Bottom 2 Sections of paper must be completed BADM370

BADM370-1404B-02

Quality Management

“Quality Training Manuel”

Quesadra Dynell Goodrum,17548814

Individual Project Phase 1

Instructor: Dr. Jay Chance

11/18/2014

Table of Contents Introduction 5 The History and Evolution of Quality Management 5 Why Quality Management is needed 6 Directions that companies are adopting in terms of strategic quality management 7 Pros and cons of Deming and Six Sigma 8 Pros 8 Cons 8 Deming 8 Six Sigma 8 The Role of Leadership 8 Senior management's role 8 Metrics to use to both monitor and communicate performance 10 Their responsibilities can be summed up as: 11 General Quality Strategies and Tools 11 Establishing customer expectations 11 Risk 12 Designing quality in 12 Risks 13 Defining metrics 13 Questions to ask 14 Addressed Performance Metrics: 15 Process 15 SMART TEST 16 Specific 16 Measurable 16 Attainable 16 Realistic 17 Timely 17 Risks 17 Mistake-proofing 17 Mistake–Proofing Procedure 18 Risk 18 Kaizen 19 Risk 19 Six Sigma 19 DMAIC 20 DMADV 20 Risk 21 Quality Tactics and the Logistics and Supply Chain Functions 21 What tools are applicable internally? 21 What tools are applicable externally with vendors? 21 Roll-Out 21 Communications plan 21 Recommended sequence of steps to get personnel trained 22 Stakeholders on board 22 References 23

The history and evolution of Total quality Management is an ever evolving field of methodology revolving around the principals and practices of behavioral sciences, the analysis of both quantitative and non-quantitative data, economics theories, and process analysis. We will engaged in a deeper understanding of the history behind quality management and the steps of it evolution. We will briefly touch base on some of the running forefathers and pioneers of the field. As we continue to delve further into its history we will come to see why it I so important and greatly need across industries today (Evans, Manson, OH).

The term of Total Quality Management itself was developed and first used by Naval Air System Command Centers. It was used as a way of describing its use of a Japanese style approach to management and quality improvement. In the early 1920’s quality management had begun to be implemented as new principals of scientific management (Westcott, 2014)t. By the late 1920’s experiments lead by Hawthorne showed how to impact workers’ productivity through participation. In the 1930’s control of quality and statistical analysis were developed by Walter Shewart.

In the 1950’s a number of things went on in the progression of quality management. The 1950’s was the years of teach and spreading quality control and total quality control methods. Japanese engineers and executives would come to learn methods of control quality and statistical analysis from W. Edwards Deming. The topic of controlling quality would yield a managerial breakthrough as one Joseph M. Juran taught the concepts. A book was published of the current understandings and practices of total quality control by Armand V. Fegenbaum, and Croby’s zero defects made way for quality improvement in many organizations (American Society for Quality, 2011).

The year is 1968 thought the United States based there approach of total quality control off of the Japanese management style and reintroduce and taught it to Japanese engineers and executives. The Japanese would label the approach under a new name companywide quality control (Westcott, 2014). Ishikawa would synthesize the use of the American philosophy and implement it into Japan’s making Japan a leader in quality. In today’s society total quality management is known for its philosophy and broad use of systematic approaches to managing quality in an organizational environment. Quality standards have been developed for instance the ISO 9000 series.

We have briefly but intensely talked about the history of quality management. From our finding we can deduce just how much of an intricate part of business that total quality management has become. Total quality control is at the forefront of every industry process that is implemented no matter what business you are in. It is the process of ensuring, controlling, and improving upon business productivity and operations. New processes are often developed to keep up with the ever changing work environment and the time in which we live in.

Often in Quality control management teams are developed called task forces. The tasks forces are charge with the purpose of problem solving and implementing programs. The programs these task forces often implement encompass the whole organization and every facet of business in which the organization operates. Let give an example managers often have to implement processes to ensure employees performance is at the maximum level of standards. To make this possible a manager must utilize various tools that are put in place to aid the employee in completing business task assigned. These tools will maximize the employee’s potential to the best of their capabilities.

