Ahmed Moussa21-Feb-2010

TQM, Chaos and Complexity

TQM

Many Definitions

- Total Quality Management is a global management approach regarding quality which focuses on meeting customer needs and organizational objectives.

- Its basic idea is that the entire company (culture, organization, processes and staff day-to-day attitude) is continuously focused in the improvement of quality of goods and services.

-To reach the perfect quality by reducing all types of losses and improving company’s outputs

- a set of practices geared to ensure the organization consistently meets or exceeds customer requirements by placing strong focus on process measurement as means of continuous improvement.

-A management approach in which managers constantly communicate with all organizational stakeholders, to emphasize the importance of continuous quality improvement and total elimination of waste

- Total Quality Management is a global management approach regarding quality which focuses on meeting customer needs and organizational objectives.

- Its basic idea is that the entire company (culture, organization, processes and staff day-to-day attitude) is continuously focused in the improvement of quality of goods and services.

-To reach the perfect quality by reducing all types of losses and improving company’s outputs

- a set of practices geared to ensure the organization consistently meets or exceeds customer requirements by placing strong focus on process measurement as means of continuous improvement.

-A management approach in which managers constantly communicate with all organizational stakeholders, to emphasize the importance of continuous quality improvement and total elimination of waste

- Total Quality Management is a global management approach regarding quality which focuses on meeting customer needs and organizational objectives.

- Its basic idea is that the entire company (culture, organization, processes and staff day-to-day attitude) is continuously focused in the improvement of quality of goods and services.

-To reach the perfect quality by reducing all types of losses and improving company’s outputs

- a set of practices geared to ensure the organization consistently meets or exceeds customer requirements by placing strong focus on process measurement as means of continuous improvement.

-A management approach in which managers constantly communicate with all organizational stakeholders, to emphasize the importance of continuous quality improvement and total elimination of waste

- Total Quality Management is a global management approach regarding quality which focuses on meeting customer needs and organizational objectives.

- Its basic idea is that the entire company (culture, organization, processes and staff day-to-day attitude) is continuously focused in the improvement of quality of goods and services.

-To reach the perfect quality by reducing all types of losses and improving company’s outputs

- a set of practices geared to ensure the organization consistently meets or exceeds customer requirements by placing strong focus on process measurement as means of continuous improvement.

-A management approach in which managers constantly communicate with all organizational stakeholders, to emphasize the importance of continuous quality improvement and total elimination of waste

- Total Quality Management is a global management approach regarding quality which focuses on meeting customer needs and organizational objectives.

- Its basic idea is that the entire company (culture, organization, processes and staff day-to-day attitude) is continuously focused in the improvement of quality of goods and services.

-To reach the perfect quality by reducing all types of losses and improving company’s outputs

- a set of practices geared to ensure the organization consistently meets or exceeds customer requirements by placing strong focus on process measurement as means of continuous improvement.

-A management approach in which managers constantly communicate with all organizational stakeholders, to emphasize the importance of continuous quality improvement and total elimination of waste

- Total Quality Management is a global management approach regarding quality which focuses on meeting customer needs and organizational objectives.

- Its basic idea is that the entire company (culture, organization, processes and staff day-to-day attitude) is continuously focused in the improvement of quality of goods and services.

-To reach the perfect quality by reducing all types of losses and improving company’s outputs

- A set of practices geared to ensure the organization consistently meets or exceeds customer requirements by placing strong focus on process measurement as means of continuous improvement.

-A management approach in which managers constantly communicate with all organizational stakeholders, to emphasize the importance of continuous quality improvement and total elimination of waste

- Total Quality Management is a global management approach regarding quality which focuses on meeting customer needs and organizational objectives.

- Its basic idea is that the entire company (culture, organization, processes and staff day-to-day attitude) is continuously focused in the improvement of quality of goods and services.

