While overall management commitment is necessary to the success of quality management, commitment from the organization’s executives is vital. Executive management sets the tone for the whole effort by visibly supporting quality management.
Every employee, including other managers, will wait to see where executives prioritize quality management. If quality improvement is not “number one” with executive management, it will not be with anyone else.
After receiving their initial quality management training, executive managers should operate as a Process Improvement Team (PIT) to improve at least one management process before moving quality management down the organization.
This is a visible sign of commitment and the best way for management to understand what quality management means. Ideally, each layer of management will do the same thing. A challenging process to study is the preparation of the annual budget, but starting with a simpler process may be more appropriate.
Executive management should develop a quality policy and mission, vision, goals, and values statements. They also show commitment to quality management by establishing new quality standards calling for error-free performance. This goal will not be pursued or achieved, if executive management does not establish the need.
Tuesday, March 31, 2009
MANAGEMENT COMMITMENT
Quality management is a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. Quality management is the application of quantitative methods and human resources to improve the products and services supplied to an organization, all processes within an organization, and the degree to which the current and future needs of the customer are met. Quality management integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach focused on continuous improvement. It is a culture change.
Management commitment is the single most important requirement for successful implementation of quality management. There is no precedent of successful quality improvement without executive management and the management team leading the effort. Having management commitment does not guarantee quality management success; it only improves the odds for successful implementation. The entire organization must eventually become committed to quality management.
Managers need to set the tone for the organization by driving the process and incorporating the philosophy of quality management into their management styles. They must be prepared for an environmental change, making Quality a key responsibility.
The top-down implementation model (waterfall effect), starting with executive management, then middle management, line management, and, finally, employees, has proven successful in many organizations.
Management commitment is the single most important requirement for successful implementation of quality management. There is no precedent of successful quality improvement without executive management and the management team leading the effort. Having management commitment does not guarantee quality management success; it only improves the odds for successful implementation. The entire organization must eventually become committed to quality management.
Managers need to set the tone for the organization by driving the process and incorporating the philosophy of quality management into their management styles. They must be prepared for an environmental change, making Quality a key responsibility.
The top-down implementation model (waterfall effect), starting with executive management, then middle management, line management, and, finally, employees, has proven successful in many organizations.
Total Quality Management
Total quality management (TQM) is the term used by many to indicate an organization-wide effort of continuous process improvement. The Federal Quality Institute defines TQM as a strategic, integrated management system for achieving customer satisfaction, which involves all managers and employees and uses quantitative methods to continuously improve an organization’s processes.
Some additional thoughts on TQM include:
· The improved performance is directed toward satisfying such cross-functional goals as quality, cost, schedule, mission, need and suitability.
· TQM is a process of controlled change.
· Central to the TQM approach is the change in management philosophy regarding the “responsibility for quality.” Formerly it rested with a separate group of individuals in a department/directorate/division often designated as quality assurance. Under TQM, the responsibility rests with every employee, beginning with top management. Knowledge Domain 4 provides additional insight into the change in management philosophy, new behaviors for management and leadership.
TQM is accomplished using a team organization; both management and the employees are members of “quality teams” (also called process improvement/process action teams), that focus on continuous process improvement.
Some additional thoughts on TQM include:
· The improved performance is directed toward satisfying such cross-functional goals as quality, cost, schedule, mission, need and suitability.
· TQM is a process of controlled change.
· Central to the TQM approach is the change in management philosophy regarding the “responsibility for quality.” Formerly it rested with a separate group of individuals in a department/directorate/division often designated as quality assurance. Under TQM, the responsibility rests with every employee, beginning with top management. Knowledge Domain 4 provides additional insight into the change in management philosophy, new behaviors for management and leadership.
TQM is accomplished using a team organization; both management and the employees are members of “quality teams” (also called process improvement/process action teams), that focus on continuous process improvement.
Six Sigma Quality
Most people spend twelve or more years in an educational system in which grades of 90%, or higher, are considered excellent. However, in industry, 90% is not a good quality record. For example, if one out of every ten tires fails, you have a 90% quality rating, but that is totally unacceptable to tire customers.
Motorola developed a concept called “Six Sigma Quality” that focuses on defect rates, as opposed to percent performed correctly. “Sigma” is a statistical term meaning one standard deviation. “Six Sigma” means six standard deviations. At the Six Sigma statistical level, only 3.4 items per million are outside of the acceptable level. Thus, the Six Sigma quality level means that out of every one million items counted, 999,996.6 will be correct, and no more than 3.4 will be defective.
Experience has shown that in most systems, a Four Sigma quality level is the norm. At the Four Sigma level there are 6,120 defects per million parts, or about 6 defects per 1,000 opportunities, to do a task correctly.
· The key focus of companies implementing a Six Sigma program is to develop a good business strategy that balances the cost, quality, features and availability considerations for products. A valuable lesson learned is that decisions made must be tied to the bottom line for the company.
