Explain the good and the bad role of the managing director in this company in relation to quality improvement implementation

I want to answer the question from the explanation below......

Fundamentals of Total Quality Management

Part 3: Process Management and Improvement

Leadership, policy deployment, and quality motivation.

THE PDCA LEADERSHIP MODELA MODEL FOR POLICY DEPLOYMENT

The foundation of the pyramid was managements commitment or leadership. TQM leadership aims to build the TQM pyramid.

Our experiences, however, tell us that such an aim is not a sufficient condition for TQM leadershipit is only a necessary condition.

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Management needs a process-oriented model, i.e. a model which follows managements yearly and follow-up cycle (the Hoshin Kari or policy deployment cycle).

This model the PDCA Leadership Model. The cycle of the PDCA Leadership Model begins with the Check phase because the development of the plan for quality improvements requires an understanding of the present situation (where are we now?).

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The PDCA leadership model.

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1. 2. 1. 2.

The TQM leadership model is to consist of two key elements based on Demings well- known points 1 and 5:

Continuous improvement of products and services and

Continuous improvement of processes.

The model will consist of the following two elements:

Design review Total quality audit.

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The process of design review consists of checking the product and service development at various important stagesa preliminary stage, one or more intermediate stages, and a final stage.

A total quality audit consists of checking the concordance between quality plans and quality results to identify future opportunities for improvements. In short, a total quality audit is checking the quality of the processes of the company including the

product development process.

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When checking the concordance between plans and results the primary objective is to understand:

1. Why results did not live up to the expectations (plans)?

2. Why results were better than expected?

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In other words, the causes behind the measurements should be understood. In this context, a thorough analysis and evaluation of measurements are a must.

That means building up a coherent measurement system is a prerequisite for an effective quality audit. When checking the product development process it is important to integrate results from design review.

These results should be evaluated in the same way as results from other

business processes to identify future opportunities for improvements.

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The next phase of the leadership model is the Act phase, which consists of two elements

1. Motivation.

2. Suggestions.

If top management par ticipates wholehear tedly in the check phase an

important signal has been sent out to the whole organization that quality and quality improvements are the top priority.

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1. 2.

The effect will be people who are motivated for quality improvements.

For each key process suggestions for quality, improvements will be generated as input to the next phase of the PDCA Leadership Model.

The Plan phase consists of two main elements Deciding on the quality goals

Policies and design of the quality plans.

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When deciding on the goals and policies management should have the four sides of the TQM pyramid as a reference. The goals and policies act as a picture (a vision) showing where the company wants to be (the goal of the journey). This picture must be updated from time to time as a result of the previous two phases (check and act).

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Planning is the process of designing the detailed plans for quality improvements into the following eight categories:

1. improvements in customer satisfaction;

2. improvements in employee satisfaction;

3. improvements in products and services;

4. improvements in processes (systems and technology); 5. improvements in people (education/training);

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6. improvements in customer relationships; 7. improvements in supplier relationships;

8. improvements in the measurement system.

These overlapping categories are an efficient check-list during the catch ball process of policy deployment (Hoshin Kanri).

They may inspire management at different levels to identify meaningful

opportunities for improvements and then decide on meaningful targets to

achieve.

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1. 2.

The last phase of the PDCA Leadership Model is the Do phase. Here we also have two elements.

The final quality plan has to be communicated to everyone concerned and the necessary education has to be achieved.

Besides the need to educate the employees (including management) in the use of quality tools there is also a need to educate and train all the employees in human motivationtheory and practice

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A model of this orchestra is shown in the Figure.

The model has been developed at Rober t Bosch, Denmark and used in their Policy Deployment Process.

CIP means Continuous Improvement Process, which has the highest priority in Rober t Bosch worldwide

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LEADERSHIP AND QUALITY MOTIVATION

People are the key to quality. If their actions and reactions become quality related, then expensive failures and the accumulation of hidden costs may be reduced to an acceptable minimum or even prevented altogether.

Total Quality is a holistic concept which requires quality motivation of all people in an organization towards a common goal.

