TWO VIEWS OF QUALITY 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 thought of in terms of defective parts per million produced. The traditional view focused on after-the-fact inspections of products. With total quality, the emphasis is on continual 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 ces 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 nonconformance and measuring against that bench- mark. The total quality view is that quality is measured by establishing high-performance benchmarks for customer satisfaction and then continually improving performance. 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 defects 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). ■ 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. Supplier relationships. The traditional view is that sup- plier relationships are short term and cost driven. The total quality view is that supplier relationships are long term and quality oriented. CHAPTER ONE The Total Quality Approach to Quality Management KEY ELEMENTS OF 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 Figure 1.1. Strategically Based 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. Customer Focus 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. 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 is obsessed with quality, "good enough" is never good enough. Scientific Approach Total quality 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, monitoring performance, and making impwwwments Long-Term Commitment Organizations that implement management innovations after attending short term seminars often fail in their initial 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 commitment to change that is necessary for success. 7 Teamwork 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. Continual Process Improvement 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. 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. Freedom Through Control 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 to solve problems within their scope of control. Unity of Purpose Historically, management and labor have had an adversarial relationship in US. industry. One could debate the reasons QUALITY TIP Continually Improving People, Processes, and Products The total quality approach seeks to improve everything all the Sme forever This means that it encompasses continually in proving (1) how well people are able to do their jobs, 20 how well processes perform, and (3) the quality of products and services provided by the people and processes to achieve tour quality is necessary to focus more on solving problems and continually improving and less on blaming individuals for problems 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, benefits, and working conditions, but it does mean that all employees work toward the common goal 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 voice. 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 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. Peak Performance 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