Organization Development and the Quality Movement.

1. Organization Development and the Quality Movement. By –Prof Priyankakedia.

2. Key Points • Define Organization Development ? • Define Quality • Quality Gurus • W. Edwards Deming. • Joseph M Juran. • Philips B Crosby. • David A Garvin. • What is Total Quality Management? • Comparison and possible Integration of Organisation Development & Total Quality Management.

3. Definition of Organization Development? • Organisation development is an effort planned, organization wide and managed from the top to increase organisation effectiveness through planned interventions in the organisation processes using behavioural science knowledge. • Organisation development is a response to change, a complex educational strategy intended to change the beliefs,attitudes,values and structure of organisations so that they better adapt to new technologies ,markets and challenges.

4. ? WHAT IS QUALITY

5. What is Quality Management • Quality management is an organization-wide approach to understanding precisely what customers need and consistently delivering accurate solutions within budget, on time and with the minimum loss to society. • Quality management will ensure the effective design of processes that verify customer needs, plan product life cycle and design, produce and deliver the product or service. • This also incorporates measuring all process elements, the analysis of performance and the continual improvement of the products, services and processes that deliver them to the customer.

6. The CQI defines quality in terms of innovation and care:

7. QUALITY CAN MEAN DIFFERENT THINGS TO DIFFERENT FUNCTIONAL DEPARTMENTS. - Engineering Specifications, to Design - Rejection and Complaints, to Production - Conformance to Specifications, to Inspection. - Demand for the Product, to Sales - Usability including visual appeal, to customers. - All the above at lower cost, to Management

8. More Definitions : • Quality of Product depends on how well it fits patterns of the consumer preferences. • Quality is fitness of Use ( Juran 1974). A definition of quality that evaluates how well the product performs for its intended use. E.g. CAR. • Quality is Conformance to requirements.( crosby 1979).-How well a product or service meets the targets and tolerances determined by its designers. • Quality is the degree to which a specific product conforms to a design or specification. • Quality is the degree of Excellence. • Quality is the tool that allows a company build ,shape and innovate its product or service. • Unleash the talent of its workforce. • Reduce Waste. • Increase efficiency and profits.

9. Quality Guru :-W. Edwards Deming ,( Deming Cycle) • 1928- awarded doctorate in mathematical physics. • 1946 – After sharing his expertise in statistical quality control to help the US war effort during World war II, the war Department sent Deming to Japan to help nation recover from its wartime losses. • 1956 – awarded the Shewhart medal by the American society for Quality Control (ASQC). • 1960 – honoured by the Japanese Emperor with the Second Order of the Sacred Treasure for his teachings. • A prominent consultant, teacher, and author on the subject of Quality. Deming has published more than 200 works, including well known books Quality, Productivity and Competitive Position and Out of the crisis. • Deming outlined his philosophy on quality in his famous “14 Points.” • These points are principles that help guide companies in achieving quality improvement. • The principles are founded on the idea that upper management must develop a commitment to quality and provide a system to support this commitment that involves all employees and suppliers. • Deming stressed that quality improvements cannot happen without organizational change that comes from upper management.

10. PDCA Cycle(Shewhart Cycle)

11. PDSA Cycle (Deming Cycle)

12. Deming developed 14 points for managing. • Create constancy of purpose - Toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. • Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. • Cease dependence on inspection to achieve quality.- Eliminate the need for inspection on a mass basis by building quality into the product in the first place. • End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. • Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. • .Institute training on the job. • Institute leadership (see Point 12). The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. • Drive out fear, so that everyone may work effectively for the company.

13. Cont-2 • Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. • Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.•Eliminate work standards (quotas) on the factory floor. Substitute leadership.•Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. • Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. • Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective . • Institute a vigorous program of education and self-improvement. • Put everybody in the company to work to accomplish the transformation. The transformation is everybody’s job.

14. Quality Guru:-Joseph . M .Juran. • Joseph M Juran Focused on the economics of quality. • He emphasized on managerial issues and focused on planning, organizational issues, management responsibility for quality and the need to set goals and targets, for improvement. • An Example of his approach is the following seven steps which he recommends “ a responsible CEO must take”.

15. The Seven Steps ( Juran 1993) • Set up and serve on the company quality council, the quality equivalent of the finance committee. • Establish Corporate quality goals, including quality improvement goals and make them part of the business plan. • Make the provision for training the entire company hierarchy in managing for quality. • Establish the means to measure quality results against the quality goals. • Review against the goals on regular basis. • Give recognition for superior quality performance. • Revise the reward system to respond to changes demanded by world class quality.

16. Quality Guru-Philips B Crosby Quality Guru Philip Crosbyhas developed 14 steps for an organization to follow in building an effective quality program: • Management Commitment. • Quality improvement team. • Quality measurement. • Cost of quality evaluation. • Quality Awareness. • Corrective Action. • Adhoc Committee for the zero defect program. • Supervisor Training. • Zero Defect Day. • Goal Setting. • Error Cause Removal. • Recognition. • Quality Councils. • Do it over again.

17. Conclusion. • From the above 14 points Philip Crosby communicated that management should take prime responsibility for quality, and workers only follow their managers’ example. Crosby defined the Four Absolutes of Quality Management: • - Quality is conformance to requirements - Quality prevention is preferable to quality inspection - Zero defects is the quality performance standard - Quality is measured in monetary terms – the price of non-conformance • According to Crosby, five characteristics of an highly successful organisations are: • - People routinely do things right first time - Change is anticipated and used to advantage - Growth is consistent and profitable. - New products and services appear when needed - Everyone is happy to work there

18. Quality Guru:-David A Garvin. • Our "Guru of the Month," Harvard professor, David Garvin, is known for his development of quality as a strategy. He developed the "Eight Dimensions of Quality" which provides multiple interpretations of quality, which a variety of managers, operators and customers have become accustomed to. • The early 80’s, Garvin stated that "if quality is to be managed, it must be first understood." He broke the concept of quality into eight (8) dimensions including performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality. • Most companies talk a good deal about quality. But they often misinterpret what their customers need. In fact, when customers are talking about quality, they are talking about something very precise.

