clear quality values,
• Create and sustain leadership system and environment for empowerment, innovation, and organizational learning,
• Set high expectations and demonstrate personal commitment and involvement in quality,
• Integrate quality values into daily leadership and management and communicate extensively,
• Integrate public responsibilities and community support into business practices,
48
LeadershiLeadershipp TheoriesTheories
• Trait approach,• Behavioral approach,• Contingency approach,• Role approach,• Emerging theories:
– Attributional theory,– Transactional theory,
Managing
Plan Organize
Direct Coordinate
Control
GettingResults
Leading
Vision Align
Empower coach care
ImprovingSystems
– Transformational leadership theory,– Substitutes for leadership theory,– Emotional intelligence theory,
E.H. Aghezzaf- Vakgroep Technische 49Bedrijfsvoering (TW18V)
LeadershipLeadershipVision
What we will look like in sucessful future state
Implement(Action)
Commitment
Allocate resources consistent with leadership
framework
Style
Role model- how we will behave
Specific Intent
Broad Intent
ObjectivesWhat is to be acheived in scheduled period of time
GoalWhat is to be acheived
through sustained efforts over long period of time
Methodology How objectives will be
acheived through strategy and plans
Politicy Statement of principles that guide how all business activities are
to function
Foundation(Direction) Mission
The purpose or the reason for the existance of the
business
Do the right things(What to do)
ValuesDefine how we will behave
by delineating shared beliefs
Doing things right(How to do it)
Ref- TQM, A.R. Tenner & I.J.DeToro E.H. Aghezzaf- Vakgroep Technische 50Bedrijfsvoering (TW18V)
HumaHumann ResourcResourcee ParadigmsParadigms–– EmpowermenEmpowermentt ––
• Old Thinking:– People are part of the process,– Process requires external control,– Managers have to control what people do,
• New Thinking:– People design and improve processes,– Workers who run the process control it,– Managers must obtain commitment of workers,
E.H. Aghezzaf- Vakgroep Technische 51Bedrijfsvoering (TW18V)
EmpowermentEmpowerment–– Leading Practices ––
• Promote cooperation and collaboration through teamwork,
• Empower individuals and teams to make decisions that affect quality and customer satisfaction,
• Make extensive investments in training and education,
• Maintain a work environment conducive to the well-being and growth of all employees,
• Monitor extent and effectiveness of HR practices and measure employee satisfaction,
E.H. Aghezzaf- Vakgroep Technische 52Bedrijfsvoering (TW18V)
Alig
n m
en
t
Ali
gn
me
nt
EmpowermentEmpowerment
Empowerment in threeDimensions
- Capability- Alignment
- Trust
Build CapabilityIndividuals System- Ability - Materials
- Skills - Methods- Knowledge - Machines
Trust
E.H. Aghezzaf- Vakgroep Technische 53Bedrijfsvoering (TW18V)
EmpowermentEmpowerment
Build Alignment
1. Teach your mission, vision, values, and objectives,
2. Build everyone's commitment to them,
Bureaucracy
Paralysis
Empowerment
Chaos
Trust
Without alignment and trust the organization will suffer with paralisis,
bureaucracy, or chaos.
Build Mutual Trust
Employees feel that:
1. They can trust their managers,2. Thier managers trust them,
E.H. Aghezzaf- Vakgroep Technische 54Bedrijfsvoering (TW18V)
MeasurinMeasuringg EmployeeEmployeeSatisfactioSatisfactionn anandd EffectivenessEffectiveness
• Satisfaction,– Quality of work-life, training, teamwork,
leadership, communications, compensation, benefits, internal suppliers and customers,
• Effectiveness,– Team and individual behavior, cost, quality,
and productivity improvements, employee turnover; suggestions, training effectiveness,
E.H. Aghezzaf- Vakgroep Technische 55Bedrijfsvoering (TW18V)
SupplieSupplierr anandd PartneringPartneringProcessesProcesses
• Recognize the strategic importance of suppliers,
• Develop win-win relationships through strong partnerships,
• Establish trust through openness and honesty,
• Reduce number of suppliers and integrate the important once and eliminate the others,
56
SupplierSupplierss QualityQuality
• “Certified supplier” – one that, after extensive investigation, is found to supply material of such quality that routine testing on each lot received is unnecessary,
• Benefits of Effective Supplier ProcessManagement:
– Reduced costs and faster time to market,
– Increased access to technology,
– Reduced supplier risk and improved quality,
E.H. Aghezzaf- Vakgroep Technische 57Bedrijfsvoering (TW18V)
StrategieStrategiess foforr qualityqualityContinuous
Improvement
CustomerFocus
ProcessImprovement
TotalInvolvement
Strategies and Plans
E.H. Aghezzaf- Vakgroep Technische 58Bedrijfsvoering (TW18V)
LinkinLinkingg ththee StrategiStrategicc PlanninPlanningg ToToProcesProcesss ManagementManagement
Existing Desired MeasuresProduct
FeasibleBusiness Strategies
ExistingCapabilities
Strategy Gap?
