Change Management

It’s a people process

4-10-09 2

Making The Total Quality Management Change

Where we are! Where we want to be!

The Quick Vision

CelebrationRealizationExcitement and energyMutual expectationEmpowerment of employeesEvangelism

Communication of vision Dialogue & Team Building Intellectual persuasion Evangelism of vision Shared vision Trust formed

Fear of change

These are people processes

20 inspirational change quotes for your change management initiative:

• Slowness to change usually means fear of the new – Philip Crosby• Change before you have to – Jack Welch• People don’t resist change. They resist being changed! – Peter Senge• If you want to make enemies, try to change something – Woodrow Wilson• The key to change …… is to let go of fear – Rosanne Cash• Our only security is our ability to change – John Lilly• If you don’t like something, change it. If you can’t change it, change your attitude – Maya Angelou• The world hates change, yet it is the only thing that has brought progress – Charles Kettering• Culture does not change because we desire to change it. Culture changes when the organization is transformed – the culture

reflects the realities of people working together every day – Frances Hesselbein• The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic – Peter Drucker• There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the

introduction of a new order of things – Niccolo Machiavelli• The rate of change is not going to slow down anytime soon. If anything, competition in most industries will probably speed up even

more in the next few decades – John P. Kotter• Change is the law of life and those who look only to the past or present are certain to miss the future – John F. Kennedy• Change has a bad reputation in our society. But it isn’t all bad – not by any means. In fact, change is necessary in life – to keep us

moving … to keep us growing … to keep us interested … Imagine life without change. It would be static … boring … dull – Dr. Dennis O’Grady

• Whosoever desires constant success must change his conduct with the times – Niccolo Machiavelli• Your success in life isn’t based on your ability to simply change. It is based on your ability to change faster than your competition,

customers and business – Mark Sanborn• Change is hard because people overestimate the value of what they have and underestimate the value of what they may gain by

giving that up – James Belasco and Ralph Stayer• Change your thoughts and you change your world – Norman Vincent Peale• If you do not change direction, you may end up where you are heading – Lao Tzu• If you always do what you’ve always done, you’ll always get what you’ve always got –

TEAMWORK

Teams & Communication

Team Building Stages

• Where are you?

forming storming normingperforming

Implementing TQMTotal Quality Management

Total Quality Management (TQM)• Total Quality Management (TQM) is the application of quality principles to all facets of

an organization. – SPC is a method for assessing statistical variation and determining if any

measurements fall outside what would be expected from the statistical characteristics of the data gathered.

– SPC became a generally universally accepted methodology used to determine if parts conformed to specification, simply by measuring parameters of parts and comparing to specification.

• In contrast, TQM is a much broader concept - that is, applying quality methods to the entire organization, from management, to design, to marketing, to sales, to accounting, to manufacturing, service, and every other sub entity in the organization.

• In manufacturing, conformity to specifications may well satisfy a customer. • In sales, simply conforming to specifications is unlikely to satisfy the customer. • If his expectations are exceeded he has a much higher probability to purchase again. • In engineering it is robust, defect free designs, design for manufacturing(DFM), design

for cost (DFC), design for testability(DFT). • The new definition of quality: exceeding the customer specifications! The

customer & supplier must be applied cross functionally.

Without TQMGoing from one fire to the next

Low Customer SatisfactionCustomer experience up and down

Lean MethodologyToyota Production System, (TPS)

• “Lean Manufacturing” – appeared first as “just-in-time” production and

utilizes the “pull” process flow where inventories are dramatically reduced and move only when the next step requires stock.

– Traditional “push” process flows allow continuous building of inventory ‘before’ the next operation.• This creates lower quality and slower learning

• Lean, or “Total Cycle Time” is applied to all facets, production and business processes.

Total Cycle Time (TCT)

• Applied to manufacturing and business processes and systems:– Cycles of learning are improved dramatically

enabling continuous improvement in productivity, function and quality.

