The Certified
Manager of Quality/
Organizational
Excellence Handbook
Also available from ASQ Quality Press:
Principles of Quality Costs: Financial Measures for Strategic Implementation of Quality
Management, Fourth Edition
Douglas C. Wood, editor
ASQ Pocket Guide to Root Cause Analysis
Bjørn Andersen and Tom Natland Fagerhaug
The ASQ Quality Improvement Pocket Guide: Basic History, Concepts, Tools, and
Relationships
Grace L. Duffy, editor
Root Cause Analysis: The Core of Problem Solving and Corrective Action
Duke Okes
The Lean Handbook: A Guide to the Bronze Certification Body of Knowledge
Anthony Manos and Chad Vincent, editors
The Quality Toolbox, Second Edition
Nancy R. Tague
The Quality Improvement Handbook, Second Edition
ASQ Quality Management Division and John E. Bauer, Grace L. Duffy, Russell T.
Westcott, editors
Performance Metrics: The Levers for Process Management
Duke Okes
Process Improvement Using Six Sigma: A DMAIC Guide
Rama Shankar
Mapping Work Processes, Second Edition
Bjørn Andersen, Tom Fagerhaug, Bjørnar Henriksen, and Lars E. Onsøyen
The Internal Auditing Pocket Guide: Preparing, Performing, Reporting, and Follow-Up,
Second Edition
J.P. Russell
The Certified Six Sigma Black Belt Handbook, Second Edition
T. M. Kubiak and Donald W. Benbow
The Certified Six Sigma Green Belt Handbook
Roderick A. Munro, Matthew J. Maio, Mohamed B. Nawaz, Govindarajan Ramu,
and Daniel J. Zrymiak
To request a complimentary catalog of ASQ Quality Press publications,
call 800-248-1946, or visit our website at http://qualitypress.asq.org.
ASQ Quality Press
Milwaukee, Wisconsin
The Certified
Manager of Quality/
Organizational
Excellence Handbook
Fourth Edition
Russell T. Westcott, Editor
Contributors
Milt Krivokuca, Jd Marhevko, Heather McCain,
Ken Sadler, Jan Tucker, Doug Wood
Quality Management Division,
American Society for Quality
American Society for Quality, Quality Press, Milwaukee 53203
© 2014 by ASQ
All rights reserved. Published 2013
Printed in the United States of America
19 18 17 16 15 14 13 5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
The certified manager of quality/organizational excellence handbook / Russell T. Westcott,
editor ; contributors, Milt Krivokuca [and five others].—Fourth edition.
pages cm
Includes bibliographical references and index.
ISBN 978-0-87389-861-4 (hardcover : alk. paper)
1. Total quality management—Handbooks, manuals, etc. I. Westcott, Russ, 1927–
HD62.15.C42 2013
658.4'013—dc23 2013033022
ISBN: 978-0-87389-861-4
No part of this book may be reproduced in any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior written permission of the publisher.
Acquisitions Editor: Matt T. Meinholz
Managing Editor: Paul Daniel O’Mara
Production Administrator: Randall Benson
ASQ Mission: The American Society for Quality advances individual, organizational, and
community excellence worldwide through learning, quality improvement, and knowledge
exchange.
Attention Bookstores, Wholesalers, Schools, and Corporations: ASQ Quality Press books,
video, audio, and software are available at quantity discounts with bulk purchases for
business, educational, or instructional use. For information, please contact ASQ Quality Press
at 800-248-1946, or write to ASQ Quality Press, P.O. Box 3005, Milwaukee, WI 53201-3005.
To place orders or to request ASQ membership information, call 800-248-1946. Visit our website
at http://www.asq.org/quality-press.
Printed on acid-free paper
v
Table of Contents
List of Figures and Tables.................................................. xv
Preface to the Fourth Edition ............................................... xix
Acknowledgments ....................................................... xxi
Introduction ............................................................ xxii
Part I Leadership .......................................... 1
Chapter 1 A. Organizational Structures ................................ 2
Organizational Design .............................................. 2
Vertical Organizational Design ....................................... 3
Horizontal Organizational Design .................................... 4
Centralization/Decentralization ...................................... 5
Types of Organizational Structures ................................... 6
Management Hierarchy and Influence on the Organization .............. 12
Endnotes .......................................................... 13
Chapter 2 B. Leadership Challenges.................................... 14
1. Roles and Responsibilities of Leaders................................ 15
2. Roles and Responsibilities of Managers.............................. 21
What Managers Do ............................................. 21
3. Change Management ............................................. 26
Techniques for Facilitating or Managing Organizational Change...... 27
Change Agents ................................................. 27
Guidelines for Implementing Change ............................. 28
Techniques and Roles of Change Agents ........................... 29
Organizational Roadblocks ...................................... 30
Constraint Management ......................................... 33
4. Leadership Techniques ............................................ 35
Theories of Motivation and Influence ............................. 35
Negotiation .................................................... 37
Conflict ....................................................... 41
5. Empowerment ................................................... 44
Benefits from Empowerment ..................................... 49
Endnotes .......................................................... 50
Chapter 3 C. Teams and Team Processes ................................ 52
1. Types of Teams ................................................... 54
Team Configurations............................................ 54
Team Selection ................................................. 60
vi Table of Contents
2. Stages of Team Development ....................................... 62
3. Team-Building Techniques......................................... 64
Team Processes................................................. 64
4. Team Roles and Responsibilities .................................... 67
Steering Committee............................................. 68
Team Structure ................................................. 72
Dealing with Team Process Problems ............................. 73
Team Facilitation Techniques..................................... 74
5. Team Performance and Evaluation .................................. 77
Groupthink.................................................... 79
Final Thought .................................................. 80
Endnotes .......................................................... 80
Chapter 4 D. ASQ Code of Ethics ...................................... 81
Endnote ........................................................... 83
Part II Strategic Plan Development and Deployment .......... 85
Chapter 5 A. Strategic Planning Models ................................ 86
Strategic Planning Concepts ..................................... 87
Traditional Strategic Planning .................................... 88
Hoshin Planning ............................................... 89
Scenario Planning .............................................. 95
Barriers to Successful Strategic Planning........................... 95
Endnotes .......................................................... 96
Chapter 6 B. Business Environment Analysis ........................... 97
1. SWOT Analysis................................................... 99
2. Market Forces .................................................... 102
Competitive Analysis ........................................... 104
Benchmarking ................................................. 105
3. Stakeholder Analysis.............................................. 107
4. Technology ...................................................... 109
5. Internal Capability Analysis ....................................... 111
Organizational Core Competencies ............................... 111
6. Legal and Regulatory Factors ...................................... 114
Legal Factors................................................... 114
Regulatory Factors.............................................. 115
Endnote ........................................................... 115
Chapter 7 C. Strategic Plan Deployment ................................ 116
1. Tactical Plans .................................................... 116
Action Planning ................................................ 117
2. Resource Allocation and Deployment ............................... 119
Leadership and Management .................................... 120
Resource Availability ........................................... 120
Allocation of Resources ......................................... 121
Deployment of Tactical-Level Means .............................. 122
Deployment of Action Plans ..................................... 122
Table of Contents vii
3. Organizational Performance Measurement........................... 123
Designing Performance Measures ................................ 123
Metrics and Organizational Alignment ............................ 125
Monitoring, Measuring, and Reporting Performance ................ 126
4. Quality in Strategic Deployment.................................... 127
Formulating Quality Policies ..................................... 127
Defining Quality Management Principles.......................... 128
Quality Objectives .............................................. 129
Summary...................................................... 130
Endnote ........................................................... 130
Part III Management Elements and Methods ................. 131
Chapter 8 A. Management Skills and Abilities .......................... 132
1. Principles of Management ......................................... 133
Planning, Organizing, Staffing, Directing, and Controlling
(POSDC) .................................................... 133
Core Values and Concepts ....................................... 135
2. Management Theories and Styles ................................... 136
Overview of Management Theories and Styles ..................... 136
Tools .......................................................... 143
Interaction of Management Theories and Management Styles ........ 144
Organizational Culture.......................................... 146
3. Interdependence of Functional Areas................................ 147
Internal Functions .............................................. 149
Integrated Business Processes .................................... 151
Systems Thinking .............................................. 154
4. Human Resources (HR) Management ............................... 155
Human Resources Functions ..................................... 155
Personnel Selection, Hiring, and Assimilation ...................... 160
5. Financial Management ............................................ 168
Speak the Language of Management .............................. 168
Financial Reporting............................................. 169
Measures—Ratios .............................................. 174
Product/Service Cost Structures.................................. 178
Budgets ....................................................... 178
Balanced Scorecard ............................................. 179
Communicating with Senior Management . . . . . . . . . . . . . . . . . . . . . . . . . 179
6. Risk Management ................................................ 180
Types of Risks.................................................. 181
The Risk Management Process ................................... 181
Risk Exposure Techniques and Tools .............................. 184
Responding to Risk Exposures ................................... 186
Computing Potential for Loss and Taking Action ................... 187
Summary...................................................... 188
7. Knowledge Management .......................................... 189
What Is Knowledge? ............................................ 189
How to Capture, Share, and Access Information .................... 191
viii Table of Contents
Initiating Knowledge Management ............................... 192
The Learning Organization ...................................... 194
Core Competencies ............................................. 195
Measuring the Outcomes of KM .................................. 195
Organizational Hurdles to Overcome ............................. 196
Product Development ........................................... 197
Endnotes .......................................................... 198
Chapter 9 B. Communication Skills and Abilities ....................... 200
1. Communication Techniques........................................ 200
What Is Communication? ........................................ 200
Direction of Communication ..................................... 202
Methods of Communication ..................................... 203
Selecting Appropriate Media ..................................... 204
Questioning Techniques......................................... 205
2. Interpersonal Skills ............................................... 207
Using Interpersonal Skills and Techniques ......................... 207
Benefits of Effective Communication Techniques ................... 208
Written Communications ........................................ 209
Listening . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Feedback ...................................................... 211
Roadblocks to Effective Communication ........................... 212
3. Communications in a Global Economy .............................. 212
Succeed in the Global Workplace ................................. 215
4. Communications and Technology .................................. 216
Uses of Information Systems ..................................... 216
The Technology in Information Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Distribution of Information ...................................... 220
Using Information for Managing Organizational Performance........ 221
Obsolescence in the Blink of an Eye ............................... 222
Assess the Risks................................................ 223
Endnotes .......................................................... 224
Chapter 10 C. Project Management..................................... 225
1. Project Management Basics ........................................ 227
Project Life Cycle ............................................... 227
Methodologies for Visualizing, Selling, and Initiating the Project ..... 228
2. Project Planning and Estimation Tools .............................. 233
Risk Assessment ............................................... 234
Methodologies for Planning the Project ........................... 234
Methodologies for Designing the Processes and Outputs
(Deliverables) ................................................ 250
3. Measure and Monitor Project Activity ............................... 250
Tools for Implementing and Tracking the Project ................... 250
Methodologies for Evaluating and Closing Out the Project ........... 253
Project Closeout Actions......................................... 253
4. Project Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Endnotes .......................................................... 259
Table of Contents ix
Chapter 11 D. Quality System ......................................... 260
Various Meanings of Quality..................................... 260
Examples of Quality Characteristics............................... 261
Drivers of Quality .............................................. 261
Quality of Design versus Quality of Conformance .................. 262
Quality Planning, Control, and Improvement ...................... 262
Little q and Big Q............................................... 263
Quality Is Strategic ............................................. 263
1. Quality Mission and Policy ........................................ 263
Quality Function Mission........................................ 263
Quality Function Policies, Principles, and Objectives ................ 265
2. Quality Planning, Deployment, and Documentation .................. 266
Quality Plans .................................................. 266
Deployment and Documentation of Quality Plans .................. 267
3. Quality System Effectiveness....................................... 268
Tools and Metrics for Evaluating the Effectiveness of the
Quality System .............................................. 268
Tools and Metrics............................................... 277
Endnotes .......................................................... 278
Chapter 12 E. Quality Models and Theories............................. 279
1. Organizational and Performance Excellence.......................... 279
