A COMPARITIVE STUDY: TOTAL QUALITY MANAGEMENT AND THEJAPANESE POKA-YOKE STYLE:

Dr. Tiffany Jordan

AbstractAs competition increases in the global marketplace and organizations seek

ways to increase customer base, quality is a “core-value” in the system of planning, toimprove productivity and reduce error or waste. For many years Total QualityManagement (TQM) has been a hot topic in journals, magazine, and newspapers(Mescon et al, 2001; Schmidt, 2000; Ghosh, 1996; Knouse, 1995). Then came thePoka-Yoke style as a measure of quality control and continuous improvement(Nakajo, 1993). But has TQM given companies who implement it a return on theirinvestment (ROI). But does TQM really work? How much in time and financial costof implementing TQM and Poka Yoke? This study discusses the principles andapplications of TQM and the Poka-Yoke quality style, and how they are (and were)used in companies in America and Japan. It also discusses theories for organizationalleadership and management, before TQM or Poka Yoke can be successfullyimplemented. It takes a look at the TQM process from effectiveness and failure pointof view and attempts to shed some light on this controversial but highly significanttopic. Therefore, the intent is to allow managers to examine these two models andform their own opinion concerning the benefits or weaknesses.

Keywords: Total Quality Management, TQM, Poka-Yoke, OperationsManagement, Production Management, Leadership and Management, QualityStandards, Quality Control, Japanese Management Style, American ManagementStyle.

Resume*Tiffany Jordan, Ph.D./DBA., International Business/ManagementAdvanced Graduate Business Certification in ManagementTeacher Business & Gifted Education Certification, State of FloridaMaster of Business AdministrationBachelor of ScienceTrain the Trainer

Table of Content

Total Quality ManagementIntroduction 1What Exactly is TQM 1

History of TQM 3Companies Using TQM 3TQM and Return on Investment 4

Consider the Ugly acts from the 70s and 80s 4Ugly Facts from the 90s 4Why are so Many Companies Struggling 5Which Strategy is your Company Pursuing 6

On Community College RenewalA Renewal Framework 6Leadership: The TQM Driver 7Key Leadership Responsibilities 7The Foundation to Quality 7

Dupree’s Model 8Deming’s Model 9

Deming System of Profound Knowledge: The New Economy 9Deming’s 14 Points 10

Quality StandardsTotal Quality Management 11

TQM in the Public EyeCustomer Driven vs. Company Driven 12Long Term vs. Short Term Orientation 12Data Driven vs. Opinion Driven 12Elimination of Waste vs. Tolerance of Waste 12Continuous Improvement vs. Fire Fighting 12Prevention vs. Inspection 13Cross Function Teams vs. Fortress Departments 13High Employee Participation vs. Top Down Hierarchy 13Problem Solving vs. Blame 13Systems Thinking vs. Isolation 13Leadership vs. Management 13

Quality 14TQM and its Benefits 14

Model of TQM Process 14TQM Its Benefits and Failures 15Failures of TQM 15Continuous Improvement 16Continuous Improvement and Standardization: Daily Management 17Individual, Team Roles, and Responsibility 18Business Reengineering 18Gurus on Quality Control and Management 19

The Human Side of the Enterprise 19Tools used in TQM 21

Cause and Effect Diagram 21Run Chart 21

Scatter Diagram 21Flow Chart 22Pareto Chart 22Histogram 23Control Chart 23

Is there a Downside to Performance Management 23Success or Failure: The Truth About Business 24TQM and MBO 24Poka Yoke Japanese Quality Management 24

Introduction 24Historical Background on Poka Yoke 26The First Poka Yoke Device 26General Steps in the Fail Safing Process 27Zero Quality Control: Source Inspection and the Poka Yoke System 27The Principles of Fool Proofing and their Application in Manufacturing 28Developing Poka Yoke Processes 29

The Customer 29Process 29Metrics 29Focus, Urgency, Time Compression 30The Process (Table 1) 30

Categories and Characteristics of Poka Yoke Devices 31Examples of Poka Yoke 31Prevention Devices Examples 31Detection Devices 32Characteristics of Poka Yoke Devices 32

Conclusion 32Definitions 34References 39

Total Quality ManagementIntroduction

While Total Quality Management (TQM) has proven to be an effectiveprocess for improving organizational functioning, its value can only be assuredthrough a comprehensive and well thought out implementation process. Total QualityManagement (TQM), a form of management that emphasizes continuous qualityimprovement processes in institutional operations, represents a major paradigm shift(Spanbauer, 1992) in management. Under a variety of names such as ContinuousQuality Management, or Responsibility Center Management, TQM type principleshave been successfully implemented, however, they are also critics (Seymour 1991,Cross, 1993). Many researchers on Total Quality Management (Mansor, 1993;Hamzah and Ho, 1994; Sohal and Ritter, 1995; McKenna, 1995; Hakim, 1996; Ghoshand Wee, 1996) examine Productivity Organization, in Japan, as instrumental inraising productivity. Many TQM activities in Asia were started in private companiesas Total Quality Control (TQC). These were mainly Japanese companies withinvestments in manufacturing plants throughout Asia. The principles of TQC wereexpounded by Feigenbaum (1961), suggested that high-quality products are morelikely to be produced by total quality control rather than by manufacturing workingalone. These principles gave way to Total Quality Management when management ofcompanies realized that responsibilities for quality are company-wide, and residedwith the management hierarchy. Japanese writers such as Ishikawa (1985) and Imai(1986) referred to such involvement of management and the rest of the company ascompany-wide quality control (CWQC), or total quality control (TQC), whichWestern management practitioners call total quality management (TQM). In the1980s, America followed suit realizing that Japan was becoming a model inmanufacturing.

Foreign competition from the 1970s has forced companies, particularly UScompanies, to realize the importance of quality products and customer satisfaction.During the last decade or so, management in public and private sectors has soughtways to improve the bottom line. This brought significant paradigms such as TotalQuality Management (TQM) and the Japanese Poka Yoke style.

The purpose of TQM and Poka Yoke is Customer satisfaction through value-added products. Accordingly, management must focus on the knowledge, skills andabilities (KSAs) of each worker to bring continuous improvement through teamwork.

These require management commitment to change from the old traditionalways of doing things to adopting new concepts. To be effective and efficient,organizational departments must work cooperatively to accomplish goals and create astrong organizational culture. But moreso, to implement control feedbackmechanisms, which will ensure the effective quality and productivity as required bythese philosophies.

What Exactly is Total Quality Management?

Certainly TQM can be defined in a number of ways, and the details ofdifferent approaches can vary somewhat. The term Total Quality Management orTQM has many definitions. Total Quality Management (TQM), a form ofmanagement that emphasizes continuous quality improvement processes ininstitutional operations, represents a major shift in academic administrative circlesfrom hierarchical to collegial management. Under a variety of names such as

Continuous Quality Management, or Responsibility Center Management, TQM typeprinciples have been successfully implemented. It is defined as a mutual way of doingbusiness that focuses on relying on the knowledge, skills and abilities (KSAs) of thelaborers as well as the management in order to bring a continuous improvement in thequality and productivity of the organization by working in the form of teams(Drucker, 1996, 1994, 1993). Nevertheless, he notes that this concept of quality hasnot emerged overnight. According to the founders of TQM, Organizations are systemsof interrelated units and for TQM to succeed; all of the components within theorganizations must be collectively involved. Finally, top management commitment tothe TQM process is absolutely essential for its successful implementation.

Scheer (1994) also notes that total quality management, commonly known asTQM, is a process ideally suited to being applied in operating breweries where qualityis more than just a word management pays lip service to. TQM is a managementprocess based on fundamental principles that focus an organization’s energy onalways meeting customers’ expectations. But because it is a process-not simply aprogram, it requires long-term commitment to bring into play in every aspect of thedevelopment.

However, a good starting definition, drawn from Capezio & Morehouse(1995): "Total Quality management refers to a management process and set ofdisciplines that are coordinated to ensure that the organization consistently meets andexceeds customer requirements. TQM engages all divisions, departments and levels ofthe organization (Bacal, 1996). Top management organizes all of its strategy andoperations around customer needs and develops a culture with high employeeparticipation. TQM companies are focused on the systematic management of data ofall processes and practices to eliminate waste and pursue continuous improvement. "In his book, Bacal further states that perhaps a better way of understanding TQM is tocompare a "TQM organization with what we might call a "traditional organizations tosee the differences. He breaks TQM down into eleven specific areas.

Quality Standards

Total Quality Management (TQM)

TQM can be seen as the summation of distinct patterns of management overthe last century (Cole, 1997). These can be summarized as industrial betterment,scientific management, human relations, systems approaches and organized culture(Grint, 1997). In the past each branch of management and quality mechanisms wereaimed at certain spheres of the organizations hierarchy. The principle behind TQM isto take a vertical approach to quality, one that affects every individual in theorganization from the senior management to the most minor employee (Cole, p237).

What distinguishes TQM from other forms of organizational quality standardssuch as Business Process Reengineering or the Japanese Poka Yoke standard is that itis not a radical management tool that can often completely "pull apart" anorganization. Instead, TQM seeks to permeate an organization through steady qualityimprovement throughout all of its current processes rather than create new ones.

The author also notes that another distinction made with TQM is over thespecification of quality (Cole, p238). This means that in traditional quality systemsthere is a certain tolerance built into quality measurements to allow for the fact therewill always be some faulty components, etc. TQM however assumes that every itemis already defect-free and this tolerance is not allowed for. This places a large

responsibility on suppliers and is why certified ISO 9000 companies will only acceptsuppliers who are certified to the same level.

Total quality management has its roots back to the era of 1970s and 80s whenthe US companies were struggling for their survival in an adverse atmosphere ofrecession, decline in business, deregulations, increasing competition, growing tradedeficit, low productivity and a more aware and educated customer demanding morequality products or services. Drucker further mentions that the giants of the Americaneconomy such as Ford motors and Xerox has suffered from huge losses in this periodbecause of the unfavorable market conditions and increasing competition from theforeign competitors. This was the time when the true concept of TQM begins toemerge and companies started realizing the importance of quality.

