Total Quality Management

1
Total Quality Management
Week 6 Culture, Communication,
Learning Prepared by Khalid Dahleez Faculty of
Commerce the Islamic University of Gaza This
material was collected from different sources
2
Quality Culture (general concepts)

• Creating a quality culture within an organization
  is increasingly recognized as one of the primary
  conditions for the successful implementation of
  Total Quality Management.
• culture represents the way in which members of a
  business group control their behavior in order to
  communicate with each other and with other groups
  in that society.
• many organizations are not even aware of their
  own culture or its distinct characteristics.
• These cultures are influenced by the culture of
  the country and the nature of its business of the
  organization

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Quality Culture (general concepts)

• Peters and Waterman (1982) in their book In
  Search of Excellence, where they said without
  exception, the dominance and coherence of culture
  within these organizations proved to be the
  essential quality of success.
• In some studies it has been suggested that
  organizations with adaptive cultures, geared to
  satisfy the changing demands of customers,
  employees and shareholders can outperform
  organizations without such culture.
• Companies with sound culture can increase their
  sales three times more than the organization
  without a sound culture. Therefore a successful
  company needs more than just sound business
  strategy, it needs a culture to support the
  strategy.

4
Quality Culture (Definition)

• Culture is the pattern of shared beliefs and
  values that provides the members of an
  organization rules of behavior or accepted norms
  for conducting operations. It is the
  philosophies, ideologies, values, assumptions,
  beliefs, expectations, attitudes, and norms that
  knit an organization together and are shared by
  employees.
• Main components
• Behaviors based on people interactions.
• Norms resulting from working groups.
• Dominant values adopted by the organization.
• Rules of the game for getting on.
• The climate.
• Any organization needs a vision framework that
  includes its guiding philosophy, core values and
  beliefs and a purpose? these should be combined
  into a mission.

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Quality Culture (Viewpoints of the founders)

• The acknowledged experts agree on the need for a
  cultural or value system transformation
• Deming calls for a transformation of the American
  management style.
• Feigenbaum suggests a pervasive improvement
  throughout the organization.
• According to Crosby, Quality is the result of a
  carefully constructed culture, it has to be the
  fabric of the organization.

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Quality Culture

• Successful organizations have a central core
  culture around which the rest of the company
  revolves.
• It is important for the organization to have a
  sound basis of core values into which management
  and other employees will be drawn.
• Without this central core, the energy of members
  of the organization will dissipate as they
  develop plans, make decisions, communicate, and
  carry on operations without a fundamental
  criteria of relevance to guide them.

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Creating TQM Culture

• To TQM Culture
• Participative style
• Top down, lateral and upward
• information flow
• Customer defined quality focus
• Process focus
• A vision for the future
• Comprehensive/Continuous
• improvements
• All staff involved and engaged
• Lead and Coach
• Empower
• Ownership and participation
• Integrated functions
• Promoting mutual trust
• Team initiatives group focussing on continuous
  improvement

• From Traditional Culture
• Hierarchical style
• Top down information flow
• Inward quality focus
• Functional focus
• Short-term planning
• Episodic improvements
• Top down initiatives
• Manage and delegate
• Direct
• Counsel
• Functional and narrow scope of jobs
• Enforcement
• Fire fighting with few
• individuals/group

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Corporate Culture (Definition)

• The concept of corporate culture has been used in
  recent years to develop and understand the
  concept of culture in connection with the study
  of organizations.
• Culture or civilization, taken in its wide
  ethnographic sense, is that complex whole which
  includes knowledge, belief, art, morals, law,
  custom, and any other capabilities and habits
  acquired by man as a member of society.
• Corporate culture can be defined as a set of
  commonly held attitudes, values, and beliefs that
  guide the behavior of an organization's members
  (Martin, 1985).
• Culture reflects assumptions about clients,
  employees, mission, products, activities and
  assumptions that have worked well in the past and
  which get translated into norms of behavior,
  expectations about what is legitimate, desirable
  ways of thinking and acting. These are the focus
  of its capacity for evolution and change
  (Laurent, 1990).

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Factors Influencing Culture
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Steps for Creating TQM Culture

• Management accountability and a deep sense of
  responsibility commitment towards employees is
  the starting point.
• Total people involvement and empowerment
• Communication
• Training to employees
• Management thoughts and action towards delighting
  its customers
• Removing organisational boundaries and internal
  competition
• Using fact based decision making
• Use of Kaizen

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Changing the culture

• TQM is concerned with moving the focus of control
  from outside the individual to within, the
  objective being to make everyone accountable for
  their own performance, and to get them committed
  to attaining quality in a highly motivated
  fashion.
• Changing the Culture
• The culture of an organisation is formed by the
  beliefs, behaviours, norms, dominant values,
  rules, and climate in the organisation.
• Each Organisation needs a vision (Guiding
  Philosophy).
• Everyone within the organisation has a role and
  must do their work towards the common goals and
  objectives.
• TQM is concerned with moving the focus of control
  from the outside to the inside of individuals
  and so everyone is accountable for her/his
  performance.

