cm0485 01 managment & leadership

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Module I: Management and Leadership


Quality Philosophies and

Foundations

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Quality Evolution

1.  Craftsmanship – Middle ages to today 2.  Standardization – 1798, Whitney, parts

interchangeability 3.  Definition of system – 1911, Taylor’s scientific

management techniques 4.  Quality Control – 1950s, Sampling plans to

control plans 5.  Quality Assurance – 1970s, Preventive

techniques 6.  Total Quality Management – 1980s 7.  Six Sigma and Lean – Waste and

variation reduction

The Four Quality Eras

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Inspection Control Era

•  Frederick W. Taylor started the Inspection Control Era in the 1920s.

•  Scientific Management was the primary concept for the era.

•  Quality was viewed as an independent function that was the responsibility of management.

•  The era saw the proliferation of the modern factory.

Statistical Control Era •  In the statistical control era, defects were reduced by

controlling production processes. •  A process orientation toward quality began after World

War I, with the pioneering work of Walter Shewhart on statistical process control at Bell Telephone Laboratories.

•  This application of statistical methods in manufacturing led to the advent of quality engineering.

•  The use of statistical process control and control charts became a cornerstone for industrial standards, which were applied with widespread success in American industry during World War II.

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Quality Assurance Era

•  Struggling Japanese industry and “made in Japan” tag.

•  Japanese teams to United States •  Turned to American quality experts for

implementing SPC and a structured approach to achieving quality.

•  Role of JUSE, Japanese Standards Organization, and Japanese Management Association in promoting quality.


David L. Goetsch and Stanley B. Davis in Introduction to Total Quality cite the widespread adoption of four strategies as decisive in the success of Japan’s quality revolution: •  Upper management involvement in leading the

drive for quality •  Company-wide training at all levels in managing

for quality •  Quality improvement viewed as a continuous

revolutionary process •  The involvement of the workforce in quality

through the quality circle concept

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•  Role of Genichi Taguchi and Kaoru Ishikawa

•  Twenty long years ………. •  Initial reaction of American industry to

Japanese success •  Western realization •  Actions

Strategic Control/Management Era

•  In the strategic management era, quality was defined from the customer’s point of view, and the organization’s strategy became centered on quality.

•  The roots of this new era lie in QFD. QFD can strongly help an organization focus on the critical characteristics of a product/service from customer-needs perspective.

•  QFD transforms customer needs (VOC) into engineering characteristics of a product or service, prioritizing each product/service characteristic.

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Deming’s 14 Points for Management

1.  Create constancy of purpose for improvement of product and service.

2.  Adopt the new philosophy. 3.  Cease dependence on mass inspection. 4.  End the practice of awarding business on the

basis of price alone. 5.  Improve—constantly and forever—the system of

production and service. 6.  Institute training. 7.  Adopt and institute leadership.

Deming’s 14 Points for Management (cont.)

8.  Drive out fear. 9.  Breakdown barriers between staff areas. 10.  Eliminate slogans, exhortations, and targets for

the workforce. 11.  Eliminate numerical quotas (for both workforce

and for management). 12.  Remove barriers to pride of workmanship. 13.  Institute a vigorous program of education

and retraining. Encourage education and self-improvement for everyone

14.  Take action to accomplish the transformation.

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Juran’s Factors for Success •  Top management must commit time and resources •  CEOs must serve on the steering committee •  Quality improvement goals in business plan must include:

–  Means to measure quality results against goals –  Review of results against goals –  Reward for superior quality performance

•  Individuals must be made responsible for improvements •  Training on quality management and improvement •  Empower workforce to participate in improvement

process

The Juran Trilogy

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40 Sporadic Spike

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Original zone of control

Control (during operation) Planning

New zone of control Chronic waste (opportunity for improvement)

0 Time

Lessons learned

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Elements of the Quality System

•  Quality Planning – Developing the products and processes required to meet customer’s needs.

•  Quality Control – The process of evaluating actual performance, comparing actual performance to goals, and taking action on the difference.