Many methods have been used over the years to reduce costs and improvequality and productivity: Concepts such as MBO, TQM, Quality Circles, and theJapanese Poka-Yoke. Style. Deming (1984, 1964) the father of TQM describesorganizations as composites of systems designed to meet customer needs. Commonsystems in organizations are human resources processes such as compensation orfinancial ones like accounting. In such systems, processes and tasks are linkedtogether and affect one another. He mentions for example, status changes foremployees will require interdependent tasks on the part of employees in payroll,compensation, benefits, training and the relevant supervisor. The basic assumptions ofthe Total Quality Control approach include: Work that can be broken down into tasks,which are a series of related steps. A process groups all related tasks done toaccomplish an outcome (i.e., hiring a new employee or producing a product). Peoplecompleting a series of related tasks have interdependent roles in the organization.

TQM at first glance is seen primarily as a change in an organization'stechnology from its way of doing work. In the human services, this means the wayclients are processed, the way service is delivered, and organizational processes suchas paperwork, procurement, and other procedures. But TQM is also a change in anorganization's culture, its norms, values, and belief systems about how organizationsfunction. It is also a change in an organization's political system: decision makingprocesses and power bases. For significant change to occur, changes in thesedimensions must be aligned: TQM as a technological change will not be successfulunless cultural and political dimensions are attended to as well (Tichey, 1983).

History of TQM

Total Quality Management (TQM) has become a major social phenomenon inAmerican society. Many American companies and organizations as well as severalinstitutions worldwide have planned and implemented TQM principles and processesover the years. However, the effectiveness of TQM has not been clearly determinedyet and a review of the TQM literature reveals some mixed results. Some studiesshow a positive relationship between TQM and high performance suggesting itseffectiveness, whereas others point to the doubts and apparent failures of the method.This study takes a look at the TQM process from an effectiveness point of view andattempts to shed some light on this controversial but highly significant topic.

Edward Deming (1986), Joseph Juran (1969), and Kaoru Ishikawa (1985)were the pioneers of the TQM movement. Their basic assumptions of TQM focusedon quality, people, organizations, and the role of top management. Deming’semphasis is not on results but on method, which is familiar territory to those in the

quality movement. Deming was known to have demanded upon more than oneoccasion, "By what method?"

Companies using TQM

Why do some companies “breathe” TQM and believe so strongly in it whereasothers criticize it as being dead and doomed to failure? Several companies likeCorning (Shapoff, 1996), AT&T (AT&T, 1992), General Motors, Motorola, IBM,Kodak, and Westinghouse (Eskildson, 1995) have implemented TQM in theirorganizations and have achieved glowing results in terms of performance andproductivity. In fact many of them were successful in winning the prestigiousMalcolm Baldrige National Quality Award for their high quality performances.

Deming speaks of the concept of psychology and use of the theory of variation(statistical theory) being boundless. For example, the number of defective items thatan inspector finds depends on the size of the workload presented to him (documentedby Harold F. Dodge in the Bell Telephone Laboratories around 1926). An inspector,careful not to penalize anybody unjustly, may pass an item that is just outside theborderline (Out of the Crisis, p. 266). Take these examples for instance:

A teacher, not wishing to penalize anyone unjustly, will pass a pupil that isbarely below the requirement for a passing grade. Also, fear invites wrongfigures. Statistical calculations and predictions based on warped figures maylead to confusion, frustration, and wrong decisions.

A committee appointed by the President of a company will obviously reportwhat the President wishes to hear (Johnson, 1992).

Transformation leaders and managers need to learn the psychology ofindividuals, the psychology of a group, the psychology of society, and the psychologyof change. Some understanding of variation, including appreciation of a stable system,and some understanding of special causes and common causes of variation, areessential for management of a system, including management of people (Deming,1984).

TQM and Return on Investment

For several years quality improvement has been a "hot topic" in many tradejournals, professional societies, and inside numerous companies (Schmidt et al, 2000).In fact, the acronym "TQM," which stands for Total Quality Management, has inmany circles almost become a "rite of passage." The TQM initiative started withelectronic and automobile manufacturing in the late 70s and early 80s and has nowspread to healthcare, banking, and other service-oriented companies. With all theexcitement about TQM, millions of dollars have been spent on training andconsulting. This huge expenditure has led some companies to loathe the use of theacronym TQM, because they have not realized the return on investment (ROI) thatthey originally expected. Obviously, the question of why the ROI has not been asexpected is one many organizations are pondering. Schmidt et al, continues to pointout some important facts about TQM and ROI as follows:

Consider some ugly facts from the 70s and 80s:

After researching many periodicals, journals and newspapers on the Americancorporations, I found a shift from what was once labeled “made in America” toproducts produced elsewhere carrying American label presented some ugly facts onAmerican corporations:

• In 1970, 17 firms produced televisions in the United States. Today there isonly one. Most televisions sold today are made in Pacific Rim countries.

• Between 1970 and 1988, our share of the USA's consumer electronics marketfell from 100% to under 5%.

• Of the top ten banks in the world (ranked by assets), Japan has seven, Francehas two, and the United States has one. Fifteen years ago the United Statesdominated that list.

• The 1989 healthcare bill for the U.S. was over $600 billion, more than 11% ofthe gross national product. This sum is so large that if the American healthcareindustry were declared a nation it would have the sixth largest gross nationalproduct of all the nations on earth.

Schmidt also mentions “One would think that companies aware of these factswould immediately be motivated to prevent similar things from happening to them.For certain, many consultants (internal and external) have sprouted up because of theunhealthiness of U.S. industry, yet not enough companies have changed for the better.For example, consider the results of a USA Today literature review over 1992.”

Ugly facts from the 90s:

• Boeing Layoffs: Boeing says it expects to cut about 8,000 jobs this year, boththrough layoffs and attrition. (2/20/92)

• Leaner IBM: Thousands of employees must find a job elsewhere in thecompany or leave with severance pay. The notices are part of IBM'sannouncement in December to cut up to 20,000 jobs worldwide this year. IBMhad about 344,000 employees worldwide at the end of December after cuttingmore than 29,000 jobs last year. (4/13/92)

• Exxon Layoffs: Exxon USA will cut its white-collar workforce by at least1,000, or 10% because of weak demand and low energy prices. (5/18/92)

• Northwest Cuts: Northwest Airlines has announced the elimination of nearly900 jobs in recent weeks. (7/30/92)

• General Dynamics will lay off 5,800 workers by the end of 1994 at its FortWorth division. It has cut 10,000 workers since 1990. (7/30/92)

• More Computer Jobs Cut: Hewlett-Packard says it will trim about 2,700jobs, Compaq said it will cut 1,000 workers. (10/9/92)

• Digital Equipment Corp. plans to trim its workforce by 25,000 the next fewyears to 88,000 worldwide. DEC, which cut 5,300 jobs last quarter, says it willcut more this quarter. (10/15/92)

• GM Buyouts? GM goal of cutting 54,000 hourly workers by 1995 ... plansannounced in December to close 21 plants and cut 74,000 jobs.

• Bank Failures: The Federal Deposit Insurance Corp. expects just over 100banks to fail this year. About 85 banks have already failed this year. The FDICexpects 100 to 125 banks to fail next year. (10/19/92)

• United Technologies Cuts: Its Pratt & Whitney unit will lay off 7,500workers by the middle of next year, 4,800 more layoffs at the jet-engine makerthan previously announced. (10/19/92)

• Pay Freeze at RJR Unit: RJR Nabisco Holdings says it is freezing salaries atits food group for a year to keep costs down. One-fourth to one-third of thegroup's 25,000 North American employees will be affected. (10/20/92)

• L.A. Times Cuts: Economic woes are forcing the Los Angeles Times to closeits 14-year-old San Diego edition and cut jobs, offering voluntary severance to5,200 of its 7,500 full-time workers, hoping to cut 500 jobs. (11/9/92)

• Kodak Layoffs: Eastman Kodak plans to lay off up to 3,000 workers the nextsix months . . . More than 8,000 workers left Kodak the past 18 months afterthe company offered a lucrative early retirement plan. (1/8/93)

This list does not include all of the companies that experienced problems in 1992neither does it contain numerous additional headlines from 1993 through today. Withevidence like this, it is difficult to deny that a major problem exists. USA Today,August 31, 1993, contains an article, "Bargain prices have a cost: Job cuts." Thisarticle by Gary Strauss indicates that "pressure to keep prices low, maintain marketshare and boost corporate earnings has long forced layoffs in hard pressed industries,such as automobiles and computers." The article goes on to state that IBM will cut100,000 employees by 1995, and that other companies, such as Proctor and Gamble,AT&T, Merck, Johnson & Johnson, and Sprint, are also announcing layoffs.

The Costs of Poor Quality for Companies

A product or service is driven by profits and total cost to produce. The totalcost to produce can be broken into two categories: (1) the cost associated with doingonly the right things right the first time (theoretical cost), and (2) the waste or non-value added cost (referred to as the Cost of Poor Quality or COPQ). According toquality gurus such as Deming (1982), and Juran (1989), the percentage of COPQ inmost companies is 20-40%. Global competition, customer-driven fixed cost, or budgetcuts have mandated a lower and more competitive price.

Unfortunately, this response is typical of many U.S. managed companies whoseem to be more concerned about short-term profitability than they are about long-term stability. The company that will survive global competition in the 1990s and oninto the twenty-first century, is depicted as a company driven by quality and cost. Ithas attacked and cut its COPQ significantly. The key to competitiveness and survivalis tied to reducing the 20-40% waste. This Cost of Poor Quality is due to high cycletimes, long development times, high defect rates (or low yields), poor productivity,

excessive inventories, training without ROI, lack of customer focus, and many othernon-value added activities. Lowering COPQ is a difficult strategy in the short term,but it is the only way to long-term profitability, competitiveness, and the ability toweather hard times.

Which strategy is your company pursuing?

These authors challenge managers on how they plan to lower COPQ before orfaster than your competition does. Accordingly, they observations suggest that mostcompanies do not have the slightest clue as to what their COPQ is. This is probablydue to either time constraints, improper accounting methods to investigate or estimatetheir waste, or the fear of having to face reality. However, TQM comes down tohaving a plan for measuring ROI.

Another reason for not receiving ROI regardless of how much training (goodor bad) given scientists, engineers, technicians, and operators, is if they don't havetime to implement what they have learned. First, a manager must learn where his/herpeople are spending their time, and then develop a way to increase the amount of timequality improvement and decrease waste management.

