TOTAL QUALITY MANAGEMENT Assignment (1)

Q1. Describe an organization you know or have worked for. How effective was the organization? How were you able to draw that conclusion?
An organization whose name has come to my mind at the first glance of this question is the organization where I earned a chance to do internship at Sui Southern Gas Company (SSGC) last summer. This helped me in getting to know that how one of the known utility organization operating in Karachi carries on with its operations to meet the gas supply requirements, Yes, SSGC has been the name commonly seen and heard about during the starting of every month around the year. But on my internship I have gotten to know that it is much more than that. It is a whole cycle that is given a round before we are able to get gas to our use and then on monthly basis; make the payment of our consumption. Many myths and many misperceptions have been removed and corrected along with the flow of knowledge being attained here about the organization; its different departments and the ways through which work is done here. From there I got a comprehensive introduction of SSGC in brief terms. In broad terms: SSGC has been defined as a utility organization: govt. based responsible for transmission and distribution of gas. Further on it was divided into two groups: the first being as service oriented organization dealing with gas purchase and supply and the second being as the manufacturer of meter plants; the devices which are fixed at our homes, facilities to perform the task of meter reading in terms of units which are being displayed as our consumption starts.

Now the part comes that how its effectiveness has been rated. There are different indicators to define the effectiveness of the company. In broader terms the two words coined efficiency and effectiveness can serve as the mechanisms to highlight the level of perfection a company is achieving in its performance. The former means doing the things right and when it comes to this SSGC; I would rate it half out of a possible full as the departments where I was placed in; it was observed that only the responsible individuals were doing their on the required criteria whereas there were others who took advantage of leniency in check and balance and reflected unprofessional behavior at their work. The later means doing the right things and again keeping in mind SSGC; there is again no full points as there were areas where use of computer system was in practice and encouraged and while there were some areas where struggle was witnessed in use of technology creating resistance. So these two terms: efficiency and effectiveness reflected the idea for me that the organization needed to work hard in order to increase its productivity because the mechanism of efficiency and effectiveness is to be applied in all the areas of departments of the organization to bring a potential uplift in the overall organizational success.

TOTAL QUALITY MANAGEMENT Assignment (1)

Q2. How would you measure the relative overall organizational effectiveness of any organizational?
Organizational effectiveness does not lie in that narrow minded concept called rationality. It lies in the blend of clearheaded logic and powerful intuition. - Arialdi Minino It has been said that every organization has a certain goal to achieve and there its effectiveness lies in its degree of achieving that goal i.e. how successful it has been in achieving that goal. There are situations when efficiency leads to effectiveness and vice versa and at times the organization is able to strike a right balance in between them. From studies conducted on how to measure the overall effectiveness of an organization indicate that it is difficult to do because in an organization there are many traits that can help in identifying the degree of effectiveness it has; but at the same another fact prevails that not all these facts cannot be quantified or measured where the managers get into trouble as how to define the effectiveness of the organization. There are many however developed mechanisms and methods; some based on subjective matter whereas others go for objective approach; all making an attempt to measure the effectiveness of an organization. The accuracy of the result may not be ensured 100 percent but then again if the method chosen sinks in the nature and way of work of the organization; then it can provide with the staring ball or base on primary basis defining the organizations effectiveness and can be an accurate result as well if the method proves to the exact one required with its pros over coming it cons if any.

Following are some of such methods which can be used to measure the effectiveness of the organization:

Appreciative Inquiry
Appreciative inquiry is based on the following principles: appreciation for what has been accomplished Building and leveraging the strengths and assets of the organization Generating provocative and innovative ideas and collaboration among key executives and managers. Its purpose is to contribute to the generative aims of the organization and to use such knowledge to promote the effectiveness and continuing success of the organization.

Balanced Scorecard
The Balanced Scorecard is an approach to strategic management. It is a management and measurement system that enables organizations to clarify their vision and strategy and translate them into action. It provides a clear prescription about what companies should measure in order to 'balance' the financial perspective. It provides feedback on the internal business processes and external outcomes in order to continuously improve strategic performance and result.

