quality management philosophy concepts 2013 st version
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qualitymanagementTRANSCRIPT
QUALITY MANAGEMENT
• Philosophy & Concepts • Tools and Techniques used in Total
Quality management • International Quality Standards and
Awards
January 2013 1 Quality Management
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 2 Quality Management
Part 1 Philosophy & Concepts
January 2013 3 Quality Management
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 4 Quality Management
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 5 Quality Management
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 6 Quality Management
Dimensions of Quality
Dimension Product example
Mobile phone
Performance Signal, Battery charge
Features Internet, camera,......
Conformance Workmanship
Reliability Mean-time-to-failure
Durability Useful life
Serviceability Ease of repair
Response Courtesy of dealer
Aesthetics Surface finish
Reputation Customer report ranking
January 2013 7 Quality Management
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 8 Quality Management
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 9 Quality Management
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 10 Quality Management
Juran´s trilogy
• Designing and planning for Quality
• Compliance, controlling and assuring quality
• Improving quality
January 2013 11 Quality Management
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 12 Quality Management
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 13 Quality Management
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 14 Quality Management
Quality planning tools
• Benchmarking • Brainstorming • Competitive analysis • Control charts • FMEA • Flow diagram • Process capability • Scatter diagram • Etc.
January 2013 15 Quality Management
Quality Control
• Assure Repeatable and Compliant Processes
January 2013 16 Quality Management
Quality Control Tools
• SPC (Statistical Process Control)
• Problem Solving methods
• Poka Yoke
January 2013 17 Quality Management
Quality Improvement
• Create breakthroughs in Performance
January 2013 18 Quality Management
Quality Improvement Tools
• Six Sigma
– RDMAIC process
• Recognize
• Define
• Measure
• Analyze
• Improve
• Control
January 2013 19 Quality Management
Juran´s trilogy
January 2013 20 Quality Management
• 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 to Quality Management
January 2013 21 Quality Management
• 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 to Quality Management
January 2013 22 Quality Management
• 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 23 Quality Management
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 24 Quality Management
• 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 25 Quality Management
Costs of Quality
• Prevention
• Appraisal and inspection
• Internal failure
• External failure
• COPQ = Costs of Poor Quality
COPQ
January 2013 26 Quality Management
Prevention Costs
• Quality Planning activities
– FMEA analysis
– Control Plans
• Quality training
• Product design Verification
January 2013 27 Quality Management
Appraisal and Inspection Costs
• Testing product
• Reviewing documents
• Inspecting equipment and supplies
• End of line inspection
• Product audits
• Etc.
January 2013 28 Quality Management
Internal Failure Costs
• Rework on product
• Scrap of non conforming product
• Correcting database errors
• Stocking extra parts to replace defective components
• Etc,
January 2013 29 Quality Management
External Failure Costs
• Warranty claims
• Product recalls
• Investigating complaints
January 2013 30 Quality Management
Direct Cost of Poor Quality (4 – 8% of Sales)
Indirect Cost of Poor Quality (15 – 25% of Sales)
Scrap Rework Warranty Customer Return
Loss of Customer Loyalty
Engineering change
Excessive inventory
Late delivery
Excessive overtime
Excessive employee turnover
Expediting costs
January 2013 31 Quality Management
Cost of Quality
Freedom from failures
Failure
Appraisal & Prevention
Total
Co
sts
100%
Juran´s Cost of Quality
January 2013 32 Quality Management
Cost of Quality
Excess Quality
Customer Value of Quality
Co
st o
f Q
ual
ity
Junk Zone Profit
Zone
Quality Costs
Freedom from Failures 100%
January 2013 33 Quality Management
Quality Cost as % of Sales
January 2013 34 Quality Management
Cost distribution as a % of total cost of Quality
Prevention
Appraisal
Internal Failure
External Failure
3,5 %
26 %
2,5 %
68 %
January 2013 35 Quality Management
COPQ – car recalls USA
January 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 Quality Management 36
Investment in Quality Cost
January 2013 37 Quality Management
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 38 Quality Management
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 39 Quality Management
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 40 Quality Management
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 41 Quality Management
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 42 Quality Management
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 43 Quality Management
Core competencies
• Core competencies are things an organization
does so well they can be viewed as providing a
competitive advantage.