A third aspect of the ROI problem is the fact that everyone seems to be talkingquality improvement, but no one is keeping score.

A Renewal Framework

Demand for accountability in these management principles began with MBOin the USA government, with President Nixon and TQM in the Reagan and Bushadministrations (www.reseval.net)

Strategies for dealing with uncertainty and change have taken manyforms over the last ten-to-fifteen years. Some of these strategies include termsand acronyms common to most in community college administration:management by objectives (MBO), transformational leadership, systemstheory, total quality management (TQM), continuous quality improvement(CQI), quantum quality (QQ), seven habits, learning organizations,reengineering, downsizing, and rightsizing. New and interesting alternativeideas are also advanced by advocates of chaos theory, "the new science of,"liberation management and knowledge management," and those that tell us to"lead from the soul." Much to the dismay of the leader who feels comforted bythe number of choices, many of these perspectives seem to discount the othersand at times mock the very tenants of rival theories. Many of these strategiesare time consuming or organizationally traumatic (Hodges and Milliron,1997).

Leadership: The TQM Driver

According to Max Dupree, (1989) Chairman of the Board, Herman MillerCompany, “The first job of a leader is to define reality, the last is to say, thank you. Inbetween, the leader is a servant.” He believes that leadership is people focused, whilemanagement is task focused. Although we need both to succeed, leadership at alllevels is generally in a shorter supply. A major leadership imperative is to create anorganization that is value-based rather than rule-based. People's work in a value-basedorganization is guided by direction, values, and accountability rather than relying onthe rulebook, elaborate staff procedures, and compliance behavior.

Key Leadership Responsibilities

Leadership is the engine of transformation required throughout your quality journey.Leaders in a value-based organization are responsible for the following:

1. Direction — Enlisting the organization in clarifying its vision, mission, andgoals.

2. Culture — Promoting desired organizational values and associated behaviorsby example.

3. System — Creating motivating jobs that provide employees with ownership,authority for thinking, and accountability for clearly defined results. Processes,systems, and structure should support the front-line employee.

Although, all efforts rely on leadership, the following responsibilities are particularlyimportant to help focus your attention at various points of your journey.

The Foundation to Quality

1. Building the senior labor-management team to lead the quality journey — Promotequality awareness, build from common interests and a customer focus rather than"managing differences," and develop TQM goals and an action plan that underscoresdesired values such as customer focus, employee involvement, and continuousimprovement.

2. Enlisting support of additional managers, supervisors, and union leaders — Seniorleaders should put much of their personal energy into working with those thatdemonstrate early leadership for quality, ensuring their early success and recognition.

3.Sponsoring early quality initiatives — The role of a sponsor is one of a supportingmentor. Acting as a sponsor is an opportunity to model the leadership behaviors youwish to develop in others.

Dupree’s Model

Consider Dupree’s (1989) model below of the fundamental differencesbetween old-style, conventional management thinking and TQM thinking:

Conventional TQM1. Quality costs money and time. Quality saves money and time.2. Work is a series of events. Work is an integrated process.3. Quantity is as important as quality without quality, quantity is irrelevant.4. Quality means hitting preset goals. Quality means continuous improvement.5. Hitting 95 percent is great. Only 100 percent will do.6. Quality comes from better inspection. Quality is built in from the start.7. Suppliers must be kept on their toes. Suppliers must feel that they are our

Partners.8. Customers are whom you sell to. Customers are really an integral part of

the organization.9. To achieve quality, you need Quality can be achieved with the peoplemore and better people. we have-imply by leading and training

them differently.

Examples of old-style tools are inspection, sampling and statistical processcontrol. Past goals have been expressed as “Do it right the first time;” “be qualityminded;” and “reduce scrap and rework.” Most of us have had experience with theseold sayings mentions Dupree. But while they require effort, they do not necessarilyresult in improved quality. Quality engineering is typically handled by a specializeddepartment for quality control (QC) or quality assurance in furniture manufacturingand brewing. Typically, the QC people are responsible for inspecting produced andprocured products and measuring their quality. Its principle objective is: “Catch badquality.”

Deming’s Model

Deming was the founder of the modern Quality movement, and regarded by theJapanese as the key influence in their postwar economic miracle, his views andmethods are much more widely promoted and known throughout the internationalmovement by the writings of others (Neave, 1990) who was a believer in Deming’stheory.

Deming's System of Profound Knowledge: The New Economics

Deming (1993) points out the prevailing style of management must undergotransformation. A system cannot understand itself. The transformation requires a viewfrom outside which he calls a system of profound knowledge, a map of theory bywhich to understand the organizations that we work in.

The author argues the first step is transformation of the individual, which comesfrom understanding of the system of profound knowledge. The individual,transformed, will perceive new meaning to his life, to events, to numbers, tointeractions between people. Once the individual understands the system of profoundknowledge, he will apply its principles in every kind of relationship with other people.He will have a basis for judgment of his own decisions and for transformation of theorganization that he belongs to. The individual, once transformed, will:

• Set an example

• Be a good listener, but will not compromise

• Continually teach other people

• Help people to pull away from their current practice and beliefs and move intothe new philosophy without a feeling of guilt about the past

The layout of profound knowledge appears here in four parts, all related to each other:

• Appreciation for a system

• Knowledge about variation

• Theory of knowledge

• Psychology

Dr. Edward Deming certainly helped influence this method of operatingknown by many as the father of total quality. Deming, an American, is credited withinfluencing Japan’s rise as an industrial power. Yet, during the1950s unbelievers inthe USA alleged that Deming’s ideas conflicted directly and philosophically with thedominant American model of operation: management by objectives (MBO) andmanagement by exception (MBE). In TQM, old-style practices are modified,supplemented and redirected to produce quality throughout an organization. Toimplement TQM into any business, Deming proposed 14 points (Deming, 1984,1986).

One need not be eminent in any part nor in all four parts in order to understandit and to apply it. The 14 points for management in industry, education, andgovernment follow naturally as application of this outside knowledge, fortransformation from the present style of Western management to one of optimization.Thus, he (1984) suggested the following principles for quality:

Deming’s 14 Points

1. Create constancy of purpose toward improvement of product and service, with theaim to become competitive and to stay in business, and to provide jobs.

2. Adopt the new philosophy. We are in a new economic age. Western managementmust awaken to the challenge, must learn their responsibilities, and take on leadershipfor change.

3. Cease dependence on inspection to achieve quality. Eliminate the need forinspection on a mass basis by building quality into the product in the first place.

4. End the practice of awarding business on the basis of price tag. Instead, minimizetotal cost. Move toward a single supplier for any one item, on a long-term relationshipof loyalty and trust.

5. Improve constantly and forever the system of production and service, to improvequality and productivity, and thus constantly decrease costs.

6. Institute training on the job.

7. Institute leadership. The aim of supervision should be to help people and machinesand gadgets to do a better job. Supervision of management is in need of overhaul aswell as supervision of production workers.

8. Drive out fear, so that everyone may work effectively for the company.

9. Break down barriers between departments. People in research, design, sales, andproduction must work as a team, to foresee problems of production and in use thatmay be encountered with the product or service.

10. Eliminate slogans, exhortations, and targets for the work force asking for zerodefects and new levels of productivity. Such exhortations only create adversarialrelationships, as the bulk of the causes of low quality and low productivity belong tothe system and thus lie beyond the power of the work force.

11. Eliminate work standards (quotas) on the factory floor, including annualappraisals and Management by Objectives. Substitute leadership.

12. Remove barriers that rob the hourly worker of his right to joy of workmanship.The responsibility of supervisors must be changed from sheer numbers to quality.

13. Institute a vigorous program to encourage education and self-improvement.

14. Put everybody in the company to work to accomplish the transformation. Thetransformation is everybody's job. Define top management's permanent commitmentto ever-improving quality and productivity, and their obligation to implement all theseprinciples.

The various segments of the system of profound knowledge proposed herecannot be separated. They interact with each other. Thus, knowledge of psychology isincomplete without knowledge of variation. A manager of people needs to understandthat all people are different. This is not ranking people. He needs to understand thatthe performance of anyone is governed largely by the system that he works in and theresponsibility of management.

TQM In the Public Eye

1. Customer-Driven vs. Company-Driven(Bacal, 1998, 1997) suggests that a traditional organizations tend to make their

decisions based on what is most convenient for them, rather than what is wanted andexpected by their customers. Hence, being customer-based means gatheringinformation from customers/clients and modifying services and processes to meetthose needs as well as possible. He notes that in government, this is not always easy,due to the conflicting responsibilities of a department, and the multiplecustomers/stakeholders involved in government situations. However, in many casesmoving to a customer-driven organization can yield many positive results forgovernment departments.

2. Long-Term vs. Short-Term OrientationThe traditional organizations tend to think and plan with respect to short-term

outcomes, while the TQM organizations tend to think in much larger time spans. Atypical example might be that a TQM organization would look at downsizing ashaving effects over a decade or two, while a traditional organization would look onlyat the immediate budgetary issues, letting future chips fall where they may.Additionally, successful TQM organizations make a long-term commitment to the

principles of TQM, rather than looking at TQM as a program, something with abeginning and end. Bacal believes this requires patience.

3. Data-Driven vs. Opinion-DrivenTraditional organizations tend to be managed by gut feel, or by opinion. They

guess at what their customers want, and guess at the costs of waste, etc. TQMorganizations base their decisions on data they collect; on customer needs, on waste,on costs, and on the sources of problems. While judgment is always involved in anydecision, TQM organizations begin with the data, not with the solution.

4. Elimination of Waste vs. Tolerance of WasteMost organizations operate with a high degree of waste and inefficiency.

Traditional organizations consider waste, whether it is in time, materials, etc, as anormal part of their operation. TQM organizations are very active in identifyingwasteful activities, and eliminating them.

5. Continuous Improvement vs., Fire FightingBacal states that traditional organizations tend to address problems with the

way they do things only when there is a major problem or crisis. The watchword intraditional organizations is: "if it isn’t broke, don't fix it", except that often it isbroken, but nobody is paying any attention. TQM organizations are always lookingfor improvement, and are constantly engaged in problem-solving to make thingsbetter.