Baldrige National Quality Program for Education

TOTAL QUALITY MANAGEMENT Assignment (1)

The goal is students excelling. For students to excel the premise is an organization is high performing, has high integrity, and is characterized by the ethical behavior of its students, faculty, and staff. Criteria are the basis for conducting organizational self-assessments and help improve organizational performance practices, capabilities, and results Facilitate communication and sharing of best practices Serve as a working tool for understanding and managing performance and guiding organizational planning and learning opportunities. The criteria are designed to facilitate an integrated approach to organizational performance management that results in: Delivery of ever improving value to students and stakeholders, contributing to education quality and organizational stability. Improvement of overall organizational effectiveness and capabilities. Organizational and personal learning

Goal Approach
The goal approach to effectiveness consists of identifying an organizations output goals and assessing how well the organization has attained hose goals. This is a logical approach because organizations do try to attain certain levels of output, profit, or client satisfaction. The goal approach measures progress toward attainment of those goals.

Resource Based Approach

The resource based approach looks at the input side of the transformation process. It assumes organizations must be successful in obtaining and managing valued resources in order to be effective. From a resource-based perspective, organizational effectiveness is defined as the ability of the organization, in either absolute or relative terms, to obtain scarce and valued resources and successfully integrate and manage them.

TOTAL QUALITY MANAGEMENT Assignment (1)

Q3. How are the teachings of Edward Deming, Philip Crosby and Joseph Juran are similar? Where do they agree? Q4. How are the teachings of Dr.Deming, Philip Crosby and Joseph Juran are different? Where do they disagree?

These names when are spoken out strikes one main idea in your mind that they are the Gurus of Total Quality Management; they are claimed pioneers in defining the term Quality. A brief introduction of the Gurus known as internationally known quality experts is as follows reflecting the idea that they have earned the status of Gurus by devoting their ideas and teachings to quality of management:

William Edwards Deming (1900-1993) held a Ph.D. in physics, but

was a statistician by experience. He was an educator, lecturer, author, and an internationally renowned consultant, best known for leading Japanese businesses on the course that had made them leaders in quality and productivity throughout the world after his contribution in transforming post WWII Japan into a world quality leader. Largely because of his work in the US, increasing war production and quality, he was invited to Japan to assist in rebuilding their industry following the war. He had been called the Father of the third wave of the industrial revolution (if japan can why cant we? NBC White Paper 1980) Demings message was, continual improvement of products and services lowers cost and increases quality. He stressed fourteen points a business could employ to transform itself. His message has not been as well received in his own Country. Those businesses that have successfully adopted his methods today enjoy an incredible advantage.

Philip Bayard "Phil" Crosby (1926 - 2001) was a businessman and

author who contributed to management theory and quality management practices. He initiated the Zero Defects program at the Martin Company Orlando Florida, plant. As the quality control manager of the Pershing missile program, Crosby was credited with a 25 percent reduction in the overall rejection rate and a 30 percent reduction in scrap costs. In 1979, Crosby started the management consulting company Philip Crosby Associates, Inc. which has been now working with clients for

TOTAL QUALITY MANAGEMENT Assignment (1)

almost three decades to develop the common language, systems and tools necessary to develop a sustainable culture of quality across an organization. Also in 1979, Crosby published his first business book, Quality Is Free. This book would become popular at the time because of the crisis in North American quality. During the late 1970s and into the 1980s, North American manufacturers were losing market share to Japanese products largely due to the superior quality of the Japanese goods. Crosby's response to the quality crisis was the principle of "doing it right the first time" (DIRFT). He would also include four major principles: the definition of quality is conformance to requirements (requirements meaning both the product specifications and the customer's requirements) the system of quality is prevention the performance standard is zero defects the measurement of quality is the price of nonconformance His belief was that an organization that established a quality program will see savings returns that more than pay off the cost of the quality program: "quality is free".

Joseph Moses Juran (1904 - 2008) was a 20th century management

consultant who is principally remembered as an evangelist for quality and quality management, writing several influential books on those subjects. He made many contributions to the field of quality management in his 70+ active working years. His book, the Quality Control Handbook, is a classic reference for quality engineers. He revolutionized the Japanese philosophy on quality management and in no small way worked to help shape their economy into the industrial leader it is today. Dr. Juran was the first to incorporate the human aspect of quality management which is referred to as Total Quality Management. His works include: o o o o Pareto principle (80% of a problem is caused by 20% of the causes). This is also known as "the vital few and the trivial many. Management theory (encouragement of education and training of managers as their resistance served as core problem in reforming business quality) Juran's Trilogy (an approach to cross-functional management that is composed of three managerial processes: quality planning, quality control and quality improvement). Transferring quality knowledge between East and West (During his 1966 visit to Japan, Juran learned about the Japanese concept of Quality Circles which he enthusiastically evangelized in the West. Juran also acted as a matchmaker between U.S. and Japanese companies looking for introductions to each other.

