KEY ELEMENTS OF TOTAL QUALITY attempt to adopt the total quality approach. This is because they look at total quality as just another management innova- tion rather than as a whole new way of doing business that requires an entirely new corporate culture. Too few organiza- improvement of products, processes, and people in order to prevent problems before they occur. The traditional view of quality saw employees as passive workers who followed or- ders given by supervisors and managers. It was their labor, not their brains, that was wanted. With total quality, employ- ees are empowered to think and make recommendations for continual improvement. They are also shown the control boundaries within which they must work and are given free- dom to make decisions within those boundaries. The traditional view of quality expected one improve ment per employee per year. Total quality organizations expect to make at least ten or more improvements per em ployee per year. Organizations that think traditionally focus on short-term profits. The total quality approach focuses on long-term profits and continual improvement. The following statements summarize some of the major differences between the traditional view of quality and the total quality perspective: . Productivity versus quality. The traditional view is that productivity and quality are always in conflict. You cannot have both. The total quality view is that lasting productivity gains are made only as a result of quality improvements. . How quality is defined. The traditional view is that quality is defined solely as meeting customer specifica tions. The total quality view is that quality means satisfy- ing customer needs and exceeding customer expectations, . How quality is measured. The traditional view is that quality is measured by establishing an acceptable level of nonennformance and measuring gaint that hench- mark. The total quality view is that quality is measured by establishing high-performance benchmarks for customer satisfaction and then continually improving performance. behind management-labor discord ad infinitum without achieving consensus. From the perspective of total quality, who or what is to blame for adversarial management-labor rela- tions is irrelevant. What is important is this: To apply the total quality approach, organizations must have unity of purpose. This means that internal politics have no place in a total quality organization. Rather, collaboration should be the norm. A question frequently asked concerning this element of total quality is "Does unity of purpose mean that unions will no longer be needed" The answer is that unity of purpose has nothing to do with whether unions are needed. Collective bar- gaining is about wages, benefits, and working conditions, not about corporate purpose and vision. Employees should feel more involved and empowered in a total quality setting than in a traditionally managed situation, but the goal of total quality is to enhance competitiveness, not to eliminate unions. For exam- ple, in Japan, where companies are known for achieving unity of purpose, unions are still very much in evidence. Unity of pur pose does not necessarily mean that labor and management will always agree on wages, benetits, and working conditions, but it does mean that all employees work toward the common goal. The total quality approach was defined in Figure 1.2. This definition has two components: the what and the how of tions begin the implementation of total quality with the long total quality. What distinguishes total quality from other ap- proaches to doing business is the how component of the defi- nition. This component has several critical elements, cach of Teamwork which is explained in the remainder of this section and all of which relate to one of the components of the three-legged stool in ligure 1.1 term commitment to change that is necessary for success. TWO VIEWS OF QUALITY The total quality philosophy introduced a whole new way of looking at quality. The traditional view of quality mea- ured process performance in defective parts per hundred roduced. With total quality, the same measurement is lunuglt of in ten uf deletive pais pe milla pnlunel. The traditional view focused on after-the-fact inspections t products. With total quality. the emphasis is on continual In traditionally managed organizations, the best competitive efforts are often among departments within the organization. Internal competition tends to use energy that should be focused on improving quality and, in turn, external competitiveness. Strategically Based Total quality organizations have a comprehensive strategie Continual Process Improvement plan that contains at least the following elements: vision, mis- sion, broad objectives, and activities that must be completed Products are developed and services delivered by people to accomplish the hroad objectives. The strategie plan ofa using processes within environments (systems). To continu- total quality organization is designed to give it a sustainable competitive advantage in the marketplace. The competitive fundamental goal in a total quality setting-it is necessary to advantages of a total quality organization are geared toward achieving world-leading quality and improving on it, con- tinually and forever. ally improve the quality of products or services-which is a continually improve systems. Education and Training Education and training are fundamental to total quality be- cause they represent the best way to improve people on a con- In a total quality setting, the customer is the driver. This tinual basis. It is through education and training that people point applies to both internal and esternal customers. who know how to work hard learn how to also work smart. Customer Focus Employee Involvement and Empowerment Employee involvement and empowerment is one of the most misunderstood