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    Quality Management Process

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    After all your production planning analysis, you have been asked to prepare a Quality Management Planning Strategy for management and employees.
    Using course materials and other resources, develop a strategy document with the following action items:

    Identify the overall Quality Management Process (TQM, ISO 9000, Six Sigma) that Manychip will use and explain the rationale for such change. Be aware of industry requirements (i.e. service operations are different from manufacturing and each process may offer specific advantages for a specific industry). Describe how you will implement the process in Manychip (make any necessary reasonable assumptions you need with the scenario, such as company organization or structure).

    Once you identify and explain the process, outline the specific tools and techniques that Manychip will use for quality management. Consider the usefulness of all the charting and statistical quality metric techniques and identify which ones Manychip should use.

    Develop a communications memorandum to the factory workers announcing these changes and explaining the value of them. Remember, quality management principles all focus on employee involvement and continuous improvement.

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    Solution Preview

    For a manufacturing organization like Manychip, a corporation wide Total Quality MAnagement process is necessary to enhance the overall quality standards in the organization and manage its tremendous growth in all segments as well as provide highest customer satisfaction to its customers.

    TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.

    TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, which include:

    Commitment by senior management and all employees
    Meeting customer requirements
    Reducing development cycle times
    Just In Time/Demand Flow Manufacturing
    Improvement teams
    Reducing product and service costs
    Systems to facilitate improvement
    Line Management ownership
    Employee involvement and empowerment
    Recognition and celebration
    Challenging quantified goals and benchmarking
    Focus on processes / improvement plans
    Specific incorporation in strategic planning

    A preliminary step in TQM implementation is to assess the organization's current reality. Relevant preconditions have to do with the organization's history, its current needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed. Therefore, first of all we will assess the existing quality priciples for Manychip in all its business segments and will assess their performance in achieving quality standards.

    If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. An organization should be basically healthy before beginning TQM. If it has significant problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be appropriate. With respect to Manychip, to coordinate the manufacturing activity, the company does has an established process and system that helped optimize resource utilization, improve shop floor efficiencies, and manage customer demand. But it is necessary to evaluate how this process has been able to meet the quality standards and how effectively such standards will be able to meet the needs of the increased consumer demands and growth in the operations and size of the company.

    However, a certain level of stress is probably desirable to initiate TQM. People need to feel a need for a change. Kanter (1983) addresses this phenomenon be describing building blocks which are present in effective organizational change. These forces include departures from tradition, a crisis or galvanizing event, strategic decisions, ...

    Solution Summary

    Identify the overall Quality Management Process (TQM, ISO 9000, Six Sigma) that Manychip will use and explain the rationale for such change.