Category Descriptions........................................... 280
Using the BPEP Criteria As a Management Model................... 281
Other Quality-Related Awards ................................... 283
2. ISO Quality Management Standards ................................ 283
International Quality Management—ISO 9000 Series of
Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
Other Pertinent ISO-Related and International Standards ............ 288
Examples of Other Standards .................................... 289
3. Other Quality Methodologies ...................................... 290
Total Quality Management....................................... 290
Primary Elements of TQM ....................................... 291
Benefits of TQM ................................................ 292
TQM Implementation Approaches ................................ 293
Common TQM Implementation Problems.......................... 295
Continuous Quality Improvement (CQI)........................... 296
4. Quality Philosophies.............................................. 303
Theories of Major Contributors to Quality ......................... 303
Endnotes .......................................................... 310
Part IV Quality Management Tools.......................... 313
Chapter 13 A. Problem-Solving Tools .................................. 314
1. The Seven Classic Quality Tools .................................... 315
Flowchart (1) ................................................... 315
Check Sheet (2)................................................. 317
x Table of Contents
Cause-and-Effect Diagram (3) .................................... 318
Pareto Chart (4) ................................................ 318
Control Charts (5) .............................................. 319
Histograms (6) ................................................. 320
Scatter Diagrams (7) ............................................ 321
2. Basic Management and Planning Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322
Activity Network Diagram (1) .................................... 323
Affinity Diagram (2) ............................................ 324
Interrelationship Digraph (3) ..................................... 325
Matrix Diagram (4) ............................................. 325
Priorities Matrix (5) ............................................. 326
Process Decision Program Chart (6) ............................... 328
Tree Diagram (7) ............................................... 328
Gantt Chart .................................................... 329
3. Process Improvement Tools ........................................ 330
Root Cause Analysis ............................................ 330
PDCA/PDSA Cycle ............................................. 331
SIPOC Analysis ................................................ 332
Six Sigma and the DMAIC Model................................. 333
Failure Mode and Effects Analysis ................................ 335
Process Improvement Model ..................................... 336
4. Innovation and Creativity Tools .................................... 338
Creative Thinking versus Analytical Thinking ..................... 338
Brainstorming.................................................. 339
Mind Mapping ................................................. 340
Analogies ..................................................... 341
Nominal Group Technique....................................... 341
Multivoting .................................................... 342
Lateral and Parallel Thinking .................................... 343
Critical Thinking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343
Five Whys ..................................................... 343
Design for Manufacturing Ability and Design for Six Sigma ......... 344
TRIZ .......................................................... 345
SCAMPER ..................................................... 347
Storyboard .................................................... 347
Other Creativity Tools........................................... 347
5. Cost of Quality (COQ)............................................. 348
Categorizing Quality Costs ...................................... 349
Endnotes .......................................................... 352
Chapter 14 B. Process Management .................................... 353
1. Process Goals .................................................... 354
How Are Process Objectives Monitored, Measured, and Reported?.... 357
2. Process Analysis ................................................. 358
Flowcharting/Process Mapping .................................. 359
Procedures and Work Instructions ................................ 364
Control Plans .................................................. 366
Industry-Specific Documentation ................................. 366
Table of Contents xi
Eliminating Waste ............................................. 366
3. Lean Tools ....................................................... 371
Cycle-Time Reduction ........................................... 371
Five S ......................................................... 373
Just-i n-Time .................................................... 374
Kanban ....................................................... 375
Value Stream Mapping .......................................... 375
Single-Minute Exchange of Die ................................... 375
Poka-Yoke or Mistake-Proofing ................................... 377
Kaizen ........................................................ 379
Overall Equipment Effectiveness ................................. 380
Pitfalls to Avoid in Achieving Cycle-Time Reduction ................ 381
4. Theory of Constraints (TOC) ....................................... 381
How TOC Treats the Flow of Money .............................. 388
Tools Used in TOC.............................................. 389
Endnotes .......................................................... 389
Chapter 15 C. Measurement: Assessment and Metrics.................... 391
1. Basic Statistical Use ............................................... 392
Techniques and Tools to Measure Processes........................ 392
Measuring Independent Process Variables ......................... 393
Establishing Process Measures ................................... 394
Techniques and Tools to Measure Projects ......................... 395
How Metrics and Data-Gathering Methods Affect Some People....... 396
Three Timely Tenets ............................................ 398
2. Sampling ........................................................ 398
Acceptance Sampling Methods ................................... 399
Risks in Sampling .............................................. 400
3. Statistical Analysis................................................ 402
Simple Statistics Used to Analyze Groups of Data ................... 402
Advanced Statistical Methods .................................... 405
Statistical Process Control (SPC) .................................. 406
Pre-Control .................................................... 409
4. Measurement Systems Analysis .................................... 410
5. Trend and Pattern Analysis ........................................ 411
Long-Term versus Short-Term Trend Analysis ...................... 413
Patterns in Trend Analysis ....................................... 413
Tabular Data ................................................... 414
Data Mining ................................................... 414
Geographic Information System .................................. 415
Barriers to Successful Trend Analysis ............................. 415
6. Process Variation ................................................. 416
Factors Affecting Variation....................................... 417
Types of Variation .............................................. 417
Achieving Breakthrough Improvement ............................ 419
7. Process Capability ................................................ 421
8. Reliability Terminology ........................................... 422
Product Reliability.............................................. 422
xii Table of Contents
Mean Time to Failure (MTTF) .................................... 424
Mean Time between Failures (MTBF) ............................. 424
Other Measures of Reliability .................................... 424
9. Qualitative Assessment............................................ 426
Survey Analysis and Use ........................................ 427
Endnotes .......................................................... 428
Part V Customer-Focused Organizations ..................... 431
Chapter 16 A. Customer Identification and Segmentation ................ 432
Overview of Customer Types .................................... 432
Importance of Identifying Customer Types......................... 434
1. Internal Customers ............................................... 435
Quality-Level Agreements ....................................... 437
Three Timely Tenets ............................................ 437
How Treatment of Internal Customers Influences Processes for
External Customers........................................... 437
Methods to Energize Internal Customers .......................... 439
2. External Customers ............................................... 440
Types of External Customers ..................................... 440
3. Customer Segmentation ........................................... 442
The Shift to Customer Segmentation .............................. 442
Customer Segmentation ......................................... 443
The Process of Segmenting Customers ............................ 444
Segmentation Concepts.......................................... 446
Choosing a Segmentation Strategy ................................ 448
Process for Working with External Customers ...................... 450
Endnotes .......................................................... 450
Chapter 17 B. Customer Relationship Management ...................... 452
Defining Customer Focus........................................ 452
Managing Customer Relationships................................ 452
1. Customer Needs.................................................. 453
Anticipating Customer Expectations and Needs .................... 453
Quality Function Deployment .................................... 456
Other Models for Gathering and Deploying Voice of the Customer
Information ................................................. 460
2. Customer Satisfaction and Loyalty .................................. 460
Determining Customer Satisfaction Levels ......................... 461
Analyzing Customer Satisfaction Data............................. 462
Complaint Handling ............................................ 467
Capturing, Differentiating, and Using Data from Customers ......... 467
Techniques and Tools Used to Collect the Data ..................... 468
Corrective and Preventive Action ................................. 474
Pitfalls Encountered in Determining Customer Satisfaction .......... 475
Customer Retention/Loyalty ..................................... 476
Customer Value Analysis ........................................ 478
3. Customer Service Principles........................................ 479
Table of Contents xiii
Creating a Customer Service–Oriented Organization................ 479
4. Multiple and Diverse Customer Management ........................ 483
Managing Multiple Customers ................................... 483
Resolving Conflict .............................................. 484
Managing Capacity and Resources................................ 485
Endnotes .......................................................... 487
Part VI Supply Chain Management ......................... 489
Chapter 18 Supply Chain Management................................. 490
Outsourcing ................................................... 491
A. Supplier Selection ................................................ 491
Supplier Selection .............................................. 491
Assessing Supplier Capabilities .................................. 493
Caveats........................................................ 494
B. Supplier Communications ......................................... 495
C. Supplier Performance............................................. 497
D. Supplier Improvement ............................................ 502
Supplier Audits ................................................ 502
Corrective and Preventive Action ................................. 503
Feedback to Suppliers ........................................... 503
Monitoring Process Improvements................................ 504
E. Supplier Certification, Partnerships,
and Alliances .................................................... 504
Supplier Certification ........................................... 504
Partnerships and Alliances ...................................... 505
F. Supplier Logistics and Material Acceptance .......................... 509
Logistics ...................................................... 509
Material Acceptance ............................................ 510
Management of the Supply Chain................................. 511
Endnotes .......................................................... 512
Part VII Training and Development ......................... 513
Chapter 19 Training and Development ................................. 514
Distinguishing Between Training and Education ................... 514
A. Training Plans ................................................... 516
Alignment with Strategic Planning and Business Needs ............. 516
What Training Can and Can Not Do .............................. 518
Training Is a Process ............................................ 519
B. Training Needs Analysis .......................................... 521
Purposes of a Needs Assessment and Analysis ..................... 523
Assessing Training Needs ....................................... 524
Needs Assessment Techniques and Tools .......................... 524
When the Need Is to Improve Job Performance ..................... 526
Caveats........................................................ 527
C. Training Materials/Curriculum Development and Delivery ........... 528
xiv Table of Contents
Training and Education—Differences by Organizational Level ....... 529
Designing the Training Program ................................. 531
Methods of Training Delivery .................................... 535
Other Training Delivery Techniques .............................. 540
Keys to Making Training More Effective ........................... 541
D. Training Effectiveness and Evaluation .............................. 542
Training Effectiveness........................................... 543
What Causes Ineffectiveness or Failure? ........................... 545
Rationale for Ongoing Training Evaluation......................... 546
Reinforcing Quality Training..................................... 547
Training and Education As Tools in the Management of Quality . . . . . . 548
Distinguishing Between Training, Education, and Individual
Development ................................................ 548
Endnotes .......................................................... 549
Chapter 20 The Certified Manager of Quality/Organizational
Excellence Body of Knowledge ....................................... 551
Appendix A References............................................... 567
Appendix B Glossary and Acronyms ................................... 581
Index ................................................................. 641
xv
List of Figures and Tables
Table I.1 Levels of organizational maturity. What is your organization’s level? .... xxvii
Figure 1.1 Functional departmentalization. .................................... 7
Figure 1.2 Product departmentalization. ....................................... 7
Figure 1.3 Customer departmentalization. ..................................... 8
Figure 1.4 Geographic departmentalization. .................................... 8
Figure 1.5 Process departmentalization. ....................................... 8
Figure 1.6 Matrix organization example. ....................................... 10
Figure 2.1 Causes for resistance to change. ..................................... 32
Figure 2.2 Analysis of an employee suggestion system. .......................... 34
Figure 2.3 Logic tree analysis. ................................................ 34
Figure 2.4 Maslow’s hierarchy of needs. ........................................ 36
Figure 2.5 A decision option hierarchy. ........................................ 40
Figure 2.6 Conflict-handling modes. .......................................... 42
Figure 2.7 Traditional versus empowered organization. .......................... 46
Table 2.1 Relationship changes in an empowered organization. .................. 48
Figure 3.1 Linking team structure. ............................................ 58