Quality is an important aspect of any business no matter what product or service is being sold. Consumers demand quality service and good products. They want to know the money in which they spend will benefit them for the long run. Success in any industry means having a high quality turnout and return on investment. A happy customer is a loyal customer we say in the retail industry. If you keep your customers happy by providing them with the quality they both want and deserve the will keep returning repeat business is the best business. When customers are happy they will tell another who will come to experience the quality for themselves this is word of mouth. So you understand just why quality is so very important regardless of the industry you’re in. To ensure your product or services quality you must give quality management your full and undivided attention so you can be successful. “Keep all employees devoted in the arts of controlling, maintaining, and continuously improving quality on an ongoing basis (Aveta Limited, 2011)

Companies are using varies strategies of TQM. Some companies choose to implement ones and others determine their company is more suited for a compound mixture of a few various techniques, tools, and or strategies. Tools and or directions chosen could be PDCA like the United States Navy chose and or Lean cross-functional teams also known as quality circles McDonald’s utilizes this one well.

	Pros	Cons
Deming	Easy to set expectations Easy to quantify Easy to base performance evaluations on (Nankivel, 2007)	Tends to move the focus to being ‘at’ standard. No focus on process variability. Tends to make the standard the ‘only’ performance measure. Provides little incentive to improve processes when the standard is being met. Discourages educated risk-taking and experimentation with processes, because it might throw people ‘out of standard’ temporarily (Nankivel, 2007)
Six Sigma	Research shows that firms who successfully implement Six Sigma typically deliver better return on investment, return on sales, employment growth, stock growth and value growth. (Compare Business Products, 2010)	Implementation requires many organizations to completely change the way the company does business, and, in the judgment of leadership, that may just not always be in the best interests of the company or their customers. Even if a company does decide to embark upon the Six Sigma path, it's not an easy process, and some companies may only achieve limited or unsustainable gains. (Compare Business Products, 2010)

From personal experience as a Store Manager for 6 years and a District Manager for Hickory farms for 4 years this is what I have come to learn as well as my experiences with TQM. I have implemented my own methods of TQM where quality measure where re-gauged off of analysis from statistical reports received from customer surveys. My role as a part of senior level management was developing, effectively communicating, and implement new TQM strategies within my area of control.

This was done to keep employee sales performance high through quality control and customer satisfaction. I believe my role was more of a mixture role model, decision maker, and cheerleader. I was leading and training my employee by example of the strategies I wanted them to use in order to secure the sale. I was a cheer leader for the rest of my employees rooting them on to keep up sales, employee morale, and faith in the strategic system that had been put in place by me. I believe firms must adopt certain roles so that employees know their bosses stance and where they stand in the process of TQM. If these roles were not filled I believe that the atmosphere would not be healthy enough for TQM to thrive in.

Whatever industry you’re in it is customary for senior management to make, establish, and implement the organization strategies. Senior management has the responsibility of creating the workplaces strategic atmosphere this is done in order for total quality management to successfully thrive and flourish. This is done by ensuring the necessary resources are properly allocated and are in harmony with building a better quality management system. The Chief Executive officer is also required to get personally involved. He and or she are tasked with the job of spreading the knowledge and removing and misunderstandings by communicating a clear vision of the total quality management to his or her senior level managers.

Total Quality Management is not a quick fix nor should it be expedited to see immediate results over night. Total Quality Management should be used as a long term process. This fact needs to be properly communicated throughout the organization. It is important that senior management while communicating this also communicate a positive reflection of their belief in the strategy. It is the Chief Executive officers job to ensure the wants and needs of the customers. This will enable the organization to make the necessary quality improvements needed. The necessary improvement should be gaged by analysis reports obtained from statistics reports such as: failures, customer complaints, returns, and or unaccepted tender.

