4.10 - Total Quality Organization – Systems
Overview
Total Quality Management (TQM) is the over-arching business culture or ethical environment and management style that encourages the use of tools, techniques and initiatives that contribute to the business objectives of an organization.
The restructuring of a business into Natural Groupings instead of traditional functions will allow control systems to be simplified.
Traditional Systems
- Rely on large complex databases which cannot be accurately maintained and are not owned
- Rely on paperwork or computing to chase work through larges numbers of offices
- Fail to provide customer satisfaction
- Have high overheads with over 60% non-value added activities
- Are top-down imposed
- Develop over-complicated procedures and excessive paperwork
- Have inappropriate measures of performance for manufacturing systems and Just-in-time operation.
- Encourage job specialisation with multiple payment systems based on job titles rather than skill levels
- Have poor quality of performance
Systems Should
- Assist process integration and be based on analysis of need
- Facilitate control by recognising the basic business control systems
- Provide customer satisfaction
- Be appropriate for the cell or process group and relate to overall needs
- Simplify operations and procedures and minimise paperwork
- Have effective measures of performance reflecting business performance measures
- Indicate achievement visibility with quality feedback
- Have operator responsibility and ensure reliability in support of a right first time philosophy
Measure |
Using |
- Achievement of plan
- Stock Turns
- Product Quality
- Lead times
- Sales arrears
- Competitor performance
- Value-added per employee
|
- Process Control
- Audit Process
- Poka yoke, Taguchi, FMEA
- Zero defect policy
- Kanban & JIT
- Module Scheduling and control
- Departmental purpose analysis
- Continuous improvement mechanism
- Competitor analysis
|
Important Features for Systems Improvement
- Clear measures of performance both business and customer oriented
- Relevant local measures of performance for each cell
- Identification of waste at source to reduce non-value-added activities
- On-line problem identification and solutions
- Use relevant data and problem definition procedures (e.g. Pareto) to focus on priority problems
- Integrate top-down and bottom-up communication systems
- Staff appraisal and career trajectory development supported by training
- Supportive of innovation with clear development targets
- Internal and external customer / supplier relationships
- Single payment system based on skills and not jobs to provide motivation and recognition and reward performance
- Pay attention to methods for project management of change and ensure each project has a resource to match its time scale
We must move
From:
To: |
Practices which create expensive non-value added work
The determination of wasteful practices and procedures |
From:
To: |
Incentives to do the wrong things
Incentives to do the right things |
From:
To: |
Automation of fragmentation and complexity
Simplify before automation |
From:
To: |
One-way communication
Two-way communication |
From:
To: |
A just to late basis
A just-in-time basis via up-front analysis / planning |
From:
To: |
Seat of the pants judgement processes
Systematic problem definition, analysis and solution procedures |