Figure 3.2 Project staffing—KESAA requisites analysis. .......................... 61
Figure 3.3 Team development phases. ......................................... 63
Table 3.1 Roles, responsibilities, and performance attributes. .................... 69
Figure 3.4 Supporting factors for effective teamwork. ............................ 77
Figure 5.1 Overview of strategic planning process. .............................. 88
Figure 5.2 A typical view of the hoshin planning process. ........................ 90
Table 5.1 Setting objectives the S.M.A.R.T. W.A.Y. .............................. 92
Figure 5.3 Top-level means matrix format. ..................................... 93
Figure 5.4 Linking goals, objectives, and means. ................................ 93
Figure 6.1 Components of an environment analysis. ............................. 98
Figure 6.2 SWOT analysis example. ........................................... 101
Figure 6.3 Template for evaluating organizational alignment to stakeholder
needs and interests. ................................................ 108
Figure 7.1a Action plan (front). ................................................ 118
Figure 7.1b Action plan (back). ................................................ 119
Figure 7.2 The cascading concept (from QFD) used as a strategic plan
deployment tool. .................................................. 123
xvi List of Figures and Tables
Figure 7.3 Examples of critical success factors for two organizations. .............. 125
Table 7.1 Annual closed-loop assessment. ..................................... 125
Figure 8.1 Kolb’s experiential learning model. .................................. 138
Figure 8.2 Analysis of behavior template. ...................................... 140
Figure 8.3 Major business processes. .......................................... 152
Figure 8.4 New product design and launch process. ............................. 153
Figure 8.5 Mutual investment in individual development. ........................ 164
Figure 8.6 Sample balance sheet. .............................................. 171
Figure 8.7 Sample income statement. .......................................... 172
Table 8.1 Potential types and forms of risk that could affect an organization. ...... 182
Table 8.2 A detailed look at potential exposures to loss. ......................... 183
Figure 9.1 Communication path. .............................................. 201
Table 9.1 Some of the communication obstacles facing organizations operating
globally, and possible remedies. ..................................... 213
Figure 9.2 Levels of information systems. ...................................... 218
Figure 10.1 ISO 9001 quality system implementation and registration. .............. 231
Table 10.1 A typical project planning sequence. ................................. 235
Figure 10.2 Customer response project—stakeholders. ............................ 237
Figure 10.3 Deliverables (hypothetical). ......................................... 239
Figure 10.4 Work breakdown structure (work package level). ...................... 240
Figure 10.5 Work breakdown structure (WBS)—building garage (outline format). ... 241
Figure 10.6 Gantt chart. ....................................................... 242
Figure 10.7a CPM data table. ................................................... 244
Figure 10.7b CPM chart. ....................................................... 244
Figure 10.8 Personnel resource requirements matrix. ............................. 246
Figure 10.9 Sample project budget. ............................................. 249
Figure 10.10 Calibration system project—sample variance report. ................... 252
Figure 10.11a Action plan form (front). ........................................... 257
Figure 10.11b Action plan form (back). ............................................ 258
Table 11.1 Example of a partial, hypothetical balanced scorecard. ................. 269
Figure 11.1 Flowchart for quality audit. ......................................... 274
Figure 12.1 Baldrige criteria for performance excellence framework. ................ 280
Table 12.1 Examples for benchmarking a process. ............................... 298
Figure 12.2 Sources of benchmarking information. ............................... 299
Figure 12.3 Benchmarking Code of Conduct. .................................... 301
Figure 12.4 The Taguchi loss function. .......................................... 311
Figure 13.1 Flowchart example. ................................................ 316
Figure 13.2 Deployment flowchart example (also called a swim-lane chart). ......... 317
Figure 13.3 Check sheet example. .............................................. 318
Figure 13.4 Cause-and-effect diagram example. .................................. 319
Figure 13.5 Pareto chart example. .............................................. 320
List of Figures and Tables xvii
Figure 13.6 Control chart example. ............................................. 320
Figure 13.7 Histogram example. ............................................... 321
Figure 13.8 Scatter diagram example. ........................................... 321
Figure 13.9 Network diagram example (activity on node). ......................... 323
Figure 13.10 Affinity diagram of “Methods to improve team performance.” .......... 324
Figure 13.11 Interrelationship diagraph example. ................................. 325
Figure 13.12 Matrix diagrams at various stages of completion. ...................... 326
Figure 13.13a Priorities matrix—evaluating relative importance of criteria. ............ 327
Figure 13.13b Priorities matrix—comparing objects based on one criterion
(acceleration). ..................................................... 327
Figure 13.13c Priorities matrix (partial)—evaluating all objects against criteria. ........ 328
Figure 13.14 Process decision program chart example. ............................. 329
Figure 13.15 Tree diagram example. ............................................. 329
Figure 13.16 PDCA/PDSA cycle. ................................................ 332
Figure 13.17 SIPOC diagram example. ........................................... 332
Figure 13.18 Process FMEA example. ............................................ 337
Figure 13.19 Mind map example. ............................................... 340
Figure 13.20 Use of analogies for a gardening tool. ................................ 341
Figure 13.21 Nominal group technique ranking table. ............................. 342
Figure 13.22 Multivoting example. .............................................. 342
Figure 13.23 Five whys example. ................................................ 344
Figure 14.1 Process management maturity assessment. ........................... 355
Figure 14.2 Deployment of strategic goals and objectives to process goals and
objectives. ........................................................ 356
Figure 14.3 Traditional process mapping symbols. ............................... 361
Figure 14.4 Process map—non-grid format. ..................................... 362
Figure 14.5 Process map—grid format. ......................................... 363
Figure 14.6 A quality management system documentation hierarchy. ............... 364
Figure 14.7 Portion of a sample control plan. .................................... 367
Figure 14.8 Typical U-shaped cell layout. ........................................ 373
Figure 14.9 Value stream map—macro level (partial). ............................. 376
Figure 14.10 Value stream map—plant level (partial). .............................. 376
Table 14.1 Techniques, methodologies, and tools applicable to process
management. ..................................................... 382
Figure 15.1 Causal relationship in developing key process measurements. .......... 394
Figure 15.2 OC curves. ....................................................... 401
Figure 15.3 Sampling decisions. ................................................ 401
Figure 15.4 Probability distributions. ........................................... 404
Table 15.1 Computer downtime log. ........................................... 407
Figure 15.5 Control chart for computer downtime. ............................... 407
Figure 15.6 Run chart patterns. ................................................ 412
xviii List of Figures and Tables
Figure 15.7 Bathtub curve. .................................................... 423
Figure 15.8 Reliability and validity. ............................................ 425
Figure 16.1 Product/service flow. .............................................. 435
Figure 16.2 Quality-level agreement. ........................................... 438
Figure 16.3 Preference segment patterns. ........................................ 446
Figure 16.4 Segmentation concepts. ............................................ 447
Figure 17.1 Quality function deployment matrix “house of quality.” ................ 456
Figure 17.2 Sample QFD. ...................................................... 458
Figure 17.3 Voice of the customer deployment. ................................... 459
Figure 17.4 System for utilizing customer feedback. .............................. 461
Figure 17.5 The Kano model. .................................................. 462
Figure 17.6 A customer/client contact record, a sample LCALI form. ............... 466
Table 17.1 Perspectives of value to customers. .................................. 473
Table 17.2 Levels of customer satisfaction. ...................................... 476
Figure 18.1 Supplier performance report. ....................................... 499
Figure 18.2 Risks in sampling. ................................................. 511
Figure 19.1 Training versus education. .......................................... 515
Table 19.1 Deficiency analysis. ................................................ 519
Figure 19.2 A training system model. ........................................... 520
Table 19.2 Distinguishing between performance and skill/knowledge issues. ...... 527
Figure 19.3 Levels of training evaluation. ....................................... 544
Table 20.1 Employee breakdown at Glo, Inc. .................................... 563
xix
Preface to the Fourth Edition
QUALITY MANAGEMENT—AN EVOLVING REQUISITE
OF SOCIETY
Quality management has and continues to evolve from a rigid, structured function
founded exclusively to monitor manufacturing processes to a more well-rounded
function of total organizational performance. The traditional view of quality as
a manufacturing-specific organizational cost center is rapidly becoming obsolete
and being replaced by a more holistic approach to the functional definition of
quality. The ASQ Futures of Quality study, conducted every three years, continues
to reflect these perspectives of quality in our global society. The need for a holistic
approach to quality is necessary to address the social responsibility, environmen-
tal, and sustainability concerns of society. This holistic approach extends an orga-
nization’s place in society, going beyond providing products and services that are
safe and reliable, to also being a respected member of the local community and
global society. Organizations must recognize the expanded role of quality and
how the principles of quality management have transitioned to those of organi-
zational excellence. Any and every organization, from the sole proprietor entre-
preneur to the largest multinational corporation, can benefit from the Certified
Manager of Quality/Organizational Excellence (CMQ/OE) body of knowledge.
This increased complexity of societal expectations of organizations necessi-
tates professionals who can demonstrate superior knowledge of the traditional
functional areas of business while maintaining objectivity in assuring that orga-
nizations accomplish their mission and vision. The manager of organizational
excellence understands how a delicate balance is necessary to meet customer sat-
isfaction, global stakeholder concerns, and internal process efficiencies.
Since the inception of this certification, the title has been changed to reflect
the current responsibilities of this profession. In this the fourth edition, significant
changes have been made, and the body of knowledge has been revised, with addi-
tional emphasis placed in several sections.
CONTINUOUS LEARNING—PERSONAL EXCELLENCE
AS A BASIS FOR ORGANIZATIONAL EXCELLENCE
The personal accomplishment of becoming a CMQ/OE provides professionals
with the distinction of being formally recognized not only for superior knowl-
edge, but also for exceptional comprehension of the complex issues affecting
organizations and their performance. Additional opportunities are afforded
those who possess formal recognition for their accomplishments, knowledge,
xx Preface to the Fourth Edition
and professionalism. These key CMQ/OE attributes are indicative of role models
who thoroughly understand and are able to apply the principles of organizational
excellence necessary to achieve world-class performance.
The body of knowledge is reviewed every five years through a very robust
process. Extensive research related to the content of the body of knowledge and its
applications is conducted utilizing a variety of quality methodologies. Conduct-
ing this analysis on a regular basis assures that the content of this handbook and
the body of knowledge reflects the current responsibilities of mangers of organi-
zational excellence.
The CMQ/OE body of knowledge remains in constant transition as global
economic conditions, societal concerns, and technology continue to change. The
transient nature of elements that impact organizational excellence requires that
the CMQ/OE recertify every three years. Recertification assures that the CMQ/
OE continues to have the most current knowledge of the issues and concerns of
the global community.
Managers of organizational excellence will be tasked with applying critical,
out-of-the-box thinking to solve complex issues facing organizations. The per-
sonal accomplishment of attaining the CMQ/OE recognizes that the fundamental
skills and knowledge are in place to meet these challenges.
USE AND DEVELOPMENT OF THE FOURTH EDITION
OF THIS HANDBOOK
This handbook is a comprehensive reference source designed to help profession-
als address organizational issues from the application of the basic principles of
management to the development of strategies needed to deal with the technologi-
cal and societal concerns of the new millennium. The content of the fourth edition
is very similar to the previous edition, but theories and applications have been
revised to reflect a more current global perspective. The residual value of this
handbook is immeasurable. Although this handbook thoroughly prepares indi-
viduals for the ASQ CMQ/OE exam, the real value resides in post-exam usage as a
day-to-day reference source for assessing quality applications and methodologies
in daily processes. Along with the display of the CMQ/OE certificate, this refer-
ence source should be visible and readily accessible. The content is written from
the perspective of practitioners, and its relevance extends beyond traditional prod-
uct quality applications.
The contributing authors are all subject matter experts (SMEs) from the lead-
ership team of ASQ’s largest division, the Quality Management Division (QMD).
This team consists of volunteers who are advocates for improving organizational
performance. The royalties arising from the sale of this book are applied to the
QMD operations budget and are used for funding additional activities designed
to enhance QMD membership value.
For the fourth time, thanks to Russ Westcott and his six new contributors.
Milton Krivokuca, DBA
Chair—Quality Management Division
American Society for Quality
xxi
Acknowledgments
T
o colleagues Milt Krivokuca, Jd Marhevko, Heather McCain, Jan Tucker, Ken
Sadler, and Doug Wood, who have contributed to this revised edition.
To Jerry Rice for his painstaking analysis of the impact of the changed
body of knowledge.
To the staff at ASQ Quality Press as well as the hardworking copy and produc-
tion editors who have ably corrected grammatical goofs and made valuable sug-
gestions for improvement.
To the contributors to the first, second, and third editions, who laid the foun-
dation for this edition.
Russ Westcott
Editor, Fourth Edition
xxii
HISTORICAL PERSPECTIVE
In early agricultural situations, quality resulted largely from screening and cull-
ing inferior product, and grading the acceptable product. Careful selection of seed
and breeding stock, attention to site, and good husbandry lowered the incidence of
poor product, but did not eliminate the need to cull and grade. Farmers did their
best, but their output was the result of natural processes mostly beyond their con-
trol. The “make it, then sort it” approach to quality is still prevalent in this industry.
Craft workers had somewhat more control over their inputs and processes.
