Summary Total Quality Management part 2 | WorldSupporter Summaries and Study Notes

Deze samenvatting is gebaseerd op het studiejaar 2013-2014.

CHAPTER J PROCESSES

 

J.1 Process management vision

 

Organizations need to be very good at process management, because poor processes will lead to underperformance. Successful exponents of process management understand the dimensions related to process strategy, operationalizing processes, process performance, people and leadership roles and information and knowledge. All processes need managing, planning, measuring and improving.

 

Most top management teams have aligned the core processes with their strategy, combining related activities and cutting out one that do not add value. This is called process enterprises and has the following advantages:

 

• presenting ‘one company’ to the customers and suppliers;
• lower costs;
• increased flexibility (particularly in terms of resource allocation).

 

The following best practices for process management are identified:

 

1. Identifying the key business processes.
2. Managing processes systematically.
3. Reviewing processes and setting improvements targets.
4. Using innovation and creativity to improve processes.
5. Changing processes and evaluating the benefits.

 

J.2 Process Classification Framework

 

The Process Classification Framework is developed by the American Productivity and Quality Center (APQC). It supplies a generic view of business processes (not functions) through its structure (figure 10.2) and vocabulary (table 10.1). The framework can be a useful tool in understanding and mapping business processes (both internal and external).

 

The Federal Information Processing Standards Publication (FIPS PUBS) provides a framework for describing and improving business processes which are widely used in business process re-engineering (BPR) and business process improvements (BPI). The method is capable of representing all processes in relatively simple language which promotes consistency. Figure 10.3 shows the basis of this approach (IDEF-0). The IDEF-0 model includes procedures for developing process models by a team and describes:

 

• what a process does;
• what controls a process;
• what things it works on;
• what mean it uses to perform its functions;
• what it produces.

 

The boxes provide a description of what happens in the form of an active verb or verb phrase. The arrows convey data or objects related to the process to be performed. Arrows on the left side of the box are inputs, which are transformed into outputs on the right side of the box. Arrows entering the top of the box are controls and arrows connected to the bottom of the box are mechanisms or resources.

 

An example can be found on page 180 – 181 and explanation of text are found in figure 10.4 to 10.8.

IDEF-1X is used to produce structural graphical information models for processes, which may support the management of data, the integration of information systems and the building of computer databases.

 

J.3 Flowcharting

 

The development of improvement is possible if processes are understood by all members of the organization. Therefore it is necessary to describe all series of activities. The most powerful tool is flowcharting. This is a method of describing a process by using symbols (figure 10.9). It is basically a picture of the step undertaking in an activity. It seems difficult for most people within an organization to draw a flowchart for the process in which they take part. An example of flowcharting is described on page 183 and figures 10.10 and 10.11. A group of people with the knowledge about the process should, to create a complete flowchart, follow the next steps:

 

1. Draw a flowchart of the existing process.
2. Draw a second chart of the flow the processes could (or should!) follow.
3. Compare the two to highlight the changes necessary.

 

J.4 Leadership of process management

 

Many top managers used process management to great effect (TNT, XEROX). The existence of process owners (key to effective process management) makes the difference between traditional based process management. When top management has the end-to-end responsibility for individual processes, they have the authority over the process design. Managing the people who work in the processes demands attention to:

 

• designing, developing and delivering training programs;
• setting performance targets;
• regular communication (face-to-face);
• negotiation and collaboration.

 

Careful planning and an understanding of what needs to be done is necessary to implement process management. It can not be a quick fix! Moving to this requires some challenging changes.

 

CHAPTER K REDESIGN AND RE-ENGINEERING

 

 

K.1 Re-engineering

 

BPR was introduced to the world via 2 articles that described radical changes to business processes and business processes. The BPR methods are required when processes need radical reassessment. The drivers for radical reassessment and changes include Information Technology (IT) and political, financial, cultural and competitive aspects. IT creates opportunities for breakthrough performance, but BPR is needed to deliver it.

 

K.2 BPR

 

BPR is the fundamental rethink and radical design of a business process, its structure and associated management systems, to deliver major or step improvements in performance and:

 

– BPR wants to align work processes with customer requirements to achieve long-term objectives.

– BPR challenges managers to rethink traditional methods and commit to customer-focused processes.

– It will result in better customer relations, reductions in cycle time top market and increased productivity.

– BPR breaks down internal (vertical) barriers and encourages the organization to work in cross-functional team with a shared horizontal view of the business.

– BPR focuses on results rather than just activities (benchmarking is a powerful tool for BPR).

 

The similarity between TQM and BPR lies in their requirement of both customers and suppliers. “Continuous and discontinuous improvements living side by side.”

 

K.3 Redesign

 

IT provided the means to achieve the breakthrough in process performance, but the inspiration came from understanding the potential processes. This required a more holistic view involving wholesale redesigns of the processes. The larger the scope of the process, the greater and further reaching are the consequences of the redesign. The holistic view questions why things are done and what should be done.

 

A thorough understanding of the current processes are recommended before starting a re-engineering project.

 

An example is provided in figure 11.1. If the organizational processes for the financial departments are redesigned, the effect may be that less individual processes will exist (from 8 to 3) without any other organization broad effect (figure 11.2a and 11.2b). The effect has been loss of redundant processes and possible many employees but except for finance processes, much of the organization has been unaffected.

 

K.4 The redesign process

 

An objective overview of the processes to be redesigned is needed with the top-down approach of BPR. Most effort take the form of a project and the project takes the form of 7 phases:

 

1. Discover. Identify a problem followed by determining the desired outcome.
2. Establish a redesign team. The team should comprise as a minimum: senior manager (sponsor), steering committee, process owner, team leader and redesign team members.
3. Analyse and document processes. Three steps: 1) Making processes visible through flowcharting. 2) Collect supporting process data and 3) Clarify the root causes of problems.
4. Innovate and rebuild. Teams rethinks and redesigns processes with assumption busting*.
5. Reorganize and retrain. Piloting the changes and validating their effectiveness.
6. Measure performance: Develop appropriate metrics for measuring the performance of the new processes, sub-processes, activities and tasks.
7. Continuous redesign and improvement. One-off approach (when the project is over, the team is disbanded and business returns to normal).