6. Prevention vs. InspectionIn traditional organizations, problems are fixed after the fact. Rather than

trying to prevent problems, they catch them after the fact, which is very costly. TQMorganizations work to prevent problems and errors, rather than simply fixing them.

7. Cross-Function Teams vs. Fortressed DepartmentsThe old traditional organizations tend to have sub-units that work

autonomously and with little communication or involvement with other units. Forexample, personnel may have only limited interaction with other departments. Or, ona local level, administrative staff may have little communication with other staff in agovernment branch, and have a different reporting structure (Bacal, 1998). In TQMorganizations, there is more use of cross-functional teams; teams convened for aparticular purpose or purposes, with representation from a number of units or levels inthe organization. The use of cross-functional teams means that input is gained fromparts of the organization that need to be involved.

8. High Employee Participation vs. Top-Down HierarchyTraditional organizations tend to have very restricted communication and

decision- making patterns. Employees are told what to do, rather than being includedin figuring out what to do. Information tends to flow from top to bottom. In TQMorganizations, employees are much more actively involved in both the decision-making and communication processes. Information flows both top to bottom andbottom to top. For that matter, information also flows sideways.

9. Problem-Solving vs., BlameTraditional organizations tend to look to affix blame for things that go wrong.

TQM organizations attack the problems in their organizations rather than the people.They fix things.

10. Systems Thinking vs. IsolationTraditional organizations tend to see the parts and processes of their

organization as single things, unrelated to other part of the organization. TQMorganizations tend to recognize that most often, problems arise as a result of multiplecauses, and that sub- units are interdependent. TQM organizations tend to seeproblems as a result of the entire system Bacal, 1998).

11. Leadership vs. ManagementTraditional organizations tend to see people as objects to be managed and told

what to do, disciplined, tracked, etc. TQM organizations exhibit more confidence instaff and more trust, and expect MORE from them, not less. That's a good startingpoint. There are probably a number of other comparisons to be made, but that gives ussome common ground for discussion.

Quality

Quality perhaps is the most significant element of a product and servicetherefore also of a company in order to keep customers pleased and so is a direct linkto customer satisfaction. If a customer’s expectations were not reached because forinstance they feel they spent too much money comparing to the satisfaction theyobtained from the good or service it would mean they probably not purchase theproduct again. High quality standards are there to ensure that customers will staywith your products and trust the company because after all without customerscompanies would no longer exist so companies have to do their utmost best to satisfytheir customers. Product quality has two dimensions, which are level and consistency.First of all, the company has to decide the level or quality that would support theproduct’s position in the target market. What is meant here with product quality is theperformance quality meaning how the product is able to perform its functions. Anexample is the Rolex watch, it would have better performance quality comparing to aSwatch watch in the sense that the battery would probably last longer, less likely tobreak etc. Most companies will not always provide the highest quality (exclusiveitem) performance, as they know a few customers would want or can purchase it(Armstrong, et al, 2000, p226). High quality means free from defects. In this case, aswatch watch can have as high a quality as a Rolex watch but the cost will not be thesame. It can consistency deliver the quality that customers expected and would payfor (p 226).

Total Quality Management and its Benefits:Model of the TQM Process

Inputs

CustomersWantsNeedsExpectations

Process

TotalQualityManagement

Outputs

Satisfiedcustomer

www.deliveri.com

Over the past 10 years, a renewed importance of quality has created a global qualitymovement. Many companies implemented a major strategy for achieving high qualitystandards, which was Total Quality Management or TQM, programs, “efforts toconstantly improve product and process quality in every phase or their operations”(www.americanquality.com). With this quality, it is not so much an outcome as anever-ending process of continually improving the quality of what the companyproduces.

TQM has a variety of benefits that encourages many firms to implement theprogram. TQM emphasizes on cooperating with suppliers of products and servicesand focusing on customer satisfaction (see diagram above). Many companies treat thesuppliers with coldness and even often with hostility. But companies that implementTQM have a different relationship with the suppliers. They treat their suppliers likebusiness partners and both sides, focusing on delivering a quality product to itscustomers. A two-way communication path is established and any problems that mayarise between the supplier and the firm can be solved together, each using theirexpertise to explain how the problem occurred and how to resolve it. This benefit ofTQM leads to the prevention of waste through returned good from the supplier(www.organizedchange.com).

TQM also emphasizes on detecting possible problems in a product before theyactually occur because if it is not detected before the problem occurs, the companywill have to hire extra people to inspect. Someone will have to fix the defect, causingextra time and of course, finding the major problem. If a customer finds the defect,this could mean the loss of a customer and the spread of bad news to many othercustomers through bad publicity. TQM, therefore, makes sure that when a companydesigns a product or service, they provide maximum quality. They ask for input ofcustomers, the marketing department, and those that assemble and produce theproduct. This is to ensure the best standard or quality for the product or service beingmade, and that the employees are continuously inspecting while working(www.Organizedchange.com).

Another benefit or TQM is continuous improvement. Quality is constantlychanging and it is the task of TQM to keep up with it. For example, a car thatconsumers considered reliable in the past is now of average quality. An unusualfeature that only your organization once produced, will suddenly be producing byother companies, so consumers are no longer fascinated by it. Hence, companies haveto stay creative and continually think of ways to improve the product in order tosatisfy the growing modern customer (www.educesoft.com).

TQM also requires the management to empower its employees and encouragethem to work hard, be creative, and stay focus so that they will be innovative, and canbe trusted with pointing out the errors that may occur. This will cause the managersto become more like leaders and move from an autocratic way of interacting withemployees. This entails a more democratic way of managing for motivation. In orderfor all the other benefits to occur, the empowerment and motivation of employees willfirstly have to exist so that there will be an atmosphere of trust and innovation(www.organizedchange.com).

Total Quality Management: Its Benefits and FailuresThe Atlanta Business Chronicle (June 4, 2002) reprinted an article published

by Mescon and Mescon, that Total Quality Management or TQM is a programdesigned to constantly improve the quality of products, services or marketingprocesses. It is vital to continuously improve quality has a direct impact on product orservice performance and therefore closely linked to customer satisfaction, values andexpectations. The American Society for Quality Control defines quality as the “Totalbenefits, features and characteristics of a product or service that bears on its abilityto satisfy the customer needs” (Armstrong et al, 2000). Though the term quality hasno universally accepted definition, this definition does create a summary efficientlyenough.

Failures of Total Quality Management:“TQM is a risk venture, and the failure to implement it correctly can leave a

company much worse off than it was before it even considered the process”(www.decpoint.com).

TQM arrived from Japan in the 1970´s and was greeted with a roar ofwelcome. American business leaders raced to adopt these methods for improvingcustomer satisfaction, operations efficiency and employee productivity, hoping toregain American supremacy of product and service quality on the world market. “Socontagious was this enthusiasm that Newsweek dubbed TQM the American businesscult of the 1980´s” (Total Quality…).However, today the hopes and optimism has decreased as TQM has been reported todecline. A study by Ernst and Young showed that TQM was “not consistentlyproviding the results anticipated by American companies, and many may have wastedmillion of dollars each year on quality improvement strategies that do not improve.”(Total Quality…).

Nonetheless, what should not be forgotten is that it took the Japanese ten tofifteen years before they actually saw any improvements done by TQM. This isperhaps the first weakness of TQM as a process, which takes a lot of time, andpatience that companies do not have. Most companies wait for about six months andif they do not see enough positive results, they drop the program and try somethingelse (www.americanquality.com).

Another reason why TQM is failing is because it is not aligned with theorganizational culture, and is sometimes implemented in a culture where it is notaccepted. For instance, a country like the United Arab Emirates or an Arabian orLatin American country where the firms focus mainly on a top-down management(pyramid style of authoritative control), individual employees opinions and ideas arenot valued. Therefore, TQM would not be implemented successfully. Since TQMrequires teamwork, collaboration and the creative ideas of employees, thecommunication flow needs to exist smoothly from top-down and down top andbottom up.

TQM also tends to fail as companies seem to see the program as a quick-cure-to-all the company’s problems, as management seem to think it is a simple processand implement it without putting any thought into it. It should be implemented for theprimary reason of improving the quality of the product or service and to gaincustomers, or it will lead to a failure (www.americanquality.com)

Continuous Improvement

Total Quality is the most important, thought-provoking revolution in the worldof modern management. Many Fortune 500 firms such as IBM, Hewlett-Packard,Motorola, Ford, GM, Wal-Mart, FedEx, Southwest Airlines, GE, and Disney to namea few have committed themselves to Total Quality Management. A sense of qualityawareness now exists in many organizations, owing to the international adoption ofISO 9000 as the Quality Standard for the purchase of goods and services. There is,therefore, a huge demand for quality professionals in Asia and overseas, to cope withthe needs of both the private and public sectors.

Companies in Asian countries that exported their products to Europe wereamong the first to adopt ISO 9000 quality management standards, which were therequired standards for products to be admitted into Europe in the late 1980s (Heng,2000). When companies realized that successful certification of their goods could beused as a marketing tool, widespread adoption of ISO 9000 started to take placeamong the manufacturing companies. Additionally, ISO 9000 standards became anexternal checklist for companies embarking on quality management as the standardsgave companies a systematic way to implement TQM.

The compliance with ISO 9000 standards was not easy for the serviceenvironment as the ISO 9000 was written from a manufacturing viewpoint. Initialimplementers of ISO 9000 for both the service and manufacturing industries met withdifficulties in maintaining the quality management system. The ISO 9000implementation required much documentation and was laborious, costly and complex,where there were many changes to the systems and documents in the company(Prajogo, 1999). Later implementations of ISO 9000 was made easier as morecompanies, certifiers and consultants learned from their early mistakes. Now, ISO9000 is useful for companies intending to implement TQM for the first time orplanning to go for the Malcolm Balrige quality system in the company.

For instance, (D’Silva, 1998) argues that the larger and more "universal" isQS9000, a wonderful, team oriented, system of profound knowledge extension of thebasic checkpoint standards of ISO 9000. Ford applies Deming more thoroughly thanthe other automotive companies. Their "QOS" (Quality Operating System) hadmany of the elements of QS9000 prior to the emergence of the standard. The elementsof the automotive quality system (read operating system for manufacturers ofautomotive parts) begin with advanced quality planning and end with continuousimprovement by cross-functional teams. He states that companies should invest indocuments that deal with QS9000 Standard, Advanced Product Quality PlanningReference Manual, Quality Systems Assessment, Measurement Systems AnalysisStatistical Process Control, and Production Part Approval Process, which is a smallprice to pay to achieve standards. However, this is not "TQM", but, it is management,good management; management which uses both technology and the theory ofknowledge to gain insights into systems and psychology. The understanding ofvariation is a given.