For example, potters recognized that their outputs varied depending on the type
of clay, glaze, and firing method used. Inherent (undetectable or uncontrollable)
variations in materials and methods still limited their ability to make a uniformly
high-quality product. Their best work was excellent, but consistency varied. This
craft-like method existed in the preindustrial era where sales, design, manufac-
turing, finance, and quality were integrated, and one worker performed all these
functions, perhaps with the help of an apprentice or family members.
This tradition persisted until the development of the factory system, in which
supervisors were placed to oversee workers. All employees were involved with
production, but only the supervisor judged quality. A distinction between mak-
ing product and checking it had been introduced. Factories developed into highly
organized enterprises, with much specialization of labor. Quality was still tested
in, and the testers and inspectors became a separate, specialized group. Usually,
this group was part of manufacturing, close to the point of production and famil-
iar with the needs of other workers.
These assumptions are still made by many: we can only make so much, it will
come out in various grades, and better product is rare, so high quality is opposed
to high productivity. If quality and productivity are opposed, then it is a conflict of
interest for quality control workers and production workers to report to the same
managers. To get independent judgment, the quality organizations became auton-
omous, reporting to their own managers rather than to managers of manufactur-
ing. This was also institutionalized in government contracts.
The foundations of modern quality control were developed by Walter
Shewhart, who published Economic Control of Quality of Manufactured Product in
1931 based on his years of experience at Western Electric. This book advocated
techniques better than “make a lot and sort out the good ones.” The concepts of
measuring and controlling the process, reducing the variation in the system, and
distinguishing between special causes and common causes contributed to a new
approach for achieving quality.
Introduction
Introduction xxiii
During World War II (1940–1945), the military needed large quantities of
highly uniform product. A three-second fuse needed to take exactly that long; the
consequences of variation were quite unsatisfactory. The propellant charges for
artillery shells had to be uniform to control trajectory. Tanks, airplanes, and other
equipment had to have closely matched parts to function reliably. Thousands of
personnel in the American war industries were trained in the practice of statistical
process control (SPC).
For the most part, some engineers (not operators or statisticians) applied
quality principles and technologies (especially SPC) and came to be called qual-
ity engineers. Because it was recognized that many of the problems experienced
in production and service were due to design practices and decisions, a special-
ized group, reliability engineers, emerged. The experiences of the best-performing
organizations made it clear that high levels of quality demand careful planning,
analysis, and communication between functions, and close cooperation among all
functions.
Present enlightened understanding recognizes that increased quality and
productivity go hand in hand, so the need for independence and autonomy of the
quality function is lessened. The enterprise is more integrated with the adoption
of this new view. Each worker is responsible for work quality. Each worker must
have the necessary training, tools, and power to perform work correctly. The pro-
duction cycle is becoming similar to the days when each worker was master in the
shop, often dealing with customers, making the product, and controlling its qual-
ity. Management of the total process or subprocess calls for many skills, requiring
educated, motivated, and extremely competent workers.
OBSERVATIONS ABOUT THE QUALITY FUNCTION
In a manufacturing environment, the quality function and manufacturing are
often organized in parallel, whether by product or by process. How this is done
depends on the size and complexity of the operation, the nature of the customers
or markets served, the variety and quantity of products involved, and the variety of
processes used. If A employs several dozen people at one site to produce one
or two products that are distributed locally, and B employs 10,000 people on four
continents to make and support dozens of product lines, clearly, their quality
functions will have to be very different.
If various parts of the organization are very different, then it may be benefi-
cial to have quality functions at each location. The intent is to have what is needed
where it is needed.
The larger the organization, the easier it is to justify the costs of specialized
groups located in one central place to serve other dispersed groups. Some com-
mon examples are laboratories, calibration facilities, auditors, and trainers. It is
often more cost-effective to divide the expense of central shared services among
many users than to physically divide the function.
The notion of critical mass says that a certain threshold in size and amount
of activity is required for some functions to work well. For example, if equipment
used in the quality function requires calibrating only a few times per year, then
it makes little sense to own all the necessary equipment and to have an underuti-
lized expert in calibration. It might be better to make arrangements to outsource
xxiv Introduction
the activity. In some circumstances, the quality function might be spread over
many other internal functions.
When total quality management (TQM) is successfully implemented, the dis-
tinctions between staff and line activities can become blurred as empowered
teams become responsible for both plans and action as the layers of management
decrease.
The role of the quality function may include:
• Quality control (QC). Providing techniques and performing activities
that focus on controlling or regulating processes and materials to
fulfill requirements for quality. The focus is on preventing defective
products or services from being passed on.
• Quality assurance (QA). Planning systematic activities necessary to
provide adequate confidence that the product or service will meet the
given requirements.
• Quality management system (QMS). Defining the structure,
responsibilities, procedures, processes, and resources for
implementing and coordinating the QMS.
• Metrology. Ensuring that the measurements used in controlling quality
are meaningful and accurate. Ensuring that measurement equipment
is calibrated and traceable to the National Institute of Standards and
Technology (NIST).
• Inspection. Managing or overseeing the inspection activities.
• Training. Providing training and/or training subject matter that
supports employee skills training and education in quality-related
topics. May also include training for suppliers and for customers.
• Auditing. Managing or overseeing the activities involved with auditing
products, processes, suppliers, and the QMS to ensure that the
organization’s strategies, principles, goals, objectives, policies, and
procedures relative to quality are followed.
• Reliability engineering. Working with design and production functions,
determining the probability of a product performing adequately
for a specified length of time under stated conditions with an aim
of lowering total cost of ownership of the product, and satisfying
customers.
• Initiating and/or participating on problem-solving teams. Working where
needed to apply expertise, such as the tools of quality control and
root cause analysis.
• Supplier quality. Managing or overseeing the activities that ensure
that high-quality suppliers are selected and that incoming purchased
parts and materials are acceptable in grade, timeliness, and other
characteristics.
Introduction xxv
• Product/service design. Working with sales, design, and other functions
to ensure quality in products under development.
The priority (importance and authority) attributed to the quality function is not
based on the size of the quality department (budget, head count, floor space, or
location in the organization chart), but on consideration of a number of factors,
including:
• Anorganization’svision,mission,strategicgoalsandobjectives,and
the emphasis placed on quality principles and practices
• Totalcostsofqualityandtheallocationtothetypesofcosts,thatis,
prevention, appraisal, and failure costs
• Resourcesallocatedandthetimespentonqualitybymanagementat
all levels, especially the higher levels
• Seniorleadership’svisibleandpersonalinvolvementinandsupportof
quality efforts
The quality function is not:
• Apreventionsquad.Whenthequalitydepartmentisviewedasthe
owner of quality, the rest of the organization tends to abdicate its role
and responsibility.
• Apolicingfunctionorientedprimarilytowarddefectdetection.
• Ascreenorbarriertoprotectthecustomerfromproblemsand
defects. Advertisements may emphasize that the customer can be
confident of satisfaction “because we have X number of inspectors
and testers checking the product.” This could be viewed as an
admission that an organization may not have dependable processes
for making a good product.
• Justonemoretaskamongmany.Thisoccurswhenmanagersand
workers approach quality as another task on top of or after all the
other tasks.
Quality is an extremely important function in an organization, but it is not the
only important function. The quality function needs to practice humility and
respect in dealing with other functions within the organization. Quality is not
alone in bringing about success for the organization and is not exempt from blun-
ders, mistakes, poor judgment, or human error. There are good and bad ways to
work for quality. Thus, the quality function should be scrutinized just as any other
function is evaluated, and continually improved.
BIG Q AND little q
Dr. Joseph M. Juran illustrated the difference between managing to achieve qual-
ity across the board, in all functions of the organization, and for all products and
xxvi Introduction
services (Big Q) and managing for quality on a limited basis (little q). Quality
control activities are little q. Quality assurance may be little q or Big Q depending
on how it functions within an organization.
LEVELS OF ORGANIZATIONAL MATURITY
To gain an overall perspective of the implications of applying quality principles
and practices, scan Table I.1.
THINKING LIKE A QUALITY MANAGER/
DIRECTOR
The roles and responsibilities of the quality manager/director—and approaches
to quality management—vary depending on the type of industry or the size of
the business entity. The Certified Manager of Quality/Organizational Excellence
(CMQ/OE) Body of Knowledge (BoK) (see Chapter 20) is a product of inputs from
many sources and reflects areas of common interest and importance. The inten-
tion in the development of examination questions is to measure the level of knowl-
edge and skill that a person possesses relative to each area of the BoK, and how to
apply the BoK as an integrated system, regardless of each person’s job, organiza-
tion culture, or industry practice.
For individuals planning to take the ASQ CMQ/OE examination, getting into
the mind-set of the role for which the certification was designed is a major key to
a successful outcome. Some recommendations for establishing a successful mind-
set in using this study guide and preparing for the examination include:
• Visualizeorthinkofyourselfasacorporatedirectorofqualityforamulti-
facility organization, perhaps with locations globally. In reality, in businesses in
which products and services are not highly regulated by government legislation,
and in smaller business enterprises, the quality manager may not have a support
staff to perform quality engineering–related tasks and make day-to-day quality
decisions. As a result, you might spend the majority of time acting in the capac-
ity of an engineer, and assume that mind-set in studying for and taking the exam.
That might not work well for you. A wider and higher-level mind-set needs to be
assumed for exam purposes.
Individuals taking the CMQ/OE examination need to place themselves in
the context of having to think strategically. For instance, after placing yourself
in the role of a corporate director of quality for a multi-facility business, envision
addressing such questions as “What can the quality function do to help the com-
pany identify or implement initiatives that will enable it to break into new mar-
kets, or gain a greater share of the present markets served?”
• Thinkofyourselfashavingtointegratetheneedsofthequalityfunction
with the needs of the management team and all other business processes. In addi-
tion to managing the quality department, the quality manager’s role includes
facilitating deployment of quality approaches, principles, and practices in other
functional areas, such as supplier quality in purchasing and customer satisfaction
in marketing/sales.
Introduction xxvii
T
able I.1 Levels of organizational maturity. What is your organization’s level?
Level
1
Dysfunctional system
Economy of scale
focus with long runs
pr
eferred. Time-
consuming changeovers
ar
e the norm. The
customers’ voice is
rar
ely heard, and then
only at the top.
Rigid plant layout,
nonintegrated systems,
erratic workflow
pr
evalent. Buffer
stock everywher
e.
All jobs ar
e rush.
Fir
efighting is the norm.
Machinery runs at
maximum speed
without r
egard for its
life or performance
quality
. Workplace is
unor
ganized and
unclean.
Level 2
Awakening system
Quality steering
committee has
been formed; quality
systems are assessed;
quality initiatives are
planned. A customer
focus is a goal.
Applicable lean
management practices
have been identified.
Training is being
conducted.
A small project is under
way to implement and
test improved quality
management practices.
Level 3
Developing system
Tested practices are
deployed to all major
areas of the factory.
Customer involvement
is sought.
Flexible production
layouts and cells
are introduced.
Cleanliness and
neatness of individual
work areas is stressed.
Pull-type production
system under test in
one area. Employee
qualification system is
in place.
Level 4
Maturing system
Seeks out and learns
about best practices.
Adapts improved
practices for all areas.
Customers, suppliers,
and employees are
integrated into the
systems.
Production system
allows short runs,
greater product mix,
speedy introduction of
new products, and
shorter cycle times.
Operating information
is provided immediately
with computerized
displays. Errors are
prevented with
mistake-proofing
devices.
Level 5
World-class system
Retaining satisfied
customers is key. Plant
uses single-piece flow with
cellular techniques.
Improved throughput
achieved through
reduction of bottlenecks.
Plant layout is agile and
clean. Workers are self-
inspecting their work.
Lean manufacturing
tools and techniques are
liberally applied.
Preventive maintenance
ensures availability
and optimizes quality,
efficiency, and lifecycle
cost.
Continued
xxviii Introduction
Table I.1 Continued.
Level 1
Dysfunctional system
No teamwork. Fiefdoms
fiercely guarded from
encroachment by other
functions. No linkage
between any overall
strategy and production
scheduling.
Management by
command. Poor
workforce commitment
and involvement.
Communication is
one way (downward)
with few or no
feedback loops.
Adversarial supplier
relationships focus
on price.
Customers frequently
get poor quality and
delivery.
Level 2
Awakening system
Bottlenecks and non-
value-added functions
in process flow are
being examined. An
equipment maintenance
program is under
development.