elements of the total quality approach and one of the most misrepresented by its detractors. The basis for involving employees is twofold. First, it increases the likelihood of a good decision, a better plan, or a more ef- fective improvement by bringing more minds to bear on the situation-not just any minds but the minds of the people who are closest to the work in question. Second, it promotes ownership of decisions by involving the people who will have to implement them. Empowerment means not just involving people but also involving them in ways that give them a real vokce. One of the ways this can be done is by structuring work that allows employees to make decisions concerning the improvement of work processes within well-specified parameters. Should a machinist be allowed to unilaterally drop a vendor if the vendor delivers substandard material No. However, the ma- chinist should have an avenue for offering his or her input into the matter. Should the same machinist be allowed to change the way she sets up her machine? If by so doing she can improve her part of the process without adversely affecting someone else's, yes. Having done so, her next step should be to show other machinists her innovation so that they might try it. External customers define the quality of the product or ser- vice delivered. Internal customers help define the quality of Freedom Through Control the people, processes, and environments associated with the Involving and empowering employees is fundamental to total quality as a way to simultaneously bring more minds to bear on the decision-making process and increase the ownership employees feel about decisions that are made. Total qual- ity detractors sometimes mistakenly see employee involve- ment as a loss of management control, when in fact control is fundamental to total quality. The freedoms enjoyed in a total quality setting are actually the result of well-planned and well-carried-out controls. Controls such as scientific methodologies lead to freedom by empowering employees products or services Obsession with Quality In a total quality organization, internal and external custom- ers define quality, With quality defined, the organization must then become obsessed with meeting or exceeding this definition. This means all personnel at all levels approach all aspects of the job from the perspective of "How can we do this better?" When an organization ia obscased with quality, good enough is never good enough. . How quality is achieved. The traditional view is that quality is inspected into the product. The total quality view is that quality is determined by product and process design and achieved by effective control techniques. . Attitude toward defects. The traditional view is that defects are an expected part of producing a product. Measuring detects per hundred is an acceptable standarnd. The total quality view is that defects are to be prevented using effective control systems and should be measured in defects per million (Six Sigma). • Quality as a function. The traditional view is that quality is a separate function. The total quality view is that quality should be fully integrated throughout the organization-it should be everybody's responsibility. . Responsibility for quality, The traditional view is that employees are blamed for poor quality. The total quality view is that at least 85% of quality problems are manage ment's fault. to solve problems within their scope of control. Scientific Approach Unity of Purpose Histrically, management and lale hae had an aherarial Total quality detractors put off by such concepts as employee empowerment sometimes view total quality as nothing more relationship in US. industry. One could debate the reasons than another name for "soft" management or "people man- agement. Although it is true that people skills, involvement, and empowerment are important in a total quality setting, they represent only a part of the equation. Another important part is the use of the scientific approach in structuring work and in making decisions and solving problems that relate to the work. This means that hard data are used in establishing bench- marks, monatorng performance, and makıng improvements. QUALITY TIP Cuntinally Ipving Peuple, Processes, and Products Peak Performance • Supplier relationships. The traditional view is that sup- plien selatiknalaip ae slant tem and unt diiven. Tl total quality view is that supplier relationships are long term and quality oriented. The tal qualty approach seeks to improve everything all the bme forever. This mears that t encompases continualy im- proving (1)how wel people are abie to do their jobn, (2) how wel processes perform, and (3) the quality of products and services va y e Tut lu aiy is necessary to focus more on solving problems and continually improving and less on blaming individuats for problems When effectively practiced, total quality allows every aspect of an organization to operate at peak levels. This means that all personnel and processes are operating at their best. I'eak performance is essential to organizations that operate in a global environment where competition is intense, constant Long-Term Commitment Organizations that implement management innovations after attending short-term seminars often fail in their initial

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Read the pages and make a summary of them with your own words, please. Mention important parts. Also, you will put your comments and ideas about the topic. 

 

attempt to adopt the total quality approach. This is because
they look at total quality as just another management innova-
tion rather than as a whole new way of doing business that
requires an entirely new corporate culture. Too few organiza-
tions begin the implementation of total quality with the long-
term commitnment to change that is necessary for success.
