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Daily Management and Policy Management

Vehicles for Quality-centred Management

For Tomorrow

Yukihiro Ando

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Brief Profile of Yukihiro Ando

Positions:A TQM Consultant An Academician: The International Academy for Quality (IAQ)A QC Instructor for JUSE. A lead examiner of Deming Prize committee.A Honorary Adviser of QC Circle Saitama Section.

Titles:Academician: The International Academy for Quality (IAQ)Registered Consulting Engineer. Master of Engineering.

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• Major fields: TQＭ consultant, Lecturer– Application of Quality Management (Policy Management, Daily

Management, QC Circle and etc.). – Statistical techniques and their application to quality problem

solving,• Experiences:

– Over 30 years of experience includes consultations and lectures in a broad range of industries, in Japan, U.S.A., Thailand, India, Singapore, and etc.

• Manufacturing (steel, cement, chemical, machinery, computer, food, automobile etc. ) ,

• Service (recreational facility, electric power, air line, hospital, bank etc. ).• Construction (General Contractors)30 of them were received Deming Prize ．

– A Visiting Professor of Waseda University.– A Senior Consultant in Joiner Associates Inc. , U.S.A.– A Lecture in Tokyo Univ. of Science, Housei Univ.– A Board member of Japanese Society of Quality Control (JSQC).– Chairman of International Committee of JSQC.– An Executive Director of QC Circle Head Quarter.– Deputy-Adviser of QC Circle Kanto Region.

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JSQC Standards

“Guidelines for Daily Management” JSQC-Std 32-001(E):2014“Guidelines for Policy Management” JSQC-Std 33-001(E):2017

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ABP of 20161. Achieve the sales target “XXX”2. Reduce Customer

Complaints 10%3. Reduce Total Cost 5%4. Improve Delivery Level 10%5. Improve Customer

Safaction 10% by・・・..

25. Gentle to Environment26. Introduce a new IT system27. TPM Implementation28. Create SCM

A Poor Example of Annual Business Plan in a Division

ABP of 20171. Achieve the sales target “XXY”2. Reduce Customer

Complaints 15%3. Reduce Total Cost 10%4. Improve Delivery 3%5. Improve Customer

Safaction 5% by・・・.

. 27. Enhance SCM28. Accelerate Environment Mgt.29. Brush up the new IT system30. TPM Implementation

tons review of the last year, targets, means implementation plans

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The policies are almost the same every year, except for adjectives and numerical values.There are too many items to memorize.

In reality just “Improve QCD”

Rank-and-filers’ reaction:•Well, let’s do it piecemeal this year, too!•It’s easy and pleasant to memorize items.•We are so very accustomed to deployment work that it is easy to do.

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Example of Annual Planning

96 Sales actual = 100097 Sales target = 1500

Action Plans: 1) Develop new customers2) Introduce new products3) Increase customer satisfaction

14509594

1400 1480 1500

1000

9796Target

Actual 980 950 ?

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An example of a Mid term strategy

Horizon From the VISION

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Poor history of “Mid-term Plan” in a company

Bette

r

Now 5 YearsLater

10 YearsLater

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An example of a Mid term strategy

Horizon From the VISION

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Question A: “Are your company facing business environmental changes ?

1 . 2 . 3 . 4 . 5 … .

Almost Dramatic no change

Question B: “Are your company trying to change?1 . 2 . 3 . 4 . 5 … .

Almost Dramatic

no change

Adopted from teaching material of Dr. Noriaki Kano

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Question C: “What did (will) you do to address the change?”

A. Nothing special (other than praying, waiting, deploring, singing the blues, etc.).

B. Just working desperately (without specific strategy).

C. A part of the members (top management, staff, outside party) developed strategies and the rest of peoples are just following.

D. Almost all of members of the company addressed the change in an organized/systematic way.

E. Others Adopted from teaching material of Dr. Noriaki Kano

If D, you may need a system that can realize “Almost all of members of the company addressed the change in an

organized/systematic way.”

