8OrganizingforTQM

OrganizingforQualityTQM-UniversityofMichigan1PatHammett1OrganizationalIssuesforQualityManagement(QM)2OrganizationalRequirementsforQMOrganizationsmustbeableto:A)effectivelydevelopandcommunicatequalitypolicy,procedures&requirementsacrossallcompany&plantfunctions.B)mobilizeresourcestosolvequality-relatedproblems.C)effectivelycoordinatequalityrequirementswithsuppliers(feedforward).D)maintaindirectcontactwithcustomers(feedback).OrganizingforQualityTQM-UniversityofMichigan2PatHammett3A)CommunicatingQualityRequirementsnExamplesofFormalCommunication:nQualityPolicyStatement.nQualityManuals.nISO9000qualitystandards.nExamplesofInformalCommunication:nWordofmouth.nManagementactions.4QualityPolicyStatementnMostcompaniestodayhaveawrittenqualitypolicystatementaspartofaqualitymanual.nforexample,“Itistheestablishedpolicyandintentionofthiscompanytoprovideitscustomerswithproductswhichconformtocustomerrequirementsandaredeliveredontime.Thiswillbeensuredthroughadefinedqualityprogramasdetailedinthecompanyqualitymanual.”nSomecompaniesrelyonverbalqualitypolicies.nforexample,“ourgoalistoensurecustomersatisfactionandminimizerejects.”OrganizingforQualityTQM-UniversityofMichigan3PatHammett5B)IdentifyingandResolvingQualityProblemsnqualityproblemstranscendindividualfunctions,companiesneedmulti-disciplineproblemsolving.80%ProblemsAreOutsideTraditionalQualityControlDepartment20%InsideSource:Feigenbaum,TotalQualityControl,1991,p.151.6OrganizationalApproachesforMulti-disciplineProblemSolvingnFormationofCrossFunctionalTeams.nExample:qualityimprovementteamsnMatrixVs.FunctionalOrganizationStructure.nCo-locationofengineeringresourcesmayopencommunicationchannels.(example:EngineeringTechnicalCenters)OrganizingforQualityTQM-UniversityofMichigan4PatHammett7C)CoordinatingQualityRequirementswithSuppliersImportanceofSupplyChainManagementnManyqualityproblemsarecausedbydefectivepurchasedmaterial(Crosby50%).nSuppliersoftenrepresentalarge%ofmanufacturingcosts.nOEMswanttofocusoncoretechnologies.nLargecompaniesoftencreateatierstructuretomanagesuppliersandsupplierquality.8StrategiesforSupplierRelationshipsHowdoessupplychainmanagementimpactproductquality?LongTermPartnershipsCriteriaTraditionalApproach(PartnershipSourcing)PhilosophykeepsuppliersontoesmutualdependenceSupplyBaselargesupplybasefewsuppliers(singlesourcing)ContractLengthoftenshorttermcontractsoftenlongtermcontractsAwardingContractslowcostbidopenbookmethodofpricingSupplierCostseithersupplierorcompanygainssharecostsavings(win-win)(win-lose)relationshipnotalways50-50%CooperationcooperationasneededfrequentjointproblemsolvingcompanyprotectsknowledgeBlackBoxSourcingOrganizingforQualityTQM-UniversityofMichigan5PatHammett9ManagingHumanResourcesGrowingresearchindicatesthatTQMhasnotachieveditsobjectivesduetohumanresourcemanagement(HRM)problems.Problemssuchas:lackofmanagementsupport.inabilitytoestablishmutualtrustbetweenemployees~managementfailuretochangecorporateculture(driveoutfear).10HumanResourceManagementandTQMnTQMrequiresemployeedevelopment&cooperation.nThus,thetaskoftopmanagementisto:nprovideworkerswiththenecessaryskillsandknowledge.ncreateaquality-mindedcompanycultureamongemployees.nAQualityCulturethat:nnurtureshigh-trustrelationships.nhasasharedsenseofcommitment.nbelievesthatcontinuousimprovementisforthecommongood.OrganizingforQualityTQM-UniversityofMichigan6PatHammett11EstablishingaQualityMindedCulturentheformationofaqualitymindedcultureisahumaninteractionissue.nTherefore,qualitymanagementsystemsmustprovide:nchannelsofcommunicationforproduct-qualityinformationamongallconcernedemployees.(employeesmustunderstandthekeyrequirements)nmeansofparticipationforemployees.(employeesmustfeelpartofthesystemsuchasthroughasuggestionprogram)12SomeHumanResourceChallenges?nShouldcompaniesencourageTQMparticipationthroughmonetaryincentives?nDoallworkerswanttobeinvolvedinthequalitymanagementprocess(e.g.,qualitydecisions)?OrganizingforQualityTQM-UniversityofMichigan7PatHammett13QualityImprovementTeams(QIT)14SomeRolesofQITeamsInadditiontosolvingaqualityproblem,QIteamshelp:nprovideameansofparticipationforemployeesinqualitydecision-making.naidemployeedevelopment:leadership,problem-solvingskills.nleadtoqualityawarenesswhichisessentialfororganizationalculturechange.OrganizingforQualityTQM-UniversityofMichigan8PatHammett15TypesofQualityImprovementTeams1ProjectTeams2QualityCircles161.ProjectTeamCharacteristicsnteamsaddresskeyorganizationalissues.nexamples-simultaneous(concurrent)engineeringproject,ISO9000implementation.nmembership:typicallyismandatoryorassigned.nteamsaretemporaryinnature.nteamparticipationiscross-functional.nteamleadershavevaryingdegreesofauthorityne.g.,heavyweightVs.lightweightprojectmanagersntendencyistogiveteamleadersandteamsmoreauthoritytomakedecisions(self-managingteams).OrganizingforQualityTQM-UniversityofMichigan9PatHammett172.QualityCirclesCharacteristicsnvoluntarygroupsof6-8members.nqualitycircleteamsareusuallymorepermanent.nteamsarefunctional(membersarefromasingledepartment)nmembershaveequalstatusandsel