Notes

Seite 1

Week 1

The quality imperative

“Integrate the three pillars of social well-being, economic prosperity and environment protection “ Glaser

“It's the sides of the mountain which sustain life, not the top.”-Pirsig

The Cost of Poor Quality

In Australia

The cost of quality often exceeds net profits and can be 14-35% of their cost of the item

In the US

The typical factory invests a staggering 20-25% of its operating budget in finding and fixing mistakes

The economic perspective

What is it?

What drives it?

How does it work?

What are the examples of key players?

Machiavelli the Prince:

The issues of a social context

“We’re in such a hurry most of the time we never get much chance to talk. The result is a kind of endless day-to-day shallowness ”

“What makes his world so hard to see clearly is not its strangeness but its usualness. Familiarity can blind you too.”

A social imperative

What is it?

What drives it?

How does it work?

What are the examples of key players?

Toyota

1. voluntary 2. Internalizing/managing externalities 3. Stakeholders 4. Alignment 5. Practices and Values 6. Beyond Philanthropy

The Environmental Imperative

What is it?

What drives it?

How does it work?

What are the examples of key players?

The challenge of the service organisation

What are they?

What drives then?

How does it work?

What are the examples of key players?

A problem with quality

Old thinking

Old paradigms

A wrong focus in management (a lack of management capability)

A lack or incorrect leadership ability

Barriers to Quality

Systems and procedures

What are systems ?

What are procedures?

Why organisations hang on to systems that do not work?

Why organisations have procedures that fail?

Culture

What is Org Culture?

Values and Norms?

A human system?

Culture - Edgar H. Schein

Organisational Design & Structure

What is org design?

Why is impacts on organisational outcomes?

How structure can control strategy?

Management perspective

What is management?

What is leadership?

Why does management stay fixed in its approach?

Summary

Dissatisfied customers who fulfil future needs with an alternative supplier;

Service and maintenance costs ( often hidden in company structure);

Re work costs and service recovery interactions;

Capital cost associated with failures;

Reduce working capital.

Quality: a strategic decision

Focus on quality, not quantity

“Quality is not free, but it more than pays for itself in the long term” Gapp

“The wise person builds the future not by understanding the present alone, but by learning from history, and seeing the potential that future holds” Gapp

Operations

What is it?

What drives it?

How does it work?

What happens when it doesn’t?

Administration

What is it?

What drives it?

How does it work?

What happens when it doesn’t?

Strategy

What is it?

What drives it?

How does it work?

What happens when it doesn’t

Normative decisions

What is it?

What drives it?

How does it work?

Yoshiko Kondo’s summary of what it takes to provide joy in work:

Each worker should know what he/she thinks matters. Workers need to understand that they do have an influence on events. They are not ciphers.

People should not be chained in place. They should be able to move about, Freely

They should belong to a group with which they can identify, with which they can share the joys of victory and the sorrows of defeat. The quality movement can provide these elements. It is up to the management team to see that they are fulfilled every day. The suggestions that have been made are only that: suggestions. It is up to you to find your own best way

Quality

This course is about QUALITY from a Deming perspective it is about:

creativity,

innovation,

engagement,

The problems behind the problems

Building a teams based approach to effectively manage by all of the above.

Analysis

Analysis has three steps:

1.You identify the system under study and then disaggregate the system into its component parts.

2.Then, you understand each of the component parts.

3.Lastly, you re-aggregate the component parts into the system. In the search for quality we go well beyond this we combine analysis with synthesis

Synthesis is the opposite process to analysis

To understand “why” questions, you need to use a process of synthesis :

1.Identify the system under study and then identify all the systems that the identified system is a part of.

2.Understand the greater system of systems.

3.Disaggregate the greater system back into the component systems.

Synthesis is about making sense of the whole

System thinking

Peter Senge Introduction to Systems Thinking - You Tube  ▶ 2:21  https://www.youtube.com/watch?v=eXdzKB WDraM

“The main problem with this great obsession for saving time is very simple: you can't save time. You can only spend it. But you can spend it wisely or foolishly.” The Tao of Pooh What I expect from you:

Be in the moment  Respect for all and their perspectives  Interact and contribute

Communication and commitment What you can expect from us:  Being in the moment

Respect

Interaction, guidance and passion for the topic

Communication and commitment

Communication

All questions are important… check and see if information is already posted or in the course profile

Use on line communication tools which will be discussed during semester

Seite 2

Week 2

Middle Age: Skilled craftsman's during Middle Ages training and developed apprentices.

1800’s: Industrial Revolution: rise of inspection and separate quality departments

Standardisation of components (France)

Standardisation of people in production lines(US)

1920’s: Shewhart: Statistical methods at Bell System, also the start of Mayo & Human Relations school, Scanlon Plan

1929: Standards Association of Australia SSA

1930’s: Development of British Standards, Application of statistical thinking, Standardisation & Quality Control.

1940’s: Quality control during World War II

American standards, Aus Laboratory Accreditation System

1950’s: Military standards (US), Sarasohn, Deming & Juran go to Japan with MacArthur

Quality Control Charts & Quality Circles in Japan, JUSE established, Feignbaum “Total Quality Management”

1960’s:Total Quality Management

Crosby “Quality is Free”, Zero defects

Consumer Product Legislation (Ralph Nadler)

OB & OD School

1970’s: Categories of Quality Costs determined by ASQC

Japan is involved in TQM practices

Ishikawa (CE diagram), Taguchi method, Quality Systems, Quality Assurance

Management becomes University taught

1980’s: West discovers the importance of Quality

Deming “Quality , Productivity and Competitive Position”, “Out of Crisis”

Europe requires Quality Assurance

Enterprise Australia formed to promote TQM

1986: Foley Report

1987: Malcolm Baldrige National Quality Award

1990’s: Quality in service industries, government, health care, and education

1991 Albrecht develops TQS in “Service America”

1993 Deming “The new economics”

1996 ISO 14000 Environmental standards for business

Six sigma and balanced scorecard

1997 Foley’s report on Quality in Australia

ISO9000 amended includes business excellence, quality awards

ISO 9000 – 2000 in place

2000: MAAOE – The Multinational Alliance for the Advancement of Organisational Excellence established

Business excellence becomes the new focus or framework for QM

Current and future challenge: keep progress in quality management alive

The is a link between QM as a platform for sustainability (business and environmental) and long term business performance

Critical systems thinking, soft systems, learning organisations and cybernetics the forgotten essentials

The Socratic Method For Thinking

469 - 391 BC

Locate a statement confidently described as common sense.

Imagine for a moment that, despite the confidence of the person proposing it, the statement is false.

Search for situations or contexts where the statement would not be true

If an exception is found, the definition must be false or at least imprecise.

The initial statement must be nuanced to take the exception into account.

If one subsequently finds exceptions to the improved statements, the process should be repeated.

The truth, in so far as humans beings are able to attain such a thing, lies in a statement which it seems impossible to disprove. It is by finding out what something is not that one comes closest to understanding what it is.