•  Quality Improvement – Actions taken to attain unprecedented levels of performance—levels significantly better than any past level

TQM

Recognition of Need, Awareness

Develop Quality Plan and Strategy

Understanding Modern Quality Management

Measurement

Training and Education

Implementation

Celebration

Continuous Improvement Measurement

Quality Maturity Curve

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Feigenbaum’s TQC Principles •  Total Quality Control (TQC) is a company-wide process,

and all functions are involved •  Quality is what the customer says it is •  Quality and production costs are in partnership •  Higher quality will equate with lower costs •  Both individual and team zeal are important •  Quality is a way of managing •  Quality and innovation can work together in product

development •  All of management must be involved in quality •  Continuous improvement is required •  Quality is the least capital-intensive route to productivity •  Both customers and suppliers must be considered

Ishikawa’s Characteristics of CWQC*

1.  More education and training in quality control 2.  Quality circles are only 20 percent of CWQC

activities 3.  Participation by all members of the company 4.  Having QC audits 5.  Using the seven tools and advanced statistical

methods 6.  Nationwide quality control promotion activities * as different from Western practices

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Crosby’s Absolutes of Quality

1. The definition of quality is conformance to requirements—not as goodness.

2. The system for causing quality is prevention—not appraisal.

3. The performance standard must be zero defect—not “that’s close enough.”

4. The measurement of quality is the price of nonconformance—not indexes.

What Is Quality? •  Quality is not a program. It is an approach to business. •  A collection of tools and techniques that are proven to

work •  Is defined by customers through their satisfaction. •  Includes continual improvement and breakthrough

events. •  Tools and techniques are applicable in every aspect of

business •  Is aimed at perfection; anything less is an opportunity. •  Increases customer satisfaction, reduces cycle time and

costs, and eliminates errors and rework.

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Quality Defined

•  Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Experts’ Comments on Quality

1.  Quality improvement is a never-ending process. 2.  Top management commitment, knowledge, and active

participation are critical. 3.  Management is responsible for articulating a company

philosophy, measurable objectives, and change strategy. 4.  All employees in the organization need to be active

participants. 5.  A common language and set of procedures are important

to communicate and support the quality effort. 6.  A process may be required to identify the most critical

problems, determine their causes, and find solutions. 7.  Changes in company culture, roles, and

responsibilities may be required.

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The Quality Management

System

Quality Management System Overview

•  A company considering the implementation of a QMS recognizes that a holistic, disciplined approach to quality management proves most effective when permeated throughout the organization.

•  The foundational source material for QMS is the ISO 9000 standards (including ISO 9000, ISO 9001, ISO 9004, and ISO 19011).

•  The main purpose of the ISO standard is facilitating international commerce, but these standards are really a collection of decades of proven practices for implementing quality in an organization.

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The Strategic Planning Process

Step 1: Formulate Guiding Documents (Mission,

Vision, and Values) and Perform Internal/External

Environment Analysis

Step 2: Identify Long-Term Strategic Business

Objectives

Step 3: Identify Shorter-Term Functional

Performance Objectives

Step 4: Identify an Implementation Strategy

and Control System

Step 5: Monitor Performance, Provide Feedback, and Make

Changes to any Phase of the Strategic Plan

Vision/Mission/Policy

•  Vision – What we hope to do. Defines how the organization will be viewed by all.

•  Mission – What we do and who we do it for. The primary purpose of an organization and its reason for existence.

•  Policy – How we expect to accomplish what we hope to do.

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SWOT Example

Performance Measurement Guidelines

•  Measures should be linked to strategic objectives •  Should be rigorous, objective, quantifiable, and

standardized. •  Should be achievable, realistic, and time-based. •  Should be assigned to appropriate personnel who

are accountable, as well as empowered. •  Focus on vital few. •  Automate data collection and calculations where

possible. •  Select measures that are resistant to

“incorrect” behavior

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Deployment Techniques

•  Benchmarking •  Balanced Score Card •  Project Management •  Quality Information

Benchmarking Principles

•  Measure the competitive or best-in-class performance relative to key success factors in the industry.

•  Determine how these levels of performance are achieved.

•  Use these performance measures to develop strategy and implement process improvement.

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Balanced Scorecard Perspectives

Using the Balance Scorecard method, the overall business performance will be measured in the following four categories: 1.  Financial measures 2.  Business processes 3.  Customer focus 4.  Learning and growth

As they cascade through the organization, each area should measure, at some level, all four categories.

Project Management

Elements: 1.  Planning – deciding what to do 2.  Scheduling – deciding when to do 3.  Controlling – ensuring that desired results are

obtained

Tools: 1.  Gantt Chart 2.  Critical Path Analysis

a)  PERT b)  Decision Tree

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I.B.3 Quality Information System

•  Three types of tasks that information systems address: Strategic analysis, Day-to-day decision making, Operations support

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QIS Basics The five basic elements of an information system:

•  Inputs •  Data Analysis (processing) •  Offline analysis •  Output •  Audit

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ASQ Code of Ethics

ASQ Code of Ethics Fundamental Principles ASQ requires its members and certification holders to conduct themselves ethically by:

1.  Being honest and impartial in serving the public, their employers, customers, and clients.

2.  Striving to increase the competence and prestige of the quality profession.

3.  Using their knowledge and skill for the enhancement of human welfare.

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ASQ Code of Ethics (cont.) Members and certification holders are required to observe the tenets set forth below: Relations with the Public

•  Article 1 – Hold paramount the safety, health, and welfare of the public in the performance of their professional duties. Relations with Employers, Customers, and Clients

•  Article 2 – Perform services only in their areas of competence.