 

* Assumption busting aims to identify the rules that govern the way we do business and them uncover the real underlying assumptions behind of these rules. If these assumptions are uncovered, these can be found to be false which opens up new opportunities for redesign. The 8 steps for assumption busting are (table 11.1):

 

Step 1: Identify the core value that must be delivered to the customer, the business and the     

            key stakeholders.

Step 2: Map the process to be unimproved at a high level only, identify key problems.

Step 3: Select a particular problem to solve and collect supporting performance data.

Step 4: Brainstorm the rules that have an effect on the problem being solved. Test the rule   

             statements for validity and prioritize them for further analysis.

Step 5: Undertake a rigorous review of each rule, uncovering the underlying assumption

             behind each.

Step 6: Identify the modified assumptions and, in turn, a modified set of process rules.

Step 7: Identify the impact of these rules on the process and construct a new set of process

             design principles.

Step 8: Develop a revised design and test for validity.

 

K.5 Leaders and employees

 

Before an organization is able to focus on own core processes, it must understand the core processes and channelling these into outcomes that deliver competitive advantages.

 

CHAPTER L QUALITY MANAGEMENT SYSTEMS

 

L.1 A good quality management system (QMS)

 

If processes (like the example of the chef’s soufflé) are under control, a good QMS is available. The adoption of a QMS is a strategic decision and its design should be influenced by organization’s characteristics. Most organizations use a standard formula and change it slightly to fit their organization: they don’t have to reinvent the wheel. A good QMS will ensure that the following requirements are met:

 

• The customer’s requirements.
• The organization’s requirements.

 

The definition of a quality management system is an assembly of components, such as the management structure, responsibilities, processes and resources for implementing total quality management.

 

L.2 QMS continuously improvement

 

Most important is that a quality systems is practical to work with. As mentioned in L.1 organization do not have to reinvent the wheel. There are international standards like ISO. The ISO 9000:2000 family standards on quality management systems are listed below (table 12.1).

 

BS EN ISO

Name

Purpose

9000:2000

Fundamentals and vocabulary

Describes fundamentals and specifies terminology

9001:2000

Requirements

Requirements that fulfil customers needs.

9004:2000

Guidelines for performance improvements

Effectiveness and efficiency of the QMS

 

QMS begins with checking customers requirements and end with their satisfaction. All processes are integrated in four major areas within the ISO 9001:2000 (figure 12.1):

 

• Management responsibility.
• Resource management.
• Product realization.
• Measurement, analysis and improvement.
  • No process without data collection
  • No data collection without analysis
  • No analysis without decisions
  • No decisions without action

 

These major areas are further defined in L.3. Furthermore, eight principles should be used by top management to improve performance:

 

1. Customer focus.
2. Leadership.
3. Involvement of people.
4. Process approach.
5. Systems approach to management.
6. Continual improvement.
7. Factual approach to decision making.
8. Mutually beneficial supplier relationships.

 

Earlier mentioned Deming’s cycle of continuous improvement (chapter G) can be combined with QMS (figure 12.3). According to the writers: “The requirements to audit (check) that the system is functioning according to plan and to review possible system improvements, utilizing audit results, should ensure that the improvement cycle is engaged though the corrective action procedures.”

 

L.3 QMS requirements

 

QMS will be determined by the nature of the process carried out to ensure that the product/service conforms customer requirement.  Different major area’s can be further defined:

 

1. Management responsibility
   • Focus on customer needs/requirements.
   • Define and publish a quality policy: This should be supported and authorized by top management who must ensure that it:
     • Is suitable for the requirements of the customers and the purpose of the organization.
     • Included commitment to meeting requirements and continual improvement for all organization’s levels.
     • Provides a framework for establishing and reviewing quality objectives.
     • Is regularly reviewed for its suitability and objectiveness.
   • Written quality objectives and defined responsibilities of each function.
   • Management review.
   • Prepare a quality manual which should include:
     • Quality policy.
     • Definition of the QMS.
     • Description of the interaction between the processes of the QMS.
     • Documented procedures required by the QMS.

Before an organization can agree to supply to a specification, it must ensure that:

5. processes and equipment are capable of meeting requirements;
5. operators have the necessary skills and training;
5. the operating procedures are documented and not simply passed on verbally;
5. the plant and equipment instrumentation is capable;
6. The quality control procedures and any inspection, check, or test method available provide accuracy and are documented;
5. any subjective phrases are understood.
   • Control of documents are designed to ensure that:
     • Documents are provided.
     • Documents are periodically reviewed and revised as necessary.
     • The current versions of all relevant documents are available at all locations.
     • Obsolete documents are promptly removed from all point of issue and use.
     • Any obsolete document retained for legal purposed are suitably identified.
   • Control of quality records to demonstrate effective operation of the QMS.

 

2. Resource management
   • Human resources should select people who are competent on the basis of applicable education, training, skills and experiences. The organization should also:
     • determine the training needed;
     • provide the training needed;
     • evaluate the effectiveness of the training on a continual basis.

 

3. Product realization
   • Customer-related processes needs to consider:
     • Extend to which customers have specified the product requirements.
     • Requirements not specified by the customer but necessary for fitness for purpose.
     • Obligations related to the product/service.
     • Other requirements such are availability, delivery and support:

5. Product/service information.
5. Enquiry and order handling.
5. Customer complaints and recall processes.
   • Design and development including:
     • Stages of the design and development process.
     • Required review, verification and validation activities.