Capability Gap?
DesiredBusiness Strategy
DesiredCapabilities
Attributes
Price, Time, Quality, Variety
OperationsStrategy
Marketing, …, Financial Strategy
Current Operational Structure: Processes &
Infrastructure
Desired Operational Process Gap? Structure: Processes &
Infrastructure
E.H. Aghezzaf- Vakgroep TechnischeBedrijfsvoering (TW18V)
Process Attributes
Cost, Time, Quality,
Flexibility59
ThThee TQMTQM StrategiStrategicc ModelModel
Business/Activity
Mission Vision Values
Goals
Critical success factors
Objectives
Competitive Analysis Strengths/Weaknesses
Assumptions
Strategies
Programs
Projects Organization Budgets/Resources
E.H. Aghezzaf- Vakgroep Technische 60Bedrijfsvoering (TW18V)
5
2
ObjectiveObjective QualityQuality
4
3
Integration of qualityManagement
1
Top managementConsensus
Generalised Education and training
From Problem Solving to Process Control
Quality Management Policies Deployment
&Business Strategies
E.H. Aghezzaf- Vakgroep Technische 61Bedrijfsvoering (TW18V)
StrategiStrategicc PlanningPlanning
GuidelinGuidelinees
E.H. Aghezzaf- Vakgroep Technische 62Bedrijfsvoering (TW18V)
Strategic Management
• The Strategic Management is a long-term, future oriented process of assessment, goal setting, and decision-making that maps an explicit path between the present and a vision of the future.
• This process relies on careful consideration of an organization’s capabilities and the environment.
• This process leads also to priority-based resource allocation for achieving the organization’s mission.
E.H. Aghezzaf- Vakgroep Technische 63Bedrijfsvoering (TW18V)
Strategic Management
Vision
• A vision is an inspiring picture of a preferred future, not bound by time. It represents global and continuing purposes. It serves as a foundation for strategic planning.
• A vision would depict an ideal future for the organization and the contributions that it can make to that end.
E.H. Aghezzaf- Vakgroep Technische 64Bedrijfsvoering (TW18V)
Strategic Management
Goals
• The general ends toward which the organization directs its efforts.
• They address the primary issues facing the organization within broad grouping of interrelated concerns.
• They are founded on the vision and may involve coordination among several department with similar functions.
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Strategic Management
Mission
• The reason for an organization’s existence. it succinctly identifies what the organization does, why, and for whom it does it.
• A mission reminds everyone in the organization, and also outside, of the unique purposes promoted and served by the organization.
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Strategic Management
Objectives
• Objectives are clear targets for specific action.• They are more detailed than goals, they have
shorter time frames, and may state a quantity.• They are achievable, measurable, and they set the
direction for strategies.• A single goal may be subdivided into multiple
objectives.
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Strategic Management
Strategy
• Strategies are the methods to achieve goals and objectives.
• The means of transforming inputs into outputs, and ultimately outcomes, with thebest use of resources.
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Performance Measures
Indicators of the work performed and the results achieved. Can divided into:
• Output measures
• Outcomes measures
• Input measures
• Efficiency measures
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Output Measures
• Outputs are the goods and services produced by an organization.
• Output measures are the tools, or indicators, to count the services and goods produced by an organization.
• The number of people receiving a service, or unit produced, or the number of services and customer delivered are often used as measures of output.
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Development Guides
• Is the output reliably measurable?• Is the output measure directly related to the
organization's strategies?
• Does the output measure show the quantity of work performed?
• Can the measure be stated in unit cost terms?
• Is the output measure clear?
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Outcome Measures
• Outcomes are the quantified results, or impacts, of organization action.
• Outcome measures are tools, or indicators, to assess the actual impact of an organization’s action.
• A means for quantified comparison between the actual results and the intended result.
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Development Guides
• Is the outcome measure directly related to the organization’s goals.
• Is the outcome reliably measurable?• Does the outcome measure show what change
(difference) the organization’s action will have on the target group or problem?
• Can the organization gather data for the outcome measure without incurring excessive costs or undertaking cumbersome procedures?
• Is the outcome measure clear?
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Output versus Outcome Measures
• Percentage of high school graduates (output measure) is not the same as the percentage of students with a certain level of mastery of subjects (outcome measure).
• The number of patients treated and discharged from a state mental hospital (output measure) is not the same as the number of discharged patients who are capable of living independently (outcome measure).
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Input Measures
• The resources that an organization uses to produce products and services, including human, financial, facility, or material resources.– Number of €’s expended– Kilograms of material used
• Also includes measures of the scope of an organization’s operations:– Number of clients eligible for services– Number of entities subject to inspection/regulation– Number of applications or order received
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Efficiency Measures
• Indicators that measure the cost, unit cost or productivity associated with a given outcome or output.
– Average cost per client served
– Average cost per inspection
– Average time to process an order
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