1. Building and Sustaining Total Quality Organizations
Chapter 14
Building and Sustaining Total Quality Organizations

2. Why Adopt TQ Philosophy?
Reaction to competitive threat to profitable survival
An opportunity to improve

3. Selling the TQ Concept Learn to think like top executives
Position quality as a way to address priorities of stakeholders
Align objectives with those of senior management
Make arguments quantitative
Make the first pitch to someone likely to be sympathetic
Focus on getting an early win, even if it is small
Ensure that efforts won’t be undercut by corporate accounting principles
Develop allies, both internal and external
Develop metrics for return on quality
Never stop selling quality

4. Corporate Culture and Change
Corporate culture is a company’s value system and its collection of guiding principles
Cultural values often seen in mission and vision statements
Culture reflected by management policies and actions

5. Baldrige Core Values and Concepts
Visionary leadership
Customer-driven excellence
Organizational and personal learning
Valuing employees and partners
Agility
Managing for innovation
Focus on the future
Management by fact
Public responsibility and citizenship
Focus on results and creating value
Systems perspective

6. TQ vs. Traditional Management
Organizational structures
Role of people
Definition of quality
Goals and objectives
Knowledge
Management systems
Reward systems
Management’s role
Union-management relations
Teamwork
Supplier relationships
Control
Customers
Responsibility
Motivation
Competition

7. Cultural Change Change can be accomplished, but it is difficult
Imposed change will be resisted
Full cooperation, commitment, and participation by all levels of management is essential
Change takes time
You might not get positive results at first
Change might go in unintended directions

8. Common Mistakes in TQ Implementation (1 of 3)
TQ regarded as a “program”
Short-term results are not obtained
Process not driven by focus on customer, connection to strategic business issues, and support from senior management
Structural elements block change
Goals set too low
“Command and control” organizational culture

9. Common Mistakes in TQ Implementation (2 of 3)
Training not properly addressed
Focus on products, not processes
Little real empowerment is given
Organization too successful and complacent
Organization fails to address fundamental questions
Senior management not personally and visibly committed

10. Common Mistakes in TQ Implementation (3 of 3)
Overemphasis on teams for cross-functional problems
Employees operate under belief that more data are always desirable
Management fails to recognize that quality improvement is personal responsibility
Organization does not see itself as collection of interrelated processes

11. Building on Best Practices
Universal best practices
Cycle time analysis
Process value analysis
Process simplification
Strategic planning
Formal supplier certification programs

12. Best Practices: Infrastructure Design (1 of 3)
Low performers
process management fundamentals
customer response
training and teamwork
benchmarking competitors
cost reduction
rewards for teamwork and quality

13. Best Practices: Infrastructure Design (2 of 3)
Medium performers
use customer input and market research
select suppliers by quality
flexibility and cycle time reduction
compensation tied to quality and teamwork

14. Best Practices: Infrastructure Design (3 of 3)
High performers
self-managed and cross-functional teams
strategic partnerships
benchmarking world-class companies
senior management compensation tied to quality
rapid response

15. Self Assessment: Basic Elements
Management involvement and leadership
Product and process design
Product control
Customer and supplier communications
Quality improvement
Employee participation
Education and training
Quality information

16. Implementing Total Quality: Key Players
Senior management
Middle management
Workforce

17. Sustaining the Quality Organization
View quality as a journey (“Race without a finish line”)
Recognize that success takes time
Create a “learning organization”
Planning
Execution of plans
Assessment of progress
Revision of plans based on assessment findings
Use Baldrige assessment and feedback
Share internal best practices (internal benchmarking)