Continuous Improvement and Standardization (Daily Management)

Standardization was given a major boost in the early 1990's when ISO9000 became widely accepted as a basic minimum that companies needed to

do to sell products in the European Union. Because it required adocumentation of key processes and provided a regular audit to see thatprocesses were followed as documented, it was a major boost tostandardization. AT&T initially undertook ISO compliance as a way to keepand grow business in Europe. When AT&T realized how ISO improved itsown processes, it began to encourage all its suppliers to become ISO certified.In 1995, AT&T discovered that its ISO certified suppliers had half as manydefects as non-ISO certified suppliers. This led AT&T to giving preference tosuppliers that were ISO certified (ATT, 1991 1992).

The continuous improvement uses a process that follows the plan-docheck-act cycle. The situation is analyzed and the improvement is planned(Plan). The improvement is tried (Do). Then data is gathered to see how thenew approach works (Check or study) and then the improvement is eitherimplemented or a decision is made to try something else (Act). This process ofcontinuous improvement makes it possible to reduce variations and lowerdefects to near zero. The processes that produce good results are standardizedand documented. The documented processes are followed. If the process ischanged the documentation is changed. If an organization lacks thisstandardization, then improvements tend to slip. Without standardization',variation is increased rather than reduced. An important part of improvementis the teamwork. Good team activity includes a clear definition of project.

Individual and Teams Roles and responsibilities

Teamwork is critical to effective continuous improvement andstandardization. Individuals can support the team by taking responsibility forthe success of the team following through on commitments, contributing todiscussions, actively listening to others, getting your message across clearly,giving useful feedback, accepting feedback easily. In getting the team off to agood start, you need to agree on a purpose, identify people who will beeffected by the work of the team (stake holders), identify limits andexpectations of team's work, agree on roles and responsibilities, ground rulesand logistics of when and where to meet. The work of the team isaccomplished by creating work plans, having productive meetings, using data,making good decisions, evaluating potential solutions, implementing changesand documenting its work.

A team must know when its work is done: it has accomplished itspurpose; took steps to maintain the gains (improvement and profits);completed documentation of actions, results, and ideas for futureimprovements; evaluated work, shared results with others; recognizedeveryone's contributions and celebrated achievements. Successful teams alsomust master potential problems: 1, the area of conflict - some people fightover everything; 2, power - the boss is on the team and people don't speakopenly; 3, correct use of experts - who speak clearly and don't dominate; 4,focus - people stay on the subject; 5, participation - all participate in an equalfashion; 6, follow-through - everyone does his or her assignments.

Business Reengineering

The installations of information technology and computer systems are oftenassociated with changes in organizations. Hammer and Champy (1993) are the mainproponents of the concept that businesses can be reviewed afresh and changeddrastically by linking it with the strategic vision and mission of the company. Thischange is what they called re-engineering. For a while, this relatively “new” conceptwas popularized by stories of successful implementation at Ford Motor Company. Inthis company, there were many examples where time and costs were saved whenbusinesses were reviewed in totality. The key difference in business reengineeringwas to view the business situation and formulate solutions by breaking away fromestablished paradigms, old mental and physical constraints that management used towork with. Hammer and Champy (1993) decided that the mental and physicalparadigms could be shifted and reconfigured.

Gurus on Quality Control and Management

The Human Side of the Enterprise

The way an organization runs (McGregor, 1960) depends on the beliefs of itsmanagers: Behind every managerial decision or action are assumptions about humannature and human behavior'; "Theory X" and "Theory Y"

• Motivation research and its practical implementation is key to successfulmanagement practice

• Pyramid of human needs (see also Abraham Maslow's similar hierarchy ofneeds in motivation), from:

1. basic physiological needs, to

2. workplace, family income etc.

3. safety and security needs, including sense of economic security

4. `social needs': acceptance by one's peers, self-respect, and finally, atthe highest level:

5. self-confidence, the giving and receiving of affection egoistic needs':self-fulfillment and self-development

• Theory X assumes most people are basically immature, need direction andcontrol, and are incapable of taking responsibility. They are viewed as lazy,dislike work and need mixture of financial inducements and threat of loss oftheir job to make them work (carrot and stick' mentality) This theory has anegative view of human behavior linked to management.

• Theory Y: the opposite of Theory X – believes that people want to fulfillthemselves and seek self-respect, self-development and self-fulfillment atwork as in life in general.

Organization theory, including arguing for radical decentralization withinorganizations, and privatization of public services was Drucker (1994) theory onmanagement. He believes that a corporation should:

• Scientific management needed

• Decentralization as the principle of effectiveness and the key to productivityand effectiveness

• Emphasis on high quality personnel management

• Education, training and development of the manager for future needs

• High quality information (especially managerial accounting) as the key tosuccessful decision-making

• Emphasis on marketing (in both for-profit and non-profit sectors)

• Need for long-range planning

• Management based on objective-setting

• Management by results

• Even "for-profit" business organizations should be viewed as human andsocial structures - even moral phenomena - rather than economic ones

• "One cannot manage change. One can only be ahead of it"

• In the "new information revolution", focus on the information, not thetechnology that collects it

• Knowledge workers must be seen as capital assets, not costs, while knowledgeworkers must manage themselves and their careers

Mintzberg (1983, 1975) studies of the nature of management work, and ofstrategic management and planning - of which he has become increasingly criticalover the years

Three key roles for any manager within any organization or unit of it:

1. Interpersonal:

2. Informational:

3. Decisional:

Always somewhat skeptical about heavy-handed strategic corporate planning, hehas recently produced a substantial and devastating critique of the failure of the typeof the strategic management currently being heavily promoted in the UK governmentand its agencies, including those in the cultural sector.

Taylor (1964) principal object of management is to secure maximum prosperityfor the employer, coupled with maximum prosperity for the employee. He believesthat management and workforce are interdependent and workers are inherentlycapable of hard work, good will, and ingenuity but under even the best of the oldertype of management, show these qualities only spasmodically and somewhatirregularly. He proposed four great underlying principles of scientific management:

o There is a need to develop a `science of work to replace old rule-of-thumb methods: pay and other rewards linked to achievement of

optimum goals - measures of work performance and output; failure toachieve these would in contrast result in loss of earnings;

o Workers to be scientifically selected and developed: training each to befirst-class at some specific task

o The science of work to be brought together with scientifically selectedand trained to achieve the best results

o Work and responsibility to be divided equally between workers andmanagement cooperating together in close interdependence

Hence, this report has led me to research the many strategies and principlesused in quality management. Many experts and gurus on quality control recommendmethods and techniques for TQM.

For example, King (1989) suggests seven quality control tools for continuousimprovement and effective planning as illustrated below.

Tools used in TQM

1. Causes and Effect Diagram

The cause and effect diagram is also called the fishbone chart becauseof its appearance and the Ishakowa chart after the man who popularized its usein Japan. Its most frequent use is to list the cause of particular problems. Thelines coming off the core horizontal line are the main causes and the linescoming off those are sub causes.

2. Run Chart

The run chart shows the history and pattern of variation. It is helpful toindicate on the chart whether up is good or down is good. This tool is used atthe beginning of the change process to see what the problems are. It is used atthe end (check) part of the change process to see whether the change hasresulted in a permanent improvement.

3. Scatter Diagram

The scatter diagram shows the pattern of relationship between twovariables that are thought to be related. For example, is there a relationshipbetween outside temperature and cases of the common cold? As temperaturesdrop, do colds increase? The closer the points hug a diagonal line the moreclosely there is a one to one relationship.

4. Flow Chart

The flowchart lists the order of activities. The circle symbol indicatesthe beginning or end of the process. The box indicates action items and thediamond indicates decision points. A beneficial technique is to map the idealprocess and the actual process and identify the differences as targets forimprovements.

5. Pareto Chart

The Pareto shows the distribution of items and arranges them from themost frequent to the least frequent with the final bar being misc. The tool isnamed after Wilfredo Pareto, the Italian economist who determined thatwealth is not evenly distributed. Some of the people have most of the money.This tool is a graphical picture of the most frequent causes of a particularproblem. It shows where to put your initial effort to get the most gain.

6. Histogram

The histogram is a bar chart showing a distribution of variables. Anexample would be to line up by height a group of people in a course. Normallyone would be the tallest and one would be the shortest and there would be acluster of people around an average height. Hence, the phrase "normaldistribution." This tool helps identify the cause of problems in a process by theshape of the distribution as well as the width of the distribution.

7. Control Chart

The control chart is a line chart with control limits. It is based on thework of Shewhart and Deming. By mathematically constructing control limitsat 3 standard deviations above and below the average, one can determine whatvariation is due to normal ongoing causes (common causes) and whatvariation is produced by unique events (special causes). Eliminating thespecial causes first and then reducing common causes can improve quality.

(http://www.goalqpc.com)

Is There A Downside to Performance Management?

Is it possible that traditional performance management programs causeproblems for an organization? The answer is a resounding yes (Bacal, 1993, p14). Theperformance management system conveys to people in an organization how work is tobe performed, and communicates, often unintentionally, values and organizationalculture. More specifically traditional performance management systems can foster alack of collective responsibility for the achievement of organizational goals,encourage competition rather than cooperation, and can impede the development ofeffective teamwork. Just as important is that traditional performance managementpurports to empower employees, allow self-control and self-evaluation, allowparticipation and involvement, and increase the meaningfulness of work. More oftenthan not these results do NOT occur, resulting in a reduction of the credibility of themanager, and subversion of the manager' s ability to lead.

Success or failure: The truth about business

“ The Atlanta Business Chronicle wrote, “Recently, we were soundlywhacked by a reader for a potpourri of evils almost too numerous to mention. Theyincluded comparing big business with smaller endeavors, oversimplification,denigrating concepts such as TQM and MBO, i.e., total quality management andmanagement by objectives, the use of real-life illustrations, rotten grammar and badbreathe. We will plead guilty to some, but not all, of the charges and thought it mightbe helpful to restate certain of our beliefs (Mescon and Mescon, 2002).

