You are on page 1of 5

Introduction

Case studies
Nearly every major organization around the
Streamlining TQM world[1] believes that quality is a critical
factor in its strategic performance. Due to
this, many have attempted to implement
TQM in at least part of their organization.
However, despite this enormous worldwide
effort many others have abandoned TQM.
Michael P. Cassidy One author[2] suggests that fully 95 per cent
of TQM implementation efforts fail. There
have already been several famous withdrawals
from TQM by companies which have won the
Deming Prize or a Baldrige award[3]. Typi-
cally these withdrawals are blamed on changes
in top executives, financial pressures, the
over-focus on process to the detriment of
business results, cultural mismatches, or the
The author bloated bureaucracy supposedly required by
Michael P. Cassidy is Quality Director, Power Systems,
TQM.
The Power Systems division of Lucent
Lucent Technologies, Mesquite, Texas, USA.
Technologies, then known as AT&T, avoided
these problems during the implementation of
Abstract
TQM. With a long heritage of involvement in
Notes that many companies have abandoned total quality
quality, we adapted the Japanese style TQM
management (TQM) implementation efforts and that a few
to a US manufacturing company. The TQM
have even dismantled TQM after winning major quality department never grew to more than a dozen
awards. Points out that this is generally blamed on people and we focused our TQM efforts on
changes in top management, financial pressures or the those processes that were truly critical to our
bureaucracy of TQM. Focuses on Lucent Technologies’ customers, our employees, and our busi-
Power Systems business, which has avoided these prob- ness[4]. In 1995, however, we faced many of
lems by dramatically streamlining its award winning TQM the same issues as those companies who had
system and making it the key management tool for previously abandoned TQM: a highly com-
meeting its next major business challenge. Describes the petitive marketplace, a changing corporate
process used to evaluate the existing TQM system and to structure, a new top executive, and the natur-
create the streamlined approach, the new streamlined al human let-down following the enormous
TQM system, and the results obtained to date. efforts required to win the Deming Prize in
1994. However, rather than abandoning the
award winning TQM system, the new chief
operating officer called on the entire organiza-
tion to put the TQM system to work. The
goal was to use TQM as the management
system to double the sales in a very short time.
The small TQM organization was chartered
with streamlining the already lean TQM
system. Their goal was to make the system so
easy to use that no one would have any excuse
not to use it on a daily basis.

The streamlining process


The existing TQM system was similar to
others used by leading TQM practitioners
around the world. It was based on three

The TQM Magazine This paper was first presented at the 1st Interna-
Volume 8 · Number 4 · 1996 · pp. 24–28 tional Conference on ISO 9000 and TQM, 10-12
© MCB University Press · ISSN 0954-478X April 1996, Leicester Business School, UK.
24
Streamlining TQM The TQM Magazine
Michael P. Cassidy Volume 8 · Number 4 · 1996 · 24–28

primary elements: policy deployment, daily customer and the business, assurance of
work management and quality improvement. meeting particular needs on a daily basis and
Policy deployment is the element of TQM feedback to each individual employee so that
that aligns the organization around the most they can improve their ability to contribute to
important activities to the business. It helps the business in the future. Feedback from the
establish the direction, priorities, and plans users indicated that some of the information
for the business. Daily work management is a on the forms was redundant, and that they
system for documenting the specific processes were in general, too complicated. Many of the
involved with a particular job, organization or users did not feel comfortable with the rela-
function as well as the plans for managing and tionship matrices that used symbols to denote
improving that particular operation. Quality the degree of relationship of individuals’
improvement is of course a collection of tools managing points with those of their supervi-
used to effect improvement such as the seven- sor.
step QI (quality improvement) story, sugges-
tions, and Poka-Yoke devices. A collection of
Streamlined TQM system
forms helped provide a disciplined documen-
tation approach. TQM forms 1-5 document- The new, streamlined system contains all of
ed the mission, vision, accountabilities, spe- the elements of the old existing system but
cific targets and current results for a given with reduced bureaucracy, reviews and paper-
function or manager and the relationship of work. Five forms are at the heart of the
each individual’s accountabilities to those of streamlined TQM system. Completion of the
his manager and the business as a whole. forms guides each individual and organization
Forms TQM 6-8 documented the process through the thought process of clearly identi-
flow diagram, the managing and checking fying their customers, their areas of account-
points, and the specific improvement plans for ability, their linkage to the overall goals of the
a particular area. TQM 9 was required for business, the processes they use, and their
policy deployment metrics that were missing plans for improvement. Also integrated into
the established target and described the cor- the TQM system are the feedback process for
rective action plan. TQM 10 provided docu- helping each individual improve, the manage-
mented change control for the other forms. In ment review process and the quality improve-
addition, each individual had a separate form ment tools.
for use in reviewing their performance with The first form is used to identify the mis-
their supervisor. The entire process for each sion, accountabilities and measures for a
major function was reviewed twice a year by particular organization. This form (TQM 1)
the chief operating officer in a presidential is used by Power Systems, the individual
review. The results on the managing points for business units, functions, departments and
each major function were reviewed every shopfloor teams. An example of TQM 1
other month at an operational review. Also is shown in Figure 1 for the quality and
each individual function was reviewed in
depth in a process modelled after the Deming Figure 1 An example of TQM 1 for the quality and information technology
Prize schedule B examination by the quality organization
director several times a year.
Lu c e n t Te c h n o l o g i e s Po w e r Sy s t e ms
The existing system was evaluated by the TQ M 1
A c c o u n t a b i l i t i e s & M e a su r e s
TQM group. They reviewed their own experi- Organization: Quality and IT
ence in using it and gathered feedback from a Mission