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Changing the culture

• The guiding philosophy drives the organization
  and is shaped by the leaders through their
  thoughts and actions.
• The core values and beliefs represent the
  organizations basic principles about what is
  important in business, its conduct, its social
  responsibility and its response to changes in the
  environment.
• The purpose of the organization should be a
  development from the core values and beliefs and
  should quickly and clearly convey how the
  organization is to fulfill its role.

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Resistance to cultural change

• People are afraid that the change will affect
  their way of functioning.
• People perceive that they will lose their control
  over things.
• There is a personal uncertainty that they will
  not be able to live up to the expectations of
  others.
• The change may mean more work for them.
• There may be past resentments against management.
• They think that TQM will die its natural death
  after sometime like several other concepts.

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Resistance to cultural change

• There is an attitude that TQM will go away if I
  ignore it.
• They are unwilling to take ownership and feel
  committed.
• They think it is somebody elses responsibility.
• They have the attitude first you change, then I
  will.
• They think that others will find out that what I
  have been doing over the years is wrong. I could
  be penalized for my misdeeds.

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Communication

• Communication is linked in the quality process.
  The ability to communicate is a valuable skill at
  all levels, from front-line supervisor to CEO.
• How Employees Receive Information? The culture of
  an organization can sometimes define how the
  employees receive information. The following
  represents the ways in which employees get their
  information
• Monthly town meeting between the CEO and staff
• Monthly departmental meeting
• Email
• Members of the inner circle
• Company newsletter
• Memos
• External customers who call with questions
• Voice mail
• Verbal and/or written feedback from a manager or
  superior

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Communication

• Communication is defined as the exchange of
  information and understanding between two or
  more persons or groups.
• Note the emphasis on exchange and understanding.
  Without understanding between sender and receiver
  concerning the message, there is no
  communication.
• All information is encoded, and prior agreement
  must be reached on the meaning of the code.
  Quality must be carefully defined and measures
  agreed upon.
• Communication downward cannot work because it
  focuses on what we want to say. Communication
  should be up down.
• Employees should be encouraged to set measurable
  goals.

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Communicating the quality strategy

• The essence of changing attitudes is to gain
  acceptance for the need to change, and for this
  to happen it is essential to provide relevant
  information, convey good practices, and generate
  interest, ideas and awareness through excellent
  communication processes.
• This change will require direct and clear
  communication from the top management to all
  staff and employees, to explain the need to focus
  on processes. Everyone will need to know their
  roles in understanding processes and improving
  their performance.
• An excellent way to accomplish this first step is
  to issue a total quality message that clearly
  states top managements commitment to quality and
  outlines the role everyone must play.

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Communicating the quality strategy

• This can be in the form of a quality policy or a
  specific statement about the organizations
  intention to integrate quality into the business
  operations.
• Example 1 We can become a total quality
  organization only with your commitment and
  dedication to improving the processes in which
  you work. We will help you by putting in place a
  program of education, training, and teamwork
  development, based on business and process
  improvement, to ensure that we move forward
  together to achieve our business goals.
• Example 2 We wish to convey to everyone our
  enthusiasm and personal commitment to the total
  quality approach, and how much we need your
  support in our mission of business improvement.
  We hope that you will become as convinced as we
  are that business and process improvement is
  critical for our survival and continued success.

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Communicating the quality strategy

• The quality director or TQM coordinator should
  then assist the senior management team to prepare
  a directive. This must be signed by all business
  unit, division, or process leaders, and
  distributed to everyone in the organization. The
  directive should include the following
• Need for improvement.
• Concept for total quality.
• Importance of understanding business processes.
• Approach that will be taken and peoples roles.
• Individual and process group responsibilities.
• Principles of process measurement.

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Communication Model

• This communication model indicates the potential
  for problems through environmental distractions,
  mismatches between sender and receiver (or more
  correctly, decoder) in terms of attitudes
  towards the information and each other
  vocabulary, time pressures, etc

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Communicating the quality message

• The people in most organizations fall into one of
  four audience groups, each with particular
  general attitudes towards TQM
• Senior managers, who should see TQM as an
  opportunity, both for the organization and
  themselves.
• Middle managers, who may see TQM as another
  burden without any benefits, and may perceive a
  vested interest in the status quo.
• Supervisors (first line or junior managers), who
  may see TQM as another flavor of the period or
  campaign, and who may respond by trying to keep
  heads down so that it will pass over.
• Other employees, who may not care, so long as
  they still have jobs and get paid, though these
  people must be the custodians of the delivery of
  quality to the customer and own that
  responsibility.