The emergence of management

Those all look like what’s. It’s the How’s that I have trouble with (R.E Rogers 1995)

When Looking At Individuals In Organisations Taylor Stated

"the employee is a constant in the production equation, an inert adjunct of the machine, prone to inefficiency and waste unless properly programmed, by nature lazy, and his main concern is self-interest. He must therefore be tightly controlled and externally motivated in order to overcome his natural desire to avoid work unless the material gains available to him are worth his effort."  (Knowles and Saxberg, 1971, pp 107-108)

THE PROCESS VS THE INDIVIDUAL

Juran " 85% of the error in work is the direct result of the system not the person using it"

Deming stated from his research that the figure was closer to 94% TO 96%

Yet in traditional western management we spend 95% of the time checking controlling and organising the people and 5% or less in looking at the systems

Stephen Covey

So what is management

MANAGEMENT TRADITIONALLY IS DEFINED IN TERMS OF:

"PLANNING, CONTROLLING, ORGANISING & LEADING

Today management is in two parts

WE MANAGE THINGS &

LEAD PEOPLE

Therefore we look at the manager as the one who:

motivates through leadership

managers through strategically aligned systems and processes and provides direction,

holds the organisation together with good communication and feedback

The Management/HR relationship

WHERE MANAGEMENT LOOKS AT THE MACRO LEVEL

HUMAN RESOURCE MANAGEMENT LOOKS AT THE MICO LEVEL OF THE PEOPLE COMPONENT OF THE ORGANIZATION.

HR supports Management by

PROVIDING A NUMBER OF FUNCTIONS IN REGARD TO PEOPLE, WHICH INCLUDE;

What type of people their characteristic and skills best suit the organisation?

Where do we find them and how much do we pay them?

Managing the administration aspects of staff.

Training and Developing.

Industrial Law.

Occupational Health and Safety.

Quality of Work Life.

Process Management

Planning and administering the activities necessary to achieve a high level of performance in key business processes, and identifying opportunities for improving quality and operational performance, and ultimately, customer satisfaction.

More about TQM than Quality Management but a Good starting point.

Process Control

Control – the activity of ensuring conformance to requirements and taking corrective action when necessary to correct problems and maintain stable performance

Components of Process Control Systems

Any control system has three components:

1. a standard or goal,

2. a means of measuring accomplishment, and

3. comparison of actual results with the standard, along with feedback to form the basis for corrective action

Control vs. Improvement Control vs. Improvement

Structured Problem Solving

Redefine and analyze problems

Generate ideas

Evaluate ideas and select a solution

Implement the solution

The Deming Cycle

How you use PDSA

It was PDCA and text still use this  Deming changed to PDSA because  PDCA = fixed and PDSA = Growth

5’s

The 5S’s: seiri (sort), seiton (set in order), seiso (shine), seiketsu (standardize), and shitsuke (sustain).

Visual controls

Efficient layout and standardized work

Kaizen

Kaizen – a Japanese word that means gradual and orderly continuous improvement

Focus on small, gradual, and frequent improvements over the long term with minimum financial investment, and participation by everyone in the organization.

Seite 3

Seite 4

Week 3

Leaders in the Quality Revolution

W. Edwards Deming  Kaoru Ishikawa  Stephen Covey  Ohno  Shengo  Ackoff  F.E. Fielder  Peter Senge  Flood  Weiner & Beer

We also look at…  Homer Sarasohn  Shewhart  Joseph M. Juran  Philip B. Crosby  Armand V. Feigenbaum  Genichi Taguchi  Oakland

Deming Management Philosophy

American statistician – prominent in Japan > WWII

Philosophy based on innovation and then improving products and services by reducing uncertainty and variability in the design and manufacturing processes

Variation prime culprit of poor quality

Higher quality = high productivity = long term growth -> Deming Chain Reaction

E.W. Deming

Quality is improved in 3 ways:

Through innovation in design of a product and or service

Through innovation in process

Through improvement of existing process

These 3 approaches require the catalyst of an environment that fosters the extension and use of knowledge.

Western management has not accepted this focus and still relies quantity and other basic economic indicators. (Deming, 1994, p.30)

Deming’s View of a Production System

7 Deadly Diseases

Why US business failed competition in 1980s:

1. Lack of consistency of purpose

2. Emphasis on short-term profits

3. Evaluation of performance, merit rating or annual review

4. Mobility of management, job hopping

5. Management by use only of visible figures

6. Excessive medical costs

7. Excessive costs of liability

Follow 14 points of Management

is a practice of System of Profound Knowledge

Work on a method for improving a process, understand the distinction between common causes and special causes

Be accountable and the whole cost of quality must be understood not the obvious observable costs

Deming’s 14 Points (Abridged)

1. Create and publish a company mission statement and commit to it.

2. Learn the new philosophy.

3. Understand the purpose of inspection.

4. End business practices driven by price alone.

5. Constantly improve system of production and service.

6. Institute training.

7. Teach and institute leadership.

8. Drive out fear and create trust

9. Optimize team and individual efforts.

10. Eliminate exhortations for work force.

11. Eliminate numerical quotas and M.B.O. Focus on improvement.

12. Remove barriers that rob people of pride of workmanship.

13. Encourage education and self-improvement.

14. Take action to accomplish the transformation.

Quality Cycle for Continuous Improvement - Deming Cycle

System of Profound Knowledge: Deming Part 2

Deming’s System of Profound Knowledge

Appreciation for a system

Understanding variation

Theory of knowledge

Psychology

Systems Thinking

It encourages consideration of the whole, the interdependencies within it, and how to optimise the system overtime.

Understanding of Variation

It enables us to allow for variation when making decisions and in our learning process.

We recognise that reduction or management of variation is a key process.

Theory of Knowledge

It is concerned with how people learn - as individuals and within the whole organisation.

We are encouraged to see knowledge in terms of useful models or theories which can always be improved.

A systematic approach to learning enables us to develop our models or theories and thus to continual improvement of processes.

Psychology

It is necessary to help us understand what makes people to tick, and how to lead and involve people in our organisations.

Profound Knowledge

All leaders, managers, change agents and consultants need to understand how to use this system and its relationships to benefit their organisation.

The interventions we create with clients are guided by the interrelationship and interdependency of the four elements

Systems

A system is a set of functions or activities within an organisation that work together for the aim of the organisation

Most organizational processes are crossfunctional

Parts of a system must work together

Every system must have a purpose

Management must optimise the system as a whole

Variation

Many sources of uncontrollable variation exist in any process (Common cause)

Special (assignable) causes of variation can be recognised and controlled

Excessive variation results in product failures, unhappy customers, and unnecessary costs

Statistical methods can be used to identify and quantify variation to help understand it and lead to improvements

Knowledge of Variation

Variation is an essential component of life itself

All systems have variation

In knowing the differences and importance of stable and unstable states

Sources of Variation in Production Process

Theory of Knowledge

Knowledge is not possible without theory

Experience alone does not establish a theory, it only describes

Theory shows cause-and-effect relationships that can be used for prediction

The theory of knowledge plays an important role as indicated by Deming (1994)

Knowledge is not information

Knowledge allows us to move towards the ideal solution for a problem

And then to accept that our solution may change as our knowledge improves

Thus it is not a steady state

Psychology

People are motivated intrinsically and extrinsically

Fear is demotivating

Managers should develop pride and joy in work

Deming

“One is born with intrinsic motivation, self-esteem, dignity, coordination, curiosity, joy in learning. These attributes are high at beginning of life but are gradually crushed by the forces of destruction. These forces cause humiliation, fear, self-defence, and competition for gold stars, high grades, and high rating on the job. They crush the joy in learning, joy on the job, innovation. Extrinsic motivation and complete resignation to external pressures gradually replaces intrinsic motivation, self-esteem and dignity. Instead judging people, ranking them and putting the, into slots, leaders should help people to optimise the system so that everybody will gain"

Linking Model (adopted from Gapp (1999)

Transformation through profound knowledge

The prevailing style of management must undergo transformation. A system can not understand itself. The transformation requires a view from outside. The aim is to provide an outside view “a lens” that I call a system of profound knowledge. It provides a map of theory by which to understand the organizations that we work in.