-To reach the perfect quality by reducing all types of losses and improving company’s outputs

- A set of practices geared to ensure the organization consistently meets or exceeds customer requirements by placing strong focus on process measurement as means of continuous improvement.

-A management approach in which managers constantly communicate with all organizational stakeholders, to emphasize the importance of continuous quality improvement and total elimination of waste

So why many companies that follow

TQM rum out of business ?

Frederick Taylor(1856—1915)

The father of scientific management. Taylor rose from common laborer to chief engineer in six years, and completed a home study course to

earn a degree in mechanical engineering in 1883.

In trying to overcome soldiering by the workers, Taylor began a scientific study of what workers ought to be able to produce. This study led to the beginnings of scientific management. Taylor used time and motions studies to break tasks down into elementary movements, and designed complementary piece-rate incentive systems.

Scientific management: was defined as methods aimed at determining the one best way for a job to be done.

Paradigmfrom Greek: παράδειγμα (paradeigma),

A paradigm is a pattern or example. In business it is a framework of behaviors or set of rules action governing people's actions and assumptions.

A set of all forms which contain a common element, especially the set of all inflectional forms of a word or a particular grammatical category; A system of assumptions, concepts, values, and practices that constitutes a way of viewing reality.

Or

Paradigms change when anomalies between existing theory and observation occur, when an alternative paradigm is available, and when a critical mass of people have changed their beliefs.

The Complexity Paradigm

Is a mathematical model of a system based on the use of a linear operator. Linear systems typically exhibit features and properties that are much simpler than the general, nonlinear case.

linear system

Is a system which is not linear, that is, a system which does not satisfy the superposition principle, or whose output is not directly proportional to its input. Less technically, a nonlinear system is any problem where the variable(s) to be solved for cannot be written as a linear combination of independent components.

Nonlinear system

Chaos theory has developed along two dimensions. Experimentalists found ways to discover deep and complex patterns in seemingly random or "chaotic" systems.

Chaos theory

n

(Butterfly flapping its wings in Rio de Janeiro might change the weather in Chicago)

Butterfly effect

The main points from chaos theory: • Seemingly random behavior may be the result of simple nonlinear systems (or feedback-coupled linear systems).

• Systems exhibiting chaotic behavior contrast with other systems whose evolution equilibrates to a single point, or a repeatable cycle of points (limit cycle). • Systems that are pushed far-from-equilibrium (at the edge of chaos) can self-organize into new structures.

Chaos theory - Butterfly effect

So does the organization have to work without giving any attention to the environment and its complexity?

The Learning Organization and the Complexity Paradigm

The notion of a complex adaptive system fits well with much existing management thought concerning the learning organization.

The Learning Organization

The organization and environment as part of a larger system, with the organization obtaining information and resources from the environment in order to survive.

The learning organizational does not despise the uncertainty of random events, but rather attempts to learn and create leverage from such events. .

The Learning Organization

"...When the organization gives public voice to the information--to listen to different interpretations and to process them together--the information becomes amplified. In this process of shared reflection, a small finding can grow as it feeds back on itself, building in significance with each new perception or interpretation. As with the creation of fractals, the simple process of iteration eventually reveals the complexity hidden in the issue. From this level of understanding, creative responses emerge and significant changes become possible." (Wheatley, p. 115, 1992)

The Learning Organization

So the learning organization must view itself systemically. A systems perspective dictates that it is the interaction of organizational entities, rather than the organizational entities themselves.

Organization-wide quality improvement, known as "Total Quality Management" (TQM) has become a common practice among manufacturing, service, and public sector entities. This strategy implies a whole host of organizational practices: focus on customers, process analysis and improvement, study and reduction of variation, empowerment and teamwork, etc.

Overview of TQM

the end user of the product or service. A broader definition of customer would be "anyone who receives my product or service;" this makes it possible then to discuss both internal and external customers. All models of organizational quality possess the attribute of being leader driven, customer focused systems.

