MGMT 19105

1. MGMT 19105 Quality Management

2. The Course – Assignment 2 • Any questions?

3. The Examination • Still preparing? • Do your own weekly summaries of lecture and textbook content. • Think about what the important issues are in quality management. • Ignore any past exams that are available: • Different textbook, and different content. • Short answer questions and long answer questions, but no Case Study. • Start now, if not sooner!

4. Week 7. Why Have External Accreditation? According to ISO 9001, the benefits of ISO 9001 are not external accreditation, but come from having a ‘process approach’, emphasising: a) understanding and meeting requirements, b) the need to consider processes in terms of added value, c) obtaining results of process performance and effectiveness, and d) continual improvement of processes based on objective measurement.

5. Week 7. Why Have External Accreditation? According to Scott (2005), management like ISO9001 because: • They know everyone will produce a consistent product if he or she is following the work instructions. • They have one central place to make process changes and corrections. • They understand their processes much better because they are responsible for documenting, maintaining and improving them. • That understanding of the process helps managers know what to measure, which is the basis for all improvement. [And] our customers are impressed with the ease with which we can provide information and data for their numerous auditing requirements

6. Week 7. Why Have External Accreditation? Remember – we can have all of this without external accreditation! Why have external accreditation? • It keeps us honest with ourselves. • Out clients expect/demand it. • It seemed a logical extension of TQM.

7. Week 7. Quality Management System Five (5) Documents: • A quality policy. • A quality manual. • Quality objectives. • Quality procedures. • Forms, records, etc. Goetsch & Davis (2006, pages 469-470)

8. Week 7. TQM & ISO 9000 • ISO 9000 and TQM are not interchangeable. • ISO 9000 can be a sub-set of TQM. • ISO 9000 can be implemented in a non TQM organisation. • ISO 9000 can improve operations (especially processes) in a non-TQM organisation. • ISO 9000 can be redundant in a mature TQM organisation. • ISO 9000 and TQM are not in competition. Goetsch & Davis (2006)

9. Week 8 Implementing Total Quality Management

10. Module Objectives 1. Identify the rationale for change in a TQM implementation; 2. Describe the role of upper and middle management in the implementation of TQM ; 3. Distinguish the key features of different approaches to the implementation of TQM ; 4. Write a project plan for the implementation of TQM ; and 5. Recognise the change management aspects of the implementation of a major change.

11. Readings Study Guide Module 8 Textbook Goetsch & Davis (2006) Chapter 22. Implementing Total Quality Management Electronic journal articles • Beer, M. 2003, ‘Why Total Quality Management Programs Do Not Persist: The Role of Management Quality and Implications for Leading a TQM Transformation’.(About –Failure to institutionalise TQM results from poor quality of management.) • Sirvanci, MB 2004, ‘TQM implementation: Critical issues for TQM implementation in higher education’.(About – Challenges to implementing TQM in higher eduction.) (Available on Proquest)

12. Approach Small Group From your experience in this course so far, answer the following questions: • In implementing TQM, what is ‘the most important’ thing you should do? • In no particular order, what else should you do?

13. The ‘Rationale for Change’ Daryl Connor in Managing at the Speed of Change (1993) describes the story of Andy Mochan, who worked on a North Sea oil rig. Andy jumped 150 feet from the platform of the oil rig at night into the freezing water of the North Sea. He knew that he could only survive 20 minutes in the water before the freezing conditions would take his life. However, according to his own story, he jumped without hesitation. The oil rig was burning. The fire took the lives of one hundred and sixty six people. Andy knew that his only hope of survival was to jump.

14. The ‘Rationale for Change’ According to Connor: • He didn’t jump because he felt confident that he would survive. • He didn’t jump because it seemed like a good idea. • He didn’t jump because he thought it would be intellectually intriguing. • He didn’t jump because it was a personal growth experience. • He jumped because he had no choice – the price of staying on the platform, of maintaining the status quo, was too high. Connor (1993, p. 92)

15. Convincing People to Change • Goetsch and Davis (2006, p. 750) state that: ‘when an organisation is doing pretty well, then taking on the work that is involved in becoming a total quality organization is more difficult to sell – unless you are at the top of the organisation chart’. • Actually, even if you are ‘at the top of the organisation chart’, organisational transformation will always be difficult to sell. • Never underestimate the challenge of convincing people to participate in change.