The first step is transformation of the individual. This transformation is discontinuous. It comes from understanding of the system of profound knowledge. The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people.

Transformation through SoPK

Once the individual understands the system of profound knowledge, 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 the organisations 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 into the new philosophy without a feeling of guilt about the past

Seite 5

Week 4

Leadership & Empowerment

Combining the work of Deming and Covey

How to create an empowered workforce

Stephen Covey

“ Principle-centred Leadership Paradigm”

Personal Development - individual

(7 habits)  [Shift] and how they relate to deming

1. Be Proactive - 1,2,3,4,5,8,9,14

2. Begin with the end in mind - 1,2,7,8,10,11

3. Put first things first - 1,2,5,14

4. Think win-win - 3,4,5,8,9,11,12

5. Seek first to understand, then to be understood - 1,2,5,6,7,9,10,11,12,13,14

6. Synergise - 1,3,4,5,8,9,12

7. Sharpen the saw - 1,2,3,4

Relationship:

Habit 7 applied at the organisational level results in “the learning organisation” and “Kaizen” which is the umbrella of continuous improvement under which Total Quality of organisational systems, processes, and finally product and service is implemented – Deming 5,6,13

Organisational Development

Empowerment (6 conditions)

1.Win-win agreement

Specify desired results

Set guidelines

Identify available resources

Define accountability

Determine the consequences

2. Self-supervision

3. Managers as helpers

4. Accountability

5. Skills

6. Character traits

Empowerment is …giving people more authority to make decisions, have control over work, take risks, and promote change (Evans, 2003)

It involves 4 levels (covey):

The personal

The interpersonal

The managerial

The organisational

Trustworthiness

Trust

As system of win-win agreements

Self-directed work teams

Aligned strategy, structure and system

Accountability through 360° feedback

6 Conditions of Empowerment

Principle-centred Leadership Paradigm

Kaoru Ishikawa: Philosophies and Frameworks 3

In management, the first concern of the company is the happiness of people who are connected with it. If the people do not feel happy and cannot be made happy, that company does not deserve to exist

Kaoru Ishikawa

Known as a pioneer of the “Quality Circle” movement in Japan in the early 1960s, which has now been re-exported to the West

Father of “Company-Wide Quality Control” in Japan

Developed and advocated many “new tools” for Practical Quality Improvement

Characteristics of Japanese Quality Control

QC is to do what is to be done in all industries

QC which cannot show results is not QC. Let us engage in QC which makes so much money for the company that we do not know to do with it

QC begins with education and ends with education

TO implement TQC, we need to carry out continuous education for everyone, from the president down o like workers

QC brings out the best in everyone

When QC is implemented, falsehoods disappears from the company

Total Quality Control

QC is the responsibility of all workers and all divisions

TQC is a group activity and cannot be done by individuals. It calls for teamwork

TQC will not fail if all members cooperate, from the president downs to line workers and sake s personnel

In TQC, middle management will be frequently talked about and criticised. Be prepared.

QC circle activities are part of TQC

Do not confuse objectives with them means to attain them

TQC is not a miracle drug, its properties are more like those of Chinese herb medicine

Organisation-wide QC

Quality does not only mean the quality of product, but also of after sales service, quality of management, the company itself and the human being.

'The results of these company-wide Quality Control activities are remarkable, not only in ensuring the quality of industrial products but also in their great contribution to the company's overall business.

Organisation-wide QC effects

1.Product quality is improved and becomes uniform. Defects are reduced.

2.Reliability of goods is improved.

3.Cost is reduced.

4.Quantity of production is increased, and it becomes possible to make rational production schedules.

5.Wasteful work and rework are reduced.

6.Technique is established and improved.

7.Expenses for inspection and testing are reduced.

8. Contracts between vendor and vendee are rationalised.

9. The sales market is enlarged.

10. Better relationships are established between departments.

11. False data and reports are reduced.

12. Discussions are carried out more freely and democratically.

13. Meetings are operated more smoothly.

14. Repairs and installation of equipment and facilities are done more rationally.

15. Human relations are improved

Quality Circle

In Japan a quality circle is a typically voluntary group of some 5-10 workers from the same workshop, who meet regularly and are led by a foreman, assistant foreman, work leader or one of the workers.

The aims of the quality circle activities are:

To contribute to the improvement and development of the enterprise.

To respect human relations and build a happy workshop offering job satisfaction.

To deploy human capabilities fully and draw out infinite potential.

These aims are broader than is consistent with a narrow definition of quality as often used in the West, and Circle activities reflect this.

Quality Circle Activities

Only when foremen and line workers assume responsibility for process, can QC become successful

People in the front line are the ones who have the facts down pat

QC circle activities, provide mirror images of the abilities of the president and middle management

QC circle activities that are consistent with human nature can succeed anywhere in the world

Where there are no QC circle activities, there can be no TQC activities

QC and Quality Tools

The members of the circle have mastered statistical quality control and related methods and all utilise them to achieve significant results in quality improvement, cost reduction, productivity and safety

The seven tools of quality control are taught to all employees:

Pareto charts

Cause and effects diagrams

Stratification

Check sheets

Histograms

Scatter diagrams

Shewhart's control charts and graphs

Seite 6

Week 5

Ohno and Shingo Examples of Quality from Toyota

Toyoda Automatic Loom

Sakichi Toyoda (1867-1930) – Invented a loom which stops automatically if the thread breaks. His son Kiirchiro, started the automotive department of Toyoda Loom Works.

JIT Origins in Japan

Post-WWII Japanese industry in ruins

“Catch up to Americans in 4 years!”

Kiichirō Toyoda, 1946

Toyoda made delivery trucks and motorcycles, and not many of either

The early years

First two Toyopet Crowns arrive U.S. 1957

Ohno – Reduce Waste

“If Americans are 9x as productive, we must be wasting something.” “The basis of the Toyota production system is the absolute elimination of waste.” (Ohno)

Waste

Waste is ‘anything other than the minimum amount of equipment, materials, parts, space, and workers’ time which are absolutely essential to add value to the product. --Shoichiro Toyoda President, Toyota Motor Co.

If you put your mind to it, you can squeeze water from a dry towel. -- Eiji Toyoda, President 1967-1982

Elimination of waste

Knew they wouldn’t beat U.S. with product innovation, concentrated on licensing patents, and producing more efficiently

Costs prevented mass-production, volume strategy of American firms.