“Just as management is a universal process, i.e., all managers perform thesame essential functions, organizations are far more similar than dissimilar,regardless of size. Critical elements in all organizations, large or small, profitor not-for-profit, private or public, include goals, structure and people. Moreand more students of management, entrepreneurship and organizational theory-- as well as their practitioners -- agree that this is the case. We are soundlyguilty of oversimplification. As a matter of fact, we have a passion foroversimplification. Frankly, we are disappointed and frustrated when wecannot "get to the bottom of things." Not so incidentally, our students feel thesame way.” (Atlanta Business Chronicle, June 4, 2002).

The article continue to argue that, “It should be clearly understood that we'venever shortchanged concepts such as TQM or MBO. They are theoretically sound.Our quarrel is with those who fail to implement, fail to execute properly. How wellwe recall George Odiorne, one of the prime advocates of MBO along with Peter

Drucker and Douglas McGregor, who lamented, "Many practitioners were ruining agreat organizational tool by attempting to talk quality into place. Properlyimplemented, tools such as MBO and TQM have made organizations more effective,efficient and profitable. When misused, not only has none of the aforementioned beenaccomplished, but in the process employees have been alienated and managementcreditability has been strained.”

Poka-Yoke Japanese Quality ManagementIntroduction:

Customers in general expect a certain quality when they are spendingmoney. A company will never do well if the customers are unsatisfied. This is whyvarious quality control systems have been created. One of them is the Poka-YokeJapanese quality control management. Poka Yoke (pronounced poh- kah yoh kay)fundamentally means, “mistake proofing” in Japanese. It is essentially a set of rulesand techniques designed to mistake proof a process or a product, and eradicatingflaws is the ultimate goal. Poka-Yoke is a Japanese term that means, “Avoid errors”.Poka-Yoke is usually a set of techniques and procedures that prevent mistakes fromhappening or warn when mistakes happen. It is not possible to prevent all the possibleways of failure, this is why this technique is in use very commonly and new fail-proofdevices are still invented (“A Tutorial on ....”, 2)

Poka Yoke has resulted in substantial improvement to quality and cycle timein many manufacturing industries and other businesses. Moreover, this mistake-proofing objective is accomplished by following two vital principles:

1. A product or process designed and carefully planned in a way that anerror cannot be possibly made.

2. A product designed so well planned, that any possible defect becomesobvious to the user and is immediately corrected.

Furthermore, the application of Poka yoke principally relies on the initial process ofidentifying errors or defects. There are varieties of factors, which eventually causedefects such as:

*Cultural factors: awareness, attitude, incentives, reward systems, and the level ofdedication that individuals and organizations attach to their work.Applicable Tools: Formation of teams, managing commitment and driving out fear

*Complexity factors such as the number of separate parts and lack of commonality,etc.Applicable Tool: Design for manufacturability (DFX).

*Mistakes or human errors caused by incorrect intentions or unintended outcomesfrom execution of correct intentions.Applicable Tool: Poka Yoke!

Hence, it is now undoubtedly evident that errors cause certain defectspossible during the course of production and these are by and large human errors.Accordingly, a manager has mainly two options: 1. Introduce an incentive system toencourage worker to be more careful and observant, and 2. Plan the operation in sucha way that an error does not arise in the first place. But Poka yoke is really all about

preventing errors before they turn into defects. Therefore, in a Poka yoke system, theprime objective is to constantly thwart errors right from the beginning or core (“ATutorial on …”, 2).

Historical Background of Poka Yoke

Shigeo Shingo invented poka-yoke in the 1960s. The term poka yoke comesfrom the Japanese work “Poka” which mean unintentional mistake and “Yoke”which means to prevent. Shingo, an industrial engineer at Toyota, was a leadingadvocate of the Japanese manufacturing industry’s statistical process control. Shingocame up with the idea of poka yoke when he realized that statistical controlprocedures would never reduce product defects to zero, because some products whichremained untested, will always reach the customer and would have a certain numberof defects.

The First Poka Yoke Device:On a visit to the Yamada Electric plant in 1961, Shingo was told of a problem

that the factory had with one of its products. Shingo’s solution to the problem becamethe first poka yoke device (Process Improvement …, 1). To give clarity, this was theproblem:

The Product: Part of the product that had the problem was a small switch with twopush buttons supported by two springs.The Problem: Once in a while, a worker in the assembly section used to make themistake of forgetting to fit a spring under each of the two buttons. At times, the errorused to remain undetected until it reached the customer. This problem was turning outto be expensive and awkward for the factory.Shingo’s Solution: He suggested that each worker should have a dish in front on himwith two springs already in it so that there is no possibility of forgetting to insert thespring under the push button. It worked!

When using Poka-Yoke, the desired results become inevitable. In addition,mistake proofing is a low-cost option for any company who wants to ensure end-quality products. The invention of Poka-Yoke is accredited to the late industrialengineer for Toyota, Shigeo Shingo. He writes, “The causes of defects lie in workererrors, and defects are the results of neglecting those errors. It follows that mistakeswill not turn into defects if worker errors are discovered and eliminatedbeforehand"(Shingo 1986, p.50). He even says that "Defects arise because errors aremade; the two have a cause-and-effect relationship. ... Yet errors will not turn intodefects if feedback and action take place at the error stage" (p. 82). Poka-Yoke isabout finding mistakes at a glance and avoids them.

Shingo recognized three types of inspection: judgment inspection, informativeinspection, and source inspection.

Judgment inspection is referred to as “inspecting in quality,” and identifyingthe defect out of the acceptable product. This type of inspection is done to identifydefective products before they are released for distribution. In addition, this is a

traditional and expensive way of maintaining quality. Shingo cautioned against“judgment inspection” and did not consider it a quality management approach.

Secondly, informative inspection also called “after the event” inspection, usesdata gained from previous inspection to modify the production process and preventthe defect from reoccurring. At each stage of the process, inspections are conducted.This way, quality is ensured at each step and the final product is defect free.Moreover, having the workers to check the quality of their own work ensures muchbetter quality, the feedback is quicker, and changes can be made on the spot.

Finally, source inspection called “before the event” determines whether theconditions for high quality product exist. Devices are made that ensure that all theconditions are met before beginning production. Fundamentally, the entire concept ofsource inspection is based on determining whether the necessary conditions forquality production exist. Hence, Shingo remarks: “It had dawned on me that theoccurrence of a defect was the result of some condition or action, and that it would bepossible to eliminate defects entirely by pursuing the cause.” It became clearlyevident, that the elimination of defects from the production process will be moreeffective if the operating and working conditions are checked before hand.Consequently, most poka yoke devices are designed to ensure proper conditionsbefore the commencement of production (Process Improvement …1).

Shingo believed that source inspection is the ideal method of quality controlsince quality feedback about conditions for quality production is obtained before theprocess step is performed. Source inspection is intended to keep defects fromoccurring. Self-checks and successive checks provide feedback about the outcomes ofthe process. Self-checks and successive checks should be used when source inspectioncannot be done or when the process is not advanced enough to develop sourceinspection techniques. Again, Poka-Yoke is a process for which the desired outcomeis inevitable.

General Steps in the Fail-Safing Process

First of all, the first step would be to review each stage of the serviceprocess and identify where and when failure occur. Two places are more likely tocontain problems. One is during a one-on-one service and the other place is when thecustomer is handed off to another person or stage of the service. For any service, amap or plan of the service is necessary so mistakes can be identified and correctedeasily. The chart should include information like the directions the customers receive,the customer’s service request, and the nature of customer feedback. Once a mistakeis detected, the next step is to trace through the process to find its source. In addition,the final step would be to set up a fail-safe system that stops each mistake fromreoccurring. This may call for source inspection, self-inspection, or both customer andserver should inspect the production together. For example, the order could berepeated to ensure that the correct information was accessed, exchanged, andunderstood.

Zero Quality Control: Source Inspection and the Poka-Yoke System

Shingo et al (1989) describes the process by which he developed mistakeproofing or "zero quality control" (ZQC) as seminal. Shingo places inspectiontechniques in three categories: 1. source, 2. informative, and 3. judgment. He

categorizes his ZQC techniques along three dimensions: Inspection techniques,setting functions, and regulatory functions. The inspection method determineswhen the inspection occurs and what is inspected, the product or the process. Asetting function checks a process parameter or a product attribute. The settingfunction is linked to a regulatory function, which is a warning, notification, or cue tothe worker that a process parameter or a product attribute is incorrect.

Shingo identified three setting functions: contact, fixed-value, and motion-step. The contact method checks to insure the physical attributes of the product orprocess are correct and error-free. The motion-step method checks the precedencerelationship of the process to insure steps are conducted in the correct order. The fixedvalue method facilitates checking that matched sets of resources are available whenneeded or that the correct number of repetitions has occurred. A Regulatory functionis any cue or attention-getting signal about the status of the product or process.Regulatory functions that control the process and keep it from proceeding (controlmethods) are more powerful than those that simply provide a warning (warningmethods) are.

Example: Shingo’s ZQC Plotted costs of devices

The Principles of Fool Proofing and their Application in Manufacturing

Nakajo et al. (1985) study 1014 mistake-proofing devices on assembly lines.They divide mistake proofing into prevention of occurrence and minimization ofeffects. Each is further subdivided. Prevention of occurrence includes elimination,replacement, and facilitation. Minimization of effects includes detection, andmitigation. They manipulate and probe the data in a series of lengthy detailed tables.For example:

Elimination: remove the possibility of error

Replacement: replacing an error-prone process with a mistake-proof process

Facilitation: making correct actions easier through mechanisms like color-coding

Detection: inspect product for agreement with standard, successive or self-check

Mitigation: allowing the mistake to occur but minimize the consequences (Tsuda’spreventing the influence of mistakes).

Developing Poka-Yoke ProcessesMaintaining a good “alignment” is difficult because both the customers’

demands and the firms’ capabilities are continuously changing. These changes can bedue because of technological advancement, competition, or changes in the customers’taste.