A cross-functional
team is being initiated
to work on cycle time
reduction.
Weekly production
review meetings are
held, chaired by the
VP manufacturing.
A supplier qualification
approach is under
study.
Overall performance
remains below
industry norm.
Level 3
Developing system
Cross-functional teams
promote adherence
to standards and
ensure continuous
improvement.
Systems are imple-
mented to provide
data for performance
measurement,
improvement.
A supplier certification
program is in place.
Overall performance
is about equal to
industry norms.
Level 4
Maturing system
Teams, some self-
managed, aid
adherence to high
standards, the focus
on customers, and
continual improvement.
An effective strategic
planning process is
instituted.
Overall strategy is
linked to production
planning and process
improvement.
Plant benchmarked by
others in industry.
Performance is above
industry norm.
Level 5
World-class system
Management is
personally and visibly
involved in continual
improvement. Quality
of information and
decision making at all
levels is exemplary.
All employees are
highly motivated,
involved, and
empowered.
Supplier relations are
based on collaborative
communication and
partnerships.
Plant benchmarked by
others outside industry.
Performance is
world-class.
Introduction xxix
• Thinkinthecontextoftheplan–do–check–act (PDCA) model. Constructed
response questions are purposely designed to assess the ability of the test taker to
integrate and apply the BoK from a broader perspective. Therefore, using PDCA
to structure responses will often help ensure more complete answers to many of
the described situations.
Keep uppermost in your mind that your role as test taker in answering con-
structed response questions is not to solve the problem, but to define a process,
based on the principles of quality management, that would enable the issues pre-
sented to be effectively addressed. The planning step of the PDCA cycle often also
involves first assessing the current situation, as well as past efforts, before mov-
ing forward.
• DevelopanunderstandingofhowalltheelementsoftheBoKareinterre-
lated. A good way to practice the use of critical-thinking skills that will further aid
in answering constructed response questions is to select two or more elements or
sub-elements of the BoK and consider how they are related, such as the linkages
between leadership and strategy development/deployment, or how quality con-
trol methodologies can lead to customer satisfaction.
A link in one direction is that leadership of the organization is ultimately
responsible for both defining and carrying out the strategic management process.
Viewed from the reverse direction, when defining strategy, the characteristics and
processes of leadership that currently exist in the organization should be consid-
ered in light of how they will support or block implementation.
STRUCTURE OF THIS HANDBOOK
The handbook follows the body of knowledge scheme as set forth in Chapter 20.
Throughout each section of this handbook, the categorical BoK requirements asso-
ciated with good quality management practices for that section are shown in a
box preceding the pertinent text. These BoK requirements represent the range
of content and the cognitive level at which multiple-choice questions can be pre-
sented. Also, there is a separate BoK pertaining to constructed response questions
in Chapter 20.
There is some overlap of topics within the BoK. An attempt has been made
to cover a given topic in depth in one section and where necessary provide cross-
references to that one explanation.
Additional references to material for each chapter are presented in Appendix
A. When a topic is new to a test preparer, or knowledge has faded, the test pre-
parer is urged to seek more information from one or more of the resources listed.
There is no way this single handbook can provide the depth and breadth of knowl-
edge you should have on any given topic in the BoK. A few years back, one test
preparer referred to the BoK as “a mile wide and an inch deep.” The new 2013
BoK is updated where needed, and wider and deeper than before. On the sub-
ject of reference material, do not forget the wealth of information available via
the internet—most of it free! That includes a sample test and the extensive, wide
range of information on the ASQ website and available from the ASQ Knowledge
Center, www.asq.org or (800) 248-1946.
xxx Introduction
In order to provide a broad perspective of quality management, this book has
specifically been written to address:
• Historicalperspectivesrelatingtotheevolutionofparticularaspects
of quality management, including recognized experts and their
contributions
• Keyprinciples,concepts,andterminologyrelevantinproviding
quality leadership, and communicating quality needs and results
• Benefitsassociatedwiththeapplicationofkeyconceptsandquality
management principles
• Bestpracticesdescribingrecognizedapproachesforgoodquality
management
• Barrierstosuccess,includingcommonproblemsthatthequality
manager might experience when designing and implementing quality
management, and insights as to why some quality initiatives fail
• GuidanceforpreparationtotaketheCertifiedManagerofQuality/
Organizational Excellence examination.
Not every quality manager will equally possess expertise in each BoK section and
topic. The handbook’s primary purpose is to help readers properly focus their
study efforts in preparation for the examination. However, this handbook should
prove useful as a reference guide back on the job.
TERMINOLOGY
The ISO definition of product as “the result of a process” includes categories of
hardware, software, services, and processed materials. The word product is used
throughout the handbook, with and without the accompanying clarification that
it also applies to services. It is expected that the reader will have the flexibility
to interpret the words in the context in which they are used and to substitute
terms that are more apropos for their own industry or experiences to help them
clarify the material.
DISCLAIMER
The body of knowledge for the Certified Manager of Quality/Organizational
Excellence is largely based on conceptual ideas and models rather than on exact
mathematical formulas or tangible items that can be held up as correct. For some of
the areas of the BoK, there could be multiple correct views because of differences
in industry, organizational maturity, geographic location, competitors’ strategies,
and so on. Even the gurus of quality differ in their philosophies, priorities, and
approaches to quality. For example, multiple-choice questions often may appear to
have at least two right answers. It will be your task to choose the one answer that
best applies to the content and context of the question. (No one ever said that mak-
ing decisions as a manager/director is simple.)
Introduction xxxi
Furthermore, you should know that ASQ policy maintains a strict separation
between the people who prepare the examination, those who score the completed
examination papers, and those who present material (in whatever medium avail-
able) for people preparing to take the examination. As a result of this separation,
the content presented in this handbook may differ from the intent of the creators
of the BoK and/or the writers of the examination questions. Therefore, any ques-
tions you may have regarding BoK intent or details about answer scoring can not
be answered by the editor of this handbook nor by course instructors.
Success as a quality manager requires experience and a mature understanding of
the various principles, concepts, and practices, as well as the specific knowledge
obtained from this or any other reliable source. The best to you in your quest to
become a Certified Manager of Quality/Organizational Excellence. Good luck!
Russ Westcott, Editor
1
Part I
Part I
Leadership
Chapter 1 A. Organizational Structures
Chapter 2 B. Leadership Challenges
Chapter 3 C. Teams and Team Processes
Chapter 4 D. ASQ Code of Ethics
1. The only definition of a leader is someone who has followers.
2. An effective leader is not someone who is loved or admired. Popularity is
not leadership.
3. Leaders are highly visible. They . . . set examples.
4. Leadership is not rank, privileges, titles, or money. It is responsibility.
—Peter F. Drucker
Leadership is not so much the exercise of power itself as the empowerment
of others.
—Warren Bennis and Burt Nanus
If you want one year of prosperity, grow grain.
If you want ten years of prosperity, grow trees.
If you want one hundred years of prosperity, grow people.
—Chinese Proverb
2
Part I.A
I
t’s appropriate that a book on the management of quality begin with the subject
of leadership. Perhaps no other factor has a greater impact on an organization
than how well it is led on both a strategic and an operational basis. Addition-
ally, leadership is not solely the responsibility of those who reside at the higher
levels of the hierarchy, but is instead an activity in which anyone involved in the
success of an organization can take part.
Strategic leadership includes defining the structures to achieve the overall
vision and mission of an organization and its strategies and systems.
Define and describe organizational designs
(i.e., matrix, flat, and parallel) and the effect
that a hierarchical management structure can
have on an organization. (Apply)
Body of Knowledge I.A
ORGANIZATIONAL DESIGN
A major role of leadership is to ensure that an organization is designed to carry
out its mission, goals, and strategies. Understanding leadership requires a fun-
damental understanding of organizations and the design factors that must be
considered.
The design of an organization is the formal framework for communication
and authority, and is determined by three major factors:
• Complexity. The number of different entities (for example, job titles,
reporting levels, functional departments, and physical work locations)
that will exist in the organization.
• Formalization. How much the organization will rely on standard
guidelines and procedures to instruct and direct employee activities.
• Centralization.
1
Whether decision-making authority is located primarily
at upper management levels or is delegated to lower levels.
Chapter 1
A. Organizational Structures
Chapter 1: A. Organizational Structures 3
Part I.A
These three aspects can be combined to create many different organizational
designs. Purposes of organizational design are to:
• Dividethetotalworkrequiredintologicalfunctionalgroupings(for
example, departments, work units) and the jobs within the functions.
• Assignspecifictasksandresponsibilitiestoeachindividualjob.
• Allowbettercoordinationofdiverseorganizationaltasks.
• Establishrelationshipsamongindividuals,workunits,andfunctions.
• Establishformallinesofauthorityanddecisionmaking.
• Allocateanddeployorganizationalresources.
To create an appropriate design, a decision must be made as to how work activi-
ties will be organized both vertically and horizontally. The vertical structure typi-
cally categorizes positions as top managers, middle managers, first-line managers,
and operations personnel. Creating the vertical structure includes determining
these categories and defining the interaction between the levels by deciding who
reports to whom, and who has the authority to make what types of decisions.
VERTICAL ORGANIZATIONAL DESIGN
One concept used in creating the vertical structure is unity of command, or the idea
that a subordinate should be directly responsible to only one superior.
2
Although
structures such as a matrix organization do not follow this rule, the basic intent
of vertical design is to avoid conflicts, misunderstandings, or misuse of resources.
Organizational designers also must determine the types and amount of authority
and responsibility that organizational members will have. Authority refers to the
rights inherent in a managerial position to expect orders to be followed, and are
related to the position, not the person. Traditionally, authority is delegated down-
ward to subordinate managers, giving them certain rights while specifying limits
within which to operate.
There are also different forms of authority: line and staff. Line authority is the
superior–subordinate relationship extending from the top of the organization to
its lowest levels (along a chain of command). A manager with line authority has
the right to direct the work of subordinates and to make certain decisions without
consulting others. As organizations become larger and more complex, however,
line managers may lack the time, expertise, or resources to do their jobs effec-
tively. In response, staff functions are established, such as human resources (see
Chapter 8, Section 4) that have the authority to support and advise.
Organizations now recognize that one does not have to be a manager to have
influence, nor is influence always correlated to organizational level. Authority is
an important concept in organizations, but focusing exclusively on authority pro-
duces a narrow, unrealistic view of sources of influence in organizations. Today,
authority is recognized as one aspect of the larger concept of power.
3
For example,
some individuals in an organization may have considerable informal authority
due to their knowledge or personality.
4 Part I: Leadership
Part I.A
Span of control is another design factor and refers to how many subordinates a
manager can effectively and efficiently supervise. Although no consensus exists
on an ideal number, many managers favor small spans—typically no more than
six—in order to maintain close control.
4
The level at which this decision is tar-
geted affects this number. As managers rise in the organizational hierarchy, they
deal with a greater variety of complex and diverse problems. Typically, top execu-
tives have a smaller span of control than do middle managers, and middle man-
agers require a smaller span than do supervisors. Therefore, to a large degree the
span of control determines the number of levels and managers in an organization.
Other things being equal, the wider or larger the span of control, the more efficient
the organizational design.
Today, many organizations have reduced the number of managerial positions
through restructuring while increasing the spans of control. The optimum span of
control is increasingly determined by issues such as:
• Amountofemployees’trainingandexperience
• Similarityofsubordinatetasks
• Complexityofthetasks
• Physicalproximityofsubordinates
• Degreetowhichstandardizedproceduresareinplace
• Sophisticationoftheorganization’smanagementinformationand
internal communication systems
• Strengthoftheorganization’sculture
• Preferredstyleofthemanager
5
• Employeeturnover
• Availableresources
• Financialandcompetitivepressures
• Organizationalbeliefsandvalues
HORIZONTAL ORGANIZATIONAL DESIGN
In addition to a vertical dimension, an organization’s design also has a horizontal
dimension that determines how work activities are organized at each level of the
organization. This involves answering questions such as “How will work activi-
ties be allocated?” or “What form of departmentalization will work best?”
