How to Implement TQM?

Many Quality efforts are missing a key ingredient: a set of meaningful measurements. The leaders of modern organizations typically believe that they have too many measurements. The fact is, people need training on how to choose and use this tool effectively. Here's a key opportunity to accelerate your quality activities and the results they produce.

What To Measure
Companies tend to measure certain areas:

• money- sales, costs, profits, assets
• activity - number of policies issued, units sold,
• sales calls made, etc.
• schedules - completion, delinquencies, deadlines
• "pain" - customer complaints, accidents, resignations, penalties

Managers are evaluated and rewarded according to "their numbers" in these areas, cutting costs, getting work out, meeting schedules, and avoiding pain. Quality is not really included as an integral part of departmental routines or managerial performance appraisals.

Properly selected measurements produce dramatic improvements in quality and profitability. Adequately-trained managers can use these measurements to tackle their assignments from a different perspective: focusing on the processes for accomplishing work, rather than "pointing fingers" at their co-workers. As an example, work groups could be measuring:

• Avoidable instances of overtime, express shipments or expediting
• Accuracy and completeness of outcomes or supplier inputs
• Delays, missing information, material shortages, changes in schedule
• Returned goods, lost time accidents or instances of employee dissatisfaction

The resulting information would demonstrate "Where, When and Why" quality isn't happening. This type of discovery leads to improvement. The company learns to operate better, faster and cheaper. Employees enjoy more satisfaction and less stress.

Use Of Measurements

Most of us have been raised in the traditional management system, shaping our expectations of what is measured and how the information should be used. Imagine a group of co-workers arriving at your office: "We're from the Measurement Committee and we're here to help you." How warmly would they be received? Like Internal Revenue Service auditors, most likely. Measurements have often been misapplied, in an effort to motivate people or place blame for problems.

Measurement should be used as a helpful tool, not a weapon. It can increase understanding of how processes are operating, and why operations are failing to produce expected results. Correct application of measurement helps answer the question "Where did the process break down?" Others to look at includes:

1. How many delays were encountered in entering or filling customer orders?
2. How often was the warehouse out of stock?
3. How much equipment downtime occurred on second shift?
4. What were the costs (and causes) of engineering changes?

These kinds of answers help employees learn about work processes, and lead to discovery of why problems occur.

The 10 Prerequisites For Successful Measurement

There are 10 preexisting conditions for successful measurement. The measurements are successful because the prerequisites for success have been provided. Has your operation developed the support necessary for successful measurement? It does if:

1. The areas being measured are important to the customers, employees or suppliers involved; i.e. timeliness, accuracy, completeness or cost.
2. Each measurement is part of a defined and documented process; i.e. clearly established methods, procedures, equipment, training.
3. The process is operated according to clear requirements; established for outcome, supplier inputs and sequence of operations.
4. The area being measured is important to managers or supervisors who control work group time and resources; i.e. improved performance pays personal benefits.
5. The employees involved believe they can do something to streamline or improve the process; knowledge and authority to make changes.
6. The measurement tools used are appropriate for the task at hand, i.e. not too simple or complex.
7. Measurement results are periodically reviewed; i.e. daily, weekly, monthly.
8. People use the measurements to stimulate thought, discussion and actions.
9. Employees trust that actions will be focused on the process, not the people involved; "How can we improve the process" versus "Who screwed up?"
10. Everyone is recognized for their efforts and rewarded for progress; a small celebration, pat on the back, or better bonus at the end of the year.