Part One The Foundations – A Model for TQM Chapter # 2 Commitment and Leadership

Chapter Outline 2.1 The total quality management approach 2.2 Commitment and policy 2.3 Creating or changing the culture 2.4 Effective leadership 2.5 Ten points for senior management – the foundations of the TQM model

2.1 The total quality management approach What is quality management? ‘something that is best left to the experts’  wrong answer Quality cannot be achieved on a company-wide basis if it is left to the experts. Using the traditional control techniques is NOT the way to achieve quality. Quality is not the responsibility of the QC department only.

2.1 The total quality management approach TQM is far more than shifting the responsibility of detection of problems from the customer to the producer. TQM requires a comprehensive approach that must first be recognized and then implemented. Today, managers must plan strategically to maintain a hold on market share, let alone increase it. Consumers choice quality or price?

2.1 The total quality management approach TQM is an approach to improving the competitiveness, effectiveness and flexibility of a whole organization. For an organization to be truly effective, each part of it must work properly together towards the same goals. The methods and techniques used in TQM can be applied throughout any organization (manufacturing, public service, health care, education and hospitality industries).

2.1 The total quality management approach Toward TQ, management must focus on developing a problem-prevention mentality. Many people will need to undergo a complete change of ‘mindset’. The correct mindset may be achieved by looking at the sort of barriers that exist in key areas.

2.1 The total quality management approach Staff will need to be trained and shown how to reallocate their time and energy to studying their processes in teams, searching for causes of problems, and correcting the causes, not the symptoms a positive management. The managements of many firms may think that their scale of operation is not sufficiently large, that their resources are too slim. Managers should examine the existing quality performance by asking the following questions:

2.1 The total quality management approach Is any attempt made to assess the costs arising from errors, defects, waste, customer complaints, lost sales, etc? Are the organization’s quality systems-documentation, procedures, operations etc-in good order? Have personnel been trained in how to prevent errors and quality problems? What is being done to motivate and train employees to do work right first time?

2.1 The total quality management approach If satisfactory answers given to most of these questions an organization in the way to using quality procedures and management. If answers to the previous questions indicate problem areas, it will be beneficial to review the top management’s attitude to quality. Time and money spent on quality-related activities are not limitations of profitability.

2.2 Commitment and policy TQM must start at the top with the chief Executive or equivalent. The middle management must explain the principles of TQM to the people for whom they are responsible, and ensure that their own commitment is communicated. The chief Executive must accept the responsibility for and commitment to a quality policy in which he must really believe. Within each and every department of the organization at all levels, starting at the top, basic changes of attitude will be required to operate TQM.

2.2 Commitment and policy Controls, systems and techniques are very important in TQM, but they are not the primary requirement. TQM requires from the management total commitment, which must then be extended to all employees at all levels and in all departments. Going into organizations sporting poster-campaigning for quality instead of belief, one is quickly able to detect the falseness. The opposite is an organization where TQ means something, can be seen, heard, felt.

2.2 Commitment and policy The quality policy: Every organization should develop and state its policy on quality, together with arrangements for its implementation. The contents of the policy should be made known to all employees. Management must be dedicated to the regular improvement of quality, not simply a one-step improvement to an acceptable plateau.

2.2 Commitment and policy Ideas must be set out in a quality policy that requires top management to: Establish an ‘organization’ for quality. Identify customer’s needs and perception of needs Assess the ability of the organization to meet these needs economically. Ensure that bought-in materials and services reliably meet the required standards of performance and efficiency.

2.2 Commitment and policy Concentrate on the prevention rather than detection philosophy. Educate and train for quality improvement. Review the quality management systems to maintain progress. The quality policy must be publicized and understood at all levels of the organization.

2.2 Commitment and policy An example of a good company quality policy is given below: Quality improvement is primarily the responsibility of management. In order to involve everyone in the organization in quality improvement, management will enable all employees to participate in the preparation, implementation and evaluation of improvement activities. Quality improvement will be a continuous process.

2.2 Commitment and policy Quality improvement will be tackled and followed up in a systematic and planned manner. This applies to every part of our organization. The organization will concentrate on its customers and suppliers, both external and internal. Practical assistance and training should be given, to ensure the relevant knowledge and experience are acquired for successful implementation of the policy.

