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Common Mistakes in TQ Implementation (1 of 3). TQ regarded as a “program” Short-term results are not obtained Process not driven by focus on customer, connection to strategic business issues, and support from senior management Structural elements block change Goals set too low
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Common Mistakes in TQ Implementation (1 of 3) • TQ regarded as a “program” • Short-term results are not obtained • Process not driven by focus on customer, connection to strategic business issues, and support from senior management • Structural elements block change • Goals set too low • “Command and control” organizational culture
Common Mistakes in TQ Implementation (2 of 3) • Training not properly addressed • Focus on products, not processes • Little real empowerment is given • Organization too successful and complacent • Organization fails to address fundamental questions • Senior management not personally and visibly committed
Common Mistakes in TQ Implementation (3 of 3) • Overemphasis on teams for cross-functional problems • Employees operate under belief that more data are always desirable • Management fails to recognize that quality improvement is personal responsibility • Organization does not see itself as collection of interrelated processes
ISO 9000 Standards • Adopted by International Organization for Standardization in 1987 • Quality system standards that guide a company’s performance of specified requirements • Covers design/development, production, installation, and service
Objectives of Standards (1 of 2) • Achieve, maintain, and continuously improve product quality • Improve quality of operations to continually meet customers’ and stakeholders’ needs • Provide confidence to internal management and other employees that quality requirements are being fulfilled
Objectives of Standards (2 of 2) • Provide confidence to customers and other stakeholders that quality requirements are being achieved • Provide confidence that quality system requirements are fulfilled
Structure of ISO 9000 Standards • Level 1 (ISO 9001) - product design, development, production, installation, and service • Level 2 (ISO 9002) - production and installation • Level 3 (ISO 9003) - final inspection and test
ISO 9001 Requirements Management responsibility Quality system Contract review Design control Document & data control Purchasing Control of customer- supplied products Product identification and traceability Process control Inspection and testing Control of inspection, measuring, & test equipment Inspection & test status Control of nonconforming product Corrective & preventive action Handling, storage, packaging, preserving, & delivering Control of quality records Internal quality audits Training Servicing Statistical techniques
ISO 9000 in the U.S. • By 1993, only 550 U.S. company sites were certified as compared with 20,000 companies in United Kingdom • By 1997, over 12,000 U.S. company sites were certified as compared with over 200,000 throughout Europe • Some beginning to question its usefulness
QS 9000 Standards • Created in 1994 by automobile industry • Interpretation and extension ofISO 9000 • Applies to all internal and external suppliers of production and service parts and materials
ISO 14000 Standards • Established in 1996 to provide industries with structure for environmental management system • Unlike ISO 9000, does not require third-party registration • U.S. Environmental Protection Agency (EPA) not yet formally endorsed standards
Baldrige QS 9000 ISO 9000 Relationships
Malcolm Baldrige National Quality Award • Help improve quality in U.S. companies • Recognize achievements of excellent firms and provide examples to others • Establish criteria for evaluating quality efforts • Provide guidance for other American companies
MBNQA Categories • Leadership • Strategic Planning • Customer and Market Focus • Information and Analysis • Human Resource Development and Management • Process Management • Business Results
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
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
Scoring System • 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