1. CHAPTER 9
BUILDING AND SUSTAINING
TOTAL QUALITY
ORGANIZATIONS

2. MAKING THE COMMITMENT TO TQ
◦ TOP 3 OBSTACLES TO TQ:
Lack of a strong motivation.
2. Lack of time to devote to quality
initiatives.
3. Lack of a formalized strategic plan
for change.
1.

3. 
BALDRIGE ‘S TOP 10 TQ CONCEPT TO SENIOR
LEADER:
1.Learn to think like top executives who are
paid, after all, to satisfy the concerns of
three key groups of stakeholders:
customers, investors and employee.
2.Position quality as a way to address the
priority goals of these three groups of
stakeholders.
3. Align your objectives with those of senior
management. If the organization’s goal’s is
to reduce cycle time, show how your
program will reduce cycle time. If the goal is
to increase market share, show how your
plan will do that.
4. Make your arguments as quantitative as
possible.

4. 5. When approaching top management,
make your first pitch to someone who is
likely to be sympathetic to your proposal.
6. Focus on getting an early win, even if it’s a
small one.
7. Be sure your effort won’t be undercut by
corporate accounting policies that may
exaggerate the costs of quality or fail to
recognize its full financial benefits.
8. Develop allies- both those who are internal
and can land credibility to your position and
those who are external and can tell how
quality improved the bottom line at their
organizations.

5. 9. Develop metrics for return on quality, so
you can show your efforts are paying off.
10. Never stop selling quality.

6. ORGANIZATIONAL CULTURE AND
TOTAL QUALITY
◦ Any organizational activity can be viewed in
one of three ways, depending on the
intensity of commitment to the activity:
Function
2. Process
3. Ideology
1.

7.  CULTURE
-(often called corporate culture) is
an organization’s value system and
its collection of guiding principles.
-cultural value are often seen in the
mission and vision statement of the
organizations.

8. 
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CORE VALUES AND CONCEPTS
BALDRIGE’S CRITERIA
Visionary Leadership
Customer Driven
Organizational and Personal Learning
Valuing Employees and Partners
Agility
Focus on the Future
Managing for Innovation
Management by Fact
Social Responsibility
Focus on Results and Creating Value
Systems Perspective

9. TQ PHILOSOPHY AT PROCTOL AND GAMBLE THAT FOCUSES
ON DELIVERING SUPERIOR CUSTOMER SATISFACTION AND
BOILS DOWN RO FOUR (4) PRINCIPLES
Really know our customers and
consumers.
 Do the right things right.
 Concentrate on improving system
 Empower people.


10. FUNDAMENTAL BELIEFS ABOUT QUALITY OF
AMERICAN EXPRESS QUALITY LEADERSHIP
APPROACH
 Quality
 Quality
is the foundation of continued success.
is a journey of continuous improvement
and innovation.
 Quality provides a high return, but requires the
investment of time and resources.
 Quality requires committed leadership.
 Quality begins by meeting or exceeding the
expectations of customers and employees.
 Quality requires teamwork and learning at all
levels.
 Quality comes from the energy of a diverse
community of motivated and skilled people
who are given and take responsibility.

11. FIVE UNIVERSAL BEST PRACTICES
Cycle – time analysis
2. Process value analysis
3. Process simplification
4. Strategic planning
5. Formal supplier certification
programs
1.

12. THREE MEASURES OF PERFORMANCE
 Low
performers – those with less than 2
percent ROA (return on assets) and $53,000
VAE (value added per employee) and low
quality – can reap the highest benefits by
concentrating on fundamentals.
 Medium performers – those with ROA from
2 to 6.9 percent VAE between $53,000 and
$84,000, and medium quality levels – achieve
the most benefits from promoting
department – level improvement teams,
training employees in problem solving and
other specialized topics,

13. listening to supplier suggestion about new
products, emphasizing the role of enforcement
for quality assurance, making regular and
consistent measurement of progress and
sharing quality performance information with
the middle management, and emphasizing
quality as a key to the company’s reputation.
 High performer – with ROA exceeding 6.9
percent VAE over $84,000 and high quality
levels respectively – gain the most from
providing customer – relationship training for
new employees, emphasizing quality ad
teamwork for senior management assessment,

14. encouraging widespread participation in quality
meeting among non management employees,
using world – class bench marking,
communicating strategic plans to customers
and suppliers, conducting after – sales service
to build customer loyalty, and emphasizing
competitor- comparison measures and
customers satisfaction measures when
developing plans.