January 2013 44 Quality Management
SWOT analysis
• Opportunities
• Threats
– => apply to External Factors
• Strengths
• Weaknesses
– => apply to Internal Factors
January 2013 45 Quality Management
SWOT analysis
January 2013 46 Quality Management
Vision
• An organization’s vision is its guiding force, the dream of what it wants to become and its reason for being.
January 2013 47 Quality Management
Mission
• An organization’s mission describes who an
organization is, what it does, and where it is
going.
January 2013 48 Quality Management
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 49 Quality Management
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 50 Quality Management
Action plan
• Well defined, finite projects and activities undertaken for the purpose of specific desired outcomes in support of the broad objectives.
January 2013 51 Quality Management
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 52 Quality Management
Strategic Management
• Integration of Quality programs in strategic plan is important for their success
• This includes annual quality goals and subgoals
January 2013 53 Quality Management
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 54 Quality Management
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 55 Quality Management
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 56 Quality Management
Ethics
• The Total Quality approach cannot be successfully implemented in an organization that fails to subscribe to high standards of ethical behavior
January 2013 57 Quality Management
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 58 Quality Management
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 59 Quality Management
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 60 Quality Management
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 61 Quality Management
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 62 Quality Management
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 63 Quality Management
Partnering with Suppliers & Customers
Suppliers Customer End Users
Suppliers Customer End Users
Invisible wall
January 2013 64 Quality Management
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 65 Quality Management
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 66 Quality Management
Total Quality culture
• Short vs long term objectives
• Managers as coaches vs bosses
• Finger pointing vs problem solving
• Supplier cooperation
• Continuous improvement
January 2013 67 Quality Management
Total Quality culture
• 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 68 Quality Management
Total Quality culture
• 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 69 Quality Management
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 70 Quality Management
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 71 Quality Management
Customer Satisfaction
The Company and its processes Supplier
Supplier
Customer
Customer
Customer & Supplier
Customer & Supplier
Customer & Supplier
Customer & Supplier
Customer & Supplier
Customer & Supplier
January 2013 72 Quality Management
• 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.
Customer Satisfaction
January 2013 73 Quality Management
• 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)
Customer Satisfaction
January 2013 74 Quality Management
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 75 Quality Management
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 76 Quality Management
QFD example - computer mouse
January 2013 77 Quality Management
QFD example - computer mouse
• Customer requirements:
– Easy to move
– Does not jam
– Easy to click
– Contoured to hand
– Easy to clean
January 2013 78 Quality Management
QFD example - computer mouse
• 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 79 Quality Management
QFD example - computer mouse
• Engineering Characteristics:
– Energy needed to move
– Button resistance
– Dismantling capabilities
– Easy to use
– Product dimensions
– Sealed ball
January 2013 80 Quality Management
QFD example - computer mouse
January 2013 81 Quality Management
QFD example - computer mouse
A = Company A B = Company B X = Us 5 is the best
January 2013 82 Quality Management
QFD example - computer mouse
January 2013 83 Quality Management
QFD example - computer mouse
Strongly positive
Positive
Negative
January 2013 84 Quality Management
QFD Matrices
January 2013 85 Quality Management
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 86 Quality Management
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 87 Quality Management
Kano model
January 2013 88 Quality Management
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 89 Quality Management
Customer expectations vs. customer satisfaction
Customer expectations
Actual performance
Customer satisfaction
Product B
Product A
January 2013 90 Quality Management
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 91 Quality Management
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 92 Quality Management
Value, Price and Function
Price
Function (Value)
Cost
Profit Market Share
Efficiency
January 2013 93 Quality Management
Traditional Approach:
Best-In-Class Approach:
PRICE - PROFIT = COST PRICE - PROFIT = COST
COST + PROFIT = PRICE COST + PROFIT = PRICE
FIXED BY THE CUSTOMER
FIXED BY YOU
Cost versus Price and Profit
January 2013 94 Quality Management
Value ? Function ? Cost ?