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Communicating the quality message

• Senior management needs to ensure that each group
  sees TQM as being beneficial to them. Total
  quality training material and support (whether
  internal from a quality director and team or from
  external consultants) will be of real value only
  if the employees are motivated to respond
  positively to them. The implementation strategy
  must then be based on two mutually supporting
  aspects
• Marketing any TQM initiatives.
• A positive, logical process of communication
  designed to motivate people (discovery,
  affirmation, participation, and team-based
  learning). The key medium for motivating the
  employees and gaining their commitment to quality
  is face-to-face communication and visible
  management commitment.

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Methods of Communication

• Verbal communication either between individuals
  or groups, using direct or indirect methods, such
  as public address and other broadcasting systems
  and recordings.
• Written communication in the form of notices,
  bulletins, information sheets, reports, e-mail
  and recommendations.
• Visual communication such as posters, films,
  video, internet/intranet, exhibitions,
  demonstrations, displays and other promotional
  features. Some of these also call for verbal and
  written communication.
• Example, through the way people conduct
  themselves and adhere to established working
  codes and procedures, through their effectiveness
  as communicators and ability to sell good
  practices.

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Education Training

• Education and training can be a powerful stimulus
  to personal development at the workplace, as well
  as achieving improvements for the organization.
• Education and training is the single most
  important factor in actually improving quality
  and business performance, once there has been
  commitment to do so.
• For education and training to be effective,
  however, it must be planned in a systematic and
  objective manner to provide the right sort of
  learning experience.
• Education and training must be continuous to meet
  not only changes in technology but also changes
  in the environment in which an organization
  operates, its structure, and perhaps most
  important of all the people who work there.

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Education Training Cycle
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Education Training as part of the Quality policy

• Every organization should define its policy in
  relation to education and training.
• The policy should contain principles and goals to
  provide a framework within which learning
  experiences may be planned and operated.
• This policy should be communicated to all levels.
• Example We can become a total quality
  organization only with your commitment and
  dedication to improving the processes in which
  you work. We will help you by putting in place a
  program of education, training, and teamwork
  development, based on business and process
  improvement, to ensure that we move forward
  together to achieve our business goals.

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Establish objectives and responsibilities for
education and training

• When attempting to set education and training
  objectives three essential requirements must be
  met
• Senior management must ensure that learning
  outcomes are clarified and priorities set.
• The defined education and training objectives
  must be realizable and attainable.
• The main objectives should be translated for
  all functional areas in the organization.
• The following questions are useful first steps
  when identifying education and training
  objectives
• How are the customer requirements transmitted
  through the organization?
• Which areas need improved performance?
• What changes are planned for the future?
• What are the implications for the process
  framework?

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Establish the platform for a learning organization

• The overall responsibility for seeing that
  education and training is properly organized must
  be assumed by one or more designated senior
  executives.
• All managers have a responsibility for ensuring
  that personnel reporting to them are properly
  trained and competent in their jobs.
• This responsibility should be written into every
  managers job description.
• The question of whether line management requires
  specialized help should be answered when
  objectives have been identified.
• It is often necessary to use specialists, who may
  be internal or external to the organization.

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Specify education and training needs

• The following questions need to be answered
• Who needs to be educated/trained?
• What competencies are required?
• How long will the education/training take?
• What are the expected benefits?
• Is the training need urgent?
• How many people are to be educated/trained?
• Who will undertake the actual education/
  training?
• What resources are needed, e.g. money, people,
  equipment, accommodation, outside resources?

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Prepare education/training programs and materials

• Senior management should participate in the
  creation of overall programs, although line
  managers should retain the final responsibility
  for what is implemented, and they will often need
  to create the training programs themselves.
• Training programs should include
• The training objectives expressed in terms of the
  desired behavior.
• The actual training content.
• The methods to be adopted.
• Who is responsible for the various sections of
  the program?

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Implement, monitor, Assess education and
training

• The effective implementation of education and
  training programs demands considerable commitment
  and adjustment by the trainers and trainees
  alike.
• Training is a progressive process, which must
  take into account any learning problems of the
  trainees.
• In order to determine whether further education
  or training is required, line management should
  themselves review performance when training is
  completed.
• However good the training may be, if it is not
  valued and built upon by managers and
  supervisors, its effect can be severely reduced.

