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Total Quality Management

  

     After about 10 years of study, GOAL/QPC developed this wheel as a summar of its teachings on Japanese Total Quality Management TQM which is called Total Quality Control (TQC) in Japan

1.      Problem-solving

         Continuous Improvement and Standardization

         Individual/Team Problem Solving Roles/Responsibilities

         7 Quality Control Tools

2.      Planning

         Strategic Planning and Alignment

         Individual/Team Planning Roles/Responsibilities

         7 Management/Planning Tools

3.      Cross Functional Improvement

         Quality Function Deployment

         Individual/Team Cross Functional Roles/Responsibilities

         Seven Creativity Tools

 

 

1.    Problem Solving

 

     Total Quality Management is based on the belief that the people who are closest to the job best understand what is wrong and how to fix it. Management has the responsibility at all levels to work on the systems in which goods or services are produced. An understanding of variation is important to the success of Total Quality. One of the major shifts in thinking that is part of total quality is that it is economically desirable to work toward minimal variations rather than adopt some acceptable level of quality.

     Ford learned this lesson dramatically in the mid 1980's. They sub-contracted the production of some automobile engines to a Japanese company. Although all of Fords parts were meeting specification, the variation between parts in the Japanese engines was so small that the Ford technician thought at first that his measurement instrument was broken. But the Japanese engines with minimal variation, ran quieter, were more reliable and were asked for by customers. Continuous Improvement had become essential.

      So the first phase in total quality requires systematically putting all employees to work reducing variation using simple but powerful tools referred to as the seven quality control tools. These tools are used to maintain good quality if it exists and continuously improve it if it doesn't. Motorola for example started with defects or mistakes that were measured in terms of percentages. As they continuously improved they raised the bar of performance to six sigma i.e. less than 3.4 mistakes or defects per one million opportunities.

 

        Continuous Improvement and Standardization

 The continuous improvement uses a process that follows the plan-do-check-act cycle.

The situation is analyzed and the improvement is planned (Plan).

The improvement is tried (Do).

Then data is gathered to see how the new approach works (Check or study) and then

The improvement is either implemented or a decision is made to try something else (Act).

This process of continuous improvement makes it possible to reduce variations and lower defects to near zero.

 The processes that produce good results are standardized and documented.

The documented processes are followed.

If the process is changed the documentation is changed. If an organization lacks this standardization, then improvements tend to slip.

Without standardization', variation is increased rather than reduced.

 Standardization was given a major boost in the early 1990's when ISO 9000 became widely accepted as a basic minimum that companies needed to do to sell products in the European Union. Because it required a documentation of key processes and provided a regular audit to see that processes were followed as documented, it was a major boost to standardization. AT&T initially undertook ISO compliance as a way to keep and grow business in Europe. When AT&T realized how ISO improved its own processes, it began to encourage all its suppliers to become ISO certified. In 1995, AT&T discovered that its ISO certified suppliers had half as many defects as non ISO certified suppliers. This led AT&T to giving preference to supppliers that were ISO certified.

      An important part of improvement is the Team work. Good team activity includes a clear definition of project

.        Individuals and Teams Roles and Responsibilities

      Teamwork is critical to effective continuous improvement and standardization.

     Individuals can support the team by taking responsibility for the success of the team following through on commitments, contributing to discussions, actively listening to others, getting your message across clearly, giving useful feedback, accepting feedback easily. In getting the team off to a good start, you need to agree on a purpose, identify people who will be effected by the work of the team (stake holders), identify limits and expectations of team's work, agree on roles and responsibilities, ground rules and logistics of when and where to meet.

  The work of the team is accomplished by creating work plans, having productive meetings, using data, making good decisions, evaluating potential solutions, implementing changes and documenting its work.

   A team must know when its work is done: it has accomplished its purpose; took steps to maintain the gains; completed documentation of actions, results, and ideas for future improvements; evaluated work, shared results with others; recognized everyone's contributions and celebrated achievements.

     Successful teams also must master potential problems:

1- the area of conflict - some people fight over everything;

2- power - the boss is on the team and people don't speak openly;

3- correct use of experts - who speak clearly and don't dominate;

4- focus - people stay on the subject;

5- participation - all participate in an equal fashion;

6, follow-through - everyone does his or her assignments.