Division of labor means that rather than an entire job being performed by one
individual, it is broken down into a number of steps, with separate individuals
completing each step. In essence, individuals specialize in doing part of an activ-
ity rather than the entire activity. Assembly-line production, in which each worker
repeatedly does a standardized task, is an example of division of labor. Fast-food
companies use the concept of division of labor to standardize the process of taking
a customer ’s order and filling it quickly and properly. Because some tasks require
Chapter 1: A. Organizational Structures 5
Part I.A
highly developed skills, while unskilled workers can perform others, division of
labor makes efficient use of the diverse skills and capabilities of employees. If all
workers in an organization were engaged in each step of the production process,
every worker would need the skills to perform both the most demanding and the
least demanding jobs. The result would be that except when performing the most
highly skilled or highly sophisticated tasks, employees would be working below
their skill levels. Because skilled workers are paid more than unskilled workers
and their wages tend to reflect their highest level of skills, paying highly skilled
workers to do easy tasks would be an inefficient use of resources.
Historically, management has viewed the division of labor as an unending
source of increased productivity. Eventually, certain drawbacks of division of
labor exceed the economic advantages, including problems such as boredom, job
stress, low productivity, poor quality, increased absenteeism, and high turnover.
Organizations have discovered that by giving employees a variety of activities to
do, allowing them to do a whole and complete piece of work, and putting them
together into teams, jobs are more interesting, and higher quality often results.
CENTRALIZATION/DECENTRALIZATION
Centralization/decentralization refers to how much decision-making authority
has been delegated to lower management levels. Few organizations could function
effectively if all decisions were made by a select group of top managers, nor could
they do so if all decisions were delegated to the lowest levels of the organization.
Fayol lists centralization as one of his 14 principles of management and notes that
the proper amount of centralization or decentralization depends on the situation.
6
Organizations have traditionally been structured as pyramids, with author-
ity and power concentrated at the top and with relatively centralized decision
making. As organizational environments became more complex and dynamic,
many organizations began to decentralize decision making. Many executives now
believe that decisions should be made by those people with the best information
to make the decisions, regardless of their level in the organization.
More decentralization might be needed under one or more of the following
conditions:
• Theenvironmentiscomplexoruncertain.
• Lower-levelmanagersarecapableandexperiencedatmaking
decisions.
• Lower-levelmanagerswantavoiceindecisions.
• Decisionsarerelativelyminor.
• Corporatecultureismoreopentoallowingmanagerstohaveasayin
what happens.
• Theorganizationisgeographicallydispersed.
• Effectiveimplementationoftheorganization’sstrategiesdependson
managers having more involvement and flexibility to make decisions.
6 Part I: Leadership
Part I.A
Organizational designers should select the amount of centralization/
decentralization that best allows management to implement goals and strategies.
What works in one situation might not be best for another.
TYPES OF ORGANIZATIONAL STRUCTURES
In resolving issues such as distribution of authority, reporting relationships, span
of control, and centralization/decentralization, the structure of the organization
will result. It is worth noting that the current tendency is to move to flatter orga-
nizations having fewer hierarchical levels and more flexible reporting arrange-
ments. Although a flatter organizational structure implies a wider span of control,
information technologies have greatly simplified the processes of communication
and decision making, allowing authority to be more widely dispersed.
Organizations are becoming managed more as horizontal processes (for
example, as a part of the supply chain or value chain), rather than vertical hierar-
chies. A matrix structure is one way of formalizing a structure that provides both
effective horizontal, operational decision making as well as allowing develop-
ment of functional specialties. Another structure often used when an organiza-
tion desires to implement a significant change is to create a temporary parallel or
collateral organ ization, which consists of a group of employees (often a diagonal
slice of the organiza tion) who meet on a regular basis in order to guide the change
process. Once the organization has made the transition, the parallel structure is
dissolved.
Earlier, some of the aspects that affect organizational design—such as divi-
sion of labor, distribution of authority, span of control, and employee knowledge
and experience—were discussed. Many different structures can result from these
decisions, and which one an organization selects is also impacted by larger fac-
tors, both internal and external.
Each organization has its own way of grouping work activities (departmental-
ization). Groupings may be according to the:
• Workfunctionsperformed
• Productorserviceprovided
• Customersserved
• Geographicareaorterritorycovered
• Product–customerprocessflow
The method(s) used should reflect the grouping that would best contribute to the
attainment of the organization’s strategic goals and objectives as well as the objec-
tives of individual units. Following is a discussion of each of these structures, plus
additional forms in which boundaries are more fluid.
• Functional. One of the most common ways to group activities is by the func-
tion performed. A manufacturing plant might be organized by separating engi-
neering, accounting, manufacturing, human resources, and purchasing specialists
into departments as shown in Figure 1.1. Functional departmentalization can be
used in all types of organizations, with the name of the functions changed based
Chapter 1: A. Organizational Structures 7
Part I.A
on the types of skills required to achieve organizational objectives. For example,
a university hospital might have departments devoted to health research, patient
care, facilities management, and finance.
• Product. Figure 1.2 illustrates the product departmentalization structure.
Each major product group is placed under the authority of an executive who
specializes in and is responsible for all aspects of that product line. A clothing
retailer also uses product departmentalization, basing its structure on its varied
product lines, such as women’s and men’s footwear and apparel and accessories.
This type of structure allows portions of the organization to focus on particular
categories of product, allowing greater expertise to be gained of the market and
product technology.
• Customer. The particular type of customer an organization seeks to serve
can also be used to define structure. The sales activities shown in Figure 1.3 for
an office supply firm can be broken down into three departments: those serving
retail, wholesale, and government customers. Textbook publishers often organize
by customer, such as those serving primary schools, high schools, and college or
university levels. The assumption underlying customer-stratified organizations is
that customers in each grouping have a common set of problems and needs that
will best be met by specialists who can focus on their needs.
Plant
manager
Manager
human resources
Manager
accounting
Manager
manufacturing
Manager
purchasing
Manager
engineering
Figure
1.1
Functional departmentalization.
Bombardier, Inc.
Bombardier-Rotax
(Vienna)
Bombardier-Rotax
(Gunskirchen)
Mass transit
sector
Mass transit
division
Recreational and utility
vehicles sector
Rail products
sector
Rail and diesel products
division
Recreational products
division
Logistic equipment
division
Industrial equipment
division
Figure 1.2 Product departmentalization.
8 Part I: Leadership
Part I.A
• Geographic. Another way to organize is by geography or territory. An orga-
nization’s sales function might have western, southern, midwestern, and eastern
regions, as shown in Figure 1.4. A large school district might have six high schools
to serve each of the geographical areas within its district. Geographic organiza-
tion is valuable when an organization’s customers are scattered over a large area,
allowing the specific needs of the location to be addressed, as well as reducing
business costs such as logistics.
• Process. A flow form of departmentalization is shown in Figure 1.5, which
illustrates the various production departments in an aluminum extrusion pro-
cessing plant. Each department specializes in one specific phase (or subprocess)
in the production of aluminum tubing. The metal is cast in huge furnaces and
sent to the press department, where it is extruded into aluminum pipe. It is then
Director
of sales
Manager
retail accounts
Manager
wholesale accounts
Manager
government accounts
Figure
1.3
Customer departmentalization.
Vice president
for sales
Sales director
southern region
Sales director
western region
Sales director
eastern region
Sales director
midwestern region
Figure 1.4 Geographic departmentalization.
Plant
superintendent
Tube
department
manager
Finishing
department
manager
Inspection and
shipping department
manager
Press
department
manager
Casting
department
manager
Figure 1.5 Process departmentalization.
Chapter 1: A. Organizational Structures 9
Part I.A
transferred to the tube mill, where it is stretched into various sizes and shapes of
tubing. It then moves to finishing, where it is cut and cleaned, and finally arrives
in the inspect, pack, and ship department.
• Team. The competitive drive for improvement has made organizing by
teams more common. This structure often overlays or replaces the rigid bound-
aries of departmentalization, bringing together individuals with needed compe-
tencies for a particular mission. In a team-based structure, the entire organization
consists of work groups or teams that perform the organization’s work. Employee
empowerment is crucial because no rigid line of managerial authority flows from
top to bottom. Team members are free to design work processes in the way they
think best, and are held responsible for all work activity and performance results
in their areas. For example, an insurance company reorganized its customer rep-
resentatives into eight-person teams trained to expedite all customer requests.
Rather than switching customers from one specialist to another, a team now takes
care of every aspect of a customer request.
• Matrix. A matrix structure assigns specialists from different functional
departments to work on one or more projects led by a project manager. This
arrangement was developed in the 1960s by the U.S. aerospace industry to cope
with the demands of managing a number of concurrent projects. Figure 1.6 shows
a sample matrix organizational structure. In a typical matrix organization, spe-
cialists report to a line or project manager to integrate their expertise with those of
other specialists. They also report to a functional manager responsible for depart-
mental human resource issues such as hiring, skill enhancement, assignments to
line or project units, and performance reviews.
• Cells. Parts of an organization may be structured in work cells. A cell is a
self-contained unit dedicated to performing all the operations to complete a prod-
uct or process or major portion of a product (see Figure 14.12).
• Boundaryless. A different view of organizational structure is called the
boundaryless organization (also referred to as a network organization, modular cor-
poration, or virtual corporation). It is not defined by, or limited to, the boundaries
imposed by a predefined structure. The boundaryless organization breaks down
the artificial boundaries created by a design such as departmentalization and
hierarchies, and the external boundaries separating the organization from its sup-
pliers, customers, and other stakeholders (see virtual teams in Chapter 3).
Many factors have contributed to the rise of the boundaryless organization.
One is the need to respond to rapidly changing, highly competitive global mar-
kets. Another factor is new technology that permits organizations to work more
effectively. For example, a world leader in credit card authorization systems has
no corporate headquarters, secretaries, or paper mail. The chief executive officer
calls his organizational structure the “blueberry pancake model, very flat, with all
blueberries equal.”
7
Employees have a vast amount of information at their finger-
tips through the company’s e-mail network.
The authors of The Boundaryless Organization: Breaking the Chains of Organiza-
tional Structure discuss the means for structuring a boundaryless organization
attuned to the needs for integrating resources to serve the customer, strengthening
the value chain, and crossing geographic boundaries.
8
Authors of The Virtual
10 Part I: Leadership
Part I.A
Corporation focus on the powers of information, new technologies, and a new kind
of worker.
9
Beyond the ways an organization groups its work activities, there are other factors
to consider. They are:
• Strategy. Since organizational structure will impact the ability to achieve
strategic objectives, structure should be based on the organization’s strategy (see
Chapter 5). This means that if the strategy significantly changes, structure will
likely need to be modified to support the change. A low-cost provider strategy
may utilize a functional structure sharing the same support resources with many
facilities (for example, centralized purchasing, human resources, and engineer-
ing), while a strategy to develop close, long-term customer relationships would
call for a more decentralized structure (for example, sales offices for each major
customer or geographic location).
• Size. The size of the organization affects structure due to the fact that a
larger organization will tend to have more specialized and diverse activities to
President
Global Widgets, Inc.
Vice president
administration
Vice president
functional units
A partially matrixed organization
Marketing
Design engineers
Media specialists
Computer
programmers
Packaging
engineers
Human resources
Finance
Research and
development
Stockholder
relations
Vice president
Product A
Vice president
Product B
Vice president
Product C
Vice president
Product D
Vice president
Product E
•••
••
•
•••
••••
Figure 1.6 Matrix organization example.
Chapter 1: A. Organizational Structures 11
Part I.A
be managed. This increased differentiation can easily lead to narrowly focused
or transactional management, although this may be mediated by where the com-
pany’s product is in its life cycle. For example, a company that has grown large
as a result of gaining a significant market share in a new product line may find
a need for transformational management as the product enters the mature, low-
growth stage.
• Technology. Another factor affecting structure is the range of technologies
used by the organization. Every organization uses various forms of technology to
convert inputs into outputs, and the type of technology will impact organizational
structure. For example, a chemical firm using continuous-flow processes will be
organized differently than a hospital or a law firm. The management styles are
also likely to differ, since professionals in a hospital or law firm are knowledge
workers who would expect a freer reign than employees whose job is to load and
unload railcars of raw material and finished goods.
• Core competencies. Organizations can be structured to focus on the core com-
petencies that differentiate the organization from its competitors. Core competen-
cies may consist of unique capabilities of its workforce, specialized technologies,
the knowledge and experience of its management, track record for innovation,
world-class service policies and practices, a unique niche the organization’s prod-
ucts and services fulfill, and so on.