15. THE ROLE OF EMPLOYEES IN
CULTURAL CHANGE
◦ Juran’s suggest five key behavior to develop a positive
quality culture:
1. It must create and maintain an awareness of
quality by disseminating results throughout the
organization.
2. It must provide evidence of management
leadership, such as serving on a quality council,
providing resource, or championing quality
projects (Six Sigma for example)
3. The company must encourage self – development
and empowerment through the design of jobs,
use of empowered teams, and personal
commitment to quality.

16. 4. The company must provide opportunities
for employee participation to inspire action,
such as improvement teams product design
reviews, or Six Sigma training.
5. The company must provide recognition and
rewards, including public acknowledgement
for good performance as well as tangible
benefits.

17. SENIOR MANAGEMENT
◦ Henry Mintzberg’s 10 Managerial Roles that
leaders must play:
1. Figurehead
2. Leader
3. Liaison
4. Monitor
5. Disseminator
6. Spokesperson
7. Entrepreneur
8. Disturbance Handler
9. Resource Allocator
10. Negotiator

18. SENIO MANAGER’S RESPONSIBILITIES:
1.Ensure that the organization focuses on the
needs of the customer.
2. Cascade the mission, vision and values of the
organization throughout the organization.
3. Identify the critical processes that need
attention and improvement.
4. Identify the resource and trade – offs that must
be made to fund the TQ activity.
5. Review progress and remove any identified
barriers.
6. Improve the macro processes in which they are
involved, both to improve the performance of
the process and to demonstrate their ability to
use quality tools for problem solving.

19. MIDDLE MANGAEMENT
◦ (GAMP) General Approved Management Principles
time – honored assumption and practices:
Clear and fixed work goals and technology.
 Relying on centralized specialist groups.
 Focusing on numbers, such as meeting
budgeted targets.
 Delegating as much as possible and managing
solely by results.
 Compartmentalizing people issues and
technology issues.


20. MIDLE MANAGERS SYSTEMATIC PROCESS
FOR ORGANIZATIONAL PERFORMNACE
1.
2.
3.
4.
5.
Empowerment
Creating a common vision of excellence.
New rules for playing the organizational
game.
Implementing a continuous improvement
process.
Developing and retaining peak
performance.

21. THE WORKFORCE
If total quality does not occur at the
workforce level, it will not occur at all. The
empowerment quality policies. This task
requires ownership.
 Ownership goes beyond empowerment; it
give the employee the right to have a voice
in deciding what needs to be done and how
to do it. It is based on a belief that what is
good for the organization is also good for
the individual, and vice versa


22. CHANGE MANAGEMENT

Change makes people uncomfortable, managing
change is seldom pleasant. Managing change
usually requires a well – defined process, just
like any other business process.
◦ Three basic stages of change management:
1st stage: Involves questioning the organization’s
current state and dislodging accepted patterns
of behavior.
2nd stage: A state of flux, where new approaches
are developed to replaced suspended old
activities.
3rd stage: Period consists of institutionalizing the
new behaviors and attitudes.

23. CHANGE MANAGEMENT
◦ Five steps of Change Management:
1.
2.
3.
4.
5.
Scope the change
Create a vision
Drive commitment
Accelerate the transition
Sustain momentum

24. IMPLEMENTATION BARRIERS TO
CREATING A TQ CULTURE
One reason for TQ failure is a lack of what
Deming called “constancy of purpose” in his
original version of the 14 Points. The people
who implement quality initiatives often have
conflicting goals and priorities.
 Another reason for failure is the lack of a holistic
view of quality( which is why we use the term
total in TQ). Many approaches to “implementing
quality” are one – dimensional and are
consequently prone to failure.
 Another danger lies in the lack of understanding
cultural issues and the tendency to imitate
others – the easy way out.