Find ways to reduce waste, cost

Shigeo Shingo (at right)  & Taiichi Ohno, pioneers

Two Pillars of Toyota System

Just-in-Time: a flow of right parts, at the right time, in the right quantity

Autonomation: ‘Automation with a human touch’

(make machine mistake-proof)

Workers don’t have to baby-sit machines

Stop automatically if downstream machine stops

Couldn’t Emulate GM

GM huge batches in huge factories

Japan’s area is 10% less than California and 70% agricultural.

Put entire population of CA into 30% of state, then add 6 times as many people. (and you thought LA was crowded).

Land extremely expensive

Sprawling factories not an option

Small Batches

GM’s large batches require large amounts of storage space.

GM produces in large batches because of significant setup costs.

If Toyota had the same large setup costs, it could never afford small batches.

Reduce setup cost to reduce batch size.  GM didn’t think of doing this.

7 Types of Waste (Ohno 1988)

Overproduction

Time on Hand (waiting time)

Transportation

Stock on Hand - Inventory

Waste of Processing itself

Movement

Making Defective Products

Focused Factories

Small, specialized plants

No huge, vertically integrated plants

30 -1,000 workers

Tom Peters

Group Technology-Layout

Not enough WIP to have 1 person run 4 milling machines

Don’t departmentalize, organize machines by product type

Cellular layout

Much less inventory sitting around

Batch size of one

Cross Training

To maintain the flow, workers have to be able to help out as needed

Rotate workers through jobs:

Keep skills sharp (managers too - prove they know what they’re doing)

Reduce boredom & fatigue

Expand understanding of overall picture

Increase potential for new ideas

Employee Input

Employee has a brain, why not use it?

Quality circles look for ways to improve

Emphasis on Continuous Process Improvement

Quality Management

Not a lot of parts to sift through to find a good one

Can’t afford high defect rates

Since low WIP, get quick feedback on errors

Ask ‘Why’ 5 Times

5W = 1H

1. Why did the machine stop? Overload and fuse blew

2. Why the overload? Not lubricated

3. Why not lubricated? Oil pump not pumping?

4. Why not pumping? Pump shaft worn out.

5. Why worn out? No screen, scrap got in

Just-in-Time

Downstream processes take parts from upstream as they need.

Like an American Supermarket

Get what you want

when you want it

in the quantity you want.

Kanban

Japanese for ‘signboard’

Method Toyota used for implementing JIT

Each work station has a fixed # kanbans.

In order to produce, you need both material to work on, and an available kanban.

How is this Different?

Processes can become idled (blocked) or starved

This makes you painfully aware of problems in your system.

Material moves through the system so quickly no in-process recordkeeping is needed.

Importance of Flow

Ohno was very clear about this:

“Kanban is a tool for realizing just-in-time. For this tool to work fairly well, the process must be managed to flow as much as possible. This is really the basic condition. Other important conditions are leveling the product as much as possible, and always working in accordance with standard work methods.

Performance and WIP Level

Less WIP means products go through system faster

reducing the WIP makes you more sensitive to problems, helps you find problems faster

Stream and Rocks analogy:

Inventory (WIP) is like water in a stream

It hides the rocks

Rocks force you to keep a lot of water (WIP) in the stream

Lowering Inventory Reduces Waste

WIP hides problems

Reducing WIP makes problem very visible

Remove problem, run With less WIP

Reduce WIP again to find new problems

A contrasting opinion

“Inventory is not the root of all evil, inventory is the flower of all evil.

Setup Reduction

Can’t afford to do huge runs

Have to produce in small batches

Toyota Die Change: 3 hours down to 3 SMED: under ten minutes 

Techniques

Make internal setups into External

Eliminate Adjustments

Eliminate the Setup

Capacity Buffers

System is inflexible, no inventory buffers, so to respond, need excess capacity

Schedule less than 24 hours per day

‘Two-Shifting’ 4-8-4-8

Cross Training

Quotes from Ohno

“All we are doing is looking at the time line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value adding wastes.”

“No one has more trouble than the person who claims to have no trouble.”

Why not make the work easier and more interesting so that people do not have to sweat? The Toyota style is not to create results by working hard. It is a system that says there is no limit to people’s creativity. People don’t go to Toyota to ‘work’ they go there to ‘think’”

“One thing you can’t recycle is wasted time .”

Seite 7

Week 6

Philosophies & Frameworks

Joseph M. Juran

Corporate Industrial Engineer

Followed Deming into Japan

Philosophy based on training and experience

Fit company’s current strategic planning

Employees at different level speak different “languages”

Management speaks $$

Workers speak things

Mid-managers in between

By contrast, Deming says statistics should be common “language”

Juran Management Philosophy

Philosophy also based on using cost to focus attention on quality problems and increasing conformance to specifications

Defines quality as “fitness for use”

Describes QM as “Quality Trilogy”

Juran Quality is “Fitness for use”

Broken down into 4 categories:

Quality of Design

Market research, product concept, design specifications

Quality of Conformance

Technology, manpower, management

Availability

Reliability, maintainability, logistical support

Field Service

Promptness, competence, integrity

Juran Quality Trilogy

Quality Planning

Determine who the customers are

Determine the needs of the customers

Develop product features that respond to customer’s needs

Develop processes able to produce the product features

Transfer the plans to the operating forces

Quality Control

Evaluate actual product performance

Compare actual performance to product goals

Act on the difference

Quality Improvement

Establish the infrastructure

Identify the improvement projects

Establish project teams

Provide the teams with resources, training, and motivation to :

Diagnose the causes, Stimulate remedies, Establish controls to hold the gains

Juran 10 Steps

Build awareness of the need & opportunity for improvement

Set goals for improvement

Organise to reach the goals

Provide training

Carry out projects to solve problems

Report progress

Give recognition

Communicate results

Keep score

Maintain momentum

Make improvement part of the organisation’s systems and processes

Philip B. Crosby

Vice President of ITT

Primarily behavioural

Management and organisational process for changing corporate culture and attitudes > the use of statistical techniques

Describes quality as:

Absolutes of Quality Management

Basic Elements of Improvement

Crosby Management Philosophy

Philosophy based on Absolutes of Quality Management

Quality means conformance to requirements not elegance

No such thing as a quality problem (quality originates in functional departments)

No such thing as economics of quality (cheaper to do it right first time)

Only performance measurement is cost of quality

Only performance standard is Zero Defects

(Juran and Deming disagree – system not the worker)

Crosby Zero Defects

Performance standard

“Do it right the first time”

Prevent defects rather than just finding and fixing them

Error is inevitable

Human error is caused by lack of attention rather than lack of knowledge

Eliminating the waste of rework, scrap, and repair that increases cost and reduce individual opportunity

Crosby Management Philosophy

Basic Elements of Improvement

Determination

Top management must be serious about quality improvement.

Education

The Absolutes should be understood by everyone; this can be accomplished only through education.

