Copyright (C) 1993 – 2005 Michael Arthur Johnson mjohnson@redbead.com 371-923-8267 - - Riga,...

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Copyright (C) 1993 – 2005 Michael Arthur Johnson

mjohnson@redbead.com371-923-8267 - - Riga, Latvia

Beyond Total Quality Management

Learn to live the talk !

Copyright (C) 1994 - 2005 Michael Arthur Johnson

5 June 2002

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Beyond Total Quality Management

Learn to live the talk !

Copyright (C) 1994 - 2003 Michael Arthur Johnson

The BEAD-BOX GAME tm

Patricia LTD371-923-8267 - - mjohnson@redbead.com

31 Aug 2000

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Note: Pause here and discuss several examples of customer satisfaction vs delight issues. Examples include dental office, BWM payoff, ordering flowers mothers day and what to be included

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Want to create delight not just satisfaction !

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Note: Pause here and have customers and suppliers brainstorm their expectations for each other and for today's meeting.

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Total Costs Are: The Sum Of:

Tasks x hours x ($ - € - Ls) rate

Rework Costs (training)

Wasted tasks (planning)

Changes in mind (expectations)

What's really the issue

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Agenda Welcome - Agenda "buy-in" Introduction to Personal Satisfaction QUALITY is KEY - Total Quality Control Management Style - It is a process too Customer Focus - We are all customers People Focus - Listen, Act & Empower People and Customer - Combined effort Supplier Involvement - Total effort

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Cultural ChangeAttitudes & beliefs - Home, workSystem in which we workWay we manage peopleEnvironment in which we workMethods used to solve problemsCustomer supplier relationship

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Old Way New WayContinuous Improvement

A New Way of Thinkinga Paradigm Shift

Time

Value

Time

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Customer - Supplier Relationships

are important !

Copyright (C) 1993 – 2005 Michael Arthur Johnson

What Supplier expects ?

Copyright (C) 1993 – 2005 Michael Arthur Johnson

What Client expects ?

Copyright (C) 1993 – 2005 Michael Arthur Johnson

What is Quality ? Quality is: as seen by the user Quality is not: preference Quality is not: technology or features Quality is not: backup systems Quality is not: overdesign Quality is: uniformity

Copyright (C) 1993 – 2005 Michael Arthur Johnson

What TQM is not ? Video tapes Audio tapes Text books Flashy marketing tools Four color sales brochures Text books Consultants Soap boxes

Copyright (C) 1993 – 2005 Michael Arthur Johnson

THE BEAD-BOX GAME (tm)

A game with a message

Copyright (C) 1993 – 2005 Michael Arthur Johnson

The BEAD-GAME Company

The company consists of the following "willing workers":

– Plant manager– Controller or "bead counter"– Inspector– Chief inspector– Two "willing workers" - employees– A customer

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Follow script and play the game

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Game points

It is important to have a clear and measurable "operational definition" between a customer and supplier

A "willing worker" has little or no control over a process or system

If management is not satisfied with the results of the system then management must take action to change the system

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Every RED BEAD has a name on it.

.....and a cost associated with it.

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Waste - Rework - Changes in mind

Waste - due to poor planning

– Overtime costs– Re-planning– Accounts / collections

Rework - due to poor training

– Supplier Claims– Customer claims– Re-training

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Who knows the name on the RED BEAD?

Copyright (C) 1993 – 2005 Michael Arthur Johnson

The "willing workers"

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Why don't they tell us ?

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Fear !

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Whose responsibility is this?

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Management is responsible

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Game terms A"process" - series of related tasks grouped in

sequence A "system"- interacting group of items forming a

unified whole A "stable process" - one with no indication of a

special cause Improvement of a stable system requires

fundamental change in the system Priority of system improvement should be to reduce

variation

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Game terms....continued

A process in statistical control is random and predictable

To make fundamental change in a system may be complex and costly

A system may be stable, yet turn out faulty items and mistakes

A special cause may not occur again It may not be cost effective to solve special causes

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Game terms....continued

Tampering is to take action to the system in response to faulty items

Tampering may cause an increase in future costs

Management should avoid tampering

Copyright (C) 1993 – 2005 Michael Arthur Johnson

What's really the issue?

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Total Costs Are

The Sum Of:Tasks x hours x ($ - € - Ls) rate

Rework Costs (training)

Wasted tasks (planning)

Changes in mind (expectations)

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Make "sense" from Alphabet SoupDollars and cents - make a profit !

Instead - get back to the basics

Copyright (C) 1993 – 2005 Michael Arthur Johnson

What's wrong with many TQM programs?

Employees are tired of another soapbox Implementation is fragmented Support does not come from the top Fear exists within the organization Management doesn't see the fear Two way communication is difficult Dependent on specific people not process

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Old Way New WayContinuous Improvement

A New Way of Thinkinga Paradigm Shift

Time

Value

Time

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Cultural ChangeAttitudes & beliefs - Home, workSystem in which we workWay we manage peopleEnvironment in which we workMethods used to solve problemsCustomer supplier relationship

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Beyond Total Quality Management

Learn to live the talk !

December 12, 1993

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Management CycleIt's a process too !

Shared VisionShared ValuesLead EffortM easure ResultsRevise PlansDo It Again

PCDA Deming Cycle

Copyright (C) 1993 – 2005 Michael Arthur Johnson

How do we overcome these issues?

Develop clear, measurable specifications Calibrate your measuring techniques Brainstorm the critical issues Document the process flow Collect data on the process performance Analyze the process data Outline improvements to the process Repeat above steps (Plan,Do,Check,Act)

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Cultural ChangeAttitudes & beliefs - Home, workSystem in which we workWay we manage peopleEnvironment in which we workMethods used to solve problemsCustomer supplier relationship

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Total Quality Management

Management philosophy / operating methodology totally committed to QUALITY that .....

Focuses on: Continuous Improvement Requires: Universal Participation Results in: Customer Satisfaction

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Leadership - A Vision

Create a vision, a destination Build a level of trust, eliminate fear Communicate openly and carefully Understand and cooperate Entrust responsibility, accountability Personal involvement in training Facilitate the process improvements

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Team Building - It's a result

Team building is an element of:

Quality improvementPride of workmanshipMoraleJoy in work

Copyright (C) 1993 – 2005 Michael Arthur Johnson

How do we really do it? Get back to basics Look at the issues differently Start with your Personal Satisfaction QUALITY is KEY - Total Quality Control Management Style - It is a process too Customer Focus - We are all customers People Focus - Listen, Act & Empower People and Customer - Combined effort Supplier Involvement - Total effort

Copyright (C) 1993 – 2005 Michael Arthur Johnson

How to get started ?

Pick 4 to 6 key points to measure Collect and plot data for past 60 days Train each key manager Brainstorm with willing workers Prioritize the issues and fix the easy ones Communicate the successes Ask for more PDCA the processes

Copyright (C) 1993 – 2005 Michael Arthur Johnson

When to start ?

Tonight !

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Remember

What gets watched

- gets fixed !

Copyright (C) 1993 – 2005 Michael Arthur Johnson

Final thought

Only our customers can tell us what they want and how they want it . We are all customers and suppliers of each other in this modern business world.