Once key processes are defined, quality characteristics that will be measured and used to infer process behavior are chosen. Data on the quality characteristics is analyzed and subsequent action is taken. This "problem solving" typically follows the steps of the scientific method, i.e., hypothesize (Plan), test (Do), analyze (Study), and act upon results (Act), or PDSA.

PDSA

Common causes: are those sources of variation that represent the process routine. They represent variation or uncertainty that is expected from the existing process.

Variation in the data is composed from two sources

Special causes: are sources of variation that cannot be considered part of the routine process

In order for all the process analysis and subsequent activity to work, the organization needs to develop its internal human resources to their full potential, and develop organizational structures that encourage development of organizational knowledge.

In summary

The quality system starts with customer focus, which leads to using the scientific method (PDSA) to improve organizational processes. Process improvement takes place in the context of gathering and understanding process data and using multiple knowledge resources (teams) to make that knowledge. Process improvement can only succeed in a nurturing environment, typified by:

- Employee empowerment, - Management facilitation, - And change in organizational culture.

TQM: The Paradox of Control and Learning

There is growing evidence that organizations have had difficulty in successfully implementing TQM. Laza and Wheaton 1990; Spencer 1994.

Ernst & Young.American Quality Foundation.

Not all quality practices are universally valid and beneficial, and that the practices implemented have to be carefully selected, depending on:

- The nature of the process being improved,- The particular point in the organization's evolutionary history and - Complexity-based organizational practices by focusing contingencies on situational uncertainty.

Beyond TQM

When quality became Quality, however, an external view was demanded. In the past: We have in fact, designed these systems using linear principles, so our study of them with linear-based tools should yield satisfactory results. But: If we continue to use the same linear-based tools we will be disappointed in the results. Now: Our organizational systems however are now often designed from nonlinear as opposed to linear principles. We believe that TQM theory and practice can benefit from further coupling with theory from the complexity paradigm; the following advancements are sought:

Beyond TQM

When quality became Quality, however, an external view was demanded. In the past: We have in fact, designed these systems using linear principles, so our study of them with linear-based tools should yield satisfactory results. But: If we continue to use the same linear-based tools we will be disappointed in the results. Now: Our organizational systems however are now often designed from nonlinear as opposed to linear principles. We believe that TQM theory and practice can benefit from further coupling with theory from the complexity paradigm; the following advancements are sought:

Beyond TQM

When quality became Quality, however, an external view was demanded. In the past: We have in fact, designed these systems using linear principles, so our study of them with linear-based tools should yield satisfactory results. But: If we continue to use the same linear-based tools we will be disappointed in the results. Now: Our organizational systems however are now often designed from nonlinear as opposed to linear principles. We believe that TQM theory and practice can benefit from further coupling with theory from the complexity paradigm; the following advancements are sought:

Beyond TQM

When quality became Quality, however, an external view was demanded. In the past: We have in fact, designed these systems using linear principles, so our study of them with linear-based tools should yield satisfactory results. But: If we continue to use the same linear-based tools we will be disappointed in the results. Now: Our organizational systems however are now often designed from nonlinear as opposed to linear principles. We believe that TQM theory and practice can benefit from further coupling with theory from the complexity paradigm; the following advancements are sought:

Beyond TQM

We believe that TQM theory and practice can benefit from further coupling with theory from the complexity paradigm; the following advancements are sought:

The theoretical links between deterministic chaos and statistical randomness need to be identified. Better statistical tools and statistical approaches . More and better tools which promote systemic . Better communication strategies. Methods which encourage dialogue and divergent thinking .

Finally

If we believe that we are at the beginning of a new paradigm of management practice, then we must be comfortable with the fact that our state of knowledge about complex organizations is far from complete. Rather than converge to a set of normative practices via the Balding criteria and ISO 9000 standards, organizations should be actively experimenting with different approaches, and learning and communicating. Just as we strive for learning organizations, TQM must strive to be a learning body of theory and practice.