 

Individuals and Teams Roles and Responsibilities

     Teamwork is critical to effective continuous improvement and standardization.

     Individuals can support the team by taking responsibility for the success of the team

     following through on commitments, contributing to discussions, actively listening to

     others, getting your message across clearly, giving useful feedback, accepting feedback

     easily.

 

     In getting the team off to a good start, you need to agree on a purpose, identify people

     who will be effected by the work of the team (stake holders), identify limits and

     expectations of team's work, agree on roles and responsibilities, ground rules and

     logistics of when and where to meet.

 

     The work of the team is accomplished by creating work plans, having productive

     meetings, using data, making good decisions, evaluating potential solutions,

     implementing changes and documenting its work.

 

     A team must know when its work is done: it has accomplished its purpose; took steps

     to maintain the gains; completed documentation of actions, results, and ideas for future

     improvements; evaluated work, shared results with others; recognized everyone's

     contributions and celebrated achievements.

     Successful teams also must master potential problems: 1, the area of conflict - some

     people fight over everything; 2, power - the boss is on the team and people don't

     speak openly; 3, correct use of experts - who speak clearly and don't dominate; 4,

     focus - people stay on the subject; 5, participation - all participate in an equal fashion;

     6, follow-through - everyone does his or her assignments.

 

 

        The Seven Quality Control Tools (7QC)

 

In the 1950's the Japanese began to learn and apply the statistical quality control tools and thinking

that Walter Shewhart and W. Edward Deming developed in the 1930's and 1940's. Their progress

in Continuous Improvement led to the expansion of the use of these tools. Kaoru Ishikawa, head of

the Japanese Union of Scientists and Engineers (J.U.S.E.) expanded the use of these approaches in

Japanese manufacturing in the 1960's with the introduction of the 7 Quality Control (7QC) tools.

      Cause and Effect Diagram 

     The cause and effect diagram is also called the fishbone chart because of its

     appearance and the Ishakowa chart after the man who popularized its use in

     Japan. Its most frequent use is to list the cause of particular problems. The

     lines coming off the core horizontal line are the main causes and the lines coming off

     those are sub causes.

      Run Chart

      The run chart shows the history and pattern of variation. It is helpful to

     indicate on the chart whether up is good or down is good. This tool is used at

     the beginning of the change process to see what the problems are. It is used

     at the end (check) part of the change process to see whether the change has resulted in

     a permanent improvement.

 

      Scatter Diagram

     The scatter diagram show the pattern of relationship between to variables that

     are thought to be related. For example is their a relationship between out side

     temperature and cases of the common cold? As temperatures drop, do colds

     increase. The closer the points hug a diagonal line the more closely there is a one to one

     relationship.

      Flowchart

      The flowchart lists the order of activities. The circle symbol indicates the

     beginning or end of the process. The box indicates action items and the

     diamond indicates decision points. A beneficial technique is to map the ideal

     process and the actual process and identify the differences as targets for improvements.

 

    Pareto Chart

      The Pareto shows the distribution of items and arranges them from the most

     frequent to the least frequent with the final bar being misc. The tool is named

     after Wilfredo Pareto, the Italian economist who determined that wealth is not

     evenly distributed. Some of the people have most of the money. This tool is a graphical

     picture of the most frequent causes of a particular problem. It shows where to put your

     initial effort to get the most gain.

 

     Histogram

      The histogram is a bar chart showing a distribution of variables. An example

     would be to line up by height a group of people in a course. Normally one

     would be the tallest and one would be the shortest and there would be a

     cluster of people around an average height. Hence the phrase "normal distribution".

     This tool helps identify the cause of problems in a process by the shape of the

     distribution as well as the width of the distribution.

 

                            Control Chart

 

     The control chart is a line chart with control limits. It is based on the work of

     Shewhart and Deming. By mathematically constructing control limits at 3

     standard deviations above and below the average, one can determine what

     variation is due to normal ongoing causes (common causes) and what variation is

     produced by unique events (special causes). By eliminating the special causes first and

     then reducing common causes, quality can be improved.