25. BALDRIGE CRITERIA:

Alignment
- defined as consistency of plans,
processes, actions, information, decisions,
results, analysis, and learning to support
key organization – wide goals. Effective
alignment requires common understanding
of purpose and goals and use of
complementary measures and information
for planning, tracking, analysis, and
improvement at each of three levels of
quality. A well – aligned organization has its
processes focused on achieving a shared
vision and strategy.

26. CERTAIN MISTAKES ARE NADE REPEATEDLY.
SOME OF THE MORE COMMON MISTAKES :
TQ is regarded as a “program”, despite
the rhetoric that may state the contrary.
2. Short – term results are not obtained,
causing management to lose interest –
often either no attempt is made to get
short – term results, or management
believes that measurable benefits lie only
in the distant future.
3. The process is not driven by a focus on
the customer, a connection to strategic
business issues, and support from senior
management.
1.

27. 4. Structural element in the organization block
change, such as compensation systems, promotion
systems, accounting systems, rigid policies and
procedures, specialization and functionalization
and status symbols such as offices and perks.
5. Goals are set too low. Management does not
shoot for stretch goals or use outside
benchmarks as target.
6. The organizational culture remains one of
“command and control” and is driven by fear or
game – playing , budgets, schedules, or
bureaucracy.
7. Training is not properly addressed. Too little
training is offered to the workforce or it may be
of the wrong kind, such as classroom training
only or a focus on tools and not problems.
Training must be matched to strategy and
business needs so as not to be viewed as
frivolous.

28. 8.
9.
10.
11.
12.
The focus is mainly on products, not
processes.
Little real empowerment is given and is not
supported in actions.
The organization is too successful and
complacent. It is not receptive to change
and learning, and clings to the “not invented
here” syndrome.
The organization fails to address three
fundamental questions: Is this another
program? What’s in it for me? How can I do
this on top of everything else?
Senior management is not personally and
visibly committed and actively participating.

29. 13. The organization overemphasizes teams
for cross – functional problems, which leads
to the neglect of individual effort for local
improvement.
14. Employee operate under the belief that
more data are always desirable, regardless
of relevance – “paralysis by analysis”
15. Management fails to recognize that
quality improvement is a personal
responsibility at all levels of the
organization.
16. The organization does not see itself as a
collection of interrelated processes making
up an overall system. Both the individual
processes and the overall system need to
be identified and understood.

30. SUSTAINING THE QUALITY
ORGANIZATION

Getting started often seems easy by
comparison with sustaining a quality focus.
Numerous organizational barriers and
challenges get in the way. New efforts usually
begin with much enthusiasm, in part because
of the sheer novelty of the effort. After awhile,
reality sets in and doubts surface. Real
problems develop as early supporters begin to
question the process. At this point, the
organization can resign itself to inevitable
failure or persist and seek to overcome the
obstacles.

31. THE LEARNING ORGANIZATION
◦ Psychologists suggest that individuals go four
stages of learning:
1.
2.
3.
4.
Unconscious incompetence
Conscious incompetence
Conscious competence
Unconscious competence

32. ◦ New approach to Six Sigma is based on the
following four steps:
1.
2.
3.
4.
Align executives to the right objectives and
targets.
Mobilized improvement teams around
appropriate metrics.
Accelerate results.
Govern sustained improvement.

33. SELF – ASSESSMENT PROCESSES

Self – assessment is the holistic evaluation
processes and performance. The self part of
the term means that it should be conducted
internally rather that simply relying on a
consultant, which promotes greater
involvement of the organization’s people,
yielding a higher level of understanding and
buy – in.

34. SELF – ASSESSMENT PROCESSES
◦ A self – assessment should address the following:
 Management
involvement and leadership.
 Product and process design.
 Product control.
 Customer and supplier communication.
 Quality improvement.
 Employee participation.
 Education and training.
 Quality information.

35. SELF – ASSESSMENT PROCESSES
◦ The four steps of TI – BEST
1.
2.
3.
4.
Define business excellence for your
business.
Assess your progress.
Identify improvement opportunities.
Establish and deploy an action plan.