The CustomerAt the end, the customer is all that matters, because he or she is going to

decide whether the product or service meets their need, expectation or desires. Everyfirm and every process deals with numerous customers. Two sorts of customers arepresent, internal and external. The internal customer uses the outputs of the process asinputs for the firm. External customers are positioned outside the firm. They can befurther classified as either intermediate customers or consumers. An intermediatecustomer is one who uses the output of the process and does not totally consuming theproduct or service. On the other hand, the consumer uses or consumes the product orservice. Each of these has their own demands and needs towards the firm. It isimpossible to satisfy everyone, but the critical customers should be identified and atleast their needs should be met.

ProcessA process is a “collection of activities that transforms inputs into an output

that offers value to the customer” (Hammer et al , 1993, P35). First, a process is acollection of activities. Secondly, a process transforms inputs into outputs like goods,services, information, knowledge, third, structure and capacity determine theresources that the process requires to accomplish its transformation, making issuessuch as bottlenecks important. Fourth, processes are linked to other processes bothvertically and horizontally, making them interdependent (P35).Processes are critical because they define the products and services the firm produces;they determine what the firm can do and cannot do. To change the product, themanagement has to change the responsible processes.

MetricsMetrics play an essential role in processes, but they are often overlooked.

They are critical because they help measure progress, bring out problems,communicate expectations, and define operational value for the customer. Metricsmust be verifiable, that is, you should be able to calculate the measure and arrive atthe same result. Moreover, metrics tell you about the performance of the process. Forexample, benchmarking is a way of evaluating the company’s performance.

Focus, Urgency, Time CompressionFocus means that boundaries of the problem need to be established and that

one should not go beyond these boundaries. How much of the system is going to bestudied is an example of boundary, or under what conditions should the problems bestudied. Items outside the boundaries are left for other people to focus on. Focus isnecessary to ensure that people have well-defined, specific problems that they can

address. Urgency demands that people should be assigned to a specific area withreoccurring problems during the “life” of the project.Finally, there is time compression. Most projects require that specific deadlines be setif the project is to succeed. Moreover, the deadline should not be too far in the future,and secondly, all requests for extension should be refused.

The Process (Table 1)1. Identify the customers and determine the critical customers.2. Pay attention to these customers and prioritize the different attributes into

three categories: winners, qualifiers, and losers.3. Convert those attributes into correct metrics.4. Identify the critical aspects of the product.5. Identify critical processes.6. Document the process.7. Evaluate the process using previous set of metrics.8. Determine how improve the process.9. Implement changes.10. Generate an action list.11. Repeat the process.

This procedure is a cycle that begins with the customer at the start and keepsrefining the process so it fulfills the needs of the customer.The table below, how the four building blocks are incorporated in this 11-stepprocedure.

(Hammer at al, Reengineering the Corporation).

Categories and Characteristics of Poka Yoke Devices

Poka-Yoke ExamplesNow that you have discovered what Poka-Yoke quality management is about,

let us look at some examples that we see in our daily lives.Hospitals use Poka-Yoke very widely because they cannot afford any

mistakes. For example, the trays for surgical instruments have indentations for each

instrument. This way the surgeon knows that all the instruments are out before hecloses the incision. On the medication cart, each patient’s medication is prepackagedwith the correct dosage before it is placed on the cart. If the nurse has medication leftafter her round, she knows that she has missed a patient or the doctor has made amistake.

Since the customer comes first, eye contact, acknowledgment, treats arenecessary in certain cases. A bank ensures that the teller has eye contact with thecustomers by asking the teller to note down the eye color of each customer. Inrestaurants and other places, smiling makes the customer feel welcomed and morecomfortable. Some of the employees are asked to note if the customer is smiling backand to use opening lines ranging from information to customer preferences.

Sometimes fail-safing the customer is a better option. A yes or noquestionnaire is a good example; the customer is led through simple questions. Dentalsurgeons send reminders to their patients about their meetings. Invitations include adress code on them. Airline and other lavatories have an “occupied” sign preventingthe person to enter when someone else is in.

We encounter Poka-yokes in our daily lives because they are so common anddo not require too much time to put in place.

We encounter this fail-safe type of control in our daily lives, should it be whenwe refuel our cars, go to the supermarket and even when we check-in a hotel. Using aPoka-Yoke method in a product or a service is the best way to ensure quality. Poka-Yoke is widely used around the world because it needs a little bit of ingenuity; it iscost effective and simple to put in place.

Prevention Devices Examples:This type of device is designed in such a way that mistakes cannot possibly be made.

The fueling area of car has three mistake-proofing devices:

1. Filling pipe insert keeps larger,leaded-fuel nozzle from being inserted.

2. Gas cap tether does not allow themotorist to drive off without the cap.

3. Gas cap is fitted with a ratchet thatsignals proper tightness and prevents over-tightening.

www.Chrysler.com

A floppy disk will not enter the disk drive in any other direction than the correct way.This is as far as a disk can be inserted upside-down.

The beveled corner of the diskettepushes a stop in the disk drive outof the way allowing the diskette tobe inserted. This feature, alongwith the fact that the diskette is notsquare, prohibits incorrectorientation.

A microwave does not work if the door is open.

Detection DevicesThis type of device is designed in such a way, that it signals the user when a mistakeoccurs, so that the problem can be solved in time. An example would be:The small dish used in the Yamada Plant.A signal or warning signs in the car if a door is not properly closed.

Characteristic of Poka Yoke DevicesPoka yoke devices have the following characteristics:

• Cheap, simple, specific, re-usable and cost-effective.• They are always a part of the process.• They are placed close to where the mistake is done.

(Using Poka Yoke …3).

Conclusion

In conclusion, continuous change must be a norm if your business is to survivein today's rapidly changing environment, you should either manage change or changemanagement. Companies, like any living organism, must become learningorganizations that change and adapt to suit their changing business environment. Theconstant formation of new units within a corporation is one means of gearing up tochange.

According to Bill Gates, if you don't practice the change management thatlooks after the future, the future will not look after you. "...The tendency forsuccessful companies to fail to innovate is just that: a tendency. If you're too focusedon your current business, it's hard to look ahead..." To determine the improvements to

make in response to the change, you should continuously: listen to customer feedback,and study new technology opportunities. It is a continuous improvement that Japanesecall Kaizen.

In today's knowledge-driven world, new technologies appear at shorter andshorter intervals. "Knowledge constantly makes itself obsolete, with the result thattoday's advanced knowledge is tomorrow's ignorance", stressed Drucker (1993, 1994).Innovation thus, should be not a one-off event, but a continuous response to changingcircumstances. Sustainable innovation system doesn't just help to solve a problem butcreates a new capacity, opening up opportunities for further innovation. Do notconfuse innovation with novelty. Novelty, says Drucker, "only creates amusement",and will not last into the future. He believes that innovation should not be limited to anew product only – be creative and modify where necessary. New processes andmethods can be more powerful in helping you to win a lasting competitive advantage.

A great deal of knowledge work will require high manual skill and substantialwork with one’s hands such as surgeons and automobile workers. In fact, theknowledge society is which we have come to call the Age of Capitalism (Drucker,1994). The twentieth century brought knowledge management and intellectual capitalas fundamental and core value to management.

It can be noted that if Total Quality Management is introduced and appliedwell, and therefore implemented for the right reasons, and following the process fromthe beginning until the end without rushing, it will have great benefits towards acompany. The process will go as follows: the improvement of quality will satisfy thecustomers and satisfied customers lead to profit for the company. However, if is notemployed well, it will lead to failure. Therefore, a company has to plan well beforeimplementing TQM as a program and should decide whether they are ready or not forthe challenge, which to the quick eye may seem simple, but in actual fact is not.

In comparison, to the Japanese Poka-Yoke, reducing costs, improve quality,reduce time, and improve flexibility are the main concerns today for a goodproduction. Poka-Yoke is a method that ensures that the desired results are inevitable.It is a method that is widely used today; it is low in cost to put in place, needs a littlebit of ingenuity and prevents mistakes from occurring. Designing Poka-Yoke is partart and part science. Using Poka-Yoke processes leads to quality, which is exactlywhat managers are looking for. Mistake proofing does not need to be expensive,complicated, hard to put in place or time consuming. Simple and inexpensive fixes arewhat managers should look for. Sometimes, mistake proofing can itself be a mistake.The workers can be offended thinking that the management is treating them likeidiots, that is why the process should involve everyone concerned and the steps takenshould be explained. Poka-yoke can also be misapplied. If the system gets morecomplicated, costs will increase, difficulty increases and problems that were notanticipated can be created. Finally, Poka-Yoke processes are very widely used butother types of quality control can become necessary to supplement it and to give thefirm an edge over the others.

Hence, the Poka yoke has proved o be very effective and flexible. Because it iseasy to understand, it became very popular in manufacturing industries outside Japan.Today big, well-known and highly esteemed companies like Chrysler Corporation andUnited Electric Control Ins are also using poka yoke devices in their manufacturingprocess. It has not only helped in the manufacturing process, but also in sales,

marketing, warehousing, billing, customer service, and research and development(R&D). Undoubtedly, poka yoke has provided manufacturing industries with asimple, reliable way of detecting errors that were previously difficult to detect throughtraditional methods of quality control.

The researcher also suggests that organization perform a SWOT analysis(strengths, weaknesses, opportunity and threats). Conduct a business audit from timeto time to track specific objectives in your strategic plan. Examine internal andexternal sources, such as demographics, changes in perception, and new knowledge.Develop your company into a learning organization that "is continuously expandingits capacity to create its future. And most of all, look for new ways to do things,anticipate changes in this constantly changing global environment.

