Daily Management and Policy Management Vehicles for Quality-centred Management For Tomorrow Yukihiro Ando 1
Brief Profile of Yukihiro Ando Positions: A TQM Consultant An Academician: The International Academy for Quality (IAQ) A QC Instructor for JUSE. A lead examiner of Deming Prize committee. A Honorary Adviser of QC Circle Saitama Section. Titles: Academician: The International Academy for Quality (IAQ) Registered Consulting Engineer. Master of Engineering. 2
Major fields: TQM consultant, Lecturer Application of Quality Management (Policy Management, Daily Management, QC Circle and etc.). Statistical techniques and their application to quality problem solving, Experiences: Over 30 years of experience includes consultations and lectures in a broad range of industries, in Japan, U.S.A., Thailand, India, Singapore, and etc. Manufacturing (steel, cement, chemical, machinery, computer, food, automobile etc. ), Service (recreational facility, electric power, air line, hospital, bank etc. ). Construction (General Contractors) 30 of them were received Deming Prize. A Visiting Professor of Waseda University. A Senior Consultant in Joiner Associates Inc., U.S.A. A Lecture in Tokyo Univ. of Science, Housei Univ. A Board member of Japanese Society of Quality Control (JSQC). Chairman of International Committee of JSQC. An Executive Director of QC Circle Head Quarter. Deputy-Adviser of QC Circle Kanto Region. 3
JSQC Standards ( ) ( )
JSQC Standards Guidelines for Daily Management JSQC-Std 32-001(E):2014 Guidelines for Policy Management JSQC-Std 33-001(E):2017 7
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A Poor Example of Annual Business Plan in a Division ABP of 2016 1. Achieve the sales target XXX 2. Reduce Customer Complaints 10% 3. Reduce Total Cost 5% 4. Improve Delivery Level 10% 5. Improve Customer Safaction 10% by.. 25. Gentle to Environment 26. Introduce a new IT system 27. TPM Implementation 28. Create SCM year, targets, means tons implementation plans ABP of 2017 1. Achieve the sales target XXY 2. Reduce Customer Complaints 15% 3. Reduce Total Cost 10% 4. Improve Delivery 3% 5. Improve Customer Safaction 5% by.. 27. Enhance SCM 28. Accelerate Environment Mgt. 29. Brush up the new IT system 30. TPM Implementation review of the last 10
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The policies are almost the same every year, except for adjectives and numerical values. There are too many items to memorize. In reality just Improve QCD Rank-and-filers reaction: Well, let s do it piecemeal this year, too! It s easy and pleasant to memorize items. We are so very accustomed to deployment work that it is easy to do. 12
Example of Annual Planning 96 Sales actual = 1000 97 Sales target = 1500 Action Plans: 1) Develop new customers 2) Introduce new products 3) Increase customer satisfaction Target 94 95 96 97 1400 1450 1480 1500 Actual 980 950 1000? 14
An example of a Mid term strategy Horizon From the VISION 20
Poor history of Mid-term Plan in a company Better Now 5 Years Later 10 Years Later 23
An example of a Mid term strategy Horizon From the VISION 27
Question A: Are your company facing business environmental changes? 1. 2. 3. 4. 5 Almost Dramatic no change. Question B: Are your company trying to change? 1. 2. 3. 4. 5 Almost Dramatic no change. Adopted from teaching material of Dr. Noriaki Kano 29
Question C: What did (will) you do to address the change? A. Nothing special (other than praying, waiting, deploring, singing the blues, etc.). B. Just working desperately (without specific strategy). C. A part of the members (top management, staff, outside party) developed strategies and the rest of peoples are just following. D. Almost all of members of the company addressed the change in an organized/systematic way. E. Others Adopted from teaching material of Dr. Noriaki Kano 30
If D, you may need a system that can realize Almost all of members of the company addressed the change in an organized/systematic way. 31
On the hand, how are your stability of your fundamentals?
Methods/ Techniques Seven tools New mgt seven tools QC story Quality deployment multi variate A. etc CS/CD + ES + Env t (Quality) Goal & Strategy Quality Management System Vehicles Motivational Approach Policy mgt Daily mgt X functional mgt QC Circles etc Principles Quality Principles CS Market in Next Processes Are Our Customers Management Principles PDCA Control by facts Everybody s business Intrinsic Technology + Information Technology General Education + Political Stability The House of TQM CS; customer satisfaction, CD: customer delight, ES: employee satisfaction, Env t: Environment Modified by N. Kano(2010) based on: Kano, N.(2006) DNA of TQM which I Want to Be Inherited, Hinshitsu(J. of JSQC) Vol. 36. No.4, pp413 417 Copyright, N.Kano, May, 2010 48
Future Direction line staff CEO Cross- Functional Management Daily Management QC Circles Policy Management Current Ongoing Direction TQM Vehicles Boat Model Copyright, N. Kano June, 1999 49
Performance Part which requires Policy Management Not achieved by only current activities C ommitted target of the financial year end Estimated value by current performance Achieved by current activities Financial Year End Month Part which requires Daily Management Figure 3 Daily Management and Policy Management October 20, 2014 (c) Japanese Society for Quality Control 50
4.1 Roles of Daily Management in TQM (Clause 4) Performance (Outcomes/ability of process/system) Improvement Maintenance -plusenhancement Innovation Improvement Maintenance -plusenhancement Maintenance -plusenhancement Time Figure 1 Maintenance plus enhancement, improvement and innovation October 20, 2014 (c) Japanese Society for Quality Control 51
Business Plan Achieved by both Policy Management + Daily Management Fig. 3 Relations between Business Plan, Daily Management and Policy Management (c) Japanese Society for Quality Control
Definition: Daily Management All activities to effectively achieve the objectives with regard to the job that every job unit of the organization is charged with (Same as JSQC-Std. 00-001) (c) Japanese Society for Quality Control 54 October 20, 2014
Definition: Policy Management Activities to achieve policies by unity of purpose and priority approach with engagement of all functions and levels. Note :Policy can include mid-and-long-term policy, annual policy and so on. (JSQC-Std. 00-001:2017) (c) Japanese Society for Quality Control 55
Some of Jargons in Policy Management A Tip 1. Policy in English 4. Management in English 1. Policy in Policy Mgt. 2. Management in TQM 56
A Tip Daily Management include: Management for Hourly Job Daily Job Weekly Job Monthly Job Seasonal Job Yearly Job & etc. p 31 Jobs in front line Operation. Supervisors job Section Managers Job Department to Top Managers Job & etc. Daily Management : Management for routine Jobs in all levels. 57
Structure of JSQC-Std 32-001(E) : 2014 Guidelines for Daily Management 1. Scope 2. Normative references 3. Terms and definitions 4. Fundamentals of Daily Management 5. Implementation of Daily Management 6. Senior manager s role 7. Division-wise Daily Management 8. Daily Management promotion (c) Japanese Society for Quality Control 58 October 20, 2014
Structure of JSQC-Std 33-001(E) :2017 Guidelines forpolicy Management 1. Scope 2. Normative references 3. Terms and definitions 4. Fundamentals of Policy Management 5. Processes of Policy Management 6. How to implement Policy Management in a function 7. How to implement organization s overall Policy Management 8. Promotion of Policy Management (c) Japanese Society for Quality Control 59 September 8, 2017