Implementation

Every member of the management team must understand the implementation process

Crosby 14 Steps

Make it clear that management is committed to quality

Form quality improvement teams

Determine where quality problems are

Evaluate the quality awareness & personal concern of all employees

Raise the awareness & concern of all employees

Take actions to correct problems identified in steps 1-5

Establish a committee for the zero defects program

Train supervisors to actively carry out their part of the quality improvement program

Hold a “zero defect day” to tell all employees realise there has been a change

Encourage individuals to establish improvement goals for themselves & their groups

Encourage employees to communicate to management the obstacles face

Recognise & appreciate those who participate

Establish quality councils to communicate on a regular basis

Do it all again to emphasis that quality improvement never ends

Armand Feigenbaum

The originator of “Total Quality Control” adopted by some as “Company-Wide Quality Control”

His work was discovered by Japanese in 1950’s while Juran visited Japan

Argued for a systematic or total approach to quality, requiring the involvement of all functions in the quality process, not just manufacturing.

The idea was to build in quality at an early stage, rather than inspecting and controlling quality after the fact.

Quality Control is defined as:

'An effective system for co-ordinating the quality maintenance and quality improvement efforts of the various groups in an organisation so as to enable production at the most economical levels which allow for full customer satisfaction.'

4 Steps to Quality Control

Setting quality standards

Appraising conformance to these standards

Acting when standards are exceeded

Planning for improvements in the standards

Oakland - LEADERSHIP AND POLICY DEPLOYMENT

The quality policy : An approach to improving competitiveness and effectiveness

These ideas can be set out in a quality policy that requires top management to:

1. Identify the end customer’s needs (including perception).

2. Assess the ability of the organisation to meet these needs economically.

3. Ensure that any bought-in materials meet the required standards of performance and efficiency.

4. Ensure that subcontractors or suppliers share the values and process goals.

5. Concentrate on the prevention rather than detection philosophy.

6. Educate and train for quality improvement and ensure that any subcontractors do so as well.

7. Measure customer satisfaction at all levels, the end customer as well as customer satisfaction between the links of the supply chain.

8. Review the quality management systems to maintain progress.

Creating or changing the culture

The culture within an organisation is formed by a number of components:

1. Behaviours based on people interactions.

2. Norms resulting from working groups.

3. Dominant values adopted by the organisation.

4. Rules of the game for ‘getting on.’

5. The climate.

Vision framework for an organization

Control

Control is the process by which information or feedback is provided so as to keep all functions on track.

Control mechanisms fall into three categories, depending upon their position in the managerial process:

Before the fact

Operation

After the fact

Managing Control

Attempting to control performance through systems, procedures, or techniques external to the individual is not an effective approach, since it relies on ‘controlling’ others; individuals should be responsible for their own actions.

negative consequences

1. Since all rewards are based on imposed external measures, ‘team members’ focus on the measure itself, e.g. to manipulate the information.

2. When the rewards are dependent on only one or two limited targets, all efforts are directed at those, even at the expense of others.

3. The fear of not being rewarded, or even being criticised, for performance causes individual’s to withhold information that is unfavourable.

4. When reward and punishment are used to motivate performance, the fear of failure replaces the desire to achieve.

Some outcomes

Goals imposed seen to be unrealistic. If the goals are in fact accomplished, then the individual has proved themselves self wrong. This clearly has a negative effect, since few people are motivated to prove themselves wrong!

Where individuals are stimulated to commit themselves to a goal, their personal pride is at stake, then the level of motivation is at a peak. For most people the toughest taskmaster is not their immediate boss but themselves.

The five requirements for effective leadership are the following:

1. Developing and publishing clear documented corporate beliefs and purpose - a Vision

2. Develop clear and effective strategies and supporting plans for achieving the vision.

3. Identify the critical success factors and critical processes

4. Review the management structure

5. Empowerment – encouraging effective employee participation (Attitudes, Abilities, Participation)

2010-2015 research programme of The European Centre for Business Excellence (www.ecforbe.com):

Top 3 things affecting Quality :

Culture; most important, business/CEO must care, quality of leadership, clarity of vision, and direction, measurement of quality;

Continuous Improvement – linked to measures & objectives and, therefore, to culture;

Supply Chain Management – the impact of cost reduction in the supply chains on quality and the potential lack of control through outsourcing arrangements.

Seite 8

Week 7

Project Team

The dimensions of Knowledge

Know Why: purpose, outcomes, vision, values;

Know How: behaviour, attitudes, skills and competences;

Know What: systems and processes

Soft systems

The viable systems model

The skills-based quality management system

A process

Client centred process

Applying process

Defining skills within tasks

Initial outcomes

Performance management

Performance improvement

The hierarchy of skills

Quality Improvement Teams

Project team

A project team is a group of people from all concerned departments who meet regularly for a finite amount of time, to study and improve a specific process, the results of which would be of significant benefit to the organisation

“A project is a problem scheduled for solution” – J.M. Juran

Characteristics of Project Teams

The project focuses on a process

Life of the project can be fairly long term

Potential for quality improvement is substantial

A completion date is specified, but is flexible

Teams meet constantly

Teams are trained and assisted by a technical advisor

Teams use analytical and research techniques to study and improve the process

Team Leader

Facilities and coordinate the design of actions plans, the design of agendas, and team meetings

Keep the team focused on the process improvement steps

Helps to maintain team momentum

Communicates and coordinates with all affected and involved areas

Knows and practices the principles of group development and group dynamics

Team Members

Attend and participants in all meeting (are on time and show respect for their team mates)

Gather data and information

Analyse root causes

Participate in all presentations

Recommend solutions

Track the effectiveness of solutions

Establish on-going monitoring (Quality Control)

Technical Advisor

Perform the following roles:

Communicator

Keeps all areas informed of quality activities

Champion

Helps maintain the quality program and team momentum

Instructor

Instructs in quality concepts, processes and techniques

Coach

Serves as a support and resource person to managers, team leaders and team members

Project Teams in QM

The project should have the following characteristics:

Direct impact on company customers

Recycle frequently so that measurement is easy

Is not under existing investigation

Is clear cut & defined

Has a starting point an end

Targets are measurable

Is something that the majority feel is important to the organisation

Mutual Participation

Text:

Individual

Develop personal skills through the opportunity to:

Share leadership

Think creativity

Gain recognition

Learn problem-solving techniques

Expand work knowledge

Experience teamwork with co-workers in a cooperative environment

Share communication about goals with managers for improved understanding and focused work efforts.

Organisation

Management plan for improved quality through increased employee awareness of:

Error Cost

Cost of poor quality

Service needs of Customers

Complex work processes

Work objectives

Core of consistent knowledge is maintained in the midst of change.

Share communication about goals with employees for improved understanding and focused work efforts.