5. Incomplete, ambiguous or conflicting requirements must be resolved.
   • Responsibilities for design and development activities should:

5. meet the design and development input requirements;
5. contain or make reference and development acceptance criteria;
5. determine characteristics of the design essential to safe and proper use ;
5. output documents to be reviewed and approved before release.
   • Purchasing processes need to be controlled and the documentation should contain information including:
     • requirements for approval or qualification of product/service;
     • any management system requirements.
   • Production and service delivery processes through:
     • Information describing product/service characteristics.
     • Clearly understandable work standards.
     • Suitable production, installation and service provision equipment.
     • Suitable working environments.
     • Suitable inspection.
     • Implementation of suitable monitoring, inspection or testing activities.
     • Provision for identifying the status of the product/service.
     • Suitable methods for release and delivery of products/services.
   • Post-delivery services need to be planned and be in line with the customers’ requirements.
   • Monitoring and measuring devices should ensure that all uncertainties are known. The organization needs to:
     • Calibrate and adjust measuring, inspection and test equipment at specified intervals.
     • Identify measuring, inspection and test equipment with a suitable indicator.
     • Record the process for calibration of measuring, inspection and test equipment.
     • Ensure the environmental conditions are suitable for any calibrations, measuring, inspection and tests.
     • Safeguard measuring, inspection and test equipment from adjustments which would invalidate the calibration.
     • Verify validity of previous inspection and test results when equipment is found to be out of calibration.
     • Establish the action to be initiated when calibration verification results are unsatisfactory.

 

4. Measurement, analysis and improvement
   • Measurement and monitoring. The organization should establish a process for performing internal audits of the QMS and related processes. This audit should include:
     • planning and scheduling the specific activities, areas or items to be audited;
     • assigning training personnel independent to those performing the work being audited;
     • assuring that a consistent basis for conducting audits is defined.
   • Control of non-conforming products.
   • Analysis of data to provide information on:
     • The effectiveness of the QMS.
     • Process operation trends.
     • Customer satisfaction.
     • Conformance to customer requirements of the product/service.
     • Suppliers.
   • Improvement.

 

L.4 Other QMS and models

 

No matter where it is implemented, any good management system will improve process control, reduce wastage, lower costs, increase market share, facilitate straining, involve staff and raise morale. Next to QMS there are environmental management systems. These should be designed to place emphasis on the prevention of adverse environmental effects, rather than on detection after occurrence. The ISO 14001 contains a specification for environmental management systems and defines environmental policy, objectives, targets, effect, management, systems, manuals, evaluation, audits and reviews.

 

Excellence models and ISO 9000 help organizations identify strengths and weaknesses, aid the evaluation of organizations, establish a basis for continuous improvement and allow and support external recognition.

 

L.5 Improvements

 

Table 12.2 shows the number of times certain words are to be found in each ISO 9001 version. These reflects the main thrust of the new standard:

 

• increased customer function;
• process approach;
• continuous improvement;
• skills-based approach to HRM.

 

The ISO 9000:2000 standard is a major step forward from the earlier version and with the HRM focus it is much more in tune with the EFQM Excellence Models in terms of direction-process-people-performance alignment.

 

CHAPTER M CONTINUOUS IMPROVEMENT

 

M.1 A systematic approach

 

A systematic approach (figure 13.1) should lead to the use of factual information. This will lead to open a channel of communications. Understanding processes so that they can be improved by means of the systematic approach requires knowledge of a simple kit of tools and techniques. In TQM, the continuous improvement cycle asks for never-ending improvement for all possible processes. It is essential to record, use, analyse data and act on the results in an appropriate manner. The seven basic tools (Ishikawa) should be used to interpret and derive the maximum use of data. The commitment by the people who work on the process is required. The tools (more than seven) are listed below and they are further explained in M.2:

 

1. Process flowcharting.
2. Check sheets charts.
3. Histograms.
4. Scatter diagram.
5. Stratification.
6. Pareto analysis.
7. Cause and effect analysis and brainstorming.
8. Force field analysis.
9. Emphasis curve.
10. Control charts.

 

M.2 Techniques

 

Flowcharting ensures a full understanding of the inputs, outputs and flow of the process. However it is a process which can not be done by one person only.

 

The use of a check sheet chart aids the collection of data of the right type, in the right form and at the right time. A check sheet chart is a starting point in most process control efforts. It is useful for recording direct observations. It is essential to understand the differences between data and numbers in the recording process.

 

Histograms show the frequency with which a certain value or group of values occur (figure 13.2).

 

A scatter diagram (figure 13.3) is easy to interpret. It will reveal whether or not a strong, weak, positive or negative correlation exists between the parameters.

 

Stratification is dividing a set of data into meaningful groups. It is used mostly in combination with histograms and scatter diagrams.

 

The pareto analysis is an analysis of data to identify major problems. In this analysis the causes of possible problems are identified and recorded. The probable results will be that the bulk (80%) of the errors, waste or effects are derived from a few of the causes (20%). In this way it is possible to solve the cause (figure 13.4).

 

The cause and effect diagram is known as the Ishikawa diagram or the fishbone diagram (figure 13.5). Each arrow may have other arrows which are different causes that probably lead to a certain effect (at the right end of the horizontal arrow). Brainstorming can be used to generate a large number of ideas quickly and may be used to collect the possible causes which lead to a certain effect. A variation on this diagram is CEDAC (Cause and effect diagram with addition to cards). The effect side of this diagram is a quantified description of the problem. The cause side uses 2 different coloured cards for writing facts and ideas. This ensures that the facts are collected and organized before solution are devised.

 

The nominal group technique (NGT) is a form of team brainstorming and used to prevent domination by particular individuals (figure 13.6). The process is as follows:

 

1. Written statement of the problem is read aloud.
2. Clarification of the problem is obtained by questions & answers.
3. Restatement of the problem in own words.
4. Silent idea generation.
5. Idea collection.
6. Selection and raking of ideas.
7. Final ranking.

 

Soft Systems Methodology (SSM) is used for brainstorming and the stages are:

 

1. Finding out.
2. Input/output diagrams.
3. Root definition (CATWOE analysis: customers, actors, transformers, worldview, owners and environment).
4. Conceptualization.
5. Comparison.
6. Recommendation.

 

The force field analysis is a technique used to identify the forces that either obstruct or help a change that need to be made. The analysis identified driving (positive) and restraining (negative) forces by brainstorming (figure 13.7) for a desired change.