FunctionFunction
Value = Value = ------------------------------------------ CostCost
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 95 Quality Management
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 96 Quality Management
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 97 Quality Management
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 98 Quality Management
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 99 Quality Management
Total Cost Module & Supply Chain
3rd Qtr
Labour
Capital
Material
YOUR COMPANY
2 TIER SUPPLIER
1 TIER SUPPLIER
1 TIER SUPPLIER
LOGISTICS
2 TIER SUPPLIER
LOGISTICS
2 TIER SUPPLIER
2 TIER SUPPLIER
LOGISTICS
CUSTOMER
January 2013 100 Quality Management
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 101 Quality Management
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 loyalty
January 2013 102 Quality Management
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 103 Quality Management
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 104 Quality Management
Employee Empowerment
Task –Oriented Managers
People –Oriented Managers
Balanced Managers
Best Managers for Empowerement
January 2013 105 Quality Management
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 106 Quality Management
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 107 Quality Management
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 Quality Management 108
Leadership and Change
• 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 109 Quality Management
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 110 Quality Management
Leadership and Change
• 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 111 Quality Management
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 112 Quality Management
TIME
PR
OD
UC
TIV
ITY
Acceptance
Renewal
/ Confusion
January 2013 113 Quality Management
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 114 Quality Management
Change Management
ADVOCATES OF CHANGE - Desired change - Benefits of Change
RESISTERS OF CHANGE - Desired status quo - Potential Negative Consequences of Change
January 2013 115 Quality Management
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 116 Quality Management
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 117 Quality Management
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 118 Quality Management
Change Management
• Driving forces examples: – Pressure from supervisor
– Incentive earnings
– Competition
• Restraining forces examples: – Apathy
– Hostility
– Poor maintenance of equipment
January 2013 119 Quality Management
Change Management
January 2013 120 Quality Management
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
Change Critic
• Actively looks for reasons it will not work
• Will not see the positive side
• Challenges appropriateness
Change Agent
• Attempts to minimize negative reactions
• Accepts explanations of causes and reasons
• Asks to help implement
• Nurtures others and forms relationships
Rea
ctio
n t
o S
tres
s A
DA
PT
F
IGH
T
A
VO
ID
January 2013 121 Quality Management
Change Management
Low High
Innovators Early
Adapters
Change Agents
20 %
Late Adapters
Bystanders
50 %
Resistors
Critics/Victims
30 %
Level of Resistance
January 2013 122 Quality Management
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 produc- tion processes
• Initiate employee empowerement
• Establish a supplier partnership
• Establish and employee training and education program
Quality Management January 2013 123
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 124 Quality Management
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 125 Quality Management
Commitment of Top Management
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 126 Quality Management
Commitment of Top Management
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 Peeters
A Passion for Excellence
January 2013 127 Quality Management
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 128 Quality Management
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 129 Quality Management
Teamwork
• Quality Circles
• Kaizen
• Team oriented problem solving
– 8D methodology (Ford)
January 2013 130 Quality Management
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 131 Quality Management
Communication
Message received Message understood
Communi
cation
January 2013 132 Quality Management
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 133 Quality Management
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 134 Quality Management
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 135 Quality Management
Training
• Training is an organized, systematic series of activities designed to enhance an individual’s work-related knowledge, skills, understanding, and motivation.
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January 2013 136 Quality Management
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 137 Quality Management
Training
• Chinese proverb:
You hear – you forget
You see – you remember
You do – you understand
January 2013 138 Quality Management