broad cross section of users throughout the To p r o v i d e l e a d e r s h i p f o r q u a l i t y i m p r o v e m e n t a c t i v i t i e s ; t o c r e a t e ,


assure, implement, and monitor an integrated quality approach; to act
business. These experiences, plus an assess- as an independent customer advocate and to provide Information
Te c h n o l o g y s u p p o r t t o a l l o f P o w e r S y s t e m s
ment of the absolute requirements of a lean
Accountabilities Measures
TQM system led to the new streamlined C u st o m e r S a t i sf a c t i o n
R e p r e s e n t t h e c u s t o me r ’ s i n t e r e s t w i t h i n Po w e r Report Card – Quality
system now in place. Systems with respect to quality, reliability product OOBQ
safety and product qualification D PH
A streamlined TQM system must provide Pr o d u c t R e l i a b i l i t y
C y c l e Ti me R e d u c t i o n
O A SI S mi l e s t o n e s c o mp l e t e d
for identification of the customer, identifica- TQ M R e v i e w sc o r e
Products shipped not qualified
S t a k e h o l d e r S a t i sf a c t i o n
tion of the most important areas for improve- Pr o v i d e a n e ff e c t i v e , i n t e g r a t e d q u a l i t y Budget
a p p r o a c h t o me e t st a k e h o l d e r n e e d s PI P $ s a v i n g s
ment, involvement of all levels in planning
Em p l o y e e S a t i sf a c t i o n
improvements, aligning of the efforts of the C r e a t e a n e n v i r o n me n t w h e r e e mp l o y e e PVA – employee survey score
p a r t i c i p a t i o n i s e n c o u r a g e d a n d e v e r y e mp l o y e e
organization, linking of the improvement feels empowered to contribute to Power Systems
success
efforts to the most important needs of the
25
Streamlining TQM The TQM Magazine
Michael P. Cassidy Volume 8 · Number 4 · 1996 · 24–28

information technology organization. As more specific measures which support these


expected, many of the measures are in the overall ones.
area of customer satisfaction. Specific depart- Organizations and individuals also want to
ments in the organization, for example Quali- know how their accountabilities align with
ty Assurance or Quality Engineering have those of their supervisor and the business.

Figure 2 A portion of TQM 2 for the chief operating officer with instructions for filling out the form

7 Enter the previous year‘s


results corresponding to the
managing point

5 Enter managing points of 6 The chief operating


officer‘s managing points 8 Enter the
appropriate personnel as they current target
correspond to entries of step 5 will be pre-entered
(see step 10) corresponding
to the managing
point

Chief Chief Results/targets


operating operating Managing points/ owner
Managing point Previous
officer officer description Current
managing checking year‘s
MFO MPC PBJ JDS JCW KMM LVS RHH WB SC results target
points points

C1.1 M1.1 CVA

C1.2 M1.2 Product quality

CVA C1.3 M1.3 Product reliability

M1
C1.4 M1.4 Ship to request

C1.5 M1.5 Cycle time reduction

C1.6 M1.6 Percentage schedules missed

C2.1 M2.1 PVA

CVA C2.2 M2.2 Safety

M1
C2.3 M2.3 Absenteeism

C2.4 M2.4 Community involvement

C3.1 M3.1 MOI


C3.2 M3.2 Cost reduction
EVA
M3
C3.3 M3.3 Assets

C4.1 M4.1 Revenue


Revenue C4.2 M4.2 Client share
M4 C4.3 M4.3 Globalization

4 The chief operating Owner Ext. Prepared by: Ext. Date Revision
officer‘s managing checking
points will be pre-entered
(see step 10)