– Time-to-Market is dramatically more rapid where improved products reach the customer disrupting the market and creating preferential bias through enhanced functionality, cost and quality.

Quality: Classic Approach• The system to achieve quality cannot rely on the old classic approach of

appraisal. The difficulties with this are many:• it is after the fact: the damage has already been done. • it is very costly spending resources discovering errors, correcting them,

or discarding the items and re-doing it over again. It takes 3X the resources and time.

• There is no guarantee that all the errors will be detected. • One way of understanding and calculating the Cost of Quality is called

Activity Based Costing. • The only valid measure of quality is the Price of Non-Conformance

(PONC). • How much do we spend on discovering, scrapping, and correcting errors.

TQM VisionFoster empowerment

Promote team building

Drive proactive prevention, not reactive detection.

Cross functional communication and cooperation

Concurrent engineering

Create fun and excitement ~ celebrate success.

TEAMWORK!

TQM Characteristics• Comprised of Customers, Suppliers, and Processes:

– Internal and External• There are many ways to view quality, consider the

diagram shown. • Much of the way that organizations are organized

can be viewed as a relationship between customers, suppliers, and processes.

• In the largest sense, an entire organization can be viewed as the process in the diagram.

• External suppliers provide input to the entire organization and customers receive the output of the organization.

• Internal suppliers and customers represent the various internal suppliers and customers that make up the internal workings of an organization.

TQM• If one duplicates this diagram many times, the entire operation of an

organization can be represented. • This model of an organization nicely shows how external suppliers and

customers are related through the process of the fabless organization. • Less well recognized is the way of viewing internal customers and suppliers.

The process of an organization can be broken down into component elements; for example, on a manufacturing line the step-by-step process of – design process of moving a product design through various gates (i.e., check points). – Fabrication stages– Shipping

• This conceptual model becomes useful for mapping processes and understanding interrelationships among processes by using quality tools (e.g., flow charting tools).

• It is part of the process of identifying specific opportunities for improvement.

Quality Leaders• The Deming Approach. Deming tends toward assessment of quality in human terms, yet espouses

the utility of tools for understanding data. – Deming created fourteen major points that are widely utilized. These include such items as; create constancy of

purpose, institute training, drive out fear, break down barriers, and so forth. The core of the Deming approach,however, lies in the use of simple data analysis tools that include control charts, flow charts, Pareto diagrams, Scatter plots, cause and effect diagrams, etc. Deming is also responsible for the Plan, Do, Check, Act cycle (see below).

• The Juran Approach. The Juran approach divides the quality effort into three parts: quality planning, quality control, and quality improvement. – The planning process attempts to discover who the customers are and what their needs are, the control process

attempts to reach new levels of improved quality (e.g., lowering defects, reducing cost, improving customer satisfaction, etc.) and the improvement process attempts to continuously improve the quality of the process.

– Juran was a pioneer in the understanding of the interrelationships among customers, suppliers, and processes. • The Crosby Approach. This approach is based on culture change in an organization.

– By identifying areas in which quality can be improved in an organization and improving awareness, instituting teams, setting goals, giving recognition, and continuously repeating the quality improvement cycle, this approach is a truly human-oriented technique.

What To Measure• Many Quality efforts are missing a key ingredient:

– a set of meaningful measurements that promote prevention over correction, proactive over reactive.

– The leaders of modern organizations typically believe that they have too many measurements. – The fact is, people need training on how to choose and use measurements effectively. – It is a key opportunity to accelerate quality activities and the results they produce.

• Companies tend to measure certain areas:– money- sales, costs, profits, assets – activity - number of policies issued, units sold, – sales calls made, etc. – schedules - completion, delinquencies, deadlines – "pain" - customer complaints, accidents, resignations, penalties

• What is the unifying GOAL? How can we measure this in each area and department?

