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Quality & You

What does your mission statement say about quality?

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    [post_content] => Entrepreneurs and managers will create mission statements in an effort to fix a goal for the entire organization. The most common way to build one is by stating a unifying philosophy wrapped around a strategic purpose, product, and plan. But how does one instill a unifying philosophy that reaches beyond the words contained in a quality vision or the mission statement?

This was my big question; my core intent: to help managers enhance existing efforts by making Quality a common key that belongs to “everyone” in your organization - to bring about a "cause for quality."

Put another way, Quality strengthens your mission statement. It helps fuse together what you currently have in common with an attitude that is shared throughout your entire workforce: from the C-Suite, down to the production worker. The goal is not to make a change, but to enhance what you currently have. The intent is not to replace your existing policies, but to integrate Quality into your organizational DNA.

In my analysis of current quality processes, I found that they are based on one solution for productivity; one concept for quality management. Of course, we want everybody to rally behind one vision of the future, but how do we make that vision truly transformational – something that your people will find personally motivating and personally exciting?

[pullquote]My contribution, no matter how big or how small, will have an impact on the success of my organization![/pullquote]

If there is one thing that we have all learned, you can’t get people excited with a run-of-the-mill mission, vision or quality policy. I believe that by making Quality everyone’s business, you emphasize basic principles that affect people on a personal level. When you encourage individuals to reach out to others, they are – in turn – empowered to do the best work that they can achieve. When you empower them to look beyond personalities and solve problems; you strengthen their resolve to reach deep into their own powerful personal resources and unique talents which, in turn, provides a far better means of personal motivation. What we want is for individuals to sit up and say, “My contribution, no matter how big or how small, will have an impact on the success of my organization!”

Subsequently, as Quality truly becomes everyone’s business, individual behavior will then serve to enhance the intent of your mission statement. People throughout the organization will change their attitudes and beliefs relative to your mission, vision, guiding beliefs, and yes, your quality policy. For instance, in the past, when a problem occurred, you might expect that many people will think “the problem belongs to someone else” or “it’s not my job.” Once they have undergone the principle transformation of understanding that Quality must be a part of everything they do, you can expect that their reaction will be fundamentally different. Instead of passing the buck to the guy in the next workstation, you can expect them to take personal responsibility and be the change agent that produces a lasting solution.

When the notion that Quality is Everyone’s Business is blended with your quality policy as well as with your mission statement, you are encouraging an ideal mindset where everyone now owns problems and creates solutions while supporting the organization’s common vision of the future.
    [post_title] => What does your mission statement say about quality?
    [post_excerpt] => In this bestselling book, Chowdhury introduced his next-generation management system — LEO. In The Power of LEO, he describes how continuous focus on quality improvement can revolutionize any process—from manufacturing operations to managerial decision making. The secret is to cease delegating the responsibility of quality to specific teams or departments and permanently lodge it within the core of an organization’s culture.
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Entrepreneurs and managers will create mission statements in an effort to fix a goal for the entire organization. The most common way to build one is by stating a...

Quality & Economics

Cutting Corners

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    [post_content] => Over the last 50 plus years, Toyota has led the automotive industry in quality and cost. As a result, the company rose to become the world's largest automotive manufacturing corporation and Japan's largest corporation with revenues of $230 billion in 2009.

However, this once untarnished icon of Japan's status as an economic powerhouse, is now in decline and the impact on the company and the entire country is tangible.

As Dr. Masatomo Tanaka says, a professor at the Institute of Technologists, a university that specializes in training engineers, "If Toyota is not healthy, then Japan is not healthy." As goes Toyota, so goes Japan.

Toyota has long enjoyed near hallowed status in Japan as the greatest practitioner of "monozukuri," a centuries-old ideal of perfection in craftsmanship central to ancient pottery and sword-making.  The pride of craftsmanship, burned into Japanese culture as the apex of accomplishment, was turned loose on the factory floor and was once the secret to Japan's postwar "miracle."