It is very import to create an atmosphere where total quality improvement programs can successfully thrive in. A healthy atmosphere would be one that encourages teamwork, participation from all parties, health decision making, effective communication and feedback, and co-operation. Senior level management has the important responsibility of assigning and delegating roles and responsibilities to parties who will help in the deployment of total quality control management (WHJ Business and Employment, 2011). The benefits that can be seen rest in the hands of senior level management.

Senior level Management needs to recognize that there is truly no one single best way to properly and effectively implement a successful total quality management program (WHJ Business and Employment, 2011). It is best to learn from other trials and errors and or previous experience. Gain experience thru seminars or study today’s best practices of total quality control management and or consults others within your industry that have already successful implemented total quality management successfully. Senior level management must understand and know how to properly utilize statistical methods in problem solving as well as decision making such as Statistical Process Control. This needs to be done to ensure that improvements are on fact based data and not driven by ones opinion.

· Set the direction of total quality (WHJ Business and Employment, 2011)

· Establish and communicate a clear vision of TQM (WHJ Business and Employment, 2011)

· Setting standards like zero failure (WHJ Business and Employment, 2011)

· Is fact based and measureable (WHJ Business and Employment, 2011)

· Monitoring quality performance (quality costs) (WHJ Business and Employment, 2011)

· Introducing a quality system based on 'prevention' rather than detection (WHJ Business and Employment, 2011)

· Introducing process control methods like Statistical Process Control (SPC) (WHJ Business and Employment, 2011)

· Includes systematic cycles of planning, execution, and evaluation (WHJ Business and Employment, 2011)

· Concentrates on key processes as the route to better results (WHJ Business and Employment, 2011)

It is very important to establish customer expectation strategy. This should be one of the first steps implemented in creating an environment that supports great customer service. The most important pieces you should have before begging this process is having a deep understanding of your customers wants and needs as well as who they are (Lotich, 2013).

Once you have these pieces you should create the system and process around them so it meets their desires. By approaching customer expectations this way you will develop a strong foundation of customer service.  The second thing that needs to be addressed is helping in the management of customer expectations this requires assisting the customer and preparing them for what their experience will be (Lotich, 2013).

The risks associated with this are the preconceptions customers have of what their experience will be and should be like. Even if it’s a first time experience and they are not familiar with the company they have preconceptions of what kind of service they believe they deserve and expect to receive (Lotich, 2013). The second risk lies here in when the customer experience goes array and has a negative impact on the preconceived notions of the customer an also have a negative impact on the organization as well. Thus this is why it is very important to prepare the customer for what their experience will be.

When choosing to implement a new design into an organization the first crucial major step that needs to be taken under foot is the breaking down the company into departmental sections. You want to provide a clear distinction between departments even going as far as labeling them i.e. customer service relations, manufacturing, and or employee relation service (writter, 2013). After placing your company into multiple categories then develop a basis for reviewing each department’s performance levels and continue to monitor them on a continual basis. As needed make small changes to areas in which it is needed over time. By doing this in small steps you can quickly implement changes in steps that do not work this can lead to an overall increase in the production levels of these departments (writter, 2013).

To make sure that the new changes implemented sticks construct a new set of guidelines and rules. This is to ensure that the new quality goals set get met. Appoint an overseer of the change and or do it yourself remove the current system you have of doing things if you find a better way to get the job done. By having an overseer of the change you can counteract quickly if problems occur. So that your employees understand how everything is supposed to work document all proceedings and policies so that they have something to look to (writter, 2013). Equipping your employees with the tools and knowledge they need to succeed in implementing these new systems and putting them in place. It is very important for all employees to buy-in the change so that it can be a smooth transition into the new system of doing things. Workers who refuse to comply with the new procedures run the risk of termination or other disciplinary action (writter, 2013).