• Regulatory, legal, and other requirements. Constraints and mandates due to
regulations, laws, and standards may influence organizational structure. For
example, ISO 9001 registrar organizations must clearly separate their registration
auditing organization and services from their consulting services organization.
Certain customers may specify that the products they purchase be produced in
facilities and by workers separate from products their supplier produces for other
customers to protect proprietary designs and processes. Because of potential con-
tamination, laws may prohibit the commingling of production of certain products,
for example, food products and chemicals. The types and levels of security man-
dated for certain industries, for example, products and services for the U.S. mili-
tary, will influence organizational structure. Regulations governing occupational
health and safety affect organizational structure, and laws governing allowable
emissions are critical to certain industries.
• Union. Employees represented by a union are a kind of parallel organiza-
tion within an organization. In an ideal situation, the union leader participates
with top management of the organization in strategy development as well as deci-
sions affecting the ongoing business of the organization. In the more traditional
situation, and, sadly, still the more prevalent situation, the union and organization
management may coexist in an adversarial relationship.
Union leadership may influence organization structure and reporting rela-
tionships, job design, work standards and practices, compensation and benefits,
purchasing decisions, supplier selection, employee disciplinary actions, facility
expansion or closure, process improvement initiatives, and so on. Disagreement
over the terms of the labor–management contract can result in a production slow-
down or strike.
12 Part I: Leadership
Part I.A
• Competition. The competitive environment in which the organization oper-
ates will also affect organizational structure, as a higher pace of change requires
a more flexible organizational design that can quickly adapt to new market
opportunities. In this environment a team structure and participative style (see
Chapter 8) are more likely to succeed than a functional structure with autocratic
management.
• Workforce issues. Availability of sufficient workers and/or of skilled workers
is a factor affecting organizational design. All of the considerations necessary to
attract and retain the workforce are factors, for example, availability of housing,
transportation, schools, religious entities, shopping, entertainment, and adequate
community infrastructure.
• Facilities. The present and future availability of land, buildings, utilities, rail
service, roadways, airport, and so on, are important considerations.
• Other environmental factors. The prevailing weather patterns, the political cli-
mate, and the presence or absence of crime all are factors.
• Combinations. Most large organizations will utilize a combination of
methods of organization and management. At the local facility level they might
be organized in teams or in functional or process groups, and at the division
level organized by product. At higher levels there may be a geographic structure
that allows focusing on a particular part of the world (for example, United States,
Europe, and Asia).
MANAGEMENT HIERARCHY AND INFLUENCE ON
THE ORGANIZATION
To ensure that an organization achieves its desired outcomes, someone must plan,
allocate resources, and monitor results. These are major activities for which man-
agement personnel have responsibility. Top management (also called senior
management or executive management) is responsible for providing direction in
defining the vision, mission, strategies, goals, structures, policies, systems, and
objectives. These managers are also responsible for managing the boundaries
between the organization and its major stakeholders, such as investors, business
partners, and the communities in which the organization is located.
Middle managers are responsible for carrying out the policies and proce-
dures necessary for achieving the mission, goals, and strategic objectives. Their
emphasis is more operationally than strategically oriented, playing a key role in
day-to-day communication and decision making. Middle management’s role also
parallels that of top management in the sense of being responsible for leadership
of a particular part of the organization.
First-level supervision (line management) is responsible for overseeing the
workforce assigned to produce the products and/or services for which the orga-
nization is designed. Supervisors, while usually considered to be part of manage-
ment, have the difficult role of thinking and behaving like a manager and at the
same time dealing empathetically with the concerns and problems of the workers.
In this role, supervisors must communicate downward the vision, mission, prin-
ciples, and strategic objectives of the organization, take the actions necessary for
Chapter 1: A. Organizational Structures 13
Part I.A
their work unit to respond appropriately to those objectives, monitor and main-
tain the processes and people under their supervision, and be accountable for the
quality and quantity of product and service required. How effectively supervision
establishes a motivational environment has a direct effect on the stability of the
workforce and the outcomes achieved by the organization.
In some structures, a quasi-supervisory role exists: the lead operator. Not
an official member of management, the lead operator is often charged with the
responsibility for some scheduling, instructing, and inter–work unit liaison activi-
ties in addition to performing production work.
The role of supervisor, and to some extent the middle manager, may not be
needed in some types of organizational structures, for example, where teams
are the predominant structural element in a virtual organization, or when infor-
mation technology has adequately bridged the gap between the workers and
management.
Organization culture has an overarching influence on organization structure
(see Chapter 8, Section 2 for discussion of culture).
ENDNOTES
1. S. P. Robbins and M. Coulter, Management, 5th ed. (Upper Saddle River, NJ:
Prentice- Hall, 1996).
2. H. Fayol, Industrial and General Administration (Paris: Dunned, 1916).
3. D. Kipnis, The Power Holders (Chicago: University of Chicago Press, 1976).
4. L. Urwick, The Elements of Administration (New York: Harper & Row, 1944), 52–53.
5. D. Van Fleet, “Span of Management Research and Issues,” Academy of Management
Journal 26, no. 9 (1983): 546 –52.
6. Fayol, General Administration, 19–42.
7. T. Peters, “Successful Electronic Changeovers Depend on Daring,” Springfield
Business Journal (August 8, 1994): 15.
8. R. Ashkenas, D. Ulrich, T. Jick, and S. Kerr, The Boundaryless Organization: Breaking
the Chains of Organizational Structure (San Francisco: Jossey-Bass, 1995).
9. W. H. Davidow and M. S. Malone, The Virtual Corporation (New York: Edward
Burlingame/Harper Business, 1992).
See Appendix A for additional references for this chapter.
14
Part I.B
Chapter 2
B. Leadership Challenges
I believe leadership lies more in character than in technical competence,
but these two are interwoven. As people grow in competence, they gain
awareness of a new dimension of their character. Then, as they begin
to develop that aspect of their character, they find that their competence
also increases.
1
—Stephen R. Covey
W
hen is a manager not a leader? When is a leader not a manager? The
answer to these questions begs for a precise definition of leader and man-
ager. Yet, try as we often do to differentiate between the two roles, ambi-
guity creeps in to blur the line of demarcation. The fuzziness is exacerbated by
common usage (or “misuse,” depending on your point of view). One observation
is that the title “leader” is rarely found on organizations’ lists of position titles,
although occasionally “team leader” may appear. Does this mean that a leader is
some ethereal entity that doesn’t truly exist in the real world? Not so.
A leader is an individual recognized by others as the person to lead an effort.
One can not be a leader without one or more followers. A leader might or might
not hold an officially designated management-type position or officially have
people reporting to her or him. A leader leads people. An organization can also
be referred to as a leader, in the sense that it is on the leading edge (in technology,
innovation, products, services, market share) compared with its contemporaries.
A manager is an individual who manages and is responsible for resources
(people, material, money, time). This is a person officially designated with a
management-type position title. A manager is granted authority from above,
whereas a leader’s role is earned by having followers. Managers manage organi-
zations, processes, systems, projects, and themselves.
According to Deming, “The job of management is not supervision, but
leadership.”
2
The roles of leader and manager can be fulfilled by the same indi-
vidual. It’s really what the individual does, how he or she does it, and from where
the individual derives the power to act that relate to which term is most applicable
in a given situation.
Leadership focuses on doing the right things; management focuses on doing
things right.
3
—Stephen R. Covey
Part I.B.1
Chapter 2: B. Leadership Challenges 15
This chapter discusses techniques and tools available to leaders/managers that
include those used to overcome organizational roadblocks (change manage-
ment). Also discussed are techniques and tools used in applying, evaluating, and
creatively using interpersonal skills (motivating, influencing, negotiating, resolv-
ing conflict, and empowering). These are leadership challenges.
Strategic leadership involves creating both technical and social systems
that are effectively integrated and that address the needs of both customers and
employees. Operational leadership requires ensuring that organizational pro-
cesses are effectively carried out on a day-to-day basis, monitoring performance,
and addressing constraints. It involves ensuring that employees understand what
is to be done and that they are provided with the appropriate authority, responsi-
bility, requisite skills, tools, and work environment with which to do it.
The levels of employee motivation and empowerment and how conflict is
resolved shape as well as serve to measure the organizational culture. Leader-
ship must effectively attend to these softer issues that also affect organizational
performance.
1. ROLES AND RESPONSIBILITIES OF LEADERS
Describe typical roles, responsibilities, and
competencies of people in leadership
positions and how those attributes influence
an organization’s direction and purpose.
(Analyze)
Body of Knowledge I.B.1
Debate continues as to whether leaders are born or made. A consensus, but with
no conclusive evidence, indicates both are possible.
Much effort and countless pages of print have been expended in attempting
to develop a universal profile for a leader. It appears to be an endless and (per-
haps) pointless task, each effort adding but another viewpoint on what constitutes
a leader. It has already been stated that the line between the roles of a leader and
those of a manager tend to be blurry and often overlap. Let’s explore some of the
attributes that tend to identify an individual as a leader, under several different
situations:
• Organization leader. Most often holding a position with managerial
or supervisory responsibilities, this individual exhibits leadership
qualities that enable her or him to accomplish more than the position
calls for. This individual may be perceived as a leader by his or her
subordinates, peers, and bosses for exhibiting one or more of these
attributes:
– Knowledge
16 Part I: Leadership
Part I.B.1
– Skills
– Experience
– Charisma
– Action
– Convincing speech
– Empathy
– Ethics
– Empowerment
– Collaboration
– Support
– Trust
– Multidimensional personality
• Cause leader. May work either behind the scenes or be highly visible to
followers. Through personal motivation and power of persuasion,
this leader gathers followers to a common goal, sometimes inciting
the followers to take physical action against a targeted group. This
type of leader has the ability to communicate in the language of
the followers to stimulate their emotions, the stamina to build and
sustain a high level of personal energy, and the ability to be seen as
a fellow group member with issues the same as or similar to those
of the group. This person is usually from the worker ranks of an
organization or, sometimes, a ”hired gun” who looks and talks like
the followers.
• Transactional leadership. A transactional style is one in which the
manager views the relationship as one of getting the work done
through clear definition of tasks and responsibilities, and providing
whatever resources are needed. This view might be likened to a
contractual relationship, with rewards (positive or negative) being
associated with achieving the desired goal.
• Transformational leadership. Transformational leadership is a style
whereby a leader articulates the vision and values that are necessary
in order for the organization to succeed. It is sometimes equated to
charismatic leadership, but is aimed more at elevating the goals of
subordinates and enhancing their self-confidence to achieve those
goals. Bob Galvin accomplished this transformational leadership
at Motorola with the Six Sigma program, an approach that positioned
Motorola to become a high-quality, reliable competitor in its market.
• Other kinds of leaders. Bass identifies several additional leadership
types, namely:
4
– Educational leaders
Part I.B.1
Chapter 2: B. Leadership Challenges 17
– Public leaders
– Opinion leaders
– Legislative leaders
To be a leader, one has to believe in oneself, but with reasonable doubt and humil-
ity. One has to have a zeal for the role and genuinely care for people (the latter
does not apply to ruthless dictators who lead through fear). “Leaders of the future
can no longer afford to maintain insularity. It is simply not an option in increas-
ingly boundaryless organizations driven by customer power . . . now they must
destroy those walls and replace them with bridges.”
5
Key roles of a leader include
being a:
• Facilitator
• Appraiser
• Forecaster
• Adviser
6
• Enabler
7
• Follower
8
Requirements for good leadership are similar, regardless of the functional depart-
ment a manager oversees. Some specific requirements for quality managers in
leadership roles include the following:
• Personalcommitmenttoprocess,product,andorganizational
quality
• Strongsenseofvalueforothers’workandleadership
• Skilledapplicationofabroadbaseofknowledgeofthequality
field and an understanding of how to apply this knowledge in
functional areas
• Wisdomaboutbothpeopleandthings,andanunderstandingofhow
to integrate them to get work accomplished (see Section 3)
• Absence(orcontrol)oftemperamentaloremotionalcharacteristics
that might interfere with the ability to work with others
Some critical personal attributes that leaders in the quality management area
should exhibit include creativity, patience, flexibility, and self-discipline. Good
listening skills, excellent coaching and training skills, sensitivity to customer
and employee issues, and a personal commitment to excellence are all essen-
tial. Finally, a leader must be a mentor, capable of leading change, and willing to
empower followers.
