TQM
Upper Management Leadership
The need for upper management leadership stems from the need to create major changes. We do not know the extent to which Western Upper managers should take leadership of the quality function. The need varies from company to company. We also know that most upper managers are handicapped in charting an optimal course. They lack knowledge in depth as to what is going on in the quality function. What is recommended to these upper managers is:
Undertake a comprehensive review-an audit –of what is going on in the company with respect to quality. Based on the inputs secured from this audit, make the needed revisions in quality policies, organization, human relations, etc. including a decision on the extent to which upper management should take leadership of the quality function.
The comprehensive audit:
The areas to be audited should certainly include such major functional activities as: product development, purchasing and materials management, manufacture, inspection and test, marketing, and field service. One scenario for such audits is to schedule them about two months apart. For each area, and prior to the audit, a designated task force puts together some pertinent information including open questions of an upper management nature: policy information, organization and co-ordination, etc.
What should be the quality mission of the company?
What are the key qualities as seen by clients?
As to the key qualities, what is our state of competitiveness?
What opportunities do we have for quality improvement and reduction of quality related cost?
What can we do to make better use of the human resources in the company?
What threats are coming over the horizon?
The quality mission of the company is a good case in point. There is a school of thought which contends that the company’s mission is one of conformance to specifications, standards, etc. This contention is mostly valid when applied to the mission of individuals and departments in the company. However, it is mostly a serious misconception as to the company. The quality mission of the company is fitness for use.
Another broad category of questions turned up in the audits relates to organization and coordination. There are many ways in which actions taken by one department can create severe problems elsewhere in the company.
For example:
Some components purchased solely on the basis of price turn out to be the most expensive due to the quality problems they create during further processing.
The coordination needed to optimize company performance requires inter-departmental machinery of all sorts: early warning systems, communication, committees, etc. Upper management is well poised to create this machinery. However it must first learn what the needs are and what are the obstacles behind the needs.
A further and major element of upper management review will be that of the basic company organization structure of the quality. In West this organization structure features a large central quality department with numerous functions of quality planning, coordination and auditing. In many of the Western companies this same department also has direct command of the inspection and test personnel. All this contrasts sharply with the organization forms prevailing in Japan
