ANAGEMENT

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Q
UALITY
M
ANAGEMENT
CUSTOMER COMPETITIVE INTELLIGENCE FOR PRODUCT,
PROCESS, SYSTEMS ENTERPRISE EXCELLENCE
DEPARTMENT OF STATISTICS
REDGEMAN_at_UIDAHO.EDU
OFFICE 1-208-885-4410
DR. RICK EDGEMAN, PROFESSOR CHAIR SIX SIGMA
BLACK BELT
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What is Quality?To Satisfy Customers
Requirements Continuously
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What isQuality Management?To Achieve Quality
at Low Cost.
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What isTotal Quality Management?To Obtain
Total Quality by Involving Everyones Daily
Commitment.
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What is the Objective ofTotal Quality Management?

• The Objective of TQM is to Improve Continuously
  Each and Every Activity in the Company, Focusing
  on the Customer.
• Quality is
• Defined by the Customer!!!

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Five Principles of aNew Culture

• The TQM philosophy derives from one foundational
  idea everything must be geared towards customer
  satisfaction, the engine which drives the company
  and on which its future survival depends.
• The quality of a product or a service is the
  value assigned to it by customers, that is, the
  amount they are prepared to pay. Thats all.
• Anything which is not in line with this
  expectation, anything unnecessary or redundant
  should be discarded.

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Five Principles of aNew Culture

• TQM aims to trim this non-value added fat by
  complete overhaul of the management system, using
  continual improvement as a guideline.
• To this end, people must be empowered and must
  become part of cohesive work systems they must
  be given the means to do what they do best in
  addition to nails, they must also be given a
  hammer.

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Cultural Principles

• The processes, that is the operating procedures
  at all levels of the company, must be thoroughly
  brought under control and optimized. The
  consistency of the whole is more important than
  the optimization of each individual unit.
• Management must be guided by this concern for
  consistency.

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Cultural Principles

• This synergy makes it possible to better control
  the three elements of Quality, Cost and Delivery
  (QCD) which are the three components of a
  response tailor-made to meet customer
  expectations.
• This applies within the company as well, where
  the customer-supplier relationship is fundamental
  in each link of the chain.
• Anything which is not customer-driven, within or
  outside the company, is merely waste.

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What is a Process?

• A process is a set of successive operations
  targeting a specific result.
• It involves input (data, materials, products in
  various stages of completion) from suppliers or
  previous processes, which it transforms and
  transmits either to a process downstream, or to a
  customer.
• In other words, a process is a series of tasks
  performed with specific resources.

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In-House Customers andOutside Customers

• The expectations of the outside customer, the
  buyer or user of the product, may be seen in the
  context of in-house customer / supplier
  relationships, which play a vital role in
  improving company performance.
• The in-house supplier is the product, service or
  advice, which represents the end-product of one
  stage in the process.
• The in-house customer is the office, shop or
  service which carries out the next stage.

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In-House Customers andOutside Customers

• Each acts as supplier and customer with respect
  to and for the other.
• A HOUSE DIVIDED AGAINST ITSELF CANNOT STAND
  PRINCIPLE This relationship encourages useful
  activity.
• GET YOUR OWN HOUSE IN ORDER PRINCIPLE The
  in-house customer / supplier relationship is one
  of the keys to satisfying the outside customer.

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The Customer is theUltimate Judge of Value

• Customers assign a value to the product or
  service in accordance with their needs and
  desires, either expressed or implicit.
• In exchange for this value, they pay and often go
  into debt, and this constitutes the sole source
  of income for the business.
• We need to move away from a strategy based on
  marketing products to one based on delighting
  customers.
• We need to know how to anticipate their needs,
  even to the point of influencing the ways their
  needs change.
• We have to provide customers with the service and
  the reliability they expect at a competitive
  price with the timing and conditions which are
  most convenient for them.

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2. Search for a Lean Approach

• Improving output means serving customers better,
  faster, and less expensively by consuming fewer
  resources.
• Anything which does not contribute either
  directly or indirectly to customer satisfaction
  must be eliminated.
• Identify and eliminate everything except that
  which is lean or just enough in all sectors
  and all levels of activity with the goal of
  continual improvement
• causes of rework,
• poorly calculated investments,
• excessive inventory,
• skills under-utilized or poorly utilized.
• This step will lead to a streamlining or an
  overhaul of all processes.

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3. Controlling theProcess Means Reducing
Dispersion

• Improving the process through greater control
  means first and foremost controlling dispersion
  in the quality of products and services offered.
• This means adhering to a permanent standard of
  quality within the limits acceptable to the
  customer, either within the company or outside
  it.
• Only then can we attempt to do even better by
  enhancing or modifying the process.
• This is a preliminary step towards challenging
  existing processes.

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4. Involving and Empowering People

• Employees are a companys most precious resource
  and the only one which can take control of
  processes and identify and reduce anything which
  does not meet the lean or just enough
  standard.
• Fort that reason, people must be involved and
  empowered and their value recognized.
• Initiative and creativity must be developed in
  order to encourage problem-solving.
• Human resource development involves acquisition
  of experience linked with a training component,
  which must focus on the importance of cooperation
  and team work as incentives for better quality,
  productivity and safety.

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5. The Spiral of Continual Improvement

• The Goal of TQM is progress - not perfection -
  there is no ideal state which, once reached, will
  allow the company to rest from its endeavors.
• What matters is the degree of progress achieved
  and its rapidity progress is based on the S-PDSA
  Cycle (or, better, modified Deming Cycle)
• Along with innovation, continual improvement
  focuses on solving problems and finding reliable
  solutions.
• This includes daily progress in routine matters
  as well as large-scale cross-functional
  improvements, without necessarily resorting to
  additional investment.

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Edgemans Modification of DemingsS-PDSA Cycle
DO
ACT (implement)
HOLD THE GAIN
STUDY
PLAN
STANDARDIZE
S-Establish Baseline Results
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The TQM Culture
Listening to the Customer
Quality
Customer Satisfaction
People
Processes
Reducing Waste
Cost
Progress Through S-PDSA
Delivery
More Value for the Customer
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The TQM Wheel Model
UNIT OPTIMIZATION
Suggestion Systems Self-Directed Work
Teams Quality Circles
7 QC Tools / Statistics
Cont. Imp. Standardization
I N T E G R A T I O N
H O R I Z O N T A L
Daily Control
A L I G N M E N T
V E R T I C A L
Info. Systems
Organ- izational Break- Through
Cross Functional Mgt QCDP
Customer Driven Master Plan
Audit Tools
Hoshin Planning
Seven Manage- Ment
Planning Tools
Customer/ Supplier Senior
Executive Teams
Vertical Teams
Horizontal Coordination
Q.A./ QFD
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Daily Control

• Daily Control is the application of PDSA to
  daily incremental continuous improvement
• Hoshin Planning draws information from the
  ongoing data collection and analysis of the Daily
  Control process to identify broad system problems
  in which breakthrough is needed.
• Once breakthroughs have occurred, they can become
  the focus of daily continuous improvement.

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Cross-Functional Management

• Cross-functional management concerns the systems
  by which functions departments work together to
  achieve common organizational targets such as
  quality, cost, delivery product (QCDP).
• Quality Function Deployment (QFD) or listening
  to the voice of the customer can identify areas
  for planning breakthrough.
• The Hoshin Planning process often requires
  cooperation across functions as well as vertical
  alignments.

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Hoshin Planning
Hoshin Planning
The Destination that we MUST Reach
Where We Are

• Hoshin --- That by which we navigate - The
  organizational NORTH STAR.
• Policy Management --- Policy Deployment
• Focused Planning
• Hoshin Kanri

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Hoshin Planning Definition

• Hoshin Planning is that part of an organizations
  strategic planning system which identifies,
  develops, deploys, audits, and modifies a
  specific plan to focus the organizations efforts
  on the breakthroughs of developments required to
  achieve the strategic vision of the organization.

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Hoshin Planning

• Hoshin Planning is a method that captures and
  concretizes strategic goals and flashes of
  insight about the future and that develops the
  means to bring these into reality.
• The intent of Hoshin Planning is to integrate an
  entire organizations daily activities with its
  long term goals.

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LEADER SHIP
Customer-Driven
CROSS-FUNCTIONAL MANAGEMENT
Master Plan
Hoshin Planning
Sustainable Competitive
Advantage
CONTROL
DAILY
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UNIT OPTIMIZATIONDaily Control

• Within this arena are the so-called Seven
  Traditional Tools of Quality, even though there
  is not perfect agreement on what those seven
  tools are. Among these
• Histograms Pareto Diagrams
• Scatter Diagrams Boxplots
• Cause Effect Diagrams
• Process Flow Diagrams
• Control Charts and Run Charts
• Check Sheets and
• Stem-and-Leaf Plots.

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VERTICAL ALIGNMENT Hoshin
Planning

• Hoshin Planning
• Management Planning Tools
• Affinity Diagrams
• Brainstorming
• Nominal Group Technique
• Matrix Diagrams
• Radar Charts
• Force Field Analysis
• Prioritization Matrices.

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HORIZONTAL INTEGRATIONCross-Functional
Management

• Listening to the Voice of the Customer or
  QUALITY FUNCTION DEPLOYMENT (QFD).

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Quality Culture at ATTA Case Study
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ATT Cultural Change Mechanisms

• Focus From Traditional To Quality
• Plan Short-range budgets
  Future Strategic Issues
• Organize Hierarchy
  Participation/Emancipation
• Communication Top Down Top
  Down Bottom Up
• Decisions Ad hoc/Crisis Management
  Planned Change
• Functional Parochial, Competitive
  Cross-Functions, Management
  Integrative
• Quality Fixing / One-Shot
  Preventive / Continuous Management
  all Functions Processes

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ATT Quality Policy

• Quality excellence is the foundation for the
  management of our business and the keystone of
  our goal of customer satisfaction. It is,
  therefore, our policy to
• Consistently provide products and services that
  meet the quality expectations of our customers.
• Actively pursue ever-improving quality through
  programs that enable each employee to do his or
  here job right the first time.

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ATT Quality Principles

• The customer comes first.
• Quality happens through people.
• All work is part of a process.
• Suppliers are an integral part of our business.
• Prevention is achieved through planning.
• Quality improvement never ends.

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Total Quality ManagementTurning Principles
into PracticeATTs Fundamental Total Quality
Approach
Process Supplier
Management Customer Partnership
and Improvement Focus
Supplier Process
Customer
Vision Direction ATT Quality Policy
People Leadership Involvement
ATT Quality Principles
Values ATT Common Bond
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ATT Network Services Division (NSD)Quality
Management System
NSD VISION We provide our customers the best
network services in the world. NSD MISSION The
mission of NSD is to support the individual
Business Units in the achievement of their goals
by providing premises-to-premises network
services, both now and for the future That are
positively differentiated from our
competitors in customer-perceived quality,
reliability, innovation, timeliness, and
performance At a cost that is lower than our
competitors By a professional, motivated,
customer- focused winning team.
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Implementing the Total Quality Approach With
NSD's Quality Management System
Process Supplier
Management Customer Partnership
and Improvement Focus
Supplier Process
Customer
Vision Direction ATT Quality Policy
People Leadership Involvement
NSD
ATT Quality Principles
People
Customers
Values ATT Common Bond
Processes
Leadership
QMS
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NSD Customer Identification Statement Strategic
Business Unit Customers.

• Consumers and businesses are ATTs external
  customers. They ultimately consume and pay for
  the products services we deliver.
• The SBUs are NSDs internal customers. They
  supply us with the requirements for products and
  services, fund NSD for those services, and
  represent the voice of the external customer.
• We aspire to evolve customer/supplier
  relationships within NSD, with its suppliers, and
  with the SBUs to a set of true partnerships,
  based upon the ATT Common Bond.
• Data Communication Services 800
  Business Application Services
  
• Business Long Distance BCServices-Federal
  Systems
• Consumer Long Distance Away from Home Office
• Directory Services Accessible Communications
  Services

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QMS Information

• Information, represented by arrows in the model
• Integrates the elements of QMS
• Permits fact-based decision making
• And must be
• Readily available
• Easily accessible
• Consistently presented
• Relevant meaningful.

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QMS Leadership

• Create the vision
• Achieve the mission
• Live our common bond
• Establish quality policy
• Lead the planning process
• Set key goals / initiatives
• Champion deployment
• Measure progress
• Celebrate successes.

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NSD - Our Common Bond - PeopleWe commit to
these values to guide our decisions behavior

• Respect for individuals
• Dedication to helping customers
• Highest standards of integrity
• Innovation
• Teamwork
• Utilize our human performance system as a key
  enabling mechanism for our quality management
  system (QMS).
• Recognize support behavior that is consistent
  with our QMS.
• Foster an environment where people are skilled
  and supported to be successful.

By living these values, ATT aspires to set a
standard of excellence worldwide that will reward
our shareholders, our customers and all ATT
people.
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QMS Processes

• Manage by process
• Define goals
• Instill a spirit of continuous improvement
• Use Process Quality Management Improvement (PQMI)
  as the foundation
• Achieve excellence in customer relationship
  management
• Develop effective supplier management.

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Process Management Roles Responsibilities

• Process Champion ensures process efforts are
  linked with overall business strategies and goals
  and advocates process breakthrough initiatives
  for at least one QMS process.
• Process Owner provides process vision, commits
  to customers primary requirements and is
  ultimately accountable for results of at least
  one QMS process.
• Process Leader manages process on a daily basis,
  establishes process-specific goals, charts PMT
  activity, manages funding process and interfaces
  with customers and suppliers.
• PMT Leader leads effort to develop and implement
  initiatives to improve process capability and
  achieve process results.
• PMT Member analyzes and recommends improvements
  to the process.
• Support Manager manages the execution of current
  process and implements process improvement to
  achieve process results.
• Process Associate executes current process and
  implements process improvements to achieve
  process results.

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Leadership Through ProcessChampions, Owners and
Leaders
Strategic Operational Planning
NSD
People
QMS Organization Model Development and
Implementation
Customers
Processes
Leadership
QMS
Assessment Audit Benchmarking
Studies Implementation
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Assessing Improving NSDs QMS with the PDSA
Cycle
Plan for Addressing Improvement Opportunities
Plan
NSD
People
Act on Results of Assessment Identify Improvement
Opportunities
Implement Improvement Plans
Customers
Do
Act
Processes
Leadership
QMS
Study
ASSESSMENTATT CQA ISO 9001 AOS
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Q
UALITY
M
ANAGEMENT
End of Session
DEPARTMENT OF STATISTICS