The Mistakes

The 4 Common Errors

Selecting a process that no one is really interested in

Selecting a desired solution, instead of a process

Selecting a process in transition

Selecting a system to study, not a process

6 Phases of Project Disaster

Enthusiasm

Disillusion

Panic

Search for the guilty

Punishment of the innocent

Praise and honours for the non-participants

Most of organisation fail project implementation

For best project…

Consists of 5-7 people, approx. 9 members

Have clear understanding of the importance of the project

All individual are active participants

Be careful of planning to much emphasis on management participation within the team

Do not expect team members to take project on additional work

If a leader influences strongly, the team members begin to rely on

Project Meetings

First meeting

Everyone must understand PDSA

Brainstorming

Establish criteria

Prioritising

Set of goals

Team building goals

Educational goals

Project goals

Regular Meeting

10 Common Group Problems

Floundering

Unclear or overwhelming task

Work not a product of consensus

Lack of a step by step plan

Excessive team bonding

Overbearing Participants

Disproportionate influence generated position authority or area of expertise

Dominating participants

Reluctant participants

Unquestioned acceptance of opinions as facts

Rush to accomplishment

They that use the obvious fact rather than having the patients gather the hard data

Attribution

Placing the onus on the individual rather than the process

Discounts & Plops

Non recognition of the individual input

Fail to recognise the importance of a statement for an individual

Digression and targets

Feuding team members

Seite 9

Week 8

Cybernetics

What is Cybernetics from a Quality Perspective

The role of cybernetics is to help explain:

How an organisation works ( or doesn’t)

Why it works

What to do to improve it

Cybernetics treats not things by whys of behaving

Cybernetic derives its finds from the problem not the previous science about the problem

What is organisational cybernetics

The study of control and communication in living and man-made systems.

Modern "second-order cybernetics" places emphasis on how the process of constructing models of the systems is influenced by those very systems,

Cybernetics is the interdisciplinary study of the structure of complex systems, especially communication processes, control mechanisms and feedback principles. Cybernetics is closely related to control theory and systems theory

The characteristics of cybernetics

Cybernetics –

Treats not things but ways of behaving

The characteristics of organisations for the application of cybernetics

Extreme complexity

A degree of self-regulation

Probabilistic behaviour

The tools of cybernetics

The Black box technique – to address extreme complexity

Feedback – to manage self relegation

Variety engineering – to handle probabilism

Black box tecnique

Feedback

Self relegation – circular causal processes

First order feedback – the regulatory process

Negative feedback – A changes B

Positive feedback – A amplifies B

Second order feedback – chose of responses

Closed system

Designing effective feedback – Cybernetic

All the elements of the system must be working properly and the communication channels between them be adequate

In an organisation, responsibility for action, which carries with it accountability, must be clearly allocated

Controls must be selective

The control must highlight the necessary action

Variety Management

This is a measurement of complexity

The law of requisite variety = only variety can destroy variety

Managed by variety reduction or amplification

Processes that reduce are called filters or attenuators,

Processes that increase are called amplifiers

Closed loop quality

Contingency Theory

The behaviour of the elements and there affects on the whole are interdependent (Ackoff, 1981)

contingency theory grew out of Fiedlers work on leadership

Relationship motivated

task motivated

This is on a scale no one best way

Contingency theory and organisational design

this sees organisations as an interactive network

With each element essential and elements bound together by common purpose

Here organisations can be seen as organic a dynamic state

Objectives of the firm span of control determine technologies that are used

Jackson’s five strategic contingencies

Goals

People

Technology

managerial

Size

(environmental considerations)

Is quality contingent

The answers to this varied ◦ In performance terms the answer is yes

Given the wide variety of definitions of ‘Quality’ given by the different approaches this will influence this question also

Seite 10

Week 9

Critical Systems Thinking Part 1

To transcend their alterable, history and essentially ideological limitation ( Oliga, 1998)

Critical Thinking

Developed late 70’s

Three goals:

Complementarism

Different situations different approaches

Driven by a methodology

Method to match the problems

Sociological awareness

Every thing happens in a social content

This relates to the culture, climate and sub culture of the organisation

Context is essential

Emancipation

The development of the individual and respect of the well-being of humanity

“work” and “interaction”

Power and power relationship are important to the nature of work and interaction

Total Systems Intervention

Pragmatism:

What works for me at that time, lacks unpinning in theory or in-depth problem solving. Is not developmental and is power based.

Isolationism:

One path to all destinations, ‘fits the problem to the solution rather than the solution to the problem’

Imperialism:

When an approach that is an entity in its own right is subsumed into the existing organisation or personal approach

Tools rather than methods

This existing emphasis is more focused on the tools for a practical issue than a detailed analysis of the problem.

Therefore methods are taken out of context and aligned to the organisations existing power structure

They are no longer the methods as such and the true problems are not identified

Principles of TSI a meta method for problem solving

Principle 1:

Organisations are too complicated to understand using one management ‘model’ and their problems too complex to o tackle with the ‘quick fix’.

Principle 2:

organisations, their strategies and the difficulties they face should be investigated using a range of system metaphors. (see Matts Alverison’s eight metaphors)

Principle 3:

systems metaphors, which seem to appropriate for highlighting organisational strategies and problems, can be linked to appropriate systems methodologies to guide the intervention.

Principle 4:

different systems metaphors and methodologies can be used in a complementary way to address different aspects of organisations and the difficulties they confront

Principle 5:

It is possible to appreciate the strengths and weaknesses of the different systems methodologies and to relate each to organisational and business concerns.

Principle 6:

TSI sets out a systemic circle of enquiry with iteration back and forth between the three phases.

Principle 7

faculitators, clients and other are engaged at all stages of the TSI process

Three phases of TSI

The three phases are: creativity, choice and implementation.

The first phase: creativity

2 modes of questioning

Mode 1 - “Which metaphor best describes the current situation?”

Mode 2 – “which describes the desired situation”

A third mode “which metaphors best explain the difficulties and areas of concern?

Possible metaphors

Machine

Organism

Brain

Culture

Team

Coalition

Prison

Building methaphors

 In is also important to have participants build their own metaphors once the process is understood. Eg the elephant example

The choice phase

Build on Jackson & Keys (1984) ‘systems of systems methodologies’

The dimensions of SOSM are

Relative complexity of the system being studied

Relative plurality of the views of the participants

Simple vs complex systems and the range in between

Relative plurality of the views of the participants

Plurality: the number or multitude of existences that are present

Unitary: singleness of oneness in nature, relating to a single unit

Pluralist: Many meanings, the acknowledgement of diversity

Coercive: use of power to intimidate

Implementation

Given what we have got will what we have chosen work?

Does the method or methods selected match the organisation the problem and the way forward

Developing the method while remaining true to the method rather than manipulating the method to suit the management of the organisation and thus failing to address the problem.

TSI in summary

This is a process to evaluate systems and systems approaches.

It highlights that this exercise take effort and there are no quick fixes

When developed and understood it improves management decision making

Critical thinking and quality

This approach rejects the one best way

It allows the context to predict the approach that is most relevant

TSI and TQM

Note this is TQM and not Quality management

Floods 10 principles

1. There must be agreed requirements, for both internal and external customers;

2. Customers’ requirements must be met fist time and every time;

3. Quality improvement will reduce waste and total cost;

4. There must be a focus on the prevention of problems, rather than an acceptance to cope in a fire fighting manner;

5. Quality improvement can only result form planned managements action;

6. Every job must add value;

7. Every one must be involved, from all levels and across all functions;

8. There must be an emphasis on measurement to help assess and to meet requirements and objectives

9. A culture of continuous improvement must be established

10. An emphasis should be placed on promoting creativity

Flood’s assumptions

1. A willingness on a part of the organisation to communicate and negotiate with there customers

2. A willingness on a part of the organisation to distribute power amongst the members

3. A willingness on a part of the organisation to embrace a systems approach

Strengths

It attempts to be truly holistic;

It is systematic, methodical and iterative;

It embraces much of the value from the established approaches, overarching some weakness previously recognised;

Is it rooted in a substantial appreciation of management and organisational theory;

Weakness'

The theory and practice of TSI is not yet accepted as part of mainstream management theory

TSI is regarded by many practitioners as too complex;

There is a lack of widely reported case studies

Its based on one persons work (Flood)

The approach is of limited value in a truly coercive environment

Seite 11

Week 10

Benchmarking

Benchmarking – “the search of industry best practices that lead to superior performance.”