  

2. Planning

     Once most employees have mastered the first phase of work improvement, then the

     organization is ready to move into organization wide planning. This to is a

     plan-do-check-act process as indicated in the following diagram.

      Under the new paradigm planning involves all managers in the organization not just the

     top people. Plans at all levels are aligned by a process of catch ball. This means that

     plans are communicated and conflicts between plans are resolved. Plans are being

     documented. They are not just a once a year project put on the shelf to collect dust.

     Also, each manager monitors his or her plan on a monthly basis and studies successes

     and problems to make the changes in behavior that will help assure the plan will be met

     and exceeded.

 

     Step 1 - 5-10 year plan. The strategic plan is important for defense conversion. When

     one surveys the markets to check competing product it is important to design not to

     compete with existing product but with the products competition will be producing 3-5

     years from now. The lines of evolution as part of systematic innovation (or TRIZ)8 are

     a key to examining how technologies will evolve.

 

     One of the lines of evolution is the S curve. Products develop very quickly at first, then

     the number of changes slow indicating the need for a major break through in the

     product. Another line of evolution is the mono-poly cycle. Products diverge then get

     grouped together. An example is the knife. Two knives are combined to form scissors.

     Different size knives are made for different functions. Eventually these get combined

     into a Swiss army knife.

 

     Another line of evolution is increasing dynamism. An example is in bicycles when they

     shifted from a rigid direct drive to flexible bicycle chain. Uneven development of parts

     shows where the weak link is in the system and where the next product break through

     needs to come. Other lines of evaluations have included the conversion from macro to

     micro and automation.

 

     A sound understanding of customer values is also important for strategic planning. A

     customer may be able to articulate what they want today or tomorrow, but they cannot

     tell you what will be exciting products 3-5 years from now. To define these products

     one must find the values that underlay today's requirements. Then these must be pushed

     up against what is possible to come up with next year's exciting quality.

 

     For example, people want convenience in using the telephone information services, you

     need to have a paper and pencil to write down the number. Today you can push "1" on

     some information services and the phone will automatically dial the number requested

     for a nominal fee. Really exciting quality might be to prrovide the service at no extra

     fee!

 

     Step 2: 3-5 Year Plan

     Once the vision is established, then the 3-5 year project plan must be developed. The

     purpose of this is to do detailed up front planning. This step if done properly will

     dramatically reduce the cost of defense conversion and enhance its likelihood of

     success. The Bible on project planning is called PMBOK which is short for Project

     Management Body of Knowledge.*

 

     Step 3: One Year Plan. The one year plan includes the targets, means, and measures

     that each manager will work on that year. Typically each manager has six to eight target

     areas. Half of these are related to the managers participation in the strategic plan and

     half are related to the critical processes of the persons regular job. All must be

     measurable with monthly numerical targets.

 

     Step 4: Deployment of Plan. All workers are expected to be involved in the continuous

     improvement and standardization of their activities. Each employee should support his

     or her bosses activity. The means of each boss often become the targets for

     subordinates. Even in the case of self-directed teams in Quality Control Circles, strong

     effects are made to understand and support the initiatives of the organization.

 

     Step 5: Execution of Plan. During the year the plan is to be carried out by each

     manager. Key inhibitors to progress are controlled with standardization and improved

     with continuous improvement as outlined in phase one (that is one reason why

     knowledge and skill in daily improvement is a prerequisite to phase two.)

 

     Step 6: Monthly Review of Plan

 

     A check sheet can be used to gather data on frequency. This can be portrayed on a

     pareto chart listing the causes from the most prominent to least frequent in a bar chart

     format. This can provide a guide for action. Such a methodology for regular checking

     will assure continuously improving quality and reducing cost.

 

     Step 7: Annual Review. These monthly reviews are folded together in an annual review.

     The annual review lists the successes and failures and analysis from the various monthly

     reports.

 

     The annual review also focuses heavily on the planning process. What contributed to

     effective planning? What detracted from effective planning?

 

     Also part of new paradigm for planning is the President's annual review. The President

     meets with a sampling of groups that had planning success as well as those who had

     problems. It is an example of seeing how things are going in the work place.

