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Chapter 4

Managing for Quality and High Performance

TQM

Total Quality Management (TQM)– Is a total, company wide effort that

companies use to achieve customer satisfaction

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Core Principles of TQM

Focus on the customer Participation and teamwork Continuous improvement and learning

...supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques

TQ should be embodied in the culture of an organization

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Customer Focus

Customer is principal judge of quality Organizations must meet and exceed

customer expectations Strategic decisions must be

customer-driven Customers include employees, and

society at large

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Participation and Teamwork Employees know their jobs best and therefore, how

to improve them Management must encourage

participation and teamwork Empowerment better serves customers, and creates

trust and motivation Teamwork and partnerships must exist both

horizontally and vertically

Juran credits Japanese managers use of the entire workforce as one of the reasons for Japan’s rapid quality achievement

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Continuous Improvement and Learning

Integral part of management of all systems and processes

Refers to both incremental and breakthrough improvements

Learning is adapting to change, leading to new goals and approaches

Fredrick Taylor, the father of Scientific Management, believed that management had the responsibility to find the best way to do a job

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Infrastructure, Practices, and Tools

Leadership Strategic HRM Process Data and information Leadership Strategic HRM Process Data and information Planning mgt. managementPlanning mgt. management

Performance TrainingPerformance Training appraisalappraisal

Trend chartTrend chartToolsTools

PracticesPractices

InfrastructureInfrastructure

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TQM Infrastructure Leadership Strategic planning

– Who are our customers?– What is our mission?– What principles do we value?– What are our long-range and short-range goals?– How do we accomplish these goals?

Human resources management– Employee selection– Training– Determining employee satisfaction

Process management– Involves designing and developing the processes to deliver

products and services that meet and exceed customer needs Data and information management

– Operations performance– Market assessment– Supplier performance

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TQM and Traditional Practices (1 of 2)

Organizational structures

Role of people Definition of quality Goals and

objectives

Knowledge Management

systems Reward systems Management’s

role

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TQM and Traditional Practices (2 of 2)

Union-management relations

Teamwork Supplier

relationships

Control Customers Responsibility Motivation Competition

Malcolm Baldrige National Quality Award

The Baldrige award was established by congress and signed into law on August 20, 1987

Award was named after President Reagan’s Secretary of Commerce, who was killed in an accident

Very similar to Japan’s Deming Prize

The Baldrige award recognizes U.S. companies (small business, mfg, service) that excel in quality management practices and performance– Doesn’t exam the government entities

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Malcolm Baldrige National Quality Award

Helps improve quality in U.S. companies

Recognizes achievements of excellent firms and provide examples to others

Establishes criteria for evaluating quality efforts

Provides guidance for other American companies

Malcolm Baldrige, former U.S. Secretary

of Commerce

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MBNQA Categories

Leadership Strategic Planning Customer and Market Focus Information and Analysis Human Resource Development

and Management Process Management Business Results

Baldrige Award trophy

Self Assessment

A primary goal of the Baldrige programis to encourage many organizations toimprove on their own by equipping them with astandard template for measuring their performance and their progress toward performance excellence.

Boeing Airlift & Tanker Programs – 1998 winner

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Baldrige Award Criteria Framework

1Leadership

2StrategicPlanning

5Human Resource Development & Management 7

Business Results

3Customer andMarket Focus

6 ProcessManagement

4Information and Analysis

Customer and MarketFocused Strategy and Action Plans

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Evaluation Process

Receive applicationsReceive applications

First stage reviewFirst stage review (5-8 examiners)(5-8 examiners)

SelectSelect for consensusfor consensus review?review?

Consensus Consensus review (6-8review (6-8examiners)examiners)

SelectSelectfor site visitfor site visit ??

Site visitSite visit(5-8 examiners)(5-8 examiners)

RecommendRecommendwinners (judges)winners (judges)

Feedback reportno

yes

no

yes

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Scoring Process

Bases upon the following three

dimensions:

1. Approach: methods used to achieve requirements in criteria

2. Deployment: extent to which approaches are applied to all relevant areas and activities

3. Results: outcomes and effects in achieving purposes addressed in criteria

Quality Awards Around the World

Programs in place

No programs

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Other Quality Award Programs

European Quality Award Canadian Awards for Business

Excellence Australian Business Excellence

Award

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Critics and Debate

““Quality Programs ShowQuality Programs Show Shoddy Results”Shoddy Results”

““TQM is as Dead as a pet rock”TQM is as Dead as a pet rock”

““TQM is AliveTQM is Alive and Well”and Well”

““TQM failures just prove that bad TQM failures just prove that bad management is alive and kicking”management is alive and kicking”