Best practices – approaches that produce exceptional results, are usually innovative in terms of the use of technology or human resources, and are recognized by customers or industry experts.

Competitive benchmarking - studying products, processes, or business performance of competitors in the same industry to compare pricing, technical quality, features, and other quality or performance characteristics of products and services.

Process benchmarking – focus on key work processes

Strategic benchmarking – focus on how companies compete and strategies that lead to competitive advantage

Benchmarking Process

1. Determine what to benchmark

2. Identify key performance indicators to measure

3. Identify the best-in-class companies

4. Measure the performance of best-inclass and compare to your own performance

5. Define and take actions to meet or exceed the best performance

Business Process Reengineering

This process was popularised by Hammer and Champy (1993)

Through the use no reductionist thinking, technology, improved employee skills and knowledge it attempts to view the organisation as an integrated body.

Discontinuous thinking

This term developed by Handy in 1990 is different to the scientific approach of continuous thinking which revolves around incremental change

Therefore discontinuous thinking is associated with rapid change that breaks from the present forms used.

BPR has tried to address discontinuous thinking (in many cases with little or varied success)

What drives BPR

The key proposed driver for BPR is economic survival as suggest by Hammer and Champy

Short term thinking is seen as limiting the up take of BRP

There is little researched evidence on the overall advantage of BRP within applied settings

The 5 BPR key words

Fundermental: “Why do we do what we do”

Radical: “ Change that cuts deep and is not seen as fiddling around the edges”

Dramatic: “improvement is seem as impressive with increase discussed of 35%- 50% within a process

Processes: “ A series of revenue generating or cost cutting activities across the organisation”

Performance: ”Fulfilment of purpose”

BPR Process

Summary of BPR

While the ideas behind BPR have been driven by so called management Guru’s there are question in regard to it effectiveness.

Much of the discontinuous approach still uses continuous thinking leading to a disconnect in the application.

So of the rapid and dynamic approaches if not understood can accelerate issues and problems rather than create solutions

Seite 12

Week 11

Service Quality Part 1

Pushing service onto competitive edge … but fail, why?

Cost based vs. Marketing Based

Service Quality = “What you want?”

Definitions in Service

Service

Work done by one person for the benefit of another

Internal Service

If you are not serving the customer, your job is to serve somebody who is.

We usually think of service as "customer relations." But people who must cooperate with each other on the job perform equally important "internal service.” Unfortunately, sometimes departments within an organization seem to be working against each other rather than in cooperation. They antagonize each other with delays or denials. Not only is this behaviour annoying, it is inefficient and harms business. Overworked because of budget restraints and understaffing, employees can lose morale and motivation when their internal relationships and transactions are de-valued.

What you feel is what you get

The way organizational employees feel directly affects the way their customers will feel.

Feeling are contagious

Seven Sins of Internal Service - Karl Albrecht -

1. The Black Hole

Things go in but nothing ever seems to come out. Requests for information, advice or special assistance seem to go unheeded. Departments operate as if they are autonomous and ignore other departments until management puts the heat on.

2. The Bounce-back

Department enjoys rejecting requests on procedural grounds. "Because you didn't fill in line 24 of the Standard Request Form, we are returning your request without action." Instead of calling the department to get the missing information, they throw the request back in.

3. The Edict

A department enjoys making declarations of what it will or won't do in the future. "Effective today, we will no longer process budget requests without written notification signed by the supervisor." The message is, "This is how it's going to be; take it or leave it."

4. The Gotcha

Department polices others and gets carried away. They seem to take a sadistic pleasure in catching people in other departments making mistakes or violating rules. Internal audit, legal and affirmative action departments often fall into this role.

5. No-ism

Departments delight in exercising their veto power by telling others "No." Instead of a "can-do' attitude, they have a "No, you can't" attitude. Instead of saying, "This can't be done," they should try to meet legitimate

6. The Paper-mill

Department buries you in paperwork with special request forms. They won't discuss a problem over the phone and take immediate action. They want requests to be submitted in triplicate with fifteen signatures before they'll even decide to say yes or no

7. Turf-ism

Department's jealous preoccupation with its responsibilities when common sense tells you compromise is necessary to get results. A "turfist' department may ignore a request from someone in another department, only to attack them when they decide to take action on their own.

Quality (in service)

A measure of the extent to which a thing or experience meets a need, solves a problem, or adds value for someone

TQ Service

A state of affaire in which an organisation delivers superior value to its customers, owners and employees

Customer Value

Customers buy experience and performance

How you find out your customer value?

What types of value give competitive edge?

How you deliver it?

Customer Value can be found

By Market Research

What they need, want or like

How you treat customers

By Message

Customer Value Package

7 sins of Customer Service

1. Apathy

sigh, looking at your watch, multi-tasking, eyerolling, crossed arms

2. The Brush-off

can’t help you, not my job, about to close, they’re not in today

3. Coldness

callous, uncaring, monotone, won’t look up, icy or vacant stare

4. Condescension

passive aggressive, talk down to , “if you’d just read the signs”

5. Robotism

 saying exactly the same thing and sounding like it

6. The Rulebook

 “I’m just doing my job”, it’s the rule, our policy is

7. The Run-around

it’s over there, let me send you upstairs, downstairs, to another facility

The Learning Organisation Building a community to achieve outcomes

What is a learning organisation

A learning organisation is an organisation skilled at creating, acquiring, and transferring knowledge, and at modifying its behaviour to reflect new knowledge and insights.

Without accompanying changes in the way that work gets done, only the potential for improvements exists

BUILDING A LEARNING ORGANISATION (Gavern)

Meaning, Management and Measurement

Meaning : and actionable definition of organisational learning.

Management: Clear guidelines for practise, filled with operational advice.

Measurement: A method for understanding the uptake of learning.

Building Blocks

Systemic Problem Solving: The tools of QI

Experimentation with new approaches: Scientific method

Demonstration Projects: Holistic, system-wide changes, introduced at single sites and replicated

Learning from past experience: Those who cannot remember the past are condemned to repeat it.

Learning from others: Benchmarking and study tours.

Transferring Knowledge: wide appropriate and digestible spread of knowledge.

First steps:

Time and space to learn

Open up boundaries

Learning Forums

The three M's

Brewer (1994 p. 112) asserts that

"participation is often imposed on employees" and such forms of participation "tend to be viewed as less democratic … resulting in a self-interested relationship between management and employees, with compliance as a likely outcome."

Levering (1988) states,

"So called participative programs that merely make employees feel good but don't actually change the power relationships in the workplace probably have not actually increased the amount of the employees' responsibility" (p. 208).