We must learn to accept that employees are not only our greatest and most expensive asset but that they alone are the creators of quality.

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Quality motivation is all about people because it is people who make quality. We have a common saying that an organization is as good as its people.

It is well-known that the majority of quality-related problems within our organizations are not within the control of the individual employee.

As many as 80% of these problems are caused by the way the people are organized and managed.

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Some examples of this bad management can be seen as follows

When people are not given the right training to do the job and have to learn the job of others.

When the job itself is not properly defined and those doing it have to make it up as they go along.

When paperwork is out of date or otherwise inaccurate.

When systems do not reflect the work that actually takes place or are not designed

to help to do the job.

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The role of managers within the organization is to ensure that everything necessary is in place to allow people to make quality.

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ASPECTS OF LEADERSHIP AND THE PDCA LEADERSHIP MODEL:

Clear leadership and vision are considered to be the most important critical success factors of TQM.

If TQM is adopted as a positive business strategy a substantial upfront investment of management time must be made before a return is seen.

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The PDCA cycle is an obvious choice as a frame of reference. The Plan phase and the existence of well-developed communication reflect the degree of deployment in the firm while education and training reflect the degree of empowerment.

When TQM has been incorporated into the firms strategic and operational plans, communicated to all employees, and delegation of responsibility has been undertaken as a consequence of education and training, then a need to measure the correspondence between plans and results.

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The Plan, Do, and Check phases in the model reflect top-down leadership but to modify existing quality plans or establish new quality objectives, the participation of the workforce is crucial.

The Act phase reflects the bottom-up principle. It is a very important managerial task to create a motivational environment to ensure that the employees perform according to quality goals and make suggestions about quality improvements.

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(a) Education and training:

To give people empowerment to do their jobs, we have observed considerable differences in our QED study.

Japan, Estonia, and India report that between 65 and 80 hours per year are used for educational and training activities per employee.

All other countries use 3040 hours per year per employee.

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Number of hours per year used for education and training per employee.

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The Indian and Estonian results reflect an obvious necessary investment in people to increase know-how.

This is a signal of increasing competition from the developing countries. Japan may be regarded as the country furthest ahead on the quality journey (Dahlgaard, Kristensen, and Kanji, 1994).

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When the most obvious changes in the organization have been made it becomes more and more obvious to management that new opportunities for improvement depend upon empowerment.

The satisfaction of the workforce and hence motivation and ability to act as a constructive part in the process of continuous improvement depend upon education and training.

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This is known and acted upon in Japan. In Western countries, fewer resources are invested in education and training and this could cause a bottleneck on the quality journey.

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(b) Quality motivation and suggestions for improvements:

In the TQM leadership model, the Act phase aims to create an environment that motivates people for quality and which encourages them to participate in making suggestions about quality improvement.

The motivation for quality may be done in many different ways (Kristensen, Dahlgaard, and Kanji, 1993).

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The main observation is that the highest level of activity directed towards the five quality motivation areas is found in the East Asian countries of Taiwan, Korea, and Japan.

The main instrument for quality motivation in these countries is QC circle activities and this instrument is also widely used in India and Australia. It is well-known that the QC circle idea originates from Japan but it is not so well-known how the spread of the gospel has taken place.

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BASIS FOR MOTIVATION (MOTIVATION THEORIES):

These days quality motivation is seen as a vital factor towards achieving work objectives using human resources and considering human needs.

The basis for motivation theory therefore can be developed by considering some common elements of human needs.

Maslow (1943) has described the hierarchy of human needs as follows: Physiological needs

Safety needs

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Social needs

Ego or esteem needs

Self-fulfillment needs.

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According to Maslow, an individual starts with physiological needs, and when he fulfills that need, he then moves on to the next hierarchy, i.e. safety needs and so on.

Frederick Herzberg (1969), another Western expert, suggested that motivation is governed by two types of factors, namely satisfiers and dissatisfiers.

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For some people, dissatisfaction at work is caused either due to low pay, noisy working environments or unsuitable office accommodation, or similar other reasons.