36. SELF – ASSESSMENT PROCESSES
◦ This process provides a systematic approach to
learning and improvement and benefits the
organization by:
 Providing
a framework that ties efforts
together.
 Providing vehicle for identifying best practices.
 Providing a structure for sharing knowledge
and learning methods and techniques others
have used to make improvement.
 Allowing employee to speak the same
language of quality, thereby increasing
communication and organizational alignment
toward common goals.

37. SELF – ASSESSMENT PROCESSES
 Fostering
teamwork across the company.
 Improving the ability to measure
improvements by document ting
processes and results.
 Providing process to accelerate
improvement across the organization.
 Involving every employee in continuous
improvement toward world – class
benchmarks.

38. CORE PRINCIPLES AND STRATEGIES OF
SUN MICROSYSTEMS, KEY LESSONS:
 Quality must be elevated to the level
of a “core management process”.
 Quality must be the first agenda item
of every executive management and
board meeting.
 Quality can be managed only if it is
measured.
 Quality starts with employee.
 Achievement in quality must be a
factor in compensation.

39. LEVERAGING SELF – ASSESSMENT: THE
IMPORTANCE OF FOLLOW - UP
◦ Four things to leverage self – assessment
findings.
1.
2.
3.
4.
Prepare to be humbled.
Talk though the findings.
Recognize institutional influences.
Grind out the follow – up.

40. IMPLEMENTING ISO 9000, BALDRIGE,
AND SIX SIGMA

Quality policy
identifies key objectives of products and
services such as fitness for use, performance,
safety, and dependability; and basic
procedures for such key activities as process
control, inspection, testing, control of
nonconforming products, corrective action,
control of measuring and test equipment, and
maintenance of essential records and
documentation.

41. IMPLEMENTING ISO 9000, BALDRIGE, AND SIX SIGMA
Quality manual
which serves as a permanent
reference for implementing and
maintaining the system.
 Internal audits
which focus on identifying whether
documented procedures are being
followed and are effective, and
reporting the issues to management
for corrective action.


42. IMPLEMENTING ISO 9000, BALDRIGE, AND SIX SIGMA
◦ Four major barriers to successfully
implementing:
1.
2.
3.
4.
Misinterpretation of the requirements.
Over control of the quality system.
Excessive documentation
Failing to identify current gaps in
requirements.

43. IMPLEMENTING ISO 9000, BALDRIGE, AND SIX SIGMA
◦ Top 10 list of lessons learned by their quality
journey:
1.
2.
3.
4.
5.
Don’t wait until you’re “ready”
It takes longer than you think.
Everyone must be involved and
understand what’s important.
It’s important not just to understand
the Baldrige criteria, but also to
understand the connections among the
criteria.
In well – run organizations, everything
is intentional.

44. IMPLEMENTING ISO 9000, BALDRIGE, AND SIX SIGMA
6. Never confuse activity with
accomplishment.
7. You don’t know what you don’t know
until someone tells you.
8. so, you say you want to be
exceptional....prove it!
9. If you’re in this to win, don’t bother.
10. Leadership is not seeing which way
the parade is moving and running to
the front.

45. IMPLEMENTING ISO 9000, BALDRIGE, AND SIX SIGMA
◦ Key principles of effective implementation of Six
Sigma:
Committed leadership from top management.
 Integration with existing initiatives, business
strategy, and performance measurement.
 Process thinking.
 Disciplined customer and market intelligence
gathering.
 A bottom – line orientation.
 Leadership in the trenches.
 Training
 Continuous reinforcement and rewards.


46. EASTMAN PEOPLE WAY TO SUCCESS
◦ Values and principles:
 Honesty
and integrity
 Fairness
 Trust
 Teamwork
 Diversity
 Employee
well – being
 Citizenship
 Winning attitude

47. EASTMAN PEOPLE WAY TO SUCCESS
◦ Eastman identified and removed several
roadblocks that impeded motivation:
 Fear
of losing one’s job.
 The performance appraisal system.
 The employee suggestion system.

48. EASTMAN PEOPLE WAY TO SUCCESS
◦ Eastman seven steps for accelerated
continuous improvement:
1.
2.
3.
4.
5.
6.
7.
Focus and pinpoint.
Communicate.
Translate and link.
Create a management action plan
Improve process.
Measure progress and provide
feedback.
Reinforce behaviors and celebrate
results.