2.3 Creating or changing the culture The culture within an organization is formed by a number of components: Behaviors based on people interactions. Norms resulting from working groups. Dominant values adopted by the organization. Rules of the game for getting on. The climate. Any organization needs a vision framework that includes its guiding philosophy, core values and beliefs and a purpose these should be combined into a mission.

2.3 Creating or changing the culture The guiding philosophy drives the organization and is shaped by the leaders through their thoughts and actions. The core values and beliefs represent the organization’s basic principles about what is important in business, its conduct, its social responsibility and its response to changes in the environment. The purpose of the organization should be a development from the core values and beliefs and should quickly and clearly convey how the organization is to fulfill its role.

2.3 Creating or changing the culture Control: Control is the process by which information or feedback is provided so as to keep all functions on track. Control mechanisms fall into three categories, depending upon their position in the managerial process: Before the fact Strategic plans Budgets Objectives Operational Observation Progress review Staff meetings After the fact Annual reports Surveys Performance Review

2.3 Creating or changing the culture Attempting to control performance through systems, procedures, or techniques external to the individual is not an effective approach, since it relies on 'controlling' others. An externally based control system can result in a high degree of concentrated effort in a specific area if the system is overly structured, but it can also cause negative consequences to surface: since all rewards are based on external measures, which are imposed, the 'team members' often focus all their efforts on the measure itself.

2.3 Creating or changing the culture When the rewards are dependent on only one or two limited targets, all efforts are directed at those. The fear of not being rewarded, or even being criticized may cause some to withhold information that is unfavorable but nevertheless should be flowing into the system. The fear of failure replaces the desire to achieve.

2.3 Creating or changing the culture TQM is concerned with moving the focus of control from outside the individual to within, the objective being to make everyone accountable for their own performance, and to get them committed to attaining quality in a highly motivated fashion.

2.4 Effective leadership Effective leadership starts with the Chief Executive’s vision, capitalizing on market or service opportunities, continues through a strategy that will give the organization competitive advantage, and leads to business or service success. Together, effective leadership and TQM result in the company or organization doing the right things, right first time. The five requirements for effective leadership are the following:

2.4 Effective leadership Developing and publishing clear documented corporate beliefs and objectives – a mission statement The beliefs and objectives should address: The definition of the business. Target sectors and relationships with customers. Indications for future direction. Commitment to monitoring performance against customers' needs and expectations, and continuous improvement.

2.4 Effective leadership Developing clear and effective strategies and supporting plans for achieving the mission and objectives. Identifying the critical success factors and critical processes. Reviewing the management structure Empowerment – encouraging effective employee participation particular attention must be paid to the following:

2.4 Effective leadership Attitudes The key attitude for managing any winning organization may be expressed as “I will personally understand who my customers are and what are their needs and expectations of me”. This attitude must start at the top, then it must percolate down to be adopted by every employee. Abilities Every employee must be able to do what is needed and expected of him or her. Training and its effectiveness

2.4 Effective leadership Participation For effective employees participation in making the company or organization successful, employees must be trained to: E Evaluate – the situation and define their objectives. P Plan – to achieve those objectives fully. D Do, ie implement the plans. C Check – that the objectives are being achieved. A Amend, ie take corrective action if they are not.

2.5 Ten points for senior management – the foundations of the TQM model How can senior managers and directors be helped in their understanding of what needs to be done to become committed to quality and implement the vision? The organization needs long term COMMITMENT to constant improvement. Adopt the philosophy of zero errors/defects to change the CULTURE to right first time. Train the people to understand the CUSTOMER-SUPPLIER relationships.

2.5 Ten points for senior management – the foundations of the TQM model Do not buy products or services on price alone – look at the TOTAL COST. Recognize that improvement of the SYSTEMS needs to be managed. Adopt modern methods of SUPERVISION and TRAINING – eliminate fear. Eliminate barriers between departments by managing the PROCESS – improve COMMUNICATIONS and TEAMWORK

2.5 Ten points for senior management – the foundations of the TQM model Eliminate the following: Arbitrary goals without methods All standards based only on numbers Barriers to pride of workmanship Fiction. Get FACTS by using to the correct TOOLS Constantly educate and retrain – develop the 'EXPERTS' in the business Develop a SYSTEMATIC approach to manage the implementation of TQM

Total Quality Management Model – major features Teams Culture Process Customer Supplier Communication Systems Tools Commitment