The risk associated with this is that every employee will not adjust to the change smoothly. You will find this to be true in your older employees that have been in the industry and job for a great number of years. They will find nothing wrong with the old way of doing things and believe the old way is just fine. They will pose a great resistance to change complicating employee buy-in.

Develop a plan to instruct your workers on the new systems they must follow (writter, 2013). All training that workers receive allows them to better understand your quality systems, see how certain procedures help the company and understand what they can do to implement the plan (writter, 2013). Teach your supervisors what they have to do and tell them to pass this data to the workers under their direction (writter, 2013). Ask your employees for input. Tell each employee to give you their honest opinion about the pros and cons of your new quality management systems (writter, 2013). Make changes to your policies in accordance with the suggestions and concerns of your employee.

The measurement of metrics is an important part of the performance and production corner stone. It should be constructed in a way that it encourages effective performance improvements so that the efficiency levels rise beyond the appropriate levels of internal control. Business best practices should be incorporated into risk/cost/and benefit analysis when and where it is appropriate. The TQM guidelines that have been put in place show those gains of quantitative assessment can be seen (Oak Ridge Associates University, 2005). These quantitative assessment gains are as follows:

· Customer service satisfaction

· Organizational Performance

· Employee Excellence

1) Is the desired metrics quantifiable measurable?

2) Is the a clear vision of the expected end results for this metrics

3) Does the metrics support compliance and customer support issues when and where appropriate?

4) Is the metrics focused on effectiveness and or the efficiency of the systems being measured?

5) Does the metric allow for meaningful trend or statistical analysis?

6) Does the metric include milestones and/or indicators to express qualitative criteria?

7) Are the metrics challenging but at the same time attainable?

These are but a few of the questions that need to be asked when defining the metrics systems.

· Aligning with Organizational Mission statement

· Cost Avoidance

· Cost Reduction

· Meeting DOE and HRM requirements

· Quality of Products

· Time Delivery

· Customer Satisfaction

· Meeting Commitments

We will take the first step into the new system of things by the development of a new performance metrics system. We will initiate lead teams in each department because who would better know the areas that needs the most improvement, but active key members within the departments itself (Oak Ridge Associates University, 2005). Once this is done the following will take place:

We will first identify the critical work processes and customer requirements that are crucial to this process change. Second, we will identify critical results that need to be aligned to our customer requirements. The third step to be implemented is to develop critical work process and critical results measurements. Lastly, we will establish our departmental performance goals and benchmark standards (Oak Ridge Associates University, 2005).

This test is frequently used in many industries I feel it will play a crucial part in ours. This test is frequently used in many industries as a way to provide quick reference to determine the quality of particular performance metric:

Having a clear vision and avoiding misinterpretation through use of effective communication. This includes all measured assumptions as well as definitions that can be easily interpreted and translated.

This information is quantifiable in nature and comparable to other data. This quantifiable data should allow for meaningful factual statistical information that can be analyzed. It is necessary to avoid if at all possible yes/no scenarios this is an exception to limited cases these are cases such as startups or systems in place situations.

This simply means that all goals are reasonable credible as well as achievable under the expected conditions.

All applied changes easily fit into the organization's constraints and are cost- effective.

All applied changes must be doable within the given timeframe.

The risk involved in defining metrics of TQM are not asking and answering the necessary questions. You want the TQM to be designed to best suit your company and its customers. Another complication is Yes/No metrics. These kinds of metrics are used in certain situations such as establishing trends, baselines, or targets, or in start-up cases. Because there is no valid calibration of the level of performance for this type of measure, they should be used sparingly (Oak Ridge Associates University, 2005).

Steps need to be identified within the process such as key milestones where human error comes into effect through mistakes and or the cause of defects to occur; this is especially the case when a worker needs to remain focused (ValueBasedManagement, 2011). Key miles stones should be set and identified within the service process this would be any area in which the consumer cans error which would cause an effect in the organization output. For example mistake proofing gives you the benefit of catching minor errors early in the process preventing it from causing any major problems later in the process. Mistake Proofing will also help in the prevention of expensive and even dangerous mistakes (ValueBasedManagement, 2011).