Measurements are Key• “Any system or process will conform the measures placed against it by

management.”– Choose the measurements that make the total optimized goals most important.– Avoid the sub-optimization of measurements to drive improvement or attainment in a

single area only.• Managers are evaluated and rewarded according to "their numbers" in

these areas, cutting costs, getting work out, meeting schedules, and avoiding pain.

• Quality is not really included as an integral part of departmental routines or managerial performance appraisals.

• Properly selected measurements produce dramatic improvements in quality and profitability. – Adequately-trained managers can use measurements to tackle their assignments from

a different perspective: focusing on the processes for accomplishing work, rather than "pointing fingers" at their co-workers and assigning blame.

The 10 Prerequisites For Successful Measurement

There are 10 pre-existing conditions which have to be met. The measurements are successful because the prerequisites for success have been provided.

1. Measurements important to customers, the employees or suppliers involved; i.e. timeliness, accuracy, completeness or cost.

2. Each measurement must be part of a defined and documented process; i.e. clearly established methods, procedures, equipment, training.

3. The process is operated according to clear requirements; established for results, supplier inputs and sequence of operations.

4. Measurements must be important to managers or supervisors who control work group time and resources; i.e. improved performance pays personal benefits.

5. The employees involved believe they can do something to streamline or improve the process; knowledge and authority to make changes.

6. The measurement tools used are appropriate for the task at hand, i.e. not too simple or complex. 7. Measurement results are periodically reviewed frequently enough to effect change; i.e. daily, weekly,

monthly. 8. People must use the measurements to stimulate thought, discussion and actions. 9. Employees trust that actions will be focused on the process, not the people involved; "How can

we improve the process" versus "Who screwed up?" 10. Everyone is recognized for their efforts and rewarded for progress. Don’t single out, celebrate

the TEAM EFFORT!

Building TQM Systems• Stop blaming people• Identify Fundamental Customer

Concerns (internal and external)

• Building systems to support the process– Detailed position descriptions– Identify the process we need a

system for– Action plans to support the system

Successful Quality ProcessesThe truly effective quality processes are distinguishable from others in

several areas:• Healthy - senior executives treat quality as a key element of management

and measurement systems; improvement is an integral part of everyone's job

• Warning sign - lots of delegation, little personal involvement at senior levels; few real changes in priorities, decisions or behaviors at the top

• Healthy - leaders feel a sense of urgency, but maintain balance between patience and insistence; plans are made, resources applied and people are held accountable

• Warning sign - shortcuts are taken in pursuit of quick results; minimal training for workers, little time available for improvement projects

successful quality processes• Healthy - major emphasis is on specific issues or desired results; improvement

goals relate to business needs; progress is measured and rewarded.• Warning sign - a focus on activities, lots of tracking and reporting: number of

training classes, committee meetings and improvement teams; activities take time without saving any

• Healthy - results are sought in all functional areas: administration, finance, sales or marketing and development departments.

• Warning sign - narrow focus on product, production or direct customer-interface areas

• Healthy - quality-related measurements are part of the mainstream evaluation of performance and profits; customer service improvement and waste reduction are strategies for survival and growth

• Warning sign - quality and improvement are seen as a tasks for workers rather than strategies involving all levels of the organization

Quality is the promising strategy for survival in today's challenging environment. What's needed is more effective implementation.

TQM –Leadership QualitiesThe most important of all: • The leaders of the quality revolution are characterized by top-level involvement,

a sharp focus on results, and company-wide attention to all four dimensions.

• Quality and profits come in a four-dimensional package which is achieved over time, and high performing organizations:

1. Customer-focused; a satisfied customer is their ultimate objective

2. Process-oriented; how they do their work is important

3. People as a valued resource; a source of ideas as well as labor hours

4. Adapt quickly to Change; realizing that nothing stays the same over time

• Success means managing all 4 at a time and becoming unrelenting as things get tough.

Getting Started

Action Items