TOTAL QUALITY MANAGEMENT Assignment (1)

SIMILARITIES Crosby, Deming, and Juran agree that it is management's responsibility to establish an organizational culture in which commitment to quality is the focus. The mission of the organization must be clear to everyone, and every management action must lead to fulfillment of that mission. This culture should be characterized by commitment from the top of the organization. They agree that continuous education and training at all levels is necessary to foster a common language of quality. and to develop employee skills and knowledge. Effective communication, cooperation, and teamwork throughout the organization are essential. These experts agree that more than 85 percent of all problems associated with quality can be attributed to management policy or action. This means that management action is required to achieve improvements. They also agree that the pursuit of customer-focused quality is a long-term process that will not produce results overnight. The improvements will be evident over time in terms of reduced costs, but, more importantly, organizations will eventually be able to anticipate and prevent problems. They do not view improvements in terms of final products and agree that current inspection methods to achieve quality are not effective in producing a quality product at an affordable price. They say that there are some processes where inspection will always be required, but that it is important to eliminate inspection as a means to achieving quality. They agree that cost and quality are not in competition with one another. The three experts distinguish clearly between internal and external customers, and all support the practice of involving the suppliers in the quality effort. It is impossible to achieve quality when products or services provided by suppliers are inferior. These approaches also require the use of measurement and problem-solving techniques, but the emphasis on their use varies. These are management philosophies aimed at long-term improvements through adoption of strategic planning for quality. These three philosophies have been implemented over the years in various organizations in different countries. As philosophies they go beyond the economic concerns of an organization and address an organizations employees as well. They give high priority to pride in workmanship, education, and the work environment as well as to team building, teamwork, cooperation, and participation, all essential to cultural change. Top management support and commitment are essential. Education and training must be continuous. Measurement is critical. Improvements are not viewed in terms of final products. Most problems associated with quality can be attributed to management policy or action. Implementation is applicable to any organization.

TOTAL QUALITY MANAGEMENT Assignment (1)

Post-production inspection needs to be minimized. Effective communication and teamwork at all levels are essential. Managers need to provide workers with the means to do a good job. There are no shortcuts to quality. Suppliers must be involved in the quality effort. The pursuit of quality must be a continuous effort.

DIFFERENCES CROSBY DEFINITION OF QUALITY Defined by conformance to requirements. Defined by fitness for use and customer requirements. Defined by the current and future needs of the customer. USE OF MEASUREMENT Views the monetary cost of quality as the focus of measurement. Places emphasis on statistical thinking and statistical methods. GOAL SETTING "Defect-free "products and services are the ultimate goal stresses individual conformance to requirements. Puts emphasis on company-wide goals and the deployment of goals. Opposes the use of goals and quotas to manage work. SUPPLIER RELATIONSHIPS Favors the practice of reducing the number of suppliers. Favors the practice of using a single supplier when possible. LEADERSHIP ACTIVITIES Urges the creation of an activity where management and employees reaffirm their commitment to quality. Defines leadership roles and responsibilities but does not provide a "cookbook" approach to implementation. TRAINING Targets training to help managers develop a new organizational culture. Targets training toward quality management practices and problemsolving techniques. Targets training towards leadership practices. Addresses the need for education and training for enhancing knowledge and developing skills. QUALITY IMPROVEMENT Emphasizes prevention to meet specifications. Uses three quality-oriented processes (planning, control, and improvement) to achieve improvements. Views the organization as a system and applies the scientific method X X X X X X X X X X X X X X X X DEMING JURAN

X X X

X X X

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Bibliography:
1. http://free-books-online.org/management/organization-theory-and-design/organizationaleffectiveness/ 2. http://elsmar.com/pdf_files/Quality_Experts.pdf 3. http://www.coursework.info/University/Business_and_Administrative_studies/Management_Studi es/Similarities___Dissimilarities_between_t_L83811.html 4. http://campus.fortunecity.com/newton/98/djc.htm 5. http://www.dtic.mil/cgi-bin/GetTRDoc?Location=U2&doc=GetTRDoc.pdf&AD=ADA256399 6. http://www.nccicu.org/files/MethodologiestoMeasureOrganizationalEffectivenessNCCIMaster51008.pdf 7. http://www.mbeaconenterprises.com/documents/POVJul08OrgEffectiveness.pdf 8. http://www.flexstudy.com/catalog/schpdf.cfm?coursenum=95033