 

A technique for ranking a number of factors, which are non-quantifiable factors, in priority of order is the emphasis curve. This technique compares only two factors at any one time, with the following steps:

 

1. List the factors for ranking under a heading ‘’ scope’.
2. Compare factor 1 with factor 2 and rank the most important.
3. Compare factor 1 with 3, 1 with 4, 1 with 5 etc.
4. Having compared factor 1 against the total scope, proceed to compare factor 2 with 3, 2 with 4, etc.
5. Count the number of ‘ringed’ number 1s in the matrix and put the total in a right-hand column against number 1. Next count the total numbers of 2s in the matrix and put the total in a column against number 2 and so on.
6. Add up the numbers in the column and check the total, using [n(n-1)]/2, where n is the number of entries in the columns.
7. Proceed to rank the factors using the numbers in the column.

 

A control chart should be made easy to understand and interpret. Most frequently, the simple run charts are used. The data is plotted on a graph against time or sample number. The cusum chart takes a bit longer to draw, but gives more information. It is useful for plotting the evolution of processes and the charts can detect small changes in data very quickly (figure 13.8).

 

M.3 SPC

 

TQM requires that the processes should be improved continually by reducing variability. Statistical process control (SPC) is a strategy for reducing variability; the cause of most quality problems. The techniques of SPC will assist to:

 

• know whether the process is capable of meeting the requirements;
• know whether the process is meeting the requirement at any point in time;
• make correct adjustment to the process or its inputs when it is not meeting the requirements.

 

All processes can be brought under control by gathering and using data to measure the performance and provide feedback. SPC forms a vital part of the TQM strategy and it must become part of the company-wide adaption of TQM and continuously improvement.

 

A systematic study of any process provides knowledge of the process capability. Statistically based process control procedures are designed to divert attention from individual pieces of data and focus it on the process as a whole. SPC techniques have value in the service and non-manufacturing areas such as marketing, sales, purchasing, invoicing, finance, distribution, training and personnel.

 

M.4 Process design and improvement

 

Seven ‘new’ qualitative tools are systems and documentation methods used to achieve success in design. These seven tools do not replace the earlier mentioned tools (figure 13.9):

 

1. Affinity diagram to gather large amounts of language data and organizes them into groupings based on the natural relationship between items. Steps:
   • Assembly a group of people (6 to 8) familiar with the problem of interest.
   • Phrase (vaguely) the issue to be considered.
   • Give each member a stack of cards and allow 5-10 minutes to record ideas on the cards.
   • Each member reads out own ideas and places this on the table without the groups’ criticism.
   • After all ideas are presented, the group collect all cards with related ideas.
   • Look for 1 card in each group that captures the meaning of that group.
2. Inter-relationship diagraph to take a central idea and map out the sequential links among related factors (figure 13.10).
3. Tree diagram is used to systematically map out the full range of activities that must be accomplished in order to reach a desired goal. This method forces the used to examine the logical and chronological link between tasks.
4. Matrix diagram or quality table is the heart of the seven new tools and outlines the inter-relationships and correlations between tasks, functions or characteristics and to show their importance. The L-shaped matrix is most widely used and known as the quality table (figure 13.11). The T-shaped matrix is a combination of 2 L-shaped matrix diagrams (figure 13.12).
5. Matrix data analysis is used to arrange data in a matrix so that it can be more easily viewed.
6. Process decision program chart (PDPC) is used to map out each event and contingency that can occur when progressing from a problem statement to its solution.
7. Arrow diagram is used to plan or schedule a task, similar to the Gantt chart, but often ignored despite the easy and simple use.

 

M.5 Taguchi methods

 

Taguchi has advanced ‘quality engineering’ as a technology to reduce costs and make improvements. The basic ideas are considered in four headings:

 

1. Total loss function: According to Taguchi the smaller the loss generated by a product or service from the time it is transferred to the customer, the more desirable it is. This way of thinking encourage investing in quality improvement systems.
2. Design of product, services and processes: Bugs should be removed before not after product launch.
   • Off-line quality control uses technical aids in the design of products/processes.
   • On-line quality control uses technical aids for controlling quality and costs in the production of production/services.
3. Reduction of variation is done by setting specifications as tolerance intervals. Taguchi introduced a 3-step approach to assign nominal values and tolerances for product and process parameters:
   • System design: produce basic functional prototype design.
   • Parameter design: identify parameters that reduce the sensitivity of the designs to sources of variation.
   • Tolerance design: determination of tolerances around the nominal settings identified by parameter design.
4. Statistically planned experiments may be used to identify:
   • Design parameters that have a large influence on the product or performance characteristic.
   • Design parameters that have no influence on the performance characteristic.
   • Settings of design parameters at which the effect of the sources of noise on the performance characteristic is minimal.
   • The settings of design parameters that will reduce cost without adversely affecting quality.

 

M. 6 Six Sigma

 

Six sigma is not a new technique, its origins may be found in TQM and SPC and is based on delivering tangible business benefits. It is a disciplined approach for improving performance by focusing on enhancing value for the customer and eliminating costs which add no value. Five stages DMAIC (Define, measure, Analyze, Improve, and Control) form an improvement cycle based on Deming’s PDCA cycle.

 

• Define scope and goals of the improvement project in terms of customers’ requirements and the process that delivers these requirements.
• Measure the current process performance and calculate the short- and longer-term process capability (sigma value).
• Analyze the gap between the current and desired performance, prioritize problems and identify root causes of problems.
• Generate the improvement solutions to fix the problems and prevent them from recurring so that the required financial and other performance goals are met.
• Control involves implementing the improved process in a way that ‘holds the gains’.

 

Six-sigma organizations focus on understanding their customers’ requirements, identifying and focusing on core-critical processes that add value to customers, driving continuous improvement by involving all employees, being very responsive to change, basing managing on factual data and appropriate metrics and obtaining outstanding results, both internally and externally.