KEY ELEMENTS OF TOTAL
QUALITY
improvement of products, processes, and people in order to
prevent problems before they occur. The traditional view of
quality saw employees as passive workers who followed or-
ders given by supervisors and managers. It was their labor,
not their brains, that was wanted. With total quality, employ-
behind management-labor discord ad infinitum without
achieving consensus. From the perspective of total quality, who
or what is to blame for adversarial management-labor rela-
tions is irrelevant. What is important is this: To apply the total
quality
The total quality approach was defined in Figure 1.2. This
definition has two components: the what and the how of
total quality. What distinguishes total quality from other ap-
proaches to doing business is the how component of the defi-
nition. This component has several critical elements, each of
which is explained in the remainder of this section and all
of which relate to one of the components of the three-legged
stool in l'igurc 1.1.
approach,
This means that internal politics have no place in a total quality
cation. Rather, collaboration should be the norm.
organizations must have unity of purpose.
to think and make recommendations for
ees are empowered
continual improvement. They are also shown the control
boundaries within which they must work and are given free-
organization.
question
TWO VIEWS OF QUALITY
Teamwork
frequently asked concerning
this clement of
total quality is "Does unity of purpose mean that unions will
no longer be needed?" The answer is that unity of purpose has
The total quality philosophy introduced a whole new way
of looking at quality. The traditional view of quality mea-
sured process performance in defective parts per hundred
produced. With total quality, the same measurement is
livuglıt of in te HIs of defeutive parls per million pruduced.
The traditional view focused on after-the-fact inspections
of products. With total quality, the emphasis is on continual
In traditionally managed organizations, the best competitive
efforts are often among departments within the organization.
Internal competition tends to use energy that should be focused
on improving quality and, in turn, external competitiveness.
dom to make decisions within those boundaries.
The traditional view of quality expected one improve-
nothing to do with whether unions are needed. Collective bar-
ment per employee per year. Total quality organizations
per cimpioyee
expect to make at least ten or more improvements per em-
gaining is about wages, benefits, and working conditions, not
about
Dout corporate purpose and vision. Employees should fel
more involved and empowered in a total quality setting than in
Strategically Based
ployee per year. Organizations that think traditionally focus
on short-term profits. The total quality approach focuses on
Total quality organizations have a comprehensive strategic
plan that contains at least the following elements: vision, mis-
sion, broad objectives, and activities that must be completed
to accomplish the broad objectives. The strategic plan of a
total quality organization is designed to give it a sustainable
competitive advantage in the marketplace. The competitive
advantages of a total quality organization are geared toward
achieving world-leading quality and improving on it, con-
tinually and forever.
Continual Process Improvement
managed
goal of total quality i
a traditionally managed situation, but the g
to enhance competitiveness, not to eliminate unions. For exam-
is
long-term profits and continual improvement.
The following statements summarize some of the major
differences between the traditional view of quality and the
total quality perspective:
Products are developed and services delivered by people
using processes within environments (systems). To continu-
ally improve the quality of products or services-which is a
fundamental goal in a total quality setting-it is necessary to
continually improve systems.
ple, in Japan, where companies are known for achieving unity of
purpose, unions are still very much in evidence. Unity of pur-
pose does not necessarily mean that labor and management will
• Productivity versus quality. The traditional view is
that productivity and quality are always in conflict. You
cannot have both. The total quality view is that lasting
productivity gains are made only as a result of quality
improvements.
- How quality is defined. The traditional view is that
quality is defined solely as meeting customer specifica-
tions. The total quality view is that quality means satisfy-
ing customer needs and exceeding customer expectations.
. How quality is measured. The traditional view is that
quality is measured by establishing an acceptable level
of nonconformance and measuring against that hench-
mark. The total quality view is that quality is measured
by establishing high-performance benchmarks for
customer satisfaction and then continually improving
performance.
quality is achieved. The traditional view is that
quality is inspected into the product. The total quality
view is that quality is determined by product and process
design and achieved by effective control techniques.
Attitude toward defects. The traditional view is that
defects are an expected part of producing a product.