Then something changed. Yes, the earthquake and tsunami last year was a serious blow to Japanese manufacturing, but the decline at Toyota was clear long before the natural disaster. About the time the company achieved its global dominance, rumors began to filter out that management was cutting corners on quality – fewer people on the factory floor, lower quality raw materials and suppliers, reductions in research and development.

[pullquote]Shaving a few dollars off the cost of each car has resulted in billions of dollars in recall costs, not to mention the billions of dollars in legal costs the company has incurred from lawsuits filed by customers and government regulators – and in a few cases, possible loss of life.[/pullquote]

The result has been devastating. Shaving a few dollars off the cost of each car has resulted in billions of dollars in recall costs, not to mention the billions of dollars in legal costs the company has incurred from lawsuits filed by customers and government regulators – and in a few cases, possible loss of life. The damage has also been broadly felt: dealerships have lost sales, negatively impacting local economies, and for a time Toyota’s global position fell. But Toyota’s once unblemished record of quality is now questioned in the media and among many customers.

To compound matters, as Toyota moved away from quality, some of its competitors have moved in. Some have embraced their earlier methods to the extent that their products are now surpassing Toyota. Korea's Hyundia-Kia is rapidly gaining on once dominant giant and Detroit's big three have partly adopted Toyota's engineering and manufacturing methodologies and improved their quality as well.

Toyota had the quality mindset before it become the largest corporation in Japan and the largest automotive company in the world.  The company’s actions proved that quality can be the principle driver of efficiency and profitability, but also market dominance. Now the company is learning a new lesson about what happens to giants when they cut corners too often.
    [post_title] => Cutting Corners
    [post_excerpt] => Is it culture, the weather, geography? Perhaps ignorance of what the right policies are? Simply, no. None of these factors is either definitive or destiny. Otherwise, how to explain why Botswana has become one of the fastest growing countries in the world, while other African nations, such as Zimbabwe, the Congo, and Sierra Leone, are mired in poverty and violence? 
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Over the last 50 plus years, Toyota has led the automotive industry in quality and cost. As a result, the company rose to become the world's largest automotive manufacturing...

Quality & Process

Combating Fires

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    [post_date] => 2013-02-19 21:00:30
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    [post_content] => No matter where they occur, a fire can be a devastating event. When they happen around where we live, we rush to the location with manpower and equipment to extinguish the flames.

When I use the word “fire,” I’m thinking of the context of day-to-day management when there is a sudden problem that causes a specific crisis of some kind. It could be a malfunction in production, a faulty product, and an interruption in the supply chain. You could have a fire with personnel issues, a problem with your building, or transportation.

Like real fires, the flash point may be obvious or hidden; there could be single cause or a chain of them. Most of the fires we deal with tend to be minor in scope – easily extinguished and quickly resolved. On occasion, you can have a very large and extremely complex fire that involves many aspects of your business. But just like any fire, bad assumptions can easily lead to a misdiagnosis and mistreatment.

When I think of the average, run-of-the-mill fire, I think of one that starts with a terse phone call or sharp email. In the case of Paul A., the vice president of production at a sheet aluminum plant, it was both.

The email came from one of his best clients who – for the third time in as many months – complained that the palleted rolls of sheet aluminum were not labeled properly. Forklift operators in the receiving department, the email complained, were taking too long to find shipping labels.

He had heard a similar complaint from other clients. His reaction had been to spend $50,000 on new, larger labels that you could read almost 20 feet away.

[pullquote]It seems to me that eventually, we may become weary of rushing to the scene of the problem and instead learn how to instill the high level awareness to prevent fires in the first place.[/pullquote]

“I can read the labels 20 feet away,” emailed Paul. “And my eyes aren’t even very good. I think the forklift operators just like to complain.”

Then the phone call came – from his best client: “Fix the problem, or we’ll go somewhere else.”

That’s the moment that Paul realized that he had a real fire on his hands.

Paul’s company produces very large rolls of the metal, some measuring six feet in diameter by 48 inches wide, stacked and trucked away on pallets. Each roll weighs a considerable amount and is chained to a flatbed trailer, usually without other products on board.