 

     In summary, phase two makes it possible for organizations to take the continuous

     improvement and standardization capability of phase one and apply them to a focused

     improvement area. Hewlett Packard for example used this methodology to reduce its

     time to market and to gain advantage in their laser technology products.

        The Seven Management and Planning Tools

      In the early 1970's as Total Quality Control expanded to service and administrative

     areas, it became clear that the 7QC tools were not always appropriate, so the seven

     new tools were developed under the leadership of Nyatanni. These tools are

     particularly helpful in improving planning.

     Affinity Diagram

      The Affinity Diagram is a tool for organizing language data. After ideas are

     brainstormed and written on cards, they are grouped together with similar

     ideas. A header card is created which captures the meaning of each group of

     ideas. This is a creative, right brain, activity.

 

     Interrelationship Digraph

      The interrelationship digraph shows the relationships between items by

     drawing an arrow from one idea that causes another idea to an idea that is the

     result. Sometimes the arrow is drawn from one action that occurs before

     another action. The items that have mostly arrows going in are long range targets and

     the items that most arrows going out are initial action items

 

     Tree Diagram

      The tree diagram takes a purpose and logically breaks it into action items. As

     you read from left to right it goes in a logical progression from general to

     specific. If you read the chart from left to right, it answers the question "how

     accomplished?" If you read it from right to left, it answers the question "why?"

 

     Matrix Diagram

      The matrix diagram shows the relationship between two or more sets of

     items. It can be very useful in facilitating an analysis of the relationship of each

     item in one set to all items in the other set. This often triggers some thinking

     that would not have happened if this organized approach was not used. It is also helpful

     to see patterns of relationships. Which items don't relate to anything and which ones are

     heavy hitters.

 

     Prioritization Matrices

      The prioritization matrix enables the selection of priority items by applying a

     set of criteria to each item. Sometimes the list of criteria is fairly simple. Other

     times it is weighted with a great deal of precision (eg. the Analytical Hierarchy

     Process-AHP).

 

    Process Decision Program Chart (PDPC)

      The process decision program chard (PDPC) is a tool for contingency

     planning. It begins by listing the steps in a particular activity. It then lists what

     could go wrong at each step and finally it lists the counter measures for things

     that can go wrong. Sometimes it is drawn in the flow chart format below. Other times it

     is arranges as a numerical tree diagram.

 

Activity Network Diagram

      The activity network diagram is a simplified version of PERT (Program

     evaluation and review technique). It is a method for mapping out the

     sequence in which activities will be undertaken. One of its benefits is that it

     indicates which items can be done simultaneously. Another benefit is that it makes it

     clear what set of activities will take the longest and where time efficiencies can be

     achieved.

  

3 .Cross Functional Management

     Phase three takes the processes of phase one and two and applies them to multiple

     areas. The most frequent areas of focus are quality, cost, delivery and employee

     morale. The most widely used application in the United States is Quality Function

     Deployment (QFD).

 

        Quality Function Deployment

      Quality Function Deployment has four states. Phase one, gathers the voice of the

     customer, puts it words accurately understood by producing organization and analyzes

     it versus the capability and strategic plans of the organizations. Phase 2, identifies the

     area of priority break through that will result in dramatic growth in market share for the

     producer. Phase 3, represents the break through to new technology. This is the area

     that has seen the largest growth in the last few years with the discovery of the Russian

     TRIZ approach to inventive problem solving (see below) Phase 4, represents the

     production of the new product and new technology at the highest possible quality

     standards.

 

     The following is one of the classic QFD examples. In the early 1980's International

     Harvester and Komatsu ended a partnering relationship. Since International Harvester

     had owned all the patents, Komatsu had to develop eleven new heavy equipment

     models in the short period of twenty-four months.

 

     Komatsu engineers went out to the field to watch and observe the actual use of the

     equipment. They observed the discomfort and toil of the operator. As they studied this

     it became clear that two improvement areas might be the comfort of the driver in the

     cab and reducing the effort to shift the vehicle, since it was constantly going back and

     forth.

 

     In the case of the cab, Komatsu engineers reworked the window structure so there

     was a clearer view in view in all directions. They put in air conditioning that would stand

     up in a dusty environment. They made a seat that was comfortable to sit in for long

     periods of time. In the case of the shifting they looked into electronic shifting. They

     considered twelve different approaches. After considerable testing, they chose the one

     that would be the most reliable and easy to use.