Measuring detects per hundred is an acceptable standard.
The total quality view is that defects are to be prevented
using effective control systems and should be measured
in defects per million (Six Sigma).
always agree on wages, benetits, and working conditions, but it
does mean that all employees work toward the common goal.
Education and Training
Education and training are fundamental to total quality be-
cause they represent the best way to improve people on a con-
tinual basis. It is through education and training that people
who know how to work hard learn how to also work smart.
Customer Focus
Employee Involvement and Empowerment
In a total quality setting, the customer is the driver. This
point applies to both internal and external customers.
External customers define the quality of the product or ser-
vice delivered. Internal customers help define the quality of
the people, processes, and environments associated with the
products or services.
Employee involvement and empowerment is one of the most
misunderstood elements of the total quality approach and
one of the most misrepresented by its detractors. The basis
for involving employees is twofold. First, it increases the
Freedom Through Control
15
fa good decision, a better plan, or a more ef-
Involving and empowering employees is fundamental to total
quality as a way to simultaneously bring more minds to bear
on the decision-making process and increase the ownership
improvement by bringing more minds to bear on the
situation-not just any minds but the minds of the people
who are closest to the work in question. Second, it promotes
ownership of decisions by involving the people who will
have to implement them.
fective
Obsession with Quality
employees feel about decisions that are made. Total
- renb
ment as a loss of management control, when in fact control
is fundamental to total quality. The freedoms enjoyed in a
quality setting are actually the result of well-planned
and well-carried-out controls. Controls such as scientific
methodologies lead to freedom by empowering employees
ity detractors sometimes mistakenly see employee involve-
In a total quality organization, internal and external custom-
ers define quality. With quality defined, the organization
must then become obsessed with meeting or exceeding this
definition. This means all personnel at all levels approach all
aspects of the job from the perspective of "How can we do
this better?" When an organization is obscssed with quality,
good enough" is never good enough.
Empowerment means not just involving people but also
involving them in ways that give them a real voice. One of
the
How
total
ways this can be done is by structuring work that allows
employees to make decisions concerning the improvement
of work processes within well-specified parameters. Should
a machinist be allowed to unilaterally drop a vendor if the
vendor delivers substandard material? No. However, the ma-
chinist should have an avenue for offering his or her input
into the matter.
Should the same machinist be allowed to change the
way she sets up her machine? If by so doing she can improve
her part of the process without adversely affecting someone
else's, yes. Having done so, her next step should be to show
other machinists her innovation so that they might try it.
to solve problems within their scope of control.
Scientific Approach
Unity of Purpose
Historically, management and lahor have had an adversarial
relationship in U.S. industry. One could debate the reasons
Total qualty detractors put off by such concepts as employee
empowerment sometimes view total quality as nothing more
than another name for "soft" management or "people" man-
agement. Although it is true that people skills, involvement,
and empowerment are important in a total quality setting, they
represent only a part of the equation. Another important part
is the use of the scientific approach in structuring work and in
making decisions and solving problems that relate to the work.
This means that hard data are used in establishing bench-
marks, monitornıng performance, and makıng improvements.
a function. The traditional view is that
Quality as
quality is a separate function. The total quality view is
that quality should be fully integrated throughout the
organization-it should be everybody's responsibility.
. Responsibility for quality. The traditional view is that
employees are blamed for poor quality. The total quality
view is that at least 85% of quality problems are manage-
ment's fault.
QUALITY TIP
Cuntinually Improving People, Processes, and
Products
Peak Performance
The total quality approach seeks to improve everything all the
time forever. This mears that it encompasses continually im-
proving (1) how well people are able to do their jobs, (2) how well
processes perform, and (3) the quality of products and services
pruvidesd Ly the peuple ad prucsss. Tu autieve tulal quality, it
is necessary to focus more on solving problems and continually
improving and less on blaming individuals for problems.
When effectively practiced, total quality allows every aspect
of an organization to operate at peak levels. This means that
all personnel and processes are operating at their best. Peak
performance is essential to organizations that operate in a
global environment where competition is intense, constant,
and unforgiving.