19. 1. Performance or the primary operating characteristics of a product or service.Example: for a car: it is speed and acceleration. For a restaurant: it is good food.2. Features or the secondary characteristics of a product or service.Example: for a restaurant: it is linen tablecloths and napkins.3. Conformance or the match with specifications or pre established standards.Example: for a part: it is whether this part is the right size. For a restaurant: it is whether the meat is cooked according to your request (e.g. "medium rare").4. Durability or product life.Example: for a light bulb: it is how long it works before the filament burns out.5. Reliability or the frequency with which a product or service fails.Example: for a car: it is how often it needs repair. For an airline: it is how often flights depart on schedule.6. Serviceability or the speed, courtesy and competence of repair.Example: for a car: it is how quickly and easily it can be repaired and how long it stays repaired. For a mail order house: it is the speed and courtesy with which an overcharge is corrected.7. Appearance / aesthetics or fits and finishes.Example: for a product or service: it is its look, feel, sound, taste or smell.8. Image / perceived quality or reputation.Example: for a product or service: it is the positive or negative feelings people attach to any new offerings, based on their past experiences with the company.

20. Total Quality Management • (TQM) is an integrated organizational effort designed to improve quality at every level. • What characterizes TQM is the focus on identifying root causes of quality problems and correcting them at the source, as opposed to inspecting the product after it has-been made. • Not only does TQM encompass the entire organization, but it stresses that quality is customer driven. TQM attempts to embed quality in every aspect of the organization. • It is concerned with technical aspects of quality as well as the involvement of people in quality, such as customers, company employees, and suppliers. • TQM is define as cost effective for integrating the continuously quality improvement efforts of the people at all levels in the organisation, to deliver products and services which ensure customer satisfaction. • Here we look at the specific concepts that make up the philosophy of TQM.These concepts and their main ideas are summarized

21. Concepts of TQM • Customer focus -Goal is to identify and meet customer needs. • Continuous improvement A philosophy of never-ending improvement. • Employee empowerment- Employees are expected to seek out, identify, and correct quality problems. • Use of quality tools- Ongoing employee training in the use of quality tools. • Product design - Products need to be designed to meet Customer expectations. • Process management -Quality should be built into the process; sources of quality problems should be identified and corrected. • Managing supplier quality- Quality concepts must extend to a company’s suppliers. • Benchmarking.- Studying the business practices of other companies for purposes of comparison. • Team Approach.- TQM stresses that quality is an organizational effort. To facilitate he solving of quality problems, it places great emphasis on teamwork. The use of teams is based on the old adage that “two heads are better than one.”

22. Some guiding principles of TQM are as follows. • Make it right for customers at any cost. • Internal customers are as important as external customers. • Respond to every customer enquiry or complaint by the end of the day. • Answer the phone within two rings. • The customer is always right. • Not only meet customers expectation but also delight the customer in the process. • Team work and co-operation is more important than individual action. • Everyone is involved in the quality effort, no exceptions or bench sitting is allowed. • Respond to every employee suggestion for quality improvement within one week. • Never be satisfied with the level of quality, always strive for continuous improvement.

23. Integration of OD and TQM. • Dan Ciampa states that major aspects of TQM is derived from OD.Their is a great synergy between TQM and OD. • The people side of total quality is a direct descendant of organisation developement.To truly understand TQ and to be able to make it reality one must be an expert in creating change on the people side of the organisational excellence equation. • The values on which OD is based, its dedication to human learning, its elements of education and management training are all necessary parts of a true , Successful TQ effort. • Although organisation development and quality movement emerged from different theoretical perspectives, these two approaches share several important values and assumptions. -Both approaches view organisations as systems made up of subsystems. -Both focus on processes as root of organisational problems. -Both endorse the idea that employee empowerment and involvement is effective way of improving planning, problem solving and decision making. -Finally both approaches stress on the importance of systematic data collection in diagnosing organisational problems.

24. TQI Model • Persico and Tomasek ( 1994) proposed an OD approach called Total Quality Improvement Model ( TQI) which incorporates both traditional OD Techniques as well as TQM strategies. The TQI Model provides a four phase approach to organisational change involving. • Planning. • Education. • Implementation. • Continuous improvement.

25. Deming's -14 Point &Delphi Panel( Anderson,Rungtusanatham &Schroder -1994). • Deming 14 Point for management have attacted considerable attention in organization & management literature. • Delphi Panel -Anderson,Rungtusanatham &Schroder -1994,have attempted to develop a theory of quality management called as Deming Method of Management. • It is divided into seven clusters ,which captured the essence of Deming's 14 points. • Visionary Leadership. • Internal & External Co-operation. • Learning. • Process Management. • Continuous Improvement. • Employee fulfilment. • Customer Satisfaction.

26. Conclusion. • Five of the above seven concepts that is visionary leadership, internal and external cooperation,learning,process management and employee fulfilment could be perfectly present in any discussion of OD. Deming View of managing quality &organization therefore overlaps heavily with OD. Deming's views on people echo's what and OD practitioner would say. • TQM is being described as a systematic approach to the practice of management, requiring changes in organisational processes, individual beliefs, attitudes and behaviours. • It has been observed that successful implementation of quality programmes requires metamorphosis (total change),Radical change-a change in basic philosophy of everyone in the company. Role of employees, employees are empowered by management to take steps needed to improve quality in the system. • It is evident that there is an overlap between QM and OD.

27. Thank You