Motorola developed a concept called “Six Sigma Quality” that focuses on defect rates, as opposed to percent performed correctly. “Sigma” is a statistical term meaning one standard deviation. “Six Sigma” means six standard deviations. At the Six Sigma statistical level, only 3.4 items per million are outside of the acceptable level. Thus, the Six Sigma quality level means that out of every one million items counted, 999,996.6 will be correct, and no more than 3.4 will be defective.
Experience has shown that in most systems, a Four Sigma quality level is the norm. At the Four Sigma level there are 6,120 defects per million parts, or about 6 defects per 1,000 opportunities, to do a task correctly.
· The key focus of companies implementing a Six Sigma program is to develop a good business strategy that balances the cost, quality, features and availability considerations for products. A valuable lesson learned is that decisions made must be tied to the bottom line for the company.
Best Practices and Benchmarking
A practice is a specific implementation of a work process. For example, a practice would be one organization’s process for estimating the amount of resources required for building a system.
A Best Practice is one of the most effective practices for performing a specific process. Best Practices are normally identified by benchmarking or by an independent assessment.
Best Practices are also identified through winners of quality competitions such as the Malcolm Baldrige National Quality Award, Deming Prize, etc., Benchmarking involves a comparison of one organization’s, or one part of an organization’s, process for performing a work task to another organization’s process, for the purpose of finding best practices or competitive practices that will help define superior performance of a product, service, or support process.
provides additional details on benchmarking, including types of benchmarking and a ten-step process for conducting benchmarking.
A Best Practice is one of the most effective practices for performing a specific process. Best Practices are normally identified by benchmarking or by an independent assessment.
Best Practices are also identified through winners of quality competitions such as the Malcolm Baldrige National Quality Award, Deming Prize, etc., Benchmarking involves a comparison of one organization’s, or one part of an organization’s, process for performing a work task to another organization’s process, for the purpose of finding best practices or competitive practices that will help define superior performance of a product, service, or support process.
provides additional details on benchmarking, including types of benchmarking and a ten-step process for conducting benchmarking.
The Three Key Principles of Quality
Everyone is responsible for quality, but senior management must emphasize and initiate quality improvement, and then move it down through the organization to the individual employees. The following three quality principles must be in place for quality to happen:
Management is responsible for quality – Quality cannot be delegated effectively. Management must accept the responsibility for the quality of the products produced in their organization; otherwise, quality will not happen. A quality function is only a catalyst in making quality happen. The quality function assists management in building quality information systems by monitoring quality and making recommendations to management about areas where quality can be improved. As the quality function is a staff function, not management, it cannot dictate quality for the organization. Only management can make quality happen.
Producers must use effective quality control - All of the parties and activities involved in producing a product must be involved in controlling the quality of those products. This means that the workers will be actively involved in the establishment of their own standards and procedures.
Quality is a journey, not a destination - The objective of the quality program must be continuous improvement. The end objective of the quality process must be satisfied customers.
Management is responsible for quality – Quality cannot be delegated effectively. Management must accept the responsibility for the quality of the products produced in their organization; otherwise, quality will not happen. A quality function is only a catalyst in making quality happen. The quality function assists management in building quality information systems by monitoring quality and making recommendations to management about areas where quality can be improved. As the quality function is a staff function, not management, it cannot dictate quality for the organization. Only management can make quality happen.
Producers must use effective quality control - All of the parties and activities involved in producing a product must be involved in controlling the quality of those products. This means that the workers will be actively involved in the establishment of their own standards and procedures.
Quality is a journey, not a destination - The objective of the quality program must be continuous improvement. The end objective of the quality process must be satisfied customers.
The Cost of Quality
The cost of quality (COQ) is the money spent beyond what it would cost to build a product right the first time. If every worker could produce defect-free products the first time, the COQ would be zero. Since this situation does not occur, there are costs associated with getting a defect-free product produced.
There are three COQ categories:
1. Prevention - Money required to prevent errors and to do the job right the first time is considered prevention cost. This category includes money spent on establishing methods and procedures, training workers and planning for quality. Prevention money is all spent before the product is actually built.
1. Appraisal – Appraisal costs cover money spent to review completed products against requirements. Appraisal includes the cost of inspections, testing and reviews. This money is spent after the product or subcomponents are built but before it is shipped to the user.
2. Failure – Failure costs are all costs associated with defective products. Some failure costs involve repairing products to make them meet requirements. Others are costs generated by failures, such as the cost of operating faulty products, damage incurred by using them, and the costs incurred because the product is not available. The user or customer of the organization may also experience failure costs.
There are three COQ categories:
1. Prevention - Money required to prevent errors and to do the job right the first time is considered prevention cost. This category includes money spent on establishing methods and procedures, training workers and planning for quality. Prevention money is all spent before the product is actually built.
1. Appraisal – Appraisal costs cover money spent to review completed products against requirements. Appraisal includes the cost of inspections, testing and reviews. This money is spent after the product or subcomponents are built but before it is shipped to the user.
2. Failure – Failure costs are all costs associated with defective products. Some failure costs involve repairing products to make them meet requirements. Others are costs generated by failures, such as the cost of operating faulty products, damage incurred by using them, and the costs incurred because the product is not available. The user or customer of the organization may also experience failure costs.
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