• Supplier relationships. The traditional view is that sup-
plici selatiouslips are slunt term and Lust driven. The
total quality view is that supplier relationships are long
term and quality oriented.
Long-Term Commitment
Organizations that implement management innovations
after attending short-term seminars often fail in their initial
Transcribed Image Text:attempt to adopt the total quality approach. This is because they look at total quality as just another management innova- tion rather than as a whole new way of doing business that requires an entirely new corporate culture. Too few organiza- tions begin the implementation of total quality with the long- term commitnment to change that is necessary for success. KEY ELEMENTS OF TOTAL QUALITY improvement of products, processes, and people in order to prevent problems before they occur. The traditional view of quality saw employees as passive workers who followed or- ders given by supervisors and managers. It was their labor, not their brains, that was wanted. With total quality, employ- behind management-labor discord ad infinitum without achieving consensus. From the perspective of total quality, who or what is to blame for adversarial management-labor rela- tions is irrelevant. What is important is this: To apply the total quality The total quality approach was defined in Figure 1.2. This definition has two components: the what and the how of total quality. What distinguishes total quality from other ap- proaches to doing business is the how component of the defi- nition. This component has several critical elements, each of which is explained in the remainder of this section and all of which relate to one of the components of the three-legged stool in l'igurc 1.1. approach, This means that internal politics have no place in a total quality cation. Rather, collaboration should be the norm. organizations must have unity of purpose. to think and make recommendations for ees are empowered continual improvement. They are also shown the control boundaries within which they must work and are given free- organization. question TWO VIEWS OF QUALITY Teamwork frequently asked concerning this clement of total quality is "Does unity of purpose mean that unions will no longer be needed?" The answer is that unity of purpose has The total quality philosophy introduced a whole new way of looking at quality. The traditional view of quality mea- sured process performance in defective parts per hundred produced. With total quality, the same measurement is livuglıt of in te HIs of defeutive parls per million pruduced. The traditional view focused on after-the-fact inspections of products. With total quality, the emphasis is on continual In traditionally managed organizations, the best competitive efforts are often among departments within the organization. Internal competition tends to use energy that should be focused on improving quality and, in turn, external competitiveness. dom to make decisions within those boundaries. The traditional view of quality expected one improve- nothing to do with whether unions are needed. Collective bar- ment per employee per year. Total quality organizations per cimpioyee expect to make at least ten or more improvements per em- gaining is about wages, benefits, and working conditions, not about Dout corporate purpose and vision. Employees should fel more involved and empowered in a total quality setting than in Strategically Based ployee per year. Organizations that think traditionally focus on short-term profits. The total quality approach focuses on Total quality organizations have a comprehensive strategic plan that contains at least the following elements: vision, mis- sion, broad objectives, and activities that must be completed to accomplish the broad objectives. The strategic plan of a total quality organization is designed to give it a sustainable competitive advantage in the marketplace. The competitive advantages of a total quality organization are geared toward achieving world-leading quality and improving on it, con- tinually and forever. Continual Process Improvement managed goal of total quality i a traditionally managed situation, but the g to enhance competitiveness, not to eliminate unions. For exam- is long-term profits and continual improvement. The following statements summarize some of the major differences between the traditional view of quality and the total quality perspective: Products are developed and services delivered by people using processes within environments (systems). To continu- ally improve the quality of products or services-which is a fundamental goal in a total quality setting-it is necessary to continually improve systems. ple, in Japan, where companies are known for achieving unity of purpose, unions are still very much in evidence. Unity of pur- pose does not necessarily mean that labor and management will • Productivity versus quality. The traditional view is that productivity and quality are always in conflict. You cannot have both. The total quality view is that lasting productivity gains are made only as a result of quality improvements. - How quality is defined. The traditional view is that quality is defined solely as meeting customer specifica- tions. The total quality view is that quality means satisfy- ing customer needs and exceeding customer expectations. . How quality is measured. The traditional view is that quality is measured by establishing an acceptable level of nonconformance and measuring against that hench- mark. The total quality view is that quality is measured by establishing high-performance benchmarks for customer satisfaction and then continually improving performance. quality is achieved. The traditional view is that quality is inspected into the product. The total quality view is that quality is determined by product and process design and achieved by