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Review effectiveness of education and training

• Senior management will require a system whereby
  decisions are taken at regular fixed intervals
  on
• The policy.
• The education and training objectives.
• The education/training organization.
• The progress towards a learning organization.
• Even if the policy remains constant, there is a
  continuing need to ensure that new education and
  training objectives are set either to promote
  work changes or to raise the standards already
  achieved.
• The education/ training organization should
  similarly be reviewed in the light of the new
  objectives, and here again it is essential to aim
  at continuous improvement.

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A systematic approach to education and training
for quality

• Education and training for quality should have,
  as its first objective, an appreciation of the
  personal responsibility for meeting the
  customer requirements by everyone from the most
  senior executive to the newest and most junior
  employee.
• Responsibility for the training of employees in
  quality rests with management at all levels and,
  in particular, the person nominated for the
  co-ordination of the organizations quality
  effort.
• Education and training will not be fully
  effective, however, unless responsibility for the
  deployment of the policy rests clearly with the
  chief executive.
• One objective of this policy should be to develop
  a climate in which everyone is quality conscious
  and acts with the needs of the customer in mind
  at all times.

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A systematic approach to education and training
for quality

• The main elements of effective and systematic
  quality training may be considered under four
  broad headings
• Error/defect/problem prevention.
• Error/defect/problem reporting and analysis.
• Error/defect/problem investigation.
• Review.
• The emphasis should obviously be on error,
  defect, or problem prevention.

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Error/defect/problem prevention

• The following contribute to effective and
  systematic training for prevention of problems in
  the organization
• An issued quality policy.
• A written management system.
• Job specifications that include quality
  requirements.
• Effective steering committees, including
  representatives of both management and employees.
• Efficient housekeeping standards.
• Preparation and display of maps, flow diagrams
  and charts for all processes.

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Error/defect/problem reporting and analysis

• It will be necessary for management to arrange
  the necessary reporting procedures, and ensure
  that those concerned are adequately trained in
  these procedures.
• All errors, rejects, defects, defectives,
  problems, waste, etc. should be recorded and
  analyzed in a way that is meaningful for each
  organization, bearing in mind the corrective
  action programs that should be initiated at
  appropriate times.

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Error/defect/problem investigation

• The investigation of errors, defects, and
  problems can provide valuable information that
  can be used in their prevention. The following
  information is useful for the 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.

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Review of quality training

• Review of the effectiveness of quality training
  programs should be a continuous process.
• However, the measurement of effectiveness is a
  complex problem.
• One way of reviewing the content and assimilation
  of a training course or program is to monitor
  behavior during quality audits.
• This review can be taken a stage further by
  comparing employees behavior with the objectives
  of the quality-training program.
• Other measures of the training processes should
  be found to establish the benefits derived.

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Starting where and for whom?

• Education and training needs occur at four levels
  of an organization
• Very senior management (strategic decision
  makers).
• Middle management (tactical decision makers or
  implementers of policy).
• First level supervision and quality team leaders
  (on-the-spot decision makers).
• All other employees (the doers).
• Neglect of education/ training in any of these
  areas will, at best, delay the implementation of
  TQM and the improvements in performance.

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Very senior management

• The chief executive and his team of strategic
  policy makers are of primary importance, and the
  role of education and training here is to provide
  awareness and instil commitment to quality.
• Executives responsible for marketing, sales,
  finance, design, operations, purchasing,
  personnel, distribution, etc. all need to
  understand quality.
• They must be shown how to define the policy and
  objectives, how to establish the appropriate
  organization, how to clarify authority, and
  generally how to create the atmosphere in which
  total quality will thrive.

41
Very senior management

• This is the only group of people in the
  organization that can ensure that adequate
  resources are provided and directed at
• Meeting customer requirements internally and
  externally.
• Setting standards to be achieved zero failure.
• Monitoring of quality performance quality
  costs.
• Introducing a good quality management system
  prevention.
• Implementing process control methods SPC.
• Spreading the idea of quality throughout the
  whole workforce TQM.

42
Middle management

• The basic objectives of management quality
  training should be to make managers conscious and
  anxious to secure the benefits of the total
  quality effort.
• The middle managers should be provided with the
  technical skills required to design, implement,
  review, and change the parts of the quality
  management system that will be under their direct
  operational control.
• Middle management should receive comprehensive
  training on the philosophy and concepts of
  teamwork, and the techniques and applications of
  statistical process control (SPC).

43
First-level supervision

• There is a layer of personnel in many
  organizations which plays a vital role in their
  inadequate performance foremen and supervisors
  the forgotten men and women of industry and
  commerce.
• The first level of supervision is where the
  implementation of total quality is actually
  managed.
• Supervisors training should include an
  explanation of the principles of TQM, a
  convincing exposition on the commitment to
  quality of the senior management, and an
  explanation of what the quality policy means for
  them.
• The remainder of their training needs to be
  devoted to explaining their role in the operation
  of the quality management system, teamwork, SPC,
  etc., and to gaining their commitment to the
  concepts and techniques of total quality.

44
All other employees

• Awareness and commitment at the point of
  production or service delivery is just as vital
  as at the very senior level. If it is absent from
  the latter, the TQM program will not begin if it
  is absent from the shop floor, total quality will
  not be implemented.
• The training here should include the basics of
  quality and particular care should be given to
  using easy reference points for the explanation
  of the terms and concepts.
• All employees should receive detailed training on
  the processes and procedures relevant to their
  own work.
• Obviously they must have appropriate technical or
  job training, but they must also understand the
  requirements of their customers.

45
Turning Educating Training into Learning

• Learning can be defined as a process in which
  individuals can change their attitude to adopt a
  continuous development of basic knowledge and
  skills in pursuit of total professionalism.
• Effective action must be organized around a range
  of systems and procedures to accomplish the goal.
• The basic requirement of any effective learning
  process is, therefore, the desire to learn the
  skills, to implement them and to practice them in
  an appropriate context.
• Continuous learning requires a sustained interest
  in learning over time and relates to the
  improvement in learning ability which is
  independent to the content being learned.

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QUALITY LEARNING

• The key word in relation to continuous
  improvements is learning. In order to communicate
  this to his audience/readers, Deming changed the
  name of the improvement cycle (the Deming cycle)
  from plan-do-check-act to plan-do-study/learn-act.
  
• In the check phase of the improvement cycle, you
  have to study the results in order to understand
  what were the causes behind them.
• This learning process is the most important part
  of the continuous improvement process. Therefore,
  we will discuss the learning process.

47
Continuous Quality Learning Cycle

• In general, quality learning is a continuous
  process that can be broken anywhere in the
  learning systems of supply and customer service.
• Deming cycle plan defines the learning process
  which ensures documentation and sets measurable
  objectives against it.
• The do executes the process and collects the
  information and knowledge required.
• The check analyses the information in a suitable
  format.
• The act obtains corrective action using quality
  learning techniques and methods and assesses
  future plans.
• At the end of each cycle the process is either
  standardized or learning targets are adjusted
  based on the analysis and the cycle continues.

48
Learning Organizations TQM

• learning organizations are organizations where
  people continually expand their capacity to
  create desired results, where new patterns of
  thinking are nurtured and where people are
  continually learning how to learn together.
• learning organizations as being skilled at
  creating, acquiring and transferring knowledge
  and then being able to modify behavior to reflect
  this new knowledge and insight.
• Both of these definitions imply a new way of
  thinking about how people work together and the
  need for greater emphasis on reviewing current
  and past experiences.
• T QM, if practiced as a philosophy as well as a
  set of techniques, can be a vehicle for
  organizational learning.
• Quality is primarily associated with learning.
  There is a clear philosophical link between
  systemic problem solving of a learning
  organization and the quality movement.

49
Learning Organizations TQM

• Garvin suggests that, to become a learning
  organization, companies need to be skilled at the
  following five activities
• Systematic problem solving Relates to the
  philosophy and methods of the quality movement,
  relying on scientific method rather than
  guesswork uses actual data rather than
  assumptions and simple statistical tools.
• Experimentation with new approaches Systematic
  searching for and testing new knowledge
  motivated by opportunity and new perspectives and
  not by current difficulties.
• Learning from their experiences and past history
  A review of successes and failures reflecting
  and self-analysis.
• Learning from experiences and best practices of
  others Benchmarking looking outside the
  immediate environment openness to the outside
  world environmental scanning.

50
Learning Organizations TQM

• Transferring knowledge quickly and efficiently
  throughout the organization Knowledge
  transferred quickly and efficiently throughout
  the organization mechanisms in place to
  facilitate the process written and oral reports
  site visits tours rotation programs education
  and training programs.
• Learning is clearly an output of a successfully
  implemented TQM program and a TQM initiative can
  only be regarded as successful when a new
  working environment has been created in which
  people are able to learn, share knowledge and
  make contributions.

51
Summary Slide

• The following Slides are for understanding only
  (subject to indirect Questions) 13, 14
• Other slides are required and subjects to any
  type of Questions