THE PARTICIPATIVE CHANGE CYCLE

Mayo (1933) saw a conflict caused by an over emphasis of the traditional technical areas of the physical sciences, ie engineering, chemistry and physics. This absence of humanity within the workplace and its replacement by control and rigid formulas was of great concern to Mayo. He went on to state that

"the consequences for society of the unbalance [sic] between the development of technical and of social skills have been disastrous" (Mayo, 1945,p. 23)

'temporal spread'

Lewis' (1929) work, "Mind and the World Order."

In the quest for a theory of knowledge, the concept of 'temporal spread' becomes essential where knowledge based on theory provides the ability to predict.

The greater the accuracy of the predictions, the greater the ability to influence and change the situation because of the consistent, observable, level of realism associated with the predictions.

Therefore, the stronger the level of 'temporal spread,' the greater the ability to influence attitudes and behaviours.

The example

Change in individual behaviour is significantly more difficult and time consuming than at other levels.

For example, managers may have the knowledge about the advantage of increased follower involvement and participation in decision making and believe that participation would improve performance,

yet, they may be unable to delegate or share decisionmaking responsibilities significantly with subordinates.

This discrepancy between knowledge, attitude and behaviour may be a result of their own authoritarian management subordinate upbringing.

This past experience has led to a habit pattern that feels comfortable.

Key elements within organisations capable of inspired performance Kiefer and Stroh (1984, p. 171)

A deep sense of purpose often expressed as a vision of what the organisation stands for or tries to create;  Alignment of individuals around this purpose;

An emphasis on both personal performance and an environment that empowers the individual;

Effective structures that take the systemic aspects of organisations into account; and

A capacity to integrate reason and intuition as in the concept of "Metanoic Organisations" (Kiefer & Senge, 1984, p. 70).

Learning Organisation - Key words

 People  Continually  Create the results  New patterns of thinking  Collective aspiration/learning together

The 11 Laws of the Fifth Discipline

1. Today's problems come from yesterday's "solutions."

2. The harder you push, the harder the system pushes back.

3. Behaviour grows better before it grows worse.

4. The easy way out usually leads back in.

5. The cure can be worse than the disease.

6. Faster is slower.

7. Cause and effect are not closely related in time and space.

8. Small changes can produce big results...but the areas of highest leverage are often the least obvious.

9. You can have your cake and eat it to ---but not all at once.

10. Dividing an elephant in half does not produce two small elephants.

11. There is no blame.

Organisms and organizations are susceptible to learning disabilities:

1. “I am my position” – with this disability, individual units in the organization focus too closely on their own positions and responsibilities, thus missing out on bigger pictures and inter-unity.

2.“The enemy is out there” – the disability enables us to find an external agent to blame (“no one can catch a ball in that darned field”, “the customers betrayed us”)

3.“The illusion of taking charge” – when reactivity is mistaken as proactivity

4.“The fixation on events” – when conversations and media are dominated by short-term events, leading to “event” explanations (instead of “pattern” explanations that describe longer-term events)

5.“The parable of the boiled frog” – where we do not see gradual changes, much like a frog in a pot will relax into drowsiness as its water is slowly heated

6.“The delusion of learning from experience” – because some effects are beyond the current limits our awareness (e.g., effects in time, non-linear effects), we do not experience many of the effects of our actions

7.“The myth of the management team” – with this disability, management protects itself from the threat of appearing uncertain or ignorant in the face of collective inquiry, resulting in “skilled incompetence” (“people who are incredibly proficient at keeping themselves from learning”)

Systems Thinking

is a framework for seeing inter-relationships that underlie complex situations and interactions rather than simplistic (and mostly inaccurate) linear cause-effect chains.

It enables teams to unravel the often hidden subtleties, influences, leverage points and intended/unintended consequences this leads to deeper, more complete awareness of the interconnections behind any system.

The circle represents the fundamental building block of all systems: the circular feedback loop underlying all growing and limiting processes in nature.

Personal Mastery

Is to do with ‘self-awareness’ – how much we know about ourselves and the impact our behaviour has on others

The human face – to manage relationships sensitively,

To be willing to have our own beliefs and values challenged

To ensure our interactions and behaviours are authentic, congruent and principled.

Its about enhancing the quality of interaction and relationship in and outside teams

Learning to cultivate the tension between vision and reality, as represented in the rubber band.

Mental Models:

The surfacing of deep-seated mental models - beliefs, values, mind-sets and assumptions that determine the way people think and act

Getting in touch with thinking, challenging or clarifying assumptions and encouraging people to reframe is essential.

Leaders learn to use tools like the 'Ladder of Inference' and 'Reflective Inquiry' to practise making their mental models clearer for each other and challenging each others' assumptions in order to build shared understanding

Shared Vision

‘What do we want to create together?’.

People learn to nourish a sense of commitment in a group or organization by developing shared images of the future they seek to create (symbolized by the eye), and the principles and guiding practices by which they hope to get there.

Team Learning

This is a discipline of group interaction.

Through techniques like dialogue and skilful discussion, teams transform their collective thinking, learning to mobilize their energies and ability greater than the sum of individual members' talents.

The natural alignment of a learningoriented team is seen in the flight of a flock of birds.

It’s also about teams developing the discipline to use the action learning cycle rigorously

Seite 13

Week 12

Service Quality Part 2

Total Quality Service

MCR

Market & Customer Research

SF

Strategic Formulation

ETC

Education, Training, Communication

PI

Process Improvement

AMF

Assessment, Measurement, Feedback

5 Secrets of the Quality Champions

1. Special insights into the needs of their customers

2. Business strategies focused on customer value

3. Quality commitment at all levels

4. Constantly upgrading “products & processes”

5. Management by facts and feedback

Customer Value

Customer value will be delivered outwards from the core of the organisation

Thus, top management must develop & deliver certain core value

Is the value shared by all members within the organisation?

The service triangle

Quality Action Cycle (IDEA)

Employees as Customers

Process Improvement Tools

1. Customer “Bug List” (Brain storming)

Long turnaround time on purchasing actions

Phone goes unanswered when customer calls

Lost purchase orders

Customer not notified when items arrive

Lack of flexibility; the only go by the book

Too much paperwork involved in purchase request

Won’t take responsibility for mistakes

Won’t consider our vender recommendations

Refuse to speed up for urgent requests

Things get lost in storeroom

2. Momentum of Truth Chart (Affinity Diagram)

Any episode in which the customer comes into contract with some aspect of the organisation and gets an impression of its service.

Nothing is neutral about a moment of truth. It leaves a positive or negative impression on the customer's mind.

Moments of truth can build or destroy trust and confidence in the minds of prospects and homeowners.

Moments of truth can and often do dictate buying decisions.

Moments of truth become word-of-mouth advertising.

Moments of truth are not limited to things; they also can include relationships

3. Cycle of Service Chart (IDEA – PDSA)

4. Service Blueprint (Flowchart)

5. Why-Why Diagram (CE Diagram for identifying)

6. How-How Diagram (CE Diagram for solving)

7. Tracking Chart (Control Chart)

Why Quality Programs Fall (Fizzle Factors)

Executive apathy

Splintered executive commitment

Poorly-chosen tactical leaders

Bureaucratising the problem

Program becomes a political football

“I don’t want to play” syndrome

Methodology battles and factions

Trivialising with slogans and symbols

Ready-fire-aim (no plan or strategy)

Deadly contradictions

Premature abandonment