effective control techniques. Attitude toward defects. The traditional view is that defects are an expected part of producing a product. Measuring detects per hundred is an acceptable standard. The total quality view is that defects are to be prevented using effective control systems and should be measured in defects per million (Six Sigma). always agree on wages, benetits, and working conditions, but it does mean that all employees work toward the common goal. Education and Training Education and training are fundamental to total quality be- cause they represent the best way to improve people on a con- tinual basis. It is through education and training that people who know how to work hard learn how to also work smart. Customer Focus Employee Involvement and Empowerment In a total quality setting, the customer is the driver. This point applies to both internal and external customers. External customers define the quality of the product or ser- vice delivered. Internal customers help define the quality of the people, processes, and environments associated with the products or services. Employee involvement and empowerment is one of the most misunderstood elements of the total quality approach and one of the most misrepresented by its detractors. The basis for involving employees is twofold. First, it increases the Freedom Through Control 15 fa good decision, a better plan, or a more ef- Involving and empowering employees is fundamental to total quality as a way to simultaneously bring more minds to bear on the decision-making process and increase the ownership improvement by bringing more minds to bear on the situation-not just any minds but the minds of the people who are closest to the work in question. Second, it promotes ownership of decisions by involving the people who will have to implement them. fective Obsession with Quality employees feel about decisions that are made. Total - renb ment as a loss of management control, when in fact control is fundamental to total quality. The freedoms enjoyed in a quality setting are actually the result of well-planned and well-carried-out controls. Controls such as scientific methodologies lead to freedom by empowering employees ity detractors sometimes mistakenly see employee involve- In a total quality organization, internal and external custom- ers define quality. With quality defined, the organization must then become obsessed with meeting or exceeding this definition. This means all personnel at all levels approach all aspects of the job from the perspective of "How can we do this better?" When an organization is obscssed with quality, good enough" is never good enough. Empowerment means not just involving people but also involving them in ways that give them a real voice. One of the How total ways this can be done is by structuring work that allows employees to make decisions concerning the improvement of work processes within well-specified parameters. Should a machinist be allowed to unilaterally drop a vendor if the vendor delivers substandard material? No. However, the ma- chinist should have an avenue for offering his or her input into the matter. Should the same machinist be allowed to change the way she sets up her machine? If by so doing she can improve her part of the process without adversely affecting someone else's, yes. Having done so, her next step should be to show other machinists her innovation so that they might try it. to solve problems within their scope of control. Scientific Approach Unity of Purpose Historically, management and lahor have had an adversarial relationship in U.S. industry. One could debate the reasons Total qualty detractors put off by such concepts as employee empowerment sometimes view total quality as nothing more than another name for "soft" management or "people" man- agement. Although it is true that people skills, involvement, and empowerment are important in a total quality setting, they represent only a part of the equation. Another important part is the use of the scientific approach in structuring work and in making decisions and solving problems that relate to the work. This means that hard data are used in establishing bench- marks, monitornıng performance, and makıng improvements. a function. The traditional view is that Quality as quality is a separate function. The total quality view is that quality should be fully integrated throughout the organization-it should be everybody's responsibility. . Responsibility for quality. The traditional view is that employees are blamed for poor quality. The total quality view is that at least 85% of quality problems are manage- ment's fault. QUALITY TIP Cuntinually Improving People, Processes, and Products Peak Performance The total quality approach seeks to improve everything all the time forever. This mears that it encompasses continually im- proving (1) how well people are able to do their jobs, (2) how well processes perform, and (3) the quality of products and services pruvidesd Ly the peuple ad prucsss. Tu autieve tulal quality, it is necessary to focus more on solving problems and continually improving and less on blaming individuals for problems. When effectively practiced, total quality allows every aspect of an organization to operate at peak levels. This means that all personnel and processes are operating at their best. Peak performance is essential to organizations that operate in a global environment where competition is intense, constant, and unforgiving. • Supplier relationships. The traditional view is that sup- plici selatiouslips are slunt term and Lust driven. The total quality view is that supplier relationships are long term and quality oriented. Long-Term Commitment Organizations that implement management innovations after attending short-term seminars often fail in their initial
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