 

     When Komatsu introduced its new line of heavy trucks, it was met with great

     enthusiasm. Because of its ease of use it led to higher productivity and driver

     preference. Soon Komatsu became a dominant force in the heavy truck business, a

     position it maintained for over a decade.

        Individuals and Teams Roles and Responsibilities

        The Seven Creativity Tools

Problem Definition

 Problem re-definition can be aided by what is called heuristic redefinition. One draws a picture of the

problem and identifies the different parts of the system. A prioritization matrix is used to select the

one or two ways of looking at the problems that are most likely to succeed. Other methods of

problem redefinition include Gerry Nadler's purpose hierarchy, the product cycle S-curve and the

technological evolution of TRIZ.

                              Brainstorming

 Brainstorming is the tool for gathering ideas from a team of people. The process is improved by

having a mix of people of different backgrounds and also by having people with backgrounds in the

area where the solution is most likely to be found. It is important to let the process go on through at

least three lulls in the conversation. Some of the best ideas only come after thought.

                              Brainwriting

 Brainwriting is a method of stimulating new ideas by writing them down. This may be used to gather

ideas from a team of six people. each person writes three ideas and passes it to the person on their

right. They read these and add three more ideas that are triggered by the preceding ideas. This

continues around the circle until each person gets back their original paper. This silent approach

permits more thoughtfulness than what usually happens in brainstorming.

Another way of visualizing ideas is through mapping the ideas and connected related ideas with a

line.

                        Creative Brainstorming

 Creative brainstorming is a way of stimulating idea generation by changing one element in a

brainstorm definition and then generating more ideas and applying these new ideas back to the

original idea. For example a group may brainstorm the issue of how to get employees comfortable

using the internet. The second (Imaginary) brainstorm may be how to get employees to wear

cardboard noses. The results of the second brainstorm may then be applied to the first brainstorm to

see which are applicable.

                    Word and Picture Association

 New ideas can be generated by pictures, words or inventions. A group can look at pictures held in

the hand or projected on the wall and asked what ideas it stimulates. Words from lists or dictionaries

can be used to trigger ideas on a particular problem. The contradiction matrix of TRIZ can be used

to stimulate ideas by simple analogy from inventions that share similar principles to the problem that

is being worked on.

                          Advanced Analogies

 TILMAG or advanced analogies are a methodology for gathering ideas by looking for examples of

how people have solved similar problems. One begins by defining the parameters of the ideal

solution. These parameters are paired and examples of those pair parameters are generated. The

principle underlying that item are then applied by analogy to the existing problem.

                       Morphological Chart

 The morphological chart is a systematic search for all possible solutions to the problem. It begins by

defining the parameters of the solution. Each parameter is to be mutually exclusive. Then all the

mutually exclusive options are identified for each parameter. Possible solutions to the problem are

reached by putting together one option from each parameter. The most appealing solutions are then

refined as possible solutions.

 

       TQM   FAQ's

 Here are some brief comments on TQM FAQ's I get.

 Most of my materials are in "consultant" notes. That is why I am developing the web material you

have spotted. For your immediate need, however, perhaps these personal observations can be

helpful.

 Do you have further information on how we decide our approach to TQM?

 My experience has shown basically three approaches to establishing TQM systems in organizations.

One and two are recommended. The third is not. You will gather different types of information and

utilize different levels of third party assistance for both approaches one and two. I will be brief.

 Approach One:

     This is your first option of what I call the INTEGRATIVE APPROACH. TQM can be

     approached as a "concept of management" that fine-tunes and revitalizes management in

     producing bottom-line products or services resulting in customer satisfaction (and the almighty

     profits or market acceptance needed to remain competitive or a service provider). In this case

     management and individuals of the organization are usually operating fairly effectively and

     TQM becomes the "accepted advantage" in beating competition for customer dollars,

     loyalties, approval, etc. I have found that most organizations have 70+ percent of all they need

     for a TQM and often don't need an externally designed program. Successful TQM

     implementation can be done internally without much external help. Here you are changing

     behaviors and the culture is very supportive.