•  Article 3 – Continue their professional development throughout their careers and provide opportunities for the professional and ethical development of others.

ASQ Code of Ethics (cont.) •  Article 4 – Act in a professional manner in dealings with

ASQ staff and each employer, customer, or client. •  Article 5 – Act as faithful agents or trustees and avoid

conflict of interest and the appearance of conflicts of interest.

Relations with Peers •  Article 6 – Build their professional reputation on the merit

of their services and not compete unfairly with others. •  Article 7 – Assure that credit for the work of others is

given to those to whom it is due.

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Leadership Principles

Roles

Leaders are required to support rather than direct employees. For a person put in a leadership role, the new job responsibilities include words like “lead,” “coach,” and “train” in place of traditional terms such as “plan,” “organize,” “direct,” and “control.”

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Eight Quality Management Principles

1. Customer Focus 2. Leadership 3.  Involvement of People 4. Process Approach 5. System Approach to Management 6. Continual Improvement 7. Factual Approach to Decision-Making 8. Mutually Beneficial Supplier

Relationships


Facilitation Principles and

Techniques

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Facilitator Role

•  The facilitator’s role in directing and managing the team is vital to creating an environment in which the team is able to address the issues, and find and implement effective solutions.

•  There are a variety of tools a facilitator may use to help guide the team to analyze the problem and develop effective solutions. Brainstorming, nominal group, force-field analysis, and multivoting are some of the most common tools.

Teams

Types of teams 1.  Process improvement team 2.  Workgroup 3.  New product development team 4.  Ad hoc or temporary teams

Support Mechanisms

1.  Management sponsorship 2.  Training 3.  Equipment

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Communication Techniques

Types of Communication

•  Vertical downwards •  Vertical upwards •  Horizontal •  Formal •  Informal

Both vertical and horizontal structures have the potential to introduce structural barriers to communication within an organization. An organization’s structure may foster a “silo” mentality, whereby each department focuses on its own interests, procedures, and people rather than cooperating with other groups to meet customer needs.

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Customer Relations

Quality – Customer Relations

•  One of the best definitions of quality is “meeting the customer needs and exceeding the customer expectations.”

•  Customers here imply both external as well as internal customers.

•  An organization’s quality level can therefore be defined (or measured) as the degree to which the customer’s needs and expectations are consistently met and exceeded.

•  Thus, the customer is the most important part of any process.

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Customer-Supplier Chain

Information Exchange Model : Requirements and Performance

Product Development Process

Key : Understand customer expectations

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Quality Function Deployment

QFD Principles include: •  Start with the “voice of the customer” at the concept stage

(e.g., surveys identifying which benefits customers feel are important).

•  Provide manufacturing with highly detailed instructions (e.g., instructions for production process control or for how front-line employees will provide a service).

•  Employ a series of matrices and charts (e.g., tools that rank features by significance, identify possible problems, and provide well-defined engineering specifications).

Improving Customer Satisfaction

1. Quantify where you are now. 2. Set quantifiable goal linked to rewards. 3. Train and empower frontline staff. 4. Solicit complaints by using 800 number. 5. Automate and integrate data use and report. 6. Create focal point for satisfaction and

prevention analysis. 7.  Invest in customer education. 8. Track satisfaction by transaction.

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Supplier Management

Expectations from Suppliers

•  Right quality – Defect free, quantity, service

•  On-time Delivery •  Right cost

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Supplier Rating Basics

1. Quality (nonconformance-free performance, percent defective, and others)

2. Delivery (percent early, late, over-order, under-order)

3. Cost (scrap, inspection, rework, returns)


Barriers to Quality

Improvement

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Barriers to Quality Improvement •  Lack of time •  Poor two-way communication •  Lack of employee empowerment •  Lack of employee trust in senior

management •  Politics and turf issues •  Lack of formal strategic plan for change

– Necessary for dealing with resistance to change

•  Lack of strong motivation

Barriers to Quality Improvement

•  View of quality program as a quick fix •  Drive for short-term financial results •  Lack of leadership

– Management time – Availability of organizational resources

•  Lack of customer focus – internal and external

•  Lack of company-wide definition of quality