From his vantage point, the shipping labels were huge. He could easily see them from his office window. Out of desperation, he called me for some quick advice. My first response – which is my usual reaction to problems like these – collect all the information you can from the frontline people. And if you collect enough honest and direct information, the solution will present itself.

So, Paul issued a message through the chain of operations, and soon a frontline employee was dispatched to talk to the forklift operators herself. After a very short interview, she discovered that no one had trouble reading the old labels or the new ones. Their complaint was that the way the rolls were placed onto the pallets and into the trucks, the forklift operators had to dismount from their vehicles and climb up on the truck to find the label.

The labels, the operators told her, were always turned 90 degrees away from where they could easily see them. The simple solution: change the labeling process so that the labels could be seen from the forklift operator’s point of view.

Sometimes, a fire is prolonged by an attitude that we hold about our own processes – as it was in Paul’s case. In such cases, it could be a simple matter of opening our mind to new information. But wouldn’t it be great if we could put those fires out BEFORE they become a problem? The one problem with fires is that often management’s focus is on the firefighters, while pretty ignoring the fire preventers. It seems to me that eventually, we may become weary of rushing to the scene of the problem and instead learn how to instill the high level awareness to prevent fires in the first place.
    [post_title] => Combating Fires
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No matter where they occur, a fire can be a devastating event. When they happen around where we live, we rush to the location with manpower and equipment to...

Quality & Me

Valuable Trash

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    [post_content] => Not all waste is created equal. Some of it is extremely valuable; especially when it teaches us something about the way we run our business. The owner of an insurance brokerage in Los Angeles, CA – we will call him “Cooper” – relayed this story to us recently.

Cooper was working late one night on a presentation for a new client. The printer in his office malfunctioned, so he routed a document he needed to the printer that the staffers shared. As he waited by the printer, he looked down at the trashcan and was startled by what he saw: heaping but neat stacks of printed email, dumped straight into the round file. At the time, his office had about 35 employees, so he imagined that it was an isolated incident. But he knew that he should take a closer look.

The next morning, he asked his administrative manager about the trash and what he heard surprised him even more. Two years earlier, he had set what he thought was a mundane office policy to require a paper record of all emails relating to client business.

Email was still a relatively new business tool. Cooper didn’t know that people tended to communicate with each other via the “Reply To” function. As a result, many emails grew into long strings of messages that included every comment made with the important details sprinkled all over. Outlook and other email managers help search for the important bits, but when you print, you get the whole enchilada including every joke, recipe, sports prediction, birthday greeting, salutation, and thanks.

Because of the policy, agents were forwarding customer emails to staffers. At the close of every day, the staffers printed everything, kept what they needed and tossed out the rest.

Cooper measured the stack of paper and found that it was almost even with a fresh package of paper, or about 500 sheets. The real shock came when the manager revealed that this stack was light. Not only did the process occur daily, many times the amount of waste was double, even triple what Cooper had seen.

Cooper and the manager estimated that the cost of wasted paper from printing emails was running up a $300 a month bill; $7,200 since the email policy was passed. When they added toner and staff time, the total cost soared to more than $14,000.

Talking with agents and staffers, he learned that everyone thought that the policy was wasteful and inefficient. And yet, no one took the initiative to anything about it.

Not long after this incident, a non-paper solution was adopted and Cooper was pleased that he could reduce cost and increase efficiency from one small change. Then he realized that this one example was a symptom of other perhaps more costly problems and worried where they might be. About a year later, “The Ice Cream Maker,” was published.

Cooper bought a copy and read it one afternoon. Inspired by the concept of using quality as the benchmark of behavior throughout his business, he bought a copy for everyone in his office. To this day, new employees receive a copy as part of their training.

Another underlying message in this story is the fact that many businesses pass office policy without attention to a quality process. Had Cooper focused on the outcome rather than the solution, he might have avoided this problem entirely. Luckily, the trash was the clue. In my experience, the cost of such mistakes can produce even greater expense.

Something to think about the next time you’re in a position to set what you think is a mundane office policy.
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Not all waste is created equal. Some of it is extremely valuable; especially when it teaches us something about the way we run our business. The owner of an...