1) Creation of a flow chart for the process. This enables you to view each milestone and pinpoint where human error is likely to occur (American Society for Quality, 2011).

2) For each potential error found work back through the flowchart of the process and locate its source (American Society for Quality, 2011).

3) Determine ways that would make it impossible for the error to happen by considering elimination of the step in which the error occurs; replacing the step with an error proof node; facilitate making the necessary corrective action that is far easier than the one causing the error (American Society for Quality, 2011).

4) If the error cannot be avoided find ways that will detect the error and minimize the effects it would cause. Take into account possible inspections, regulatory functions, and or setting functions (American Society for Quality, 2011).

5) The primary rule is to make the best mistake proofing choice method for each error. Every error is not the same so the same error proofing method won’t always work for every error. So test it implement it inspect it. Inspection will provide you with rapid feedback (American Society for Quality, 2011).

This may seem a little repetitive to some worker but inspections is necessary. Some workers will try to skip over the inspection stage this cannot happen. It is very important that it be implemented in the guidelines for each step of the process.

Kaizen methods and principals are set up on a basis of continuous incremental improvement. It was originally a Japanese management method for gradual change and improvement (Wilson, 2013). It is a life philosophy that everything in our life deserves to be continuously improved upon. Kaizen elements are quality, involvement of all employees, effort, effective communication and the willingness to change. It is set up on five key elements (Wilson, 2013).

· Teamwork

· Personal discipline

· Improved morale

· Quality circles

· Suggestions for improvement

Total Quality Management is one way to easily implement the Kaizen process methods and principals (Wilson, 2013). It will assist us in forming a management policy that we can use to work with the kaizen principals. This process can engage the entire workforce because it is all inclusive. By implementing these methods we can ensure optimal performance and contribution from each department at each stage (Wilson, 2013).

Employees find it hard to take general advice even though it’s what best. This is why change is done on an incremental basis (Wilson, 2013).

I need every one to understand that there are two main methodologies to sigma six though it is heavily used and training is provided on various levels such as green, black, champion, and so on; there are two different main methodologies. These methodologies are DMAIC and DMADV. DMAIC is an acronym for define, measure, analyze, improve, and control. The other DMADV is an acronym for define, measure, analyze, design, and lastly verify.

The main concept behind Sigma Six is that variation in the process creates un-needed waste and errors. So in Sigma Six the idea is to eliminate variations in the process making it more efficient and thus error free. Easy right seems straight forward enough well it’s not the application of this technique is very complicated and is high integrated with the business environment. As we know in business it’s not simple it can be very complex at times. “Sigma refers to a scale of measurement (University Alliance, 2013).”

DMAIC is the most commonly used of the two principal methods of Sigma Six. This is because it is used for existing business processes. You use this method to break your business current process into parts that can be individually analyzed. You start by defining your issue and project goals, measuring the data gathered, analyzing your findings (University Alliance, 2013). Identify the cause and effect relationship between problems. The next step targeted in this methodology id improving existing business processes solely based on the data from the analysis. Finally its implementation stage implements the needed controls to avoid the variances in the process moving forward (University Alliance, 2013).

DMAIC and DMADV are similar in some aspect but not in all while DMAIC deals with current business process DMADV was design with the development of new product and process designs (University Alliance, 2013). So you define and Design your desired goals. Measure the quantitative quality characteristics of the product, production, and or process and associate any possible risk. Analyze your findings and then develop an appropriate solution after that design your new product test and verify. By following these given steps you will have successfully implemented Six Sigma (University Alliance, 2013).

Implementation requires many organizations to completely change the way the company does business, and, in the judgment of leadership, that may just not always be in the best interests of the company or their customers. Even if a company does decide to embark upon the Six Sigma path, it's not an easy process, and some companies may only achieve limited or unsustainable gains (Compare Business Products, 2010).

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