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On the hand, how are your stability of your fundamentals?

Copyright, N.Kano, May, 2010 48

The House of TQM

Intrinsic Technology + Information Technology

Goal & Strategy

Vehicles Principles

General Education + Political Stability

Policy mgtDaily mgtX‐functional 

mgtQC Circlesetc

Quality PrinciplesCSMarket inNext ProcessesAre Our Customers 

Management Principles

ＰＤＣＡControl by factsEverybody’s 

business

Methods/Techniques

Quality deploymentmulti‐variate A.etc

Seven toolsNew mgtseven  toolsQC story

CS/CD + ES + Env’t(Quality)

Quality Management System

Modified by N. Kano(2010) based on:Kano, N.(2006)”DNA of TQM which I Want to Be Inherited,” Hinshitsu(J. of JSQC) Vol. 36. No.4, pp413‐417

Motivational Approach

CS; customer satisfaction,  CD: customer delight, ES: employee satisfaction,  Env’t: Environment

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Daily Management

TQM Vehicles‐‐‐Boat Model

CEO

Future

Direction

Current Ongoing Direction

staff

Cross-Functional

Management

line

QC Circles

Policy Management

Copyright, N. Kano June, 1999

October 20, 2014 (c) Japanese Society for Quality Control 50

Figure 3  Daily Management and Policy Management

PerformanceC ommitted  target of the financial year end  

Financial Year End

Month

Estimated value by current performance

Not achieved by only current 

activities

Achieved by current activities

Part which requiresDaily Management

Part  which  requires Policy Management

October 20, 2014 (c) Japanese Society for Quality Control 51

4.1  Roles of Daily Management in TQM (Clause 4)

Improve-ment

Maintenance-plus-

enhancement

Innova-tion

Improve-ment

Maintenance-plus-

enhancement

Maintenance-plus-

enhancementTime

Performance (Outcomes/ability of process/system）

Figure 1  Maintenance‐plus‐enhancement, improvement and innovation

• Fig. 3Relations between Business Plan,• Daily Management and Policy Management

Business Plan

＋Policy Management

Achieved by both

Daily Management

(c) Japanese Society for Quality Control

All activities to effectively achieve the objectives with regard to the job that every job unit of the organization is charged with

(Same as JSQC-Std. 00-001）

October 20, 2014(c) Japanese Society for Quality Control 54

Definition︓ Daily Management

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Activities to achieve policies by unity of purpose and priority approach with engagement of all functions and levels.

Note :Policy can include mid-and-long-term policy, annual policy and so on.

(JSQC-Std. 00-001:2017）

Definition︓ Policy Management

(c) Japanese Society for Quality Control

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Some of Jargons in Policy Management

1. Policy

in English

4. Management

in English

1. Policy

in Policy Mgt.

2. Management

in TQM

≠

≠

A Tip

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A Tip

“Daily Management” include:

Management for • Hourly Job• Daily Job• Weekly Job• Monthly Job• Seasonal Job• Yearly Job & etc.

• Jobs in front line Operation.• Supervisors job• Section Managers Job• Department to Top Managers Job & etc.

“Daily Management” : Management for routine Jobs in all levels.

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Structure of JSQC-Std 32-001(E) : 2014 “Guidelines for Daily Management”

October 20, 2014(c) Japanese Society for Quality Control 58

1. Scope2. Normative references3. Terms and definitions4. Fundamentals of Daily Management5. Implementation of Daily Management6. Senior manager’s role7. Division-wise Daily Management8. Daily Management promotion

Structure of JSQC-Std 33-001(E) :2017 “Guidelines forPolicy Management”

September 8, 2017(c) Japanese Society for Quality Control 59

1. Scope2. Normative references3. Terms and definitions4. Fundamentals of Policy Management5. Processes of Policy Management6. How to implement Policy Management in a function7. How to implement organization’s overall Policy Management8. Promotion of Policy Management