Kouzes and Posner describe a three-phase model of leadership strategy called
VIP—vision–involvement–persistence.
9
The leader has visions of an exciting, highly
favorable future for the organization. The leader involves many others in the orga-
nization in making the vision a reality. This takes hard work and the persistence
to stay the course.
18 Part I: Leadership
Part I.B.1
Just as organizational structures, processes, and priorities have changed in
recent decades, so too have the defined roles and characteristics of an effective
leader. Some writers have defined the difference between management and lead-
ership as being the amount of control exercised over people. Kouzes and Posner
define leadership as a shared responsibility, and state the difference as “ managers
. . . get other people to do, but leaders get other people to want to do.”
10
Warren
Bennis defines the differences between the two as doing the right thing (leader-
ship = effectiveness) versus doing things right (management = efficiency). Others
have recognized that the type of leader needed often depends on the particular
situation, such as the organization, its mission, strategies, and competitive envi-
ronment, and the makeup of the individuals being led.
11
Some issues that make leadership difficult to define include:
• Leadershipofanorganizationmaybeanappointedrole(forexample,
president or department manager).
• Leadershipmaybetakenonatvarioustimesbydifferentpeople
who are working together on a particular project. That is, the role of
leadership is based on who has the competence necessary during a
particular phase of a project.
• Increasingly,inaknowledge-basedenvironmentthepersonbeing
led has more knowledge of the tasks to be accomplished than the
individual who is regarded as the leader.
• Theincreaseinvirtualteams,inwhichagroupofindividualsis
jointly responsible for a particular outcome, but where team members
do not have face-to-face contact (for example, where technologies are
used to communicate).
12
• Scheindescribedparadoxesofleadershipwhenstatingthatleaders
of the future will be persons “who can lead and follow, be central and
marginal, be hierarchically above and below, be individualistic and a
team player, and, above all, be a perpetual learner.”
13
• Demingdescribedtheprimaryresponsibilityofleadersas
“transformation of the organization.”
14
• Anotherleadershiproleistoensurethattheorganizationworks
effectively with respect to the interactions between individuals,
groups, and business units both within and outside the
organization, and that behaviors meet accepted standards for
business ethics.
The traits and actions of leaders will, or should, vary based on the contingencies
they face. Hersey and Blanchard’s situational leadership model focuses on three
factors:
1. Task behavior
• Thelevelofwork-relateddetailandguidancealeadermust
provide to a performer
Part I.B.1
Chapter 2: B. Leadership Challenges 19
• Theextenttowhichdirectactionmustbetakenwiththe
performer
2. Relationship behavior
• Theextentofthecommunicationrequiredwiththeperformer
• Theamountofinterpersonalsupportgivenaperformer
3. Employee maturity or readiness
• Theabilityaperformerhastoassumeatask
• Thewillingnessoftheperformertoassumethetask
Considering the maturity factor, the task and relationship behaviors comprise
four situational leadership styles:
1. High task, low relationship. Specific instructions and close supervision
of performance are indicated (a telling mode). For example, a new
or transferred employee is assigned a task for which he has no prior
training and needs continual supervision until skill is developed.
2. High task, high relationship. Decisions are explained and there is
opportunity to clarify and ask questions (a selling mode). For example,
a newly trained operator is trying to apply the training to the task at
hand, but doesn’t understand the need to follow the prescribed
sequence of steps and requires supervisory support.
3. High relationship, low task. Ideas are shared, encouragement is provided,
and the leader acts as a coach (a participating mode). For example, a
trained operator is hesitant to assume full responsibility for the entire
task assigned and needs help to build confidence.
4. Low relationship, low task. Responsibility for decisions and implementation
are turned over to the employee (a delegating mode). For example,
an experienced operator knows what to do and how to do it, as well
as how to troubleshoot a problem should one occur, and assumes full
responsibility for the task assigned without requiring direct supervision.
The keys to effective situational leadership are:
• Beingabletodetermine,situationtosituation,theleadershipstyle
most appropriate to apply in working with performers
• Realizingthatonestyledoesnotfitallsituations
• Realizingthatthestyleusedlastwithaperformermaynotbethebest
next time
• Realizingthatthereareotherfactorsthatcaninfluenceperformance,
such as:
– The performer’s physical and/or mental health
– Events in the performer’s personal life
20 Part I: Leadership
Part I.B.1
– Influence of coworkers
– Lack of material, tools, equipment, and so on
– Inadequate working conditions
Another aspect to leadership is the emotional competence of the incumbent leader.
Daniel Goleman identifies five dimensions, three personal and two social, and
related competencies:
15
1. Self-awareness
• Emotionalawareness
• Accurateself-assessment
• Self-confidence
2. Self-regulation
• Self-control
• Trustworthiness
•Conscientiousness
• Adaptability
• Innovation
3. Motivation
• Achievementdrive
•Commitment
•Initiative
• Optimism
4. Empathy
• Understandingothers
• Developingothers
• Serviceorientation
• Leveragingdiversity
• Politicalawareness
5. Social skills
• Influence
• Communication
• Conflictmanagement
• Leadership
• Changecatalyst
Part I.B.2
Chapter 2: B. Leadership Challenges 21
• Buildingbonds
• Collaborationandcooperation
• Teamcapabilities
Good leaders challenge the status quo. They inspire and enlist others. They
encourage collaboration and enable others to take action. Effective leaders
share their power and information to strengthen others. They look for and rec-
ognize people who are doing things right. Respected leaders set an example,
recognize others’ contributions, and celebrate successes. Exemplary leaders con-
tinually strive to improve both their intellectual intelligence (cognitive capacity)
and their emotional intelligence. Leadership is a daily balancing act: juggling
responsibilities and withstanding pressures.
2. ROLES AND RESPONSIBILITIES OF MANAGERS
The inherent preferences of organizations are clarity, certainty, and
perfection. The inherent nature of human relationships involves ambiguity,
uncertainty, and imperfection. How one honors, balances, and integrates the
need of both is the real trick of management.
16
—Richard Pascale and Anthony Athos
Describe typical roles, responsibilities, and
competencies of people in management
positions and how those attributes contribute
to an organization’s success. (Analyze)
Body of Knowledge I.B.2
What Managers Do
Managers attend to the work and resources of the organization—a stewardship
role. This may include obtaining, allocating, distributing, using, disposing, and
accounting for the resources that fall within the purview of the position to which
they are assigned. Primary categories of resources include:
• Money
• Time
• People
• Material
• Physicalassets:equipment,facilities,land,andwater
•Information
• Intellectualproperty
22 Part I: Leadership
Part I.B.2
Managers may be assigned a variety of different position titles, some of which are:
• Chiefexecutiveofficer,chiefoperatingofficer,chieffinanceofficer,
chief information officer
• Vicepresidentof____________________
• Directorof____________________
• Generalmanagerof____________________
• Managerof____________________
• Superintendentof____________________
• Supervisorof____________________
• Staffsupervisorof____________________
• Designerof____________________
• ____________________engineer
• Purchasingagent/buyerfor____________________
Labor laws differentiate between exempt employees (employees free from cer-
tain laws pertaining to hours and compensation) and nonexempt (employees
covered by laws relating to hours worked and compensation). Generally, manage-
ment employees are exempt (however, the nature of one’s work and compensation
received are key determinants of exempt versus nonexempt status; for example,
some management employees receive overtime pay as nonexempt employees do).
As stated earlier, there is often overlap between the roles and responsibilities
of a leader and a manager. A significant difference is that the manager’s role is
mandated by some higher authority and is in effect as long as the higher author-
ity so states. The role of leader is less permanent and, in fact, may either be shared
through rotation or acquired through acceptance by followers. Being recognized
as a leader often has no relationship to an organizational position title. Thus, a
manager may or may not be recognized as a leader. A worker may be recognized
as a leader without having any managerial-type title or responsibility. Organi-
zations often interchange the two terms, for example, calling someone a project
leader when the intention is really project manager. A chairperson may be a leader
and/or a manager, depending much on the influence he or she may have on an
organization and the decision authority granted.
Managers’ roles may include:
• Strategist. Establishes direction for the enterprise through strategic
planning and deployment of the plan’s goals and objectives
• Architect. Builds an enterprise structure that supports the strategic
goals and objectives
• Organizer. Organizes, people, ideas, and things to achieve the
enterprise’s objectives
Part I.B.2
Chapter 2: B. Leadership Challenges 23
• Business generator. Grows and sustains a viable business by creating
and retaining satisfied customers
• Value creator. Adds value to the enterprise’s processes, products,
and services
• Innovator. Continually seeks ways to introduce, improve, or replace
processes, products, and services to further the strategic goals of
the enterprise
• Administrator. Optimizes the use of and results obtained from
resources available
• Entrepreneur. Redeploys resources from activities producing poor
results to activities where improved results may be obtained
• Supporter. Provides visible support, personal involvement, and
reinforcement in furthering the efforts of the workers in fulfilling
the enterprise’s objectives
• Ethicist. Embraces the principles, standards, morals, and norms of the
society in which the enterprise operates
• Environmentalist. Operates the business with high regard for sustaining
and improving the physical environment in which the enterprise
exists, with responsible use of land, air, and water, and safeguarding
of wildlife
• Mentor. Provides a personal role model and guidance for the
development of future managers
• Motivator. Creates and sustains a work environment that stimulates
motivation in others
• Coach. Sets an example and guides others in achieving excellence
• Trainer. Imparts knowledge and teaches skills to others
• Communicator. Keeps others informed
• Integrator. Brings previously disassociated people and processes
together
• Harmonizer. Balances and harmonizes major functions of the enterprise
• Controller. Oversees the financial affairs of an enterprise
• Evaluator. Tracks, measures, analyzes, and evaluates the performance,
outputs, and outcomes produced by the enterprise, and the
contribution toward achieving the strategic goals of the enterprise and
addressing the needs of society
Sometimes a person may be titled a manager even though she or he is an individ-
ual contributor (makes a personal professional contribution to benefit the enter-
prise) and is not responsible for managing people.
24 Part I: Leadership
Part I.B.2
Management functions may be grouped as follows (see Chapter 8, Section 2
for more):
• Planning
– Mapping the work unit’s processes and interfaces with other work
unit’s processes
– Defining the work unit’s performance objectives and linkage with
the organization’s mission, strategic goals, and objectives
– Identifying the actions and activities needed to achieve the unit’s
objectives
• Organizing
– Acquiring or assembling the resources needed to meet the unit’s
objectives
– Establishing the structural framework (systems and procedures) for
managing the unit’s processes and resources
• Staffing
– Selecting, hiring, assimilating, and training personnel needed to
achieve the unit’s objectives
– Developing the unit’s individual and collective competence level to
meet or exceed the planned objectives
– Retaining the unit’s competent personnel by creating a motivational
environment
• Directing
– Directing the actions and activities of the unit’s personnel in
achieving the planned objectives
– Providing the support needed by the unit’s performers in realizing
the product or service produced by the unit
• Controlling
– Monitoring unit performance and comparing actual results to plans
– Taking appropriate corrective actions as needed
– Identifying areas for continual improvement
Competencies needed by managers cover a wide range.
17
(See Chapter 8 for a dis-
cussion of management skills and abilities.) Typical managerial competencies may
include:
• Technical competence, for example:
– Value streams
– Techniques and tools
Part I.B.2
Chapter 2: B. Leadership Challenges 25
– Enterprise resource planning
– Process and quality auditing
– Process benchmarking (see Chapter 12, Section 3)
– Information technology (see Chapter 8, Section 3)
– Knowledge management (see Chapter 8, Section 7)
• Business competence, for example:
– Strategic planning (see Chapters 5, 6, and 7)
– Customer relationship management (see Chapter 17)
– Finance (see Chapter 8, Section 5)
– Metrics (see Chapter 15)
– Risk analysis and management (see Chapter 8, Section 6)
– Project management (see Chapter 10)
– Performance management
– Organization structures (see Chapter 1)
– Marketing (see Chapter 8, Section 3)
– Processes (see Chapter 14)
– Legal requirements
– Ethