Designing Organizations for Quality

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Chapter 5

• Designing Organizations for Quality

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Demings View of aProduction System
Suppliers of materials and equipment
Design and Redesign
Consumer research
Receipt and test of materials
Consumers
A B C D
Production, assembly inspection
Distribution
Tests of processes, machines, methods
INPUTS PROCESSES
OUTPUTS
Feedback
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Functional Structure
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Problems With the Functional Structure

• Separates employees from customers
• Inhibits process improvement
• Functional organizations often have a separate
  function for quality

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Redesigning Organizations for Quality

• Focus on processes
• Recognize internal customers
• Create a team-based organization
• Reduce hierarchy
• Use steering committees
• Develop an agile organization
• Redesign work systems

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Types of Processes

• Value-creation processes those most important
  to running the business
• Design processes activities that develop
  functional product specifications
• Production/delivery processes those that create
  or deliver products
• Support processes those most important to an
  organizations value creation processes,
  employees, and daily operations

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Example of Process Focus Gold Star Chili
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Recognize Internal Customers Process Design

• Identify the product or service What work do I
  do?
• Identify the customer Who is the work for?
• Identify the supplier What do I need and from
  whom do I get it?
• Identify the process What steps or tasks are
  performed? What are the inputs and outputs for
  each step?
• Mistake-proof the process How can I eliminate or
  simplify tasks? What poka-yoke (i.e.,
  mistake-proofing) devices (see Chapter 13) can I
  use?
• Develop measurements and controls, and
  improvement goals How do I evaluate the process?
  How can I improve further?

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Team-Based Organizational Chart
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Six Sigma Project Teams

• Champions senior managers who promote Six Sigma
• Master Black Belts highly trained experts
  responsible for strategy, training, mentoring,
  deployment, and results.
• Black Belts Experts who perform technical
  analyses
• Green Belts functional employees trained in
  introductory Six Sigma tools
• Team Members Employees who support specific
  projects

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Steering Committees
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High Performance Work Systems
Compensation and recognition
Work and Job Design
Flexibility Innovation Knowledge and skill
sharing Organizational alignment Customer
focus Rapid response
Health and safety
Empowerment
Suggestion systems
Employee Involvement
Training and Education
Teamwork and Cooperation
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Enhancing Work Design

• Job enlargement expanding workers jobs
• Job rotation having workers learn several tasks
  and rotate among them
• Job enrichment granting more authority,
  responsibility, and autonomy

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Organizational Theory

• Structural Contingency Theory
• Mechanistic vs. organic
• Choice depends on organizational environment and
  technology
• Institutional Theory
• Structure legitimizes purpose, even if they may
  not provide value
• ISO 9000 and Six Sigma