To eliminate dissatisfaction from such people, it is necessary to satisfy them by providing higher pay and suitable office accommodation, etc.

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It is debatable whether by simply removing the sources of dissatisfaction from people one can motivate them to work with full commitment.

On the other hand, one can easily use a satisfier effectively for the preparation of work standards, setting work goals, and appraising the results, etc.

According to Herzberg, fulfilling low-level needs suggested by Maslow is equivalent to fulfilling the needs of a dissatisfier and similarly, fulfilling high-level needs requires a genuine satisfier.

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To motivate people we must not only remove sources of dissatisfaction but also take positive steps to provide sources of satisfaction.

In 1973, a task force headed by OToole in the USA published its findings of work in America. In this report, he proposed that work should be defined as an activity that produces something of value for other people.

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At the same time Dr. Nishibori of Japan suggested (Kondo, 1991) that human work should include the following elements:

Creativity (the joy of thinking);

Physical activity (the joy of physical work);

Sociality (the joy of sharing pleasure and pain with colleagues).

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Elements of human work.

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THE STRUCTURE OF A JAPANESE QUALITY MOTIVATION TRAINING PACKAGE

Kondo (1991) has pointed out that the managers and supervisors must motivate the coworkers continuously as a part of their normal duties. According to him, people must develop motivation through on-the-job training and the structure of the motivation theory can be seen as a large roof resting on three pillars mounted on a solid base

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The base represents self-development (i.e. to motivate other people we must motivate ourselves).

The first pillar is getting the job done (i.e. learning how to complete a difficult task).

The second pillar is building teamwork (i.e. working together to achieve a common goal).

The third pillar is rousing the will to work (i.e. creating the desire to work).

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Structure for human motivation training.

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Quality motivation is the major task for modern business management. Without quality motivation it is impossible to implement Total Quality Management.

In the questionnaire in the OED project (Dahlgaard, Kristensen and Kanji, 1992) they asked companies to inform them about their methods of motivation. The following main groups for their answers were chosen:

QUALITY MOTIVATION IN JAPAN, TAIWAN AND KOREA

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Bonus for high quality (create the desire to work);

Quality campaigns (create the desire to work);

Economic rewards (create the desire to work);

QCC activities (building teamwork);

Job rotation (getting the job done).

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The results obtained from the QED project regarding the main methods of motivation from Japan, Taiwan and Korea are given in the Figure

The purpose of this result is to understand the motivation methods used by the various organizations in order to develop their Total Quality Management culture.

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Quality motivation in Japan, South Korea and Taiwan.

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It is clear to us that 90% of the companies suggested that the QC circles (i.e. building teamwork) are an important factor for the quality motivation.

They therefore strongly believe that in all three countries QC circle activities are regarded as the major quality motivator.

In Japan and Korea quality campaigns (create desire to work) are regarded as the second most important motivator and in Japan job rotation (getting the job done) also plays a very significant role.

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The Figure also points out three major areas of difference between the countries:

1. Bonus systems

2. Quality campaigns 3. Job rotation.

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Job rotation is a necessary condition for implementing TQM and they

believe that Japan is on the right track in this respect. This can be seen in the Figure where the percentages of active QC circles are given for both with and without job rotation.

The high correlation between the job rotation and the percentage of active QC circles indicates that it will be necessary for both Taiwan and Korea to increase the use of job rotation in the future in order to achieve further quality development.

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The modest use of job rotation in Korea can probably be explained by the management structure mentioned in (Dahlgaard, Kristensen and Kanji, 1993).

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The importance of job rotation with respect to QC circle efficiency.

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With respect to quality campaigns, it is not clear from the information available to us why this approach is so little used in Taiwan.

Only 20% of the companies in Taiwan have used it which is dramatically lower than Japan and Korea, where the figures are very high, i.e. 76% and 79% respectively.

Regarding bonus systems the figures are relatively small for all countries but still significantly lower for Japan.

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We know that in both Korea and Japan, bonus systems are frequently used but obviously they are not considered to be quality motivators to any great extent, which is fully in accordance with the basic motivation theory.

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