 

Adapting a six-sigma strategy can reduce the cost of quality to 10 percent of sales. Properly implemented six-sigma strategies involve:

• leadership involvement and sponsorship;
• whole organization training;
• project selection tools and analysis;
• improvement methods and tools for implementation;
• measurement of financial benefits;
• communication;
• control and sustained improvement.

 

Improvement experts are named after martial arts (Master Black Belts, Black Belts and Green Belts), perform the training, lead teams and carry out the improvements (figure 13.14).

Six-sigma approaches are looking for breakthroughs. All related projects are linked to the highest levels of strategy in the organization.

 

As mentioned before the Six-sigma has origins in other TQM models. For example the EFQM Excellence Model and Six-sigma are both trying to achieve better organizational performance. The EFQM model play a role in the base-lining phase of strategic improvement, while six-sigma achieve excellence through committed leadership, integration with top levels, black belt, customer and market focus, bottom-line impact, obsession with measurement, continuous innovation, organizational learning and continuous reinforcement. These are mapped in the EFQM model in figure 13.15.

 

M.7 DRIVE

 

The author developed a framework for a structured approach to problem solving in teams, the DRIVE model:

 

Define the problem with key steps:

• Look at the task.
• Understand the process.
• Prioritize.
• Define the task.
• Agree success criteria.

Review the information about WHAT is needed, HOW it will be obtained and WHO is going to get it:

• Gather existing information.
• Structure information.
• Define gaps.
• Plan further data collection.

Investigate the problem:

• Implement data-collection action plan.
• Analyse data.
• Generate potential improvements.
• Agree proposed improvements.

Verify the solution by testing plans and proposals:

• Implement action plan.
• Collect data.
• Analyse data.
• Verify that success criteria are met

Execute the change.

• Develop implementation plan to gain commitment.
• Review appropriate system paperwork/documentation.
• Gain agreement to all facets of the execution plan from the process owner.
• Implement the plan.
• Monitor success.
• Responsibility.

 

An example of the DRIVE model used in practice is given at page 255, 256 and 257.

 

CHAPTER N HUMAN RESOURCE MANAGEMENT

 

 

N.1 Short intro

 

“People are our most important assets” is an often used sentence. This chapter draws on some of the research undertaken by the European Centre for Business Excellence (ECforBE), the research and education division of Oakland Consulting.

 

World class organization invest in their people trough: strategic alignment of HRM policies, effective communication, employee empowerment and involvement, training and development, teams and teamwork and review and continuous improvement.

 

N. 2 Strategic alignment of HRM policies

 

Large organizations adopt a common plan to align HR policies, illustrated in figure 14.1. The HR process is illustrated in figure 14.2. All the steps a HR manager takes, must be in line with supporting the business and the quality of the products/services.

 

The selection and recruitment process is all about finding the right person at the right time for a specific task. The following practices are common:

 

• Ensure fairness for job descriptions and job evaluations.
• Enhance transparency and communication through jargon-free books.
• Ensure that job descriptions are responsibility rather than task oriented.
• Train all managers and supervisors in selection techniques (like interviewing).
• Align job descriptions and competencies so that people with appropriate skills for the job are identified.
• Compare the organization’s employment terms and conditions.
• Review HR policies regularly.

 

Different competencies underpinning HR policies (leadership, people management, team working skills etc.) drive for continuous improvement and that’s why good organizations have skills/competence-based HRM policies.

 

Employees used to be appraised annually to achieve objectives. Appraisal systems described in world class organizational are based on these objectives. Training and development is necessary to achieve the desired goals.

 

Reward and recognition are common in many organizations (for example: rewards based on consistent, quality-based performance). Often the benefits are seen as a tangible expression of the bong between employee and employer. It is important that the reward (benefit package) is good for the employee as well as for the employer. An example is the cafeteria approach. The company provides a core package of benefits for all employers and a ‘menu’ of extra benefits (company car, dental care, etc.) so every employee can choose their own suitable package.

 

N.3 Communication process

 

Two-way communication (face-to-face) is regarded as a core management competence. The following items are also management responsibilities for effective communication:

 

• Regularly meet all their people.
• Ensure people are briefed on key issues in a language free of technical jargon.
• Communicate honestly and as fully as possible on all issues which affect their people.
• Encourage team member to discus company issues and give upward feedback.
• Ensure issues from team members are fed back to senior managers and timely replies given.

 

The systematic process for effective communication (figure 14.4) exists of four main items which again lead to continuous improvement:

 

1. Plan: HR director is responsible for the communication process within the organization.
2. Do: A mix of diverse media (video, poster, meetings, mailing) is used to support effective communication.
3. Check: Quality steering, people surveys etc. are used to review the effectiveness of the communication process.
4. Improve: Results of various review processes highlight areas for improvement.

 

If communication channels enable people at all levels in the organization to feel able to talk to each other, a successful communication structure is (figure 14.5) established.

 

N.4 Employee involvement

 

Successful organizations place great importance on empowering their employees. The main goal is hereby to encourage involvement. Management map out processes to provide employees with all possible necessary skills and authorities. There are three common initiatives:

 

1. Corporate employee suggestion schemes. A formalized mechanism for promoting participative management, empowerment and employee involvement.
2. Company-wide culture change programs. Raise awareness and empower employees to practice continuous improvements (workshops etc.).
3. Measurement of KPIs. The effectiveness of staff involvement and empowerment is measured by improvements in HR KPIs.

 

N.5 Training and development

 

Databases of training courses are widely available and require managers to:

 

• play an active role in training delivery and support;
• receive training and development on personal development plans;
• fund training and improvement activities to allow autonomy;
• co-ordinate discussions and peer assessments to develop tailored training plans for individuals.

 

The Development and Performance Management (DPM) process uses discussion and peer assessment to help create individually tailored training plans with business objectives. Many writers developed models which can be summarized in four steps (figure 14.6):

 

1. Assessment phase: identifies what is needed by assessing gaps between future requirements of a job and the current skills of the person in a job.
2. Planning/Design phase: identified where and when the training will take place.
3. Implementation phase: involves the actual delivery of the training.
4. Evaluation phase: can take many forms (observations, interviews etc.) and is one of the most critical steps in the training process.