9 Complete this section


each time
TQM 5 is updated

26
Streamlining TQM The TQM Magazine
Michael P. Cassidy Volume 8 · Number 4 · 1996 · 24–28

A critical step in policy deployment is achiev- our processes had these diagrams as part of
ing this alignment throughout the business. our ISO 9001 process. With the implemen-
This alignment is shown on TQM 2 along tation of TQM, every process, whether associ-
with the current, approved target for each ated with products, customers or internal
measure. A portion of a TQM 2 for the chief operations, has been documented in this
operating officer is shown in Figure 2. Also fashion.
shown are the instructions for filling out the Each priority managing point identified by
form from the TQM Planning Guide. This policy deployment as well as any other accou-
guide is provided to everyone in Power Sys- ntability slated for improvement needs a plan
tems and is used in training people about the to drive that improvement. A tool for that
TQM system. planning is shown in Table I, which shows
Each process used throughout the business part of the quality engineering TQM 4 for
is documented in a QA process flow diagram. improving the in-process quality in two shops
The flow diagram (Figure 3) and correspond- of the Systems business unit. Each action step
ing managing and checking points for the has identified the individual who is responsible
process are documented in TQM 3. Most of for the work, when it will be done and what
improvement in defects per hundred (DPH)
can be expected. The combination of all of
Figure 3 A portion of TQM 3 for the statistical process control teams’ the TQM 4 forms for all of the shops predicts
improvement of in-process quality the overall improvement expected in DPH
across the entire business.
Each employee has a Performance Man-
SPC training and operator verification
agement Worksheet that links to the TQM 1
and 2, provides documented feedback from
Collect data his supervisor and the opportunity to create
development plans for improving skills or
Analyse data obtaining new assignments as shown in
Table II.

Any No Results and conclusions


out-of-control
points? The number of forms required to conduct
Report in-process policy deployment and daily work manage-
quality M1.2.6
defects per hundred ment was reduced by half. Performance
management was integrated into the TQM
Yes
system. The simplification of the system
Investigate root causes reduced the need for management reviews to
ensure compliance. The revamped manage-
Report process ment review system resulted in half as many
Develop and implement
control data corrective actions reviews while maintaining complete coverage
for DQR
of all policy deployment managing points and
all functions. For example, the presidential

Table I A portion of TQM 4 showing a typical improvement plan

Managing Start End Impact


point Target Actual Gap Action steps Who date date (% or actual)
(Systems – 2.9 3.6 0.7 Add templates and colour ROA/ 1/96 12/96 0.7 DPH
Ckt. Pk. – visuals for radial BH
Units and 2.0 2.2 0.2 Move PA parts to MI RM 1/96 9/96 0.2 DPH
frames) 9.8 10.6 0.8 New conveyor chains and
palletized cards LH 7/96 12/96 0.8 DPH
4.4 5.0 0.6 Test limit analysis GB/GL 1/96 11/96 0.6 DPH
0.1 Test fixture repair process
and diagnostic training GB 1/96 9/96 0.1 DPH
Total 18.9 21.3 2.4 2.4 DPH
27
Streamlining TQM The TQM Magazine
Michael P. Cassidy Volume 8 · Number 4 · 1996 · 24–28

Table II Assignment portion of TQM 5 for the quality director

Individual and team-based Linkage to business unit


performance objectives and organizational goals Measurements/managing points
Provide leadership in TQM and quality See TQM 2 Supervisory judgement based on feedback
improvement to all Power Systems from QC, other managers and customers
Facilitate major change process as Plus measurements shown on TQM 2 and
needed in Power Systems in particular completion of plans shown on TQM4
PRP improvement and implementation
of customer intimacy
Serve as customer advocate especially
on quality issues
Provide management leadership and
supervision to quality organization to
grow it and subordinates into world-
class quality group and enhance Power
Systems management resources
See mission and other accountabilities
on TQM 1 and 2

reviews are now only held once a year to much higher value adding process to their
complete the goal setting process and to organization.
ensure alignment of the entire business.
The end result is that 1995 was an extraor-
References
dinary year for Power Systems with most
indicators showing continued improvement, 1 American Quality Foundation and Ernst & Young,
the best financial results ever, accelerated International Quality Study, Ernst & Young, Cleveland,
OH, 1991, p. 4.
revenue growth, and increased employee
2 D’Angola, L., Electronic Business, October 1992, p. 48.
satisfaction with the system. The completion
3 “The cracks in quality”, The Economist, 18 April 1992,
of the total system plans was faster than ever
p. 67.
before in 1996. Nearly every group indicated
4 Cassidy, M.P. and Sharma, S.P., “1990s revolution in
that the ease in understanding the purpose of Power Systems Manufacturing”, Proceedings of the
each part of the system and in completing the Applied Power Electronics Conference, Boston, MA,
forms had made the new streamlined system a 25 February 1992.

Commentary
Lessons from one of the world’s successful organizations are always worth noting – and how refreshing to
hear a senior executive being realistic about something as prestigious and powerful as the Deming Prize
– a great story of a firm who leveraged their efforts after winning the Deming Prize rather than sat back
and smirked about how smart they were!
28