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Chapter 4

Chapter 4. Managing for Quality and High Performance. Slide 4.1. TQM. Total Quality Management (TQM) Is a total, company wide effort that companies use to achieve customer satisfaction. Slide 4.2. Core Principles of TQM. Focus on the customer Participation and teamwork

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Chapter 4

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  1. Chapter 4 Managing for Quality and High Performance Slide 4.1

  2. TQM • Total Quality Management (TQM) • Is a total, company wide effort that companies use to achieve customer satisfaction Slide 4.2

  3. Core Principles of TQM • Focus on the customer • Participation and teamwork • Continuous improvement and learning ...supported by an integrated organizational infrastructure, a set of management practices, and a set of tools and techniques TQ should be embodied in the culture of an organization Slide 4.3

  4. Customer Focus • Customer is principal judge of quality • Organizations must meet and exceed customer expectations • Strategic decisions must be customer-driven • Customers include employees, and society at large Slide 4.4

  5. Participation and Teamwork • Employees know their jobs best and therefore, how to improve them • Management must encourage participation and teamwork • Empowerment better serves customers, and creates trust and motivation • Teamwork and partnerships must exist both horizontally and vertically Juran credits Japanese managers use of the entire workforce as one of the reasons for Japan’s rapid quality achievement Slide 4.5

  6. Continuous Improvement and Learning • Integral part of management of all systems and processes • Refers to both incremental and breakthrough improvements • Learning is adapting to change, leading to new goals and approaches • Fredrick Taylor, the father of Scientific Management, believed that management had the responsibility to find the best way to do a job Slide 4.6

  7. Infrastructure, Practices, and Tools Infrastructure Leadership Strategic HRM Process Data and information Planning mgt. management Performance Training appraisal Practices Trend chart Tools Slide 4.7

  8. TQM Infrastructure • Leadership • Strategic planning • Who are our customers? • What is our mission? • What principles do we value? • What are our long-range and short-range goals? • How do we accomplish these goals? • Human resources management • Employee selection • Training • Determining employee satisfaction • Process management • Involves designing and developing the processes to deliver products and services that meet and exceed customer needs • Data and information management • Operations performance • Market assessment • Supplier performance Slide 4.8

  9. Organizational structures Role of people Definition of quality Goals and objectives Knowledge Management systems Reward systems Management’s role TQM and Traditional Practices (1 of 2) Slide 4.9

  10. Union-management relations Teamwork Supplier relationships Control Customers Responsibility Motivation Competition TQM and Traditional Practices (2 of 2) Slide 4.10

  11. Malcolm Baldrige National Quality Award • The Baldrige award was established by congress and signed into law on August 20, 1987 • Award was named after President Reagan’s Secretary of Commerce, who was killed in an accident • Very similar to Japan’s Deming Prize • The Baldrige award recognizes U.S. companies (small business, mfg, service) that excel in quality management practices and performance • Doesn’t exam the government entities Slide 4.11

  12. Malcolm Baldrige National Quality Award • Helps improve quality in U.S. companies • Recognizes achievements of excellent firms and provide examples to others • Establishes criteria for evaluating quality efforts • Provides guidance for other American companies Malcolm Baldrige, former U.S. Secretary of Commerce Slide 4.12

  13. MBNQA Categories • Leadership • Strategic Planning • Customer and Market Focus • Information and Analysis • Human Resource Development and Management • Process Management • Business Results Baldrige Award trophy Slide 4.13

  14. Self Assessment A primary goal of the Baldrige program is to encourage many organizations to improve on their own by equipping them with a standard template for measuring their performance and their progress toward performance excellence. Boeing Airlift & Tanker Programs – 1998 winner Slide 4.14

  15. Customer and Market Focused Strategy and Action Plans 2 Strategic Planning 5 Human Resource Development & Management 1 Leadership 7 Business Results 3 Customer and Market Focus 6 Process Management 4 Information and Analysis Baldrige Award Criteria Framework Slide 4.15

  16. Receive applications First stage review (5-8 examiners) Select for consensus review? Site visit (5-8 examiners) Consensus review (6-8 examiners) Recommend winners (judges) yes Select for site visit ? yes no no Feedback report Evaluation Process Slide 4.16

  17. Scoring Process Bases upon the following three dimensions: • Approach: methods used to achieve requirements in criteria • Deployment: extent to which approaches are applied to all relevant areas and activities • Results: outcomes and effects in achieving purposes addressed in criteria Slide 4.17

  18. Programs in place No programs Quality Awards Around the World Slide 4.18

  19. Other Quality Award Programs • European Quality Award • Canadian Awards for Business Excellence • Australian Business Excellence Award Slide 4.19

  20. Critics and Debate “TQM is as Dead as a pet rock” “TQM is Alive and Well” “Quality Programs Show Shoddy Results” “TQM failures just prove that bad management is alive and kicking” Slide 4.20

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