16. The ‘Rationale for Change’ According to Goetsch & Davis (2006): • We are bound to a short-term focus. • The traditional approach tends to be arrogant, rather than customer focussed. • We seriously underestimate the potential contribution of our employees, particularly those in hands-on functions. • The traditional approach equates better quality with higher cost. • The traditional approach is short on leadership and long on ‘bossmanship’. Goetsch & Davis (2006, pp. 751-3)

17. Criticisms Small Group Your group will be assigned two or three of Goetsch & Davis’s five criticisms of the traditional approach of business. • Read your criticisms, and prepare to explain to the class (in your own words) what Goetsch & Davis think is wrong.

18. The One Prerequisite “Management Commitment” … is always the prerequisite for change. The transformational change of implementing TQM is so far-reaching that management commitment is not just a prerequisite, you must also be satisfied management is: • Not going to change their mind. • Going to ‘stick around’ in the long term. • Willing to promote the change personally and constantly.

19. Additional Components In addition to identifying the importance of management commitment, Goetsch & Davis (2006) state that to implement TQM you must also: • Be willing to commit sufficient resources. • Create of an organization-wide steering committee. • Plan and publicise what you are doing. • Establish an infrastructure that supports deployment and continual improvement. Goetsch & Davis (2006, pp. 755-62)

20. Barriers to Success Beer (2003) discusses common failings in the implementation of TQM, including: 1. Unclear strategy and conflicting priorities. 2. Leadership style of general manager-too top-down or too laissez faire. 3. An ineffective top team. 4. Poor coordination. 5. Inadequate down-the-line leadership or management skills and development. 6. Closed vertical communication (top-down and bottom up). Beer (2003, page unknown)

21. Approaches to Avoid Goetsch & Davis (2006) suggest that in implementing TQM, you must avoid: • Training all employees at once. • Rushing into total quality by putting too many people in too many teams too soon. • Delegating implementation. • Starting an implementation before you are prepared. Goetsch & Davis (2006, pp. 774-6)

22. Implementation Small Group You are going to be in Group X or Group Y. • Group X will describe Goetsch & Davis’s ‘preparation’ phase. • Group Y will describe Goetsch & Davis’s ‘planning’ and ‘execution’ phases. • In your group, read the steps in your phase, and prepare to describe each step in terms of: • What is done? • Who does it?(in your own words) Goetsch & Davis (2006, pp. 778-82)

23. Coate’s Model Implementing TQM Coate, LE 1990, Implementing Total Quality Management in a university setting, Oregon State University

24. Additional Considerations Deming’s 14 Points • Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. • Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. • Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. • End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. Deming, EW 1982 Out of the Crisis, Chapter 2

25. Additional Considerations Deming’s 14 Points • Institute training on the job. • Institute leadership (see Point 12 and Ch. 8). The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. • Drive out fear, so that everyone may work effectively for the company (see Ch. 3). • Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. Deming, EW 1982 Out of the Crisis, Chapter 2

26. Additional Considerations Deming’s 14 Points • Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. • Eliminate work standards (quotas) on the factory floor, and eliminate management by objectives. Eliminate management by numbers, numerical goals. Substitute leadership. • Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. Deming, EW 1982 Out of the Crisis, Chapter 2

27. Additional Considerations Deming’s 14 Points • Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective (see Ch. 3). • Institute a vigorous program of education and self-improvement. • Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job. If you would like to read more Deming,read his seven deadly diseases. Deming, EW 1982 Out of the Crisis, Chapter 2

28. What Could Go Wrong? Small Group This is a major undertaking for an organisation, so consider the question: • What could go wrong? • What should we do about it?

29. Things never go as we expect (1) • The implementation plan is simply a plan of action. • Reality will never entirely match the plan. • Implementation of any substantial undertaking involves flexibility and opportunism.

30. Things never go as we expect (2) • You can expect unexpected issues, unplanned slippages, and finding new and better ways of doing things. • Keep an open mind and monitor the implementation. • Be prepared to give up some things along to way to accomplish the broad objectives.

31. Conclusion • Assignment 2 & The Examination • Recap of Module 7 • The Rationale for Change • Criticisms • Prerequisites • Barriers to Success & Approaches to Avoid • Gotsch & Davis’s 3 Phases • Coate’s Model Implementing TQM • Deming’s 14 Points • Things Never Go As We Expect

32. Next Week • Week 9“Tools for Total Quality Management”. • Study Guide • Goetsch & Davis (2006)Chapter 15. Overview of Total Quality Tools • Three (3) electronic journal articles (Proquest)

33. Questions?