 

N.6 Teams

 

People are better motivated and work better if they are part of a team. Teams are more effective if they are linked to organizational strategy and therefore teams are a management tool.

 

N.7 Conclusions

 

Successful organizations value and invest in their people in a never-ending quest for effective management and development. They make sure that the first sentence of this chapter (“People are our most important assets”) is performed in line with their business strategies. However, this involves planning, skilful implementation, review of processes and continuous improvement practices.

 

N.8 People and quality

 

According to the author, quality could be seen as a strategic business management function that will help organizations to change their cultures. Quality should be an inseparable aspect of every employees’ performance. It needs to be understood and concerned in:

 

• encourage and facilitate improvement;
• monitor and evaluate progress of improvement;
• promote partnership in relations between customers and suppliers;
• plan and provide training or consultancy;
• give advice to management.

 

In small (member of the board) or large companies (fulltime quality managers) a different input is given to quality management. In both situations, the quality manager or responsible should be given authority to take action to secure the quality policies. In large organization the following action may be necessary:

 

1. Assign a quality director, manager or co-ordinator: responsible for implementation.
2. Appoint a quality manager adviser: advice quality director on implementation.

 

As mention before, implement TQM in an organization takes time and ability. A systematic approach to continuous improvement provides ‘top-down’ support for employee participation in process management (figure 14.7). The objectives of the council are to:

 

• provide strategic direction on quality for the organization;
• establish plans for quality on each ‘site’;
• set up and review process teams;
• review quality plans for implementation.

 

Furthermore, the process management committees have responsibility for the selection of projects. They provide an outline and scope for each project and appoint team members and leaders in a quality improvement team. Besides that they monitor and review the progress and results from each team.

 

N.9 Kaizen teams

 

Kaizen is a philosophy of continuous improvements of all employees and a never-ending journey of improvements. Kaizen teian is a Japanese system for generating and implementing employee ideas. It suggestions are small-scale, easy and cheap to implement. Within the approach, the quality circle of kaizen teams are most discussed and this may be defines as a group of workers doing similar work who meet:

 

• voluntarily;
• regularly;
• in normal working time;
• under leadership of supervisor;
• to identify, analyze and solve problems;
• and to recommend solutions to management.

 

People are asked to join the cycle and should develop an understanding and knowledge of quality on the part of senior management. They meet often and discuss problem identification, problem analysis, management presentation, quality circle administration etc. There are four elements:

 

1. Members which from the prime element of the concept.
2. Leaders which are usually the immediate supervisors or foremen of the members.
3. Facilitators which are the managers of the quality circle programs.
4. Management which should support the quality circle or else it will not succeed.

 

The following 8 segments of training are of importance in the quality circle:

 

1. Introduction to quality circles.
2. Brainstorming.
3. Data gathering and histograms.
4. Cause and effect analysis.
5. Pareto analysis.
6. Sampling and stratification.
7. Control charts.
8. Presentation techniques.

 

CHAPTER O CULTURE

 

 

O.1 Teamwork

 

Teams improve the process of problem solving and teamwork has many advantages over employees working individually like a greater variety of complex processes and problems may be tackled. Furthermore, problems and processes are solved more efficiently and can be dealt with more easily. Teamwork provides an environment in which people can grow and use all the resources effectively and efficiently to make continuous improvements. Teamwork to support the process management and improvements has many components:

 

• driven by strategy;
• needs a structure;
• must be implemented thoughtfully and effectively.

 

O.2 Improvement teams

 

Improvement teams are “groups of people with the appropriate knowledge, skills, and experience who are brought together to improve processes and solve problems”. Usually they work on project basis and are cross-functional and multidisciplinary. The running of process teams calls several factors into play:

 

• Team selection and leadership. This is the most important element of a process team. The team leader must be concerned about accomplishing the team’s objectives.
• Team objectives. Objectives should be stated as clearly as possible by the leader and enable team members to focus thoughts and efforts on the aims.
• Team meeting. A team agenda has to be made by the leader and the minutes should be taken by the team secretary.
• Team assignments. Agreement must be reached regarding the responsibilities for individual assignments, together with time scale.
• Team dynamics. Because many different people work together, the team leader has a role to create a climate for creativity, encourage team members to speak out, allow differing points of views and remove barriers to idea generation. The members should share ideas, encourage each other, listen openly and accept individual responsibility.
• Teams results and reviews

 

O.3 Teams and leadership

 

Teams develop a personality and culture of their own, respond to leadership and are motivated according to criteria usually applied to individuals. John Adair developed an action-centered leadership model. He made clear that for any team (big or small), to respond to leadership, they need (figure 15.2):

 

• a clearly defined task;
• response and achievement of that task interrelated to the needs of the team;
• separate needs of the individual members/needs.

 

Three interrelated requirements of a leaders (figure 15.3) are:

 

1. Task needs: clear targets and responsibilities, systematic approach etc. by:
   • Define task;
   • Make a plan;
   • Allocate work and resources;
   • Control quality and tempo of work;
   • Check performance against plan;
   • Adjust the plan.
2. Team needs: common sense of purpose, sense of achievement etc. by:
   • Set standards;
   • Maintain discipline;
   • Build team spirit;
   • Encourage, motivate and give a sense of purpose;
   • Appoint sub-leaders;
   • Ensure communication within the group;
   • Train the group.
3. Individual needs: able to contribute, know what is expected etc. by:
   • Attend to personal problems;
   • Praise individuals;
   • Give status;
   • Recognize and use individual abilities;
   • Train the individual.

 

The leader should concentrate on the area where all three circles overlap and he/she should satisfy all three areas. A possible list by Adair’s is: planning, initiating, controlling, supporting, informing, evaluating.

 

Figure 15.4 shows the continuum of leadership behaviour. This model looks like the model in figure 15.5 where directive behaviour moves from high to low as people are empowered. This model (Blanchard) states that there is not quick way from S1 to S4. The only way is through S2 and S3 (coaching and supporting).

 

O.4 Team development

 

Tuckman defines four stages of team development:

 

1. Forming (awareness) with characteristics of:
   1. Feelings, weaknesses and mistakes are covered up.
   2. No shared understanding of what needs to be done.
2. Storming (conflict) with characteristics of:
   1. More risky, personal issues are opened up.
   2. More concern for the values, views and problems of other in the team.
3. Norming (co-operation) with characteristics of:
   1. Confidence and trust to look how the team is operating.
   2. Valuing of people for their differences.
   3. Preparing detailed plans.
4. Performing (productivity) with characteristics of:
   1. Flexibility.
   2. Everyone’s energies utilized.

 

The team stages are shown in figure 15.6 (Kormanski) and is a framework for the assessment of team performance. Some attributes of successful teams are:

 

• clear objectives and agreed goals;
• openness and confrontation;
• support and trust;
• co-operation and conflict;
• good decision making;
• appropriate leadership;
• review of the team processes;
• sound intergroup relations;
• individual development opportunities.

 

O.5 Myers-Briggs Type Indicator

 

The Myers-Briggs Type Indicator (MBTI) aims to help individuals to understand and value themselves and others, in terms of their differences and similarities. It is based on individual preferences on four scales for giving and receiving energy, gathering information, making decisions and handling the outer world. The four scales can be assessed by completion of a simple questionnaire and are:

 

1. Extroversion – Introversion (E – I)
   1. Extrovert: prefers action and the outer world.
   2. Introvert: prefers ideas and the inner world.
2. Sensing – Intuition (S – N)
   1. Sensing – thinking: interested in facts and use a step-by-step process form cause to effect.
   2. Sensing – feeling: interested in facts and concerned about how things matter to themselves and others.
   3. Intuition – thinking: interested in possibilities and have theoretical, technical or executive abilities.
   4. Intuition – feeling: interested in possibilities and prefer new projects, new truths and things not yet happened.
3. Thinking – Feeling (T – F)
   1. See sensing – intuition.
4. Judgement – Perception (J – P)
   1. Judging: decisive and plan-full, but lie in an orderly fashion and like to control
   2. Perceivers: flexible, live spontaneously and understand and adapt readily.

 

For example ESTJ is: an extrovert person who prefers to gather information with sensing, prefers to make decisions by thinking and has a judging attitude towards the world.

 

There are 16 combinations of these scales illustrated in figure 15.7.

 

O.6 FIRO-B

 

The Fundamental Interpersonal Relations Orientation-Bahaviour (FIRO-B) offers a framework for understanding the dynamics of interpersonal relationships and assesses needs for inclusion, control and openness. It enables people to build more productive teams through better relationships. FIRO-B takes form as a questionnaire of which provides scores that estimate the levels of behaviour with which the individual is comfortable. Schutz described three dimensions whether individuals want to be:

 

– In or out – inclusion

– up or down – control

– close or distant – openness

 

The instrument divides these dimensions into (table 15.1):

 

• Express behaviours: the behaviour we feel most comfortable exhibiting towards other people.
  • Inclusion: makes effort to include other people in activities.
  • Control: tries to exert control and influence over people and tell them what to do.
  • Openness: Makes efforts to become close to people.
• Wanted behaviours: the behaviour we want from others.
  • Inclusion: wants other people to include in their activities.
  • Control: wants others to control and influence him/her and be told what to do.
  • Openness: wants others to become close to him/her.

 

FIRO-B and Schutz instruments for feelings and self-concept can deepen the awareness of what lies behind out behaviours with respect to inclusion, control and openness. 

 

The I-C-O (inclusion, control and openness) dimensions form a cycle (figure 15.9) which can help people to understand how their individual behaviour develops as teams are formed. In table 15.2 considerations, questions and outcomes are given under each dimension. The I-C-O cycle has led to the openness model which has 3 parts:

 

1. figure 15.10
2. figure 15.11
3. figure 15.12

 

Figure 15.13 shows the full openness model. If progress is not made round the cycle it is possible to send the whole process into reverse; the negative cycle will occur (figure 15.14).

For any mentioned model to benefit a team, the individuals follow the five A stages for teamwork (figure 15.15) and only then they will act and contribute to the team.

 

Aware

Thoughts, ideas, feelings, values, data, intuition

Accept

Bring to consciousness: valid? Reliable? Sensible? True?

Adopt

Will it benefit me/us? Will I/we gain by adoption?

Adapt

How can I/we adapt behaviour to gain benefits?

Act

Change thoughts, ideas, feelings, values leading to change in behaviour?

 

CHAPTER P COMMUNICATION

 

P.1 Communication as strategy

 

If management wants to change the organization, it must change the employees. They have to provide relevant information, convey good practises and generate interest, ideas and awareness through excellence communication processes. Any change within the organization requires clear communication from top management to explain every single process. The TQM co-ordinator should assess management to prepare a directive and the directive should include:

 

• need for improvement;
• concept of total quality;
• importance of understanding business processes;
• approach that will be taken and people’s roles;
• individual and process group responsibilities,
• principles of process management.

 

Once people understand the strategy and the possible need for change, a constant flow of information is necessary, including:

 

• When and how individuals will be involved.
• What the process requires.
• The success and benefits achieved.

 

Simplify and shorten must be guiding principles. The three best ways to communicate change to employees (Larkin) are:

 

1. Communicate directly to supervisors (first line).
2. Use face-to-face communication.
3. Communicate relative performance of the local work area.

 

P.2 Communicate the quality message

 

The four audience groups in TQM organizations are:

 

– Senior managers (TQM is an opportunity).

– Middle managers (TQM is another burden without benefits).

– Supervisors (TQM is another flavour of the period).

– Other employees (do not care as long as they still have jobs and get paid).

 

Senior management need to ensure that each group sees TQM as being beneficial to them. The implementation strategy must be based on:

 

1. Marketing any TQM initiatives.
2. A positive logical process of communication designed to motivate.

 

P.3 Education and training

 

Why do people learn?

 

• Self-betterment.
• Self-preservation.
• Need for responsibility.
• Saving time or effort.
• Sense of achievement.
• Pride of work.
• Curiosity.

 

Training and communication can be a powerful stimulus to personal development and is the most important factor in improving quality performance. This may be useful in de selection of communication methods:

 

1. Verbal communication.
2. Written communication.
3. Visual communication.
4. Example.

 

Education activities can be considered in the form of a cycle of improvement (figure 16.2) with the following elements:

 

• Ensure education and training is part of the policy.
• Establish objectives and responsibilities for education and training.
  • Senior management must ensure that learning outcomes are clarified and that priorities are set.
  • The defined education and training objectives must be realizable and attainable.
  • The main objectives should be ‘translated’ for all function areas in the organization.
• Establish the platform for a learning organization.
• Specify education and training needs.
  • Who needs to be educated? What competencies are required?
• Prepare education programs and materials.
  • Training objectives are expressed in terms of desired behaviour.
  • The actual training content and methods to be adopted are included.
  • Who is responsible for the various sections of the program.
• Implement and monitor education and training.
• Asses the results.
• Review effectiveness of education and training.
  • Even if the policy remains constant, there is a continuing need to ensure that new education objectives are set.

 

P.4 Systematic approach to education

 

The objective of any educational policy should develop a climate in which everyone acts with the needs of the customer in mind all times. The main elements of an effective and systematic quality training consists of four broad headings:

 

1. Error/defect/problem prevention by:
   • An issued quality policy.
   • A written management system.
   • Job specification that include quality requirements.
   • Effective steering committees.
   • Efficient housekeeping standards.
   • Preparation and display of maps, flow diagrams and charts for all processes.

These all contribute to effective and systematic prevention of problems.

2. Error/defect/problem reporting an analysis.
3. Error/defect/problem investigation:
   • Nature of problem.
   • Date, time and place.
   • Product/service with problem.
   • Description of problem.
   • Causes and reasons behind causes.
   • Action advised.
   • Action taken to prevent recurrence.
4. Review.

 

P.5 Occurrence at four levels

 

Education and training needs occur at four levels in the organization:

 

1. Very senior management (strategic decision makers).
2. Middle management (tactical decision makers or implementers of policy).
3. First level supervision and quality team leaders (on-the-spot decision makers).
4. All other employees (the doers).

 

P.6 From education into learning

 

For successful learning within an organization, possible trainings must be followed up. The success formula is the in-company training plus follow-up workshops. Within educational expressions information and knowledge are often used, what is the difference?

 

Knowledge management can be distinguished in explicit knowledge (which we can express to others) and tacit knowledge (the rest of our knowledge which we cannot easily communicate in words or symbols). The creation of knowledge takes place through social interaction between tacit and explicit knowledge (figure 16.3). The dimensions within this figure are:

 

• Socialization: Allows the conversion of tacit knowledge in one individual into tacit knowledge in other people. This is the most powerful form of knowledge transfer.
• Externalization: The conversion of tacit knowledge to explicit knowledge.
• Internalization: Converts explicit knowledge to tacit knowledge by translating it into personal knowledge (learning).
• Combination: The conversion of forms of explicit knowledge, such as creating frameworks.

 

To answer the earlier mentioned question: When knowledge is made explicit (by putting it into words, diagrams, etc.) it becomes information. Information is something that is or can be made explicit.

 

Another way of thinking about learning and knowledge management is as a dynamic cycle. It moves from tacit knowledge to explicit knowledge and back to tacit knowledge (figure 16.4). This flow from knowledge to information and back to knowledge can be seen as the heart of organizational learning.

 

P.7 Sharing knowledge

 

Large organization often use intranet which can provide common access to on-line reports, training material, etc. The key of those organizations is to provide appropriate access for both internal and external users to relevant information. Modern methods of knowledge management and information technology give opportunities for organizations. For example the CRM (Customer Relationship Management) systems which record personal information.

 

CHAPTER Q IMPLEMENTATION

 

 

Q.1 The management of change

 

Many organizations find problems while introducing change in their processes. They found an obstacle but they don’t know what, who and where this problem origins. Mostly these organizations deal with increased competition or changing markets. Managers recognize the organizations’ need for change, but lack an understanding of how this change must be implemented. Managers must set up process-management teams to solve problems. When an organization focuses on its key processes (activities, tasks) rather than abstract issues (culture), the change process can begin in earnest. Based on the recognition that people’s behaviour is determined by the roles they have to take up, the following aspects are of importance:

 

• Teamwork.
• Close co-ordination among marketing, design, production and distribution groups.
• Commitment.
• Tools, techniques and interpersonal skills required for good communication.

 

Q.2 Planning the implementation

 

TQP (total quality paralysis) means that organizations find it so difficult where to begin with TQM that they will never get started. It all relies on problem solving. This is very much like weeding; tackling the root causes, often by digging deep, is essential for better control. An implementation framework (figure 17.1) allows the integration of TQM into the strategy of an organization.

 

Q.3 Sustained improvement

 

Continuous improvement is the most powerful concept to guide management. Never-ending improvement is the process by which greater customer satisfaction is achieved. The concept requires a systematic approach to quality management with:

 

• Planning the processes and their output.
• Providing the inputs.
• Operating the processes.
• Evaluating the outputs.
• Examining the performance of the process.
• Modifying the processes and their inputs.

 

The emphasis of the never-ending improvement cycles must be done in a planned, systematic and conscientious way to create a climate that permeated the whole organization. The 3 basic principles of sustained improvement are:

 

1. Focus on the customer.
2. Understand the process.
3. All employees committed to quality.

 

To summarize, the concept of TQM is basically very simple and good performance requires 3 hard management necessities (figure 17.2):

 

• planning including the right policies and strategies;
• processes and supporting management systems and improvement tools;
• people with the right knowledge, skills and training.