Definitions

acceptable quality level (AQL)A concept used with sampling procedures applied to arms-and-ammunition suppliersduring World War II, AQL is the poorest quality that a supplier can provide and stillbe considered "acceptable" or satisfactory. The concept—that some errors or defectsare normal—is the antithesis of "zero defects," which holds that the only allowablestandard for quality is error-free work.benchmarkingThe practice of setting operating targets for a particular function by selecting the topperformance levels, either within or outside a company's own industry. In a broadersense, benchmarking involves searching around the world for new ideas and bestpractices for the improvement of processes, products, and services.company wide quality control (CWQC)An expression used widely in Japan, CWQC means the application of qualityprinciples to all processes in a company and the involvement of all employees at alllevels in the quality-improvement process. The concepts of continuous improvementand customer satisfaction are also embedded in the approach. CWQC is the equivalentof "total quality management (TQM)" in the United States, where the term"management" has roughly the same meaning as the word "control" in Japan.continuous quality improvement (CQI),cross-functional teamsTeams similar to quality teams but whose members are from several work units thatinterface with one another. These teams are particularly useful when work units aredependent upon one another for materials, information, etc.cycle timeThe amount of time it takes to complete a particular task. Shortening the cycle timesof critical functions within a company is usually a source of competitive advantageand a key quality-improvement objective.defectAny state of nonconformance to requirements.feedbackInformation from a customer about how process output meets the needs of processcustomers.fishbone diagrams

A diagram that depicts the characteristics of a problem or process, and the factors orroot causes that contribute to them.indicatorsMeasurable characteristics of products, services, and processes that best representquality and customer satisfaction.inputMaterials, energy, or information required completing the activities necessary toproduce a specified output (work product).ISO 9000International Organization for Standardization 9000 series standards. Supplier ofquality system standards representing a consensus within the international qualitycommunity.external customerThe purchaser of a product or service.Internal customerA downstream internal operation that depends on outputs or results of a given process,or an employee of the business who depends on these outputs or results.internal failure costsThe costs generated by defects found within the enterprise prior to the productreaching the external customer.just-in-time (JIT) inventory managementApproach to achieving and maintaining minimal in-process inventory. The approachincludes application of total quality control to eliminate quality problems as in-process inventory is being reduced.kaizenA Japanese expression referring to continuous improvement in all phases of business.. Kaizen means gradual, unending improvement, doing "little things" better; setting —and achieving — ever-higher standards. In this classic book, Masaki Imai describeshow a process-oriented, customer-driven strategy of involving everyone — bothmanagers and workers — in the continuous improvement of products and serviceswill lead to improved quality and productivity.management by objective (MBO)A business planning approach in which each employee works with his or her managerto set annual objectives. Employee performance is evaluated based on the extent towhich objectives are met.measurementThe act or process of measuring to compare results to requirements. A quantitativeestimate of performance.normative performance measurement techniqueIncorporates structured group processes so that work groups can design measurementsystems suited for their own needs. This approach considers behavioral consequencesof measurement to foster acceptance of measurement effort.objectiveA statement of the desired result to be achieved within a specified time. By definition,an objective always has an associated schedule. Verifiable improvement targets forprocesses, suppliers, organizations, and people. An objective is simply a statement ofwhat is to done and should be stated in terms of [measurable] results."outputThe specified end result. Required by the recipient. Materials or information providedto others (internal or external customers).

perceived qualityA firm's market reputation for continuing excellence of products and services and forcustomersatisfaction; the firm's good will among customers.Pareto analysisA system of analysis based on the principle that, in any phenomenon, relatively fewfactors account for the majority of effects. Juran uses the phrase "vital few" to suggestthat it is more efficient and less costly to concentrate on the most important sources ortypes of failures, customers, and so on.performanceA term used both as an attribute of the work product itself and as a general processcharacteristic. The broad performance characteristics that are of interest tomanagement are quality (effectiveness), cost (efficiency), and schedule. Performanceis the highly effective common measurement that links the quality of the workproduct to efficiency and productivity.policyA statement of principles and beliefs, or a settled course, adopted to guide the overallmanagement of affairs in support of a stated aim or goal. It is mostly related tofundamental conduct and usually defines a general framework within which otherbusiness and management actions are carried out.processThe system of tasks, workflows, information flows, and other interdependencies thatproduce some specific outputs or results. How work is done, how outputs or resultsare achieved, and how value is provided to the business or customer.process capabilityThe ability of a process to meet operating goals or internal- or external-customerrequirements. "Capability" may differ from actual performance due to "specialcauses" — conditions or events resulting purely from chance and not the productionsystem itself.process controlActivities undertaken to acquire and use information during process execution toensure — with a reasonable degree of confidence — that the process will meet itsrequirements and that these requirements will continue to reflect the needs of processcustomers.process improvementThe set of activities employed to detect and remove common causes of variation inorder to improve process capability. Process improvement leads to qualityimprovement.process managementActivities aimed at process planning, process control, identifying improvementopportunities, and initiating improvement. Planning involves setting processrequirements, characterizing the process, establishing in-process and supplierrequirements, and planning for control.process optimizationThe major aspect of process management that concerns itself with the efficiency andproductivity of the process, that is, with economic factors.process reviewAn objective assessment of how well the methodology has been applied to yourprocess.Emphasizes the potential for long-term process results rather than the actual resultsachieved.

productivityRefers both to the efficiency of tasks or operations and to their effectiveness inmeeting the needs of other internal operations; some productivity-related measuresinclude cost of poor quality and unit output costs.projectA process executed over time, rather than repeatedly.qualityThe extent to which products and services produced meets or exceeds customerrequirements. Customers can be internal as well as external to the organizationalsystem (e.g., products or services may flow to the person at the next desk or work arearather than to people outside of the immediate organization). The Federal QualityInstitute defines quality as meeting the customer requirements the first time, everytime. The Department of Defense (DOD) defines quality as conformance to a set ofcustomer requirements that, if met, result in a product that is fit for its intended use.quality approachOverall strategy for managing quality in an organization.quality assurance (QA)A phase in the evolution of the quality discipline, QA differed from statistical qualitycontrol, its predecessor, in that all functional groups, not just engineers and workerson the shop floor, were involved in the quality effort. However, QA is more narrowlyfocused than its successor, total quality management (TQM), which emphasizessenior-executive involvement, the management of quality for competitive advantage,and a strong customer orientation.quality circlesA group of workers and their supervisors who voluntarily meet to identify and solvejob-related problems. Structured processes are used by the group to accomplish thetask.QOS an operating systemsreliabilityThe probability that a product entity will perform its specified function underspecified conditions, without failure, for a specified period of time.reliability engineeringA broad-based discipline for ensuring better product performance by predicting moreaccurately when and under what conditions a product can fail. Based on the results ofsuch an analysis, engineers can improve designs, set operating limits for equipment,and create backups in case of system failure. Reliability programs also incorporatefeedback loops for analyzing product performance in the field and, in particular,product failures.root cause (cause-and-effect) analysisA deductive approach to analyzing problems by working backward from the "effect"to the cause or causes. One of so-called "Seven Quality Tools," root-cause analysis isoften facilitated using a "fishbone diagram" in which all the inputs to the process arearrayed in visual format like the bones of a fish.sampleA finite number of items taken from a population.simulationThe technique of observing and manipulating an artificial mechanism (model) thatrepresents a real-world process that, for technical or economical reasons, is notsuitable or available for direct experimentation.six-sigma

A statistical way of measuring quality, six-sigma is equivalent to 3.4 defects permillion units of output — a virtually defect-free level of performance. The ambitious,company wide Motorola, a 1988 Baldrige Award winner, has adopted goal of “six-sigma quality”, most notably.specificationA document containing a detailed description or enumeration of particulars. Formaldescription of a work product and the intended manner of providing it (the provider'sview of the work product).standard deviationA parameter describing the spread of the process output, denoted by the Greek lettersigma. The positive square root of the variance.statistical process control (SPC)Based on the principle that no two units of output of a process are likely to have theexact same specifications, SPC involves the mathematical determination of acceptablelimits of variation. Graphs are used by workers to plot output variables and visuallydetermine when a process is "in" or "out of" control.statistical methodsThe application of the theory of probability to problems of variation. There are twogroups of statistical methods. Basic statistical methods are relatively simple problem-solving tools and techniques, such as control charts, capability analysis, datasummarization and analysis, and statistical inference. Advanced statistical methodsare more sophisticated specialized techniques of statistical analysis, such as the designof experiments, regression and correlation analysis, and the analyses of variance.statistical quality control (SQC)A relatively early development in the evolution of the quality discipline, SQC relieson statistical concepts and tools (e.g., sampling techniques) to control productionquality. SQC techniques are used in total quality management, although the emphasisin TQM is on "building quality in," rather than error detection.total quality control (TQC)An expression coined by Armand Feigenbaum, TQC involves the application ofquality principles in all processes and at all levels of a company.total quality control (TQC)An expression coined by Armand Feigenbaum, TQC involves the application ofquality principles in all processes and at all levels of a company.total quality management (TQM)TQM, represents the latest phase in the evolution of the quality discipline. Distinctivefeatures are a strong and pervasive customer orientation and a view toward managingquality for competitive advantage. The term "TQM" is roughly equivalent to TQC andCWQC in Japan, where the word "control" has the same connotations as"management" in this country. "Total Quality management refers to a managementprocess and set of disciplines that are coordinated to ensure that the organizationconsistently meets and exceeds customer requirements. TQM engages all divisions,departments and levels of the organization. Top management organizes all of itsstrategy and operations around customer needs and develops a culture with highemployee participationtransactional analysisA process that helps people change to be more effective on the job and can also helporganizations to change. The process involves several exercises that help identifyorganizational scripts and games that people may be playing. The results help pointthe way toward change.

variableA data item that takes on values within some range with a certain frequency orpattern. Variables may be discrete, that is, limited in value to integer quantities (forexample, the number of bolts produced in a manufacturing process). Discretevariables relate to attribute data. Variables may also be continuous, that is, measuredto any desired degree of accuracy (for example, the diameter of a shaft). Continuousvariables relate to variables data.varianceIn quality management terminology, any nonconformance to specifications. Instatistics, it is the square of the standard deviation.visionThe desired future state of businesszero defectsAn approach to quality improvement, based primarily upon increasing workermotivation and attentiveness, in which the only acceptable quality standard is defect-free output or service execution.

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A COMPARITIVE STUDY: TOTAL QUALITY MANAGEMENT AND THEJAPANESE POKA-YOKE STYLE MANAGEMENT

By: Dr. Tiffany JordanProfessor and Researcher

International Business and Management

And

Aura Pimiento, BAUniversidad Autonoma de Bucaramanga

School of Business AdministrationBucaramanga, Colombia

Email: doctor_Jordan@excite.com

August �2002

A COMPARITIVE STUDY: TOTAL QUALITY MANAGEMENT AND THEJAPANESE POKA-YOKE STYLE:

© Copyright 2001 by Dr. Tiffany L. Jordan

Acknowledgement: I would like to acknowledge the faculty and staff of the Collegeof Business Administrations for their support.