Approach Two:

     This is your second option of what I call the INTEGRATIVE APPROACH. TQM can also

     be approached as a "system of management" that provides processes and competencies

     currently lacking and needed by management. Bringing in a well developed system is

     important where quality skills are missing or new approaches (sometimes attitudes) are

     necessary. The TQM's role in this instance is much greater, as it must "bring-up-to-speed" the

     individuals and systems in the organization in areas essential to healthy TQM. These are often

     basic areas like conflict resolution, decision making, and meeting management, as well as in

     traditional areas of measurement and continuous learning. In these cases, companies benefit

     from well designed "TQM Initiatives" that have all the external power for "changing culture to

     a supportive role" while getting the necessary immediate behavioral changes needed for quality

     performance and expense justification.

     Part of my perspective on this in my curriculum of "CORE SUPERVISOR SKILLS" on the

     net: http://www.skyenet.net/~leg/suptrn.htm These were developed as part of a highly

     adaptable system I call Q.-S.T.E.P. , which simplifies quality into five basic competencies.

     (Q.uality Performance - S.kill Maximization; T.eam Participation; E.xcellence for Customers;

     P.revention of Waste). They work with existing culture and take advantage of current "good

     practices."

     In both approaches one and two, TQM's can usually be accepted by the company culture

     and eventual implementation will be successful. I believe statistics show that about 20% of all

     TQM's find some satisfactory way to enter company cultures and succeed. My experience

     tells me it is through one or a combination of these first two approaches that they find success.

     They find a way to blend both bottom-line organizational realities with individual human

     realities into a unique set of quality beliefs and actions (realities). Needed behavior is changed,

     but is also supported with a healthy change in culture.

Approach Three:

     I often call this the TRADITIONAL MANAGEMENT APPROACH. This is the most

     common approach, and is also the cause of most failures. "Overlay or Forced Injection" of

     TQM system(s) and processes onto (or into) existing cultures without negotiating with or

     gaining commitment to their impact on individual's lives. This approach often sees TQM as a

     technical process. It usually aims mainly at changing behavior (which can be commended in

     itself). It does not, however, change culture that drives or supports that behavior change. Thus

     the changes are tolerated, but quickly abandoned when money runs out or a new idea comes

     along.

     The principle reason for this limited behavioral focus is quite simple to understand - TIME

     (which translates to money). TQM's are usually implemented with third party assistance

     (expensive but needed for change agentry). Behavioral change alone can be affected within

     weeks and months (with reasonable dollars expended). Sustainable culture change takes a

     minimum of three years after benchmarking and often seven years before total impact is seen

     (big dollars and a test of commitment by ownership). The real answer is in affecting both

     (using internal and external change agents, projecting immediate benefits and long term

     commitment, etc.)

 

What are the basic principles in a TQM?

 A successful TQM must balance realites of organization (OD) and human resources development

(HRD) in achieving quality objectives. Organizational principles are found in the technical aspects of

TQM's (charting, requirements, measurements, procedures, etc.) Human principles are less

articulated and found in the communicaton side of TQM (processes, meetings, decision making,

teams, etc.) The TQM must understand and balance the skills needed to blend them together.

Beware of TQM's that do not address principles of both OD and HRD.

 

What are the basic objectives of a TQM?

 The same as any good management system: Customer Satisfaction. (External Customer loyalty and

purchases. Internal Customer commitment and outputs.)

 What role does TQM play for sales managers?

This is often a missing link, as sales management can sometimes be seen as "less important" than

operations or financial managment. The same is true in government or not-for-profit organizations

with public relations aspects of managerial roles. My experience has shown that sales managment is

key in several areas: 1) Listening to the customer. 2) Translating customer demands/wants to

engineering or designers. 3) Telling the truth (bad news can be blocked if sales is shy or in fear of

pleasing their superiors). 4) Controling expectations of customers (ie. not promising undeliverable

features or dates). Good TQM systems can give sales managers (or PR managers) increased input

and opportunities to share with other managers "market/customer realities." TQM can place the

focus upon "sharpening" an understanding of customer requriements. Methods that include "listening"

as well as "presenting" can result.