A New American TQM Four Practical Revolutions in Management
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Four Practical Revolutions In Management PRODUCTIVITY/THE CENTER FOR QUALITY MANAGEMENT A New American TQM A New American TQM Four Practical Revolutions in Management Shoji Shiba Alan Graham David Walden Foreword by Ray Stata and Thomas H. Lee Publisher's Message by Norman Bodek Productivity Press Portland, Oregon The Center for Quality I^anagement Center for Quality Management Cambridge, Massachusetts Copyright © 1993 by Center for Quality Management. All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from the publisher. Additional copies o f this book are available from the publisher. Discounts are available for multiple copies by calling the Sales Department at 800-394-6868. Address all other inquiries to: Productivity Press P.O. Box 13390 Portland, OR 97213-0390 Phone: 503-235-0600 Fax: 503-235-0909 E-mail: [email protected] Designed by Gary Regaglia Printed and bound by BookCrafters Printed and bound in the United States of America Adaptation of "The Abstraction Ladder" from LANGUAGE IN THOUGHT AND ACTION, Fifth Edition by S.I. Hayakawa and Alan R. Hayakawa, copy right © 1990 by Harcourt Brace & Company, reprinted by permission of the publisher. Library of Congress Cataloging-in-Publication Data Shiba, Shoji, 1933- A new American TQM: four practical revolutions in management/ Shoji Shiba, Alan Graham, David Walden; foreword by Ray Stata and Thomas H. Lee; publisher’s message by Norman Bodek. p. cm. "Center for Quality Management.” Includes bibliographical references and index. ISBN 1-56327-032-3 1. Total quality management. I. Graham, Alan, 1949- II. Walden, David, 1942- . III. Lee, Thomas H., 1923- IV. Stata, Ray. V. Center for Quality Management (Boston, Mass.) VI. Title. HD62.15.S55 1993 93-906 658.5/62 — dc20 CIP 02 01 00 99 98 97 96 12 11 10 9 8 7 6 Contents Publisher’s Message xi Foreword xv Preface xix Introduction: THE EVOLUTION OF QUALITY 1 1. The Evolution of the Quality Concept 3 Quality Concept 1: Fitness to Standard 4 Quality Concept 2: Fitness to Use 5 Quality Concept 3: Fitness of Cost 8 Quality Concept 4: Fitness to Latent Requirement 11 Cost versus Price 12 2. Evolution of Quality Methods 15 Development of the Four Fitnesses 16 Evolution of Methodology 18 Evolution of Company Integration 20 Quality of Conformance versus Quality of Design 23 From Deviations to Weaknesses to Opportunities 24 TQM Companies Must Be Aware of All Four Fitnesses 25 Future Fitnesses 26 Four Revolutions in Management Thinking 27 Four Levels of Practice 29 The First Revolution: FOCUS ON CUSTOMERS 33 3. Change in the Work Concept 35 Market-in 35 Customers 40 v VI A NEW AMERICAN TQM The Second Revolution: CONTINUOUS IMPROVEMENT 43 4. Improvement as a Problem-solving Process 45 Management by Process 45 WV Model of Continuous Improvement 47 Process Control 59 Process Control and Process Improvement 64 Process versus Creativity 65 5. Reactive Improvement 73 Identifying the Problem 75 Standard Steps and Tools 85 The 7 Steps: A Case Study 87 The 7 QC Tools 101 6. Management Diagnosis of the 7 Steps of Reactive Improvement 107 General Guidelines for Managers Diagnosing a QI Story 108 Diagnosing Step 1: Select Theme 112 Diagnosing Step 2: Collect and Analyze Data 116 Diagnosing Step 3: Analyze Causes 118 Diagnosing Step 4: Plan and Implement Solution 121 Diagnosing Step 5: Evaluate Effects 123 Diagnosing Step 6: Standardize Solution 125 Diagnosing Step 7: Reflect on Process (and Next Problem) 126 Case Study for Diagnosis of the 7 Steps 127 Run PDCA and Develop Skill 139 7. Proactive Improvement 141 Introduction to Proactive Improvement 141 Toward Standard Steps for Proactive Improvement 150 Semantics 161 An Example of Proactive Improvement: Customer Visitation 170 Contents vii 8. Applying Proactive Improvement to Develop New Products 189 [Stage 1] Step 1: Plan for Exploration 192 [Stage 1] Step 2: Collect the Voice and Context of the Customer 196 [Stage 1] Step 3: Develop an Image of the Customer’s Environment 205 [Stage 2] Step 4: Transform the Voice of the Customer into Customer Requirements 207 [Stage 2] Step 5: Select the Most Significant Customer Requirements 216 [Stage 2] Step 6: Develop Insight into the Relations between Requirements 217 [Stage 3] Step 7: Investigate Characteristics of Customer Requirements 221 [Stage 3] Step 8: Generate Metrics for Customer Requirements 231 [Stage 3] Step 9: Integrate Understanding about Customer Requirements 232 Summary of Stage 3: Operationally Defining Customer Requirements 237 From the Operationally Defined Customer Requirements to a Product 240 The Third Revolution: TOTAL PARTICIPATION 247 9. Teamwork Skill 249 The Dual Function of Work 249 Teams and Teamwork 255 Principles for Activating Teamwork 289 Creativity in Team Processes 301 10. Initiation Strategies 307 CEO Involvement 307 Example Strategies for TQM Introduction 321 11. Infrastructure for Mobilization 337 Goal Setting (Vision/Mission) 339 Organization Setting 344 Training and Education 347 Promotional Activities 359 Diffusion of Success Stories 360 Awards and Incentives 365 Monitoring and Diagnosis 368 12. Phase-In 377 Orientation Phase 380 Empowerment Phase 381 Alignment Phase 383 Evolution of the Parallel Organization 384 13. U.S. Strategies for Phase-In 391 Benchmarking 393 Six Sigma and Cycle Time Reduction 401 14. Hoshin Management 411 What Is Hoshin Management? 411 Phase 1 一 Strategic Planning (Proactive) 417 Phase 2 — Hoshin Deployment 426 Phase 3 一 Controlling with Metrics (Control) 437 Phase 4 一 Check and Act (Reactive) 440 President's Diagnosis 443 Hoshin Management versus Management by Objectives 445 Hoshin Management and Conventional Business Planning 451 An Alternative Hoshin Deployment System 454 Hoshin Management as "Systems Engineering" for Alignment 457 15. Managerial Development 461 Case Study of NIMS 461 Contents ix Company Strategies 470 Individual Practice of CAPD by Managers 491 The Fourth Revolution: SOCIETAL NETWORKING 505 16. Networking and Societal Diffusion: Regional and Nationwide Networking 507 Infrastructure for Networking 510 Openness with Real Cases 521 Change Agents 522 CQM Case Study 522 Dynamics of a Societal Learning System 528 17. TQM as a Learning System 533 Keeping Pace with the Need for Skill 534 A TQM Model for Skill Development 537 Summary of Skill Development 554 Afterword 559 About the Authors 563 Index 565 Publisher's Message Productivity Press has been dedicated for more than a decade to educating manufacturers about eliminating process waste on the floor — just-in-time approaches to inventory con trol and supplier relations, quick changeover, one-piece flow and small lot production, plant floor redesign (such as u-shaped cells), and defect control in process flow (such as poka-yoke de- vices). Mostly recently, our focus has been on eliminating waste in product design. With this book, we turn our attention squarely to the role of top management in the quality control movement. As with most Productivity Press books, implementation is at the heart of Shiba's, Graham's and Walden's textbooks on the evolution and practices of the quality movement. A strong mix of historical survey, theory, case studies (some Japanese, many American), and tools focused on bottom-line results. A New Amer ican TQM: Four Practical Revolutions in Management gives man agers the lessons needed to successfully implement company-wide quality practices. A Nra; Amm’om was created for and drawn from the first-hand experiences at seven major high-tech firms in Massachusetts in conJunction with MIT professor Thomas Lee and visiting professor Shoji Shiba from Tsukuba Uni- versity. The book captures the shared learning of senior execu tives from Digital, Teradyne, Polaroid, Bolt Beranek and xi xii A NEW AMERICAN TQM Newman, Analog Devices, General Electric, and Bose, the found ing corporate members of the Center for Quality Management. To see the shared learning process at the heart of TQM as the active operating strategy among these industry competitors should encourage leaders in all industries to embark on the quality path. The scope offered here demonstrates the axiom "think globally — act locally// Starting with analysis and mea surement of discrete processes through iterative improvement cycles, the authors show the evolving impact on a company, its industry, and the social network within which the company functions. This simple yet thorough course of study can lead your company to global leadership. This book provides the best information we have seen on management’s role in the implementation of quality practices and on application of those practices to strategic planning. Be cause it was prepared for and by top managers, based on their own learning, the material included here can be directly and suc cessfully applied by other managers. Senior executives as well as middle managers will discover the means to achieve competitive practices in their companies at every level. In one place, under a unifying model and seven-step process, managers will find QFD, benchmarking, translating customer voice, hoshin management, teamwork methods, QC story and diagnosis, seven quality con trol tools, seven new management and planning tools, and where process control fits into all of these. We are very pleased to offer this book to our readers and grateful for the opportunity to work with each of the authors as well as the members and staff of the Center for Quality Manage ment, in particular Toby Woll and Emily DiMaggio. We also ex tend our thanks to our own staff who produced the book: Karen Jones for her patience and meticulous attention to detail; Julie Publisher's Message xm Zinkus for proofreading; David Lennon, Gayle Joyce, and Karla Tolbert for their skills in book design, graphics arts, and typeset ting; and Gary Ragaglia for the cover design.