Business Management Articles
/ Quality Management
THE QUALITY REVOLUTION
by
Rene T. Domingo
Many firms which attempted company-wide Total
Quality (TQ) are achieving limited success,
mediocre results, or nothing at all. Excited
by glowing accounts of the achievements of
Japanese companies, they've tried almost all
the tricks and techniques straight from the
books: organize Quality Control Circles (QCC),
apply statistical quality control (SQC), exhort
everybody with slogans on quality, and hire
any guru who can talk about quality. To their
disappointment, most employees are not responding
and several managers are resisting the efforts.
Typical reaction starts with elation and confusion,
and ends with frustration. After several months
of unexplained sham and shambles, the movement
is aborted and life is back to normal: the
company's defect rate is back at its normally
high levels.
What many books and gurus on quality don't
mention, intentionally or otherwise, is that
the hardest part in implementing TQ is the
changing of prevailing work attitudes and
sentiments and not the application of techniques,
statistical or organizational. For instance,
they overlook the following attitudinal problems
that hinder any quality improvement program:
-
employees are not personally convinced of
the importance of quality in their work; as
long as they get their paychecks on time,
nobody wants to rock the boat.
-
workers do not take management and its pronouncements
seriously;
-
management distrusts workers, and regards
them as mere hired hands incapable of thinking
and coming out with bright ideas;
-
nobody, employees and management alike, realize
the need to change or improve simply because
there is no crisis perceived; business can
go on indefinitely with the status quo.
In short, the atmosphere is not usually conducive
for introducing those quality techniques.
How does a company seriously committed to
adopt the Total Quality Culture (the real
TQC) - and not just "total quality control"-
start changing attitudes and molding a new
culture for everybody? How does it begin overcoming
the inertia of mediocre performance, shoddy
products, and sloppy service that have been
going on for decades? Before forming those
quality circles and posting those charts and
slogans, some groundwork or agitation have
to be done to create the proper atmosphere
- so that all employees would get the message
that the company means business, that the
"more of the same" lifestyle is
out of style, and that quality is a must,
not a motto. The following suggestions are
not necessarily complete nor in the right
order, but they should give an idea on how
to incite the quality "revolution".
Let
customers confront your employees
If a customer is furious at the company for
a defective product he purchased, let him
unleash some of that fury directly at the
employee(s) responsible for the sloppy job.
By stunning the latter, the same mistake would
seldom be repeated. Conversely, if your customer
has high praises for a job well done, don't
take all the credit; reserve some or all for
the responsible employees. In short, create
every opportunity for your employees to receive
direct feedback from your customers regarding
the quality of their work. Many workers have
been so used to their boss' so-so management
style for years, that they take any sudden
exhortation about quality from him with suspicion.
Employees take more seriously responses from
customers who pay for and use the company's
products.
Japan Airlines (JAL) shows us a good example
on how customers and employees can be made
to stick together to achieve quality excellence.
After the tragic JAL 747 crash in 1985, in
order to regain the confidence of the riding
public, the management directed that each
aircraft shall have a dedicated maintenance
crew personally responsible for the safety
of its passengers and assigned aircraft. The
names of the crew members shall be permanently
posted on a plaque inside the plane for all
passengers to see upon boarding. Moreover,
(and this is the clincher), after every major
overhaul and repair of its aircraft, the maintenance
crew shall take its first flight with the
passengers regardless of destination -- truly
one of the most effective quality assurance
(QA) measures I've encountered.
Dismantle
all rework and recycling operations
"Do
it right the first time," so goes the
saying, and quality will improve. Very true
-- but unfortunately, there are rework, repair,
recycling operations and operators proliferating
in many companies that tempt workers to do
it wrong the first time (and succeeding times)
because they see people who are paid to undo
their mistakes. Immediately remove these temptations
and realize that it is better to pile up defects
in front of the worker for everyone to see
rather than stash them in the rework lines.
In this way, the problem surfaces and the
company is forced to attack its root and origin,
rather than depend on stopgap measures. Companies
with rework operations usually notice that
they multiply and create a vicious cycle:
rework lines encourage more defects, more
rework, and more lines. The danger is that
these lines are very deceiving and barely
noticeable from afar: they look like regular
lines using the same machines, the same people.
Rework is most common in the plastic industry
where one executive boasted that his company
always achieves zero defect and no wastes,
in spite of the shop floor being cluttered
with them. His confidently argues that no
plastic raw material is really thrown away
since his "defects" can be remelted
and remolded indefinitely. He fails to consider
the labor, overhead, and opportunity lost
every time he recycles. Inside one large car
manufacturer I visited in Canada, the tour
guide was bragging that his company has been
applying Total Quality and Just-in-Time principles.
As expected, the plant was almost fully automated,
with scores of robots mostly doing welding
operations. Very impressive -- until we reached
the end of the production line that snakes
inside the factory. I finally saw people -
a dozen workers busily welding. I inquired
why their work have not been automated since
the robots were doing the same thing. He explained
that these last operations cannot be automated
since the human workers were rewelding what
the robots missed in the earlier stages. So
instead of fixing the robots, the company
decided to provide employment.
Deliberately
reduce all inventories
Inventories are ideal places to hide defects,
obsolete products, and bad planning decisions.
Like rework lines, reduce or eliminate these
hideouts to flush out the problems and wastage.
Avoid the overproduction, oversupplying, and
overbuying of anything. Reduce to a minimum
all sorts of inventories and supplies: raw
materials, in-process, finished goods, and
yes, paper clips and computer paper too. It
is human nature to squander or fumble with
anything in abundance; it is also human nature
to cherish and economize anything in scarcity.
By reducing inventories, the production flow
becomes smoother and clearer; defects are
easily spotted and solved. Workers would tend
to be more careful in handling and processing
materials, since there would be much less
replacements and substitutes on hand.
Start
and do everything on time
Quality is about following standards. The
best way to develop and exercise this habit
of following standards among all employees
and managers is to start enforcing the most
universal, the most explicit, and the most
frequently violated standard in the company:
time. Start and finish meetings on time. Don't
wait for latecomers regardless of rank, nor
brief them on what they've missed. End meetings
on time even without conclusions or reaching
the last item in the agenda. In many Japanese
companies, meeting rooms are maintained either
too cold or too hot to make the occupants
very uncomfortable if they stay too long dabbling
with idle talk and pointless discussions.
In one company I've seen, somebody has to
turn on the lights every 30 minutes; each
meeting room has tamper proof timers set to
irritate everybody and regularly remind those
inside the room the company time and electrical
energy they've used (or wasted).
Start and finish schedules and programs on
time. In a company's QC circle competition
where I was invited as guest speaker, the
program started late by 45 minutes because
the presentors, the president, and even the
judges arrived late. The irony and sham are
commonplace: people preaching and professing
quality, without practicing it. In my speech
I told them that if I were a customer, I would
not have waited for them and simply walk out,
and there goes your account.
Make it an unbending policy to deliver your
goods on time, no matter what it takes. McDonalds
trains its counter personnel in its Hamburger
University to serve an order of a hamburger,
a milk shake, and french fries in 50 seconds
or less. Domino, one of the biggest pizza
chain in the U.S., promises to deliver its
freshly-made pizza at your doorstep within
30 minutes or it will knock off $3 from the
price. Institute penalties, if none exist,
for non-compliance with schedules and let
everybody realize that there is a price to
pay for not following time standards in dealing
with co-employees or customers.
Clean
up the work environment
Cleanliness is not only next to godliness,
it is also next to quality. In evaluating
Japanese companies for the much-coveted Deming
Prize for Quality, the stern and meticulous
judges, prior to checking product and process
quality, start by inspecting the toilets,
canteen, locker rooms, and floors -- usually
the untidiest places inside any company. The
principle is simple and almost infallible:
workers cannot concentrate in producing quality
products inside a dirty environment. They
also check the racks, desks, stockrooms and
check if things are in order and in the right
places. Again the same principle: if what
you see in front of you is cluttered, your
mind tends to be cluttered too, and cluttered
minds cannot think about anything, much less
about quality. In most Deming prize awardees,
the shop floors are so clean you can literally
sleep on them. Cleanliness and orderliness
are cardinal virtues in a true quality culture.
They should become habits of all employees
and managers. Prepare the mind first, and
begin discussing total quality with your employees
only after you have created a clean and orderly
work environment.
Export
or sell to more quality-conscious markets
Companies in the export business tend to improve
their product quality faster that those just
catering to the local market. The reason is
simple: as far as their customers are concerned
- the importers usually thousands of miles
away - quality is non-negotiable. Non-compliance
or late deliveries are punished with stiff
penalties, non-payment, or contract termination.
But domestic buyers will usually accept shoddy
products provided the prices are low. Having
more sense of humor than the overseas importers,
they are more accessible and more open to
compromises and free lunches to soothe quality
complaints. Moreover, the domestic markets
and consumers in many Asian countries are
less fussy about quality. Many domestic sellers,
often spoilt by their own customers, just
grow old but never grow up in terms of quality.
Japanese companies were able develop high-quality
goods in a short period of time simply because
they export a substantial amount, usually
50%, of their production. In most countries,
the airline industry, actually an export business,
is the most strict and meticulous about quality
and reliability because it has to deal with
international passengers, competitors, and
standards. According to one Japanese executive,
the ultimate quality challenge for any foreign
garment exporter is to succeed in selling
to the Japanese - which he describes as the
only nationality that looks under the skirt
before deciding to buy it. It is interesting
to note that some local products are marked
"export quality" or even "export
overruns" just to suggest good quality
to the customers. By venturing into the export
business, a company is challenged to satisfy
very discriminating markets and compete internationally.
Under this "sink-or-swim though quality"
situation, its management and employees will
realize the urgent need to improve quality
to a much higher level than before.
Conclusion
Achieving
TQ usually means a revolution, a 180-degree
change in corporate culture, and the throwing
away of many ingrained thinking and working
habits by workers and managers alike. It requires
the precision, patience, and power to steer
an oil tanker or aircraft carrier into the
opposite direction. Attaining 99.9997% quality
level demands a very strong leadership with
a very strong corporate will, making hard
decisions and supreme sacrifices. As such,
TQ is not for everybody. Negative thinkers
and companies with weak convictions and commitments
need not try TQ, for failure is guaranteed.
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