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MGMT 19105

MGMT 19105. Quality Management. Week 6: Empowerment – Definitions. “Empowered employees are given ownership of the processes they are responsible for, and the products or services generated by those processes.” (Goetsch & Davis 2006)

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MGMT 19105

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  1. MGMT 19105 Quality Management

  2. Week 6: Empowerment – Definitions • “Empowered employees are given ownership of the processes they are responsible for, and the products or services generated by those processes.”(Goetsch & Davis 2006) • “Empowerment requires individuals to make appropriate and reasonable decisions that result in an improved process or product.”(Scarnati & Scarnati 2002)

  3. Week 6: How to Empower? (1) • Assess ‘workforce readiness’: • Critical thinking • Knowledge of decision making processes • ‘Big picture’ knowledge of the organisation • Do the basics: • Involve employees. • Give ownership of success or failure. • Allow employees to make decisions. • Encourage initiative and risk-taking. Goetsch & Davis (2006)

  4. Week 6: How to Empower? (2) • Create a supportive environment: • Management must suspend their egos. • Handover access to knowledge. • Have ‘people oriented’ managers. • De-layer the organisation. • Use vehicles such as: • MBWA (Management by Walking/Wandering Around) • Brainstorming • Quality Circles (or similar, eg Six Sigma Projects) Goetsch & Davis (2006)

  5. Week 6: Teamwork – Definition • Working together with others to achieve a shared goal. According to Goetsch & Davis (2006), a team exists when: • Agreement exists as to the team’s mission. • Members adhere to team ground rules. • Responsibility and authority are fairly distributed. • People adapt to change.

  6. Week 6: Creating a Team (1) 1. The best way for a new team (or new members of an existing team) to learn to work together is to work together. Team-building exercises and events, although they have some "getting to know you" value, do not build the level of trust needed for high performance. 2. Focus first on the "what" before you worry about the "how." If you allow time for the group to arrive at a shared vision, the supporting processes will develop relatively quickly. 3. Commit time and resources to structured continuing education and cross-training. This investment will pay off in the team's improved ability to function despite changes in leadership and membership. (Gregg 2005, page unknown)

  7. Week 6: Creating a Team (2) 4. As soon as possible, get the team up to speed on strategic alignment and measurement. These are difficult concepts, especially for knowledge workers. The sooner they learn how to identify and measure key performance indicators, the sooner you can demonstrate value to the organization no matter who is on the team. 5. Stay the course in the face of distractions and conflict. It helps to have one or more skilled facilitators on the team. 6. Insist that everyone at any given time either lead, follow, or get out of the way. To maintain high performance in a constantly changing environment, team members need role clarity-even as their roles shift from day to day or project to project. (Gregg 2005, page unknown)

  8. Week 7 Quality Through ISO9000

  9. Module Objectives 1. Describe the purpose of ISO9000; 2. Name the three standards that comprise ISO9000; 3. Describe the potential benefits of ISO9000; 4. Describe the relationship between ISO9000 and total quality management; and 5. Critically examine the value of ISO9000 in the pursuit of total quality.

  10. Readings Study Guide Module 7 Textbook Goetsch & Davis (2006) Chapter 14. ISO9000 and Total Quality: The Relationship Electronic journal articles • Scott, J 2005 ‘ISO 9000 in service: the good, the bad and the ugly’. (About: Personal experience in a Medicare claims processing organisation.) • Dalgleish, S 2002, ‘ISO 9000: More hindrance than help’. (About: Pass/fail standard & paperwork – disincentive to continuous improv’t.) • Douglas, A, Coleman, S and Oddy, R 2003, ‘The case for ISO 9000’. (About: European survey - advantages and disadvantages.) (Available on Proquest)

  11. Reading ISO 9001 CQU Library provides access to ISO 9001. To get there: • Go to SearchSMART website.(accessible from CQU Library Homepage) • ‘Select Specific Databases’ • Choose Standards Australia(near the bottom of the list) • Enter e.rolment details. • Type 9001 in the search box. • Beside ‘AS/NZS ISO 9001:2000’, press ‘View Document’. • Press ‘Open Document’.

  12. Purpose Small Group From your experience in this course so far, answer the following questions: • What benefit could an organisation get from being externally accredited as a ‘quality organisation’? • How does ‘external accreditation’ fit in with what you have learnt about TQM?

  13. Why Have External Accreditation? According to ISO 9001, the benefits of ISO 9001 are not external accreditation, but come from having a ‘process approach’, emphasising: a) understanding and meeting requirements, b) the need to consider processes in terms of added value, c) obtaining results of process performance and effectiveness, and d) continual improvement of processes based on objective measurement.

  14. Why Have External Accreditation? According to Scott (2005), management like ISO9001 because: • They know everyone will produce a consistent product if he or she is following the work instructions. • They have one central place to make process changes and corrections. • They understand their processes much better because they are responsible for documenting, maintaining and improving them. • That understanding of the process helps managers know what to measure, which is the basis for all improvement. [And] our customers are impressed with the ease with which we can provide information and data for their numerous auditing requirements

  15. Why Have External Accreditation? Remember – we can have all of this without external accreditation! Why have external accreditation? • It keeps us honest with ourselves. • Out clients expect/demand it. • It seemed a logical extension of TQM.

  16. What is ISO 9000? Small Group Now you know why it exists, dive into your textbook and answer the following questions: • What is ISO? • What is ISO 9000? • What is ISO 9000:2000? • What is ISO 9001:2000? • What is ISO 9004:2000? • What are the five documents in a quality management system?

  17. What is ISO 9000? • A ‘family of international quality standards’. • 3 main standards (& lots of derivative standards) • 3 main standards: ISO9000:2005, ISO9001:2000 and ISO9004:2000. (ISO9000:2005 is referred to under its old code of ISO9000:2000 in Goetsch and Davis, 2006) (Source: International Organization for Standardization).

  18. From: www.iso.org ISO 9000 Quality Principles Principle 1 Customer focus Principle 2 Leadership Principle 3 Involvement of people Principle 4 Process approach Principle 5 System approach to management Principle 6 Continual improvement Principle 7 Factual approach to decision making Principle 8 Mutually beneficial supplier relationships

  19. From: www.iso.org ISO 9000 Quality Principles Principle 1 Customer focus Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations. [A sample of] Applying the principle of customer focus typically leads to: • Researching and understanding customer needs and expectations. • Communicating customer needs and expectations throughout the organization. • Measuring customer satisfaction and acting on the results.

  20. From: www.iso.org ISO 9000 Quality Principles Principle 2 Leadership Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives. [A sample of] Applying the principle of leadership typically leads to: • Establishing a clear vision of the organization's future. • Setting challenging goals and targets. • Establishing trust and eliminating fear.

  21. From: www.iso.org ISO 9000 Quality Principles Principle 3 Involvement of people People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit. [A sample of] Applying the principle of involvement of people typically leads to: • People accepting ownership of problems and their responsibility for solving them. • People evaluating their performance against their personal goals and objectives. • People openly discussing problems and issues.

  22. From: www.iso.org ISO 9000 Quality Principles Principle 4 Process approach A desired result is achieved more efficiently when activities and related resources are managed as a process. [A sample of] Applying the principle of process approach typically leads to: • Systematically defining the activities necessary to obtain a desired result. • Establishing clear responsibility and accountability for managing key activities. • Evaluating risks, consequences and impacts of activities on customers, suppliers and other interested parties.

  23. From: www.iso.org ISO 9000 Quality Principles Principle 5 System approach to management Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives. [A sample of] Applying the principle of system approach to management typically leads to: • Structuring a system to achieve the organization's objectives in the most effective and efficient way. • Understanding the interdependencies between the processes of the system. • Continually improving the system through measurement and evaluation.

  24. From: www.iso.org ISO 9000 Quality Principles Principle 6 Continual improvement Continual improvement of the organization's overall performance should be a permanent objective of the organization. [A sample of] Applying the principle of continual improvement typically leads to: • Employing a consistent organization-wide approach to continual improvement of the organization's performance. • Providing people with training in the methods and tools of continual improvement. • Establishing goals to guide, and measures to track, continual improvement.

  25. From: www.iso.org ISO 9000 Quality Principles Principle 7 Factual approach to decision making Effective decisions are based on the analysis of data and information [A sample of] Applying the principle of factual approach to decision making typically leads to: • Ensuring that data and information are sufficiently accurate and reliable. • Making data accessible to those who need it. • Making decisions and taking action based on factual analysis, balanced with experience and intuition.

  26. From: www.iso.org ISO 9000 Quality Principles Principle 8 Mutually beneficial supplier relationships An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value. [A sample of] Applying the principles of mutually beneficial supplier relationships typically leads to: • Establishing relationships that balance short-term gains with long-term considerations. • Identifying and selecting key suppliers. • Establishing joint development and improvement activities.

  27. Quality Management System Five (5) Documents: • A quality policy. • A quality manual. • Quality objectives. • Quality procedures. • Forms, records, etc. Goetsch & Davis (2006, pages 469-470)

  28. Quality Management System Small Group Going a little further: • Describe each of the five (5) documents in a Quality Management System. Goetsch & Davis (2006, pages 469-470)

  29. Clinivation (at www.clinivation.com) • Productivity software and solutions for [organisations involved in] medical devices, pharmaceuticals, and diagnostics. • Including a template for a quality manual that is downloadable from the site by becoming a member (for free).

  30. 1.0 Purpose 2.0 Scope 2.1 Introduction 2.2 Company Contact Information 3.0 Definitions 4.0 References 5.0 Quality Policy and Mission Statement 5.1 Quality Policy 5.2 Mission Statement 6.0 Quality System Requirements 6.1 Management Responsibility 6.2 Quality System 6.3 Contract Review 6.4 Design Control 6.5 Document and Data Control 6.6 Purchasing 6.7 Control of Customer Supplied Product 6.8 Product Identification and Traceability 6.9 Process Control 6.10 Inspection and Testing 6.11 Control of Inspection, Measuring, and Test Equipment 6.12 Inspection and Test Status 6.13 Control of Nonconforming Product 6.14 Corrective and Preventive Action 6.15 Handling, Storage, Packaging, Labelling, Preservation, and Delivery 6.16 Control of Quality Records 6.17 Internal Quality Audits 6.18 Training 6.19 Servicing 6.20 Statistical Techniques 7.0 Organization Chart Clinivation Quality Manual

  31. Relationship Diagram Level 1. Quality Policy and Business Objectives Level 2. Quality Manual Level 3. Quality Procedures Management & Administration • Quality Manager Appointment Procedure • Management Review Procedure • Purchasing Procedure Pre-Production Production & Service Measurement, Analysis and Improvement • Product Design and Development Management Procedure • Customer Communication and Feedback Procedure • Product Change Control Procedure • Safe Design Policy • Cleanliness of Product Procedure • Instructions for Use • Labelling Procedure • Final Release Procedure • Tracking Procedure • Packing, Storing and Transporting Procedures • Promotional Material Procedure • Control of Non Conforming Product Procedure • Preventative Action Procedure • Reportable Events Procedure • Test/Inspection Program • Customer Communication and Feedback Procedure • Product Change Control Procedure Note: Level 4. Actions and Level 5. Records are embedded in the Quality Procedures.

  32. ISO 9001 Quality Procedures ISO 9001 "procedures" may be: • Text-based procedures • Flow-charts aka process maps • Customer specifications • Australian or International standards • Product-related legislation (eg mandatory Child Safety incident response.) • It may be paper-based or electronic From: www.iso.org

  33. ISO 9001 Quality Procedures ISO 9001 Mandatory Procedures • Document control procedure • Records procedure   • Internal audit procedure • Control of non-conformance procedure • Corrective action procedure • Preventive action procedure From: www.iso.org

  34. Opinions About ISO 9000 Inhibitors of Quality: • The structure of the ISO standard works as a disincentive to doing more. • ISO 9001 is a pass/fail standard. The certificate gives no indication whether a company has world-class quality or "just-barely-- meeting-customer-requirements" quality. • This pass/fail structure breeds a just-enough-to-get-by mentality. • The inordinate and often unnecessary paperwork burden that any ISO-auditable change brings with it. • Every quality system enhancement triggers enormous documentation changes. • Recommendation: get back to bottom-line, results-producing continual improvement efforts instead of standards policing and paperwork. Adapted from Dalgleish (2002)

  35. Opinions About ISO 9000 Perceived Benefits: • Improved awareness of problems; • Organisational consistency; • Improved efficiency/performance; and • Improved customer service. Adapted from Douglas, Coleman and Oddy (2003)

  36. Opinions About ISO 9000 Negatives: • Organisations that required them to have achieved ISO 9000 to do business were still using organisations that had not achieved the standard; • Increased/ complex paper work; • The standard offers no added value to the organisation; • Knowledge of organisations that had become certified but clearly did not deserve it; • The standard was not wholly applicable to the service sector; and • Lack of emphasis on continuous improvement. Adapted from Douglas, Coleman and Oddy (2003)

  37. Opinions About ISO 9000 Disputed Past Criticisms of ISO 9000: • Respondents disagreed with the widely held belief that ISO 9000 created unnecessary paper work; • Contrary to the belief that ISO 9000 was too costly, the standard was judged to be value for money; • ISO 9000 was considered the first step on the road to TQM; and • ISO 9000 was not considered to lead to sub-optimisation of performance in the workplace. Adapted from Douglas, Coleman and Oddy (2003)

  38. TQM & ISO 9000 Small Group Now you know a bit about ISO 9000, close your books and … • Describe the relationship between ISO 9000 and the TQM approach.

  39. TQM & ISO 9000 Open your textbook, and keep going. Small Group Now you know a bit about ISO 9000, close your books and … • Describe the relationship between ISO 9000 and the TQM approach.

  40. TQM & ISO 9000 • ISO 9000 and TQM are not interchangeable. • ISO 9000 can be a sub-set of TQM. • ISO 9000 can be implemented in a non TQM organisation. • ISO 9000 can improve operations (especially processes) in a non-TQM organisation. • ISO 9000 can be redundant in a mature TQM organisation. • ISO 9000 and TQM are not in competition. Goetsch & Davis (2006)

  41. Conclusion • Assignment 2 (again) • Recap of Module 6 • Module Introduction • Why Have External Accreditation? • What is ISO 9000? • Quality Management System • Opinions About ISO 9000 • TQM & ISO 9000

  42. Next Week • Week 8“Implementing Total Quality Management”. • Study Guide • Goetsch & Davis (2006)Chapter 12. Implementing Total Quality Management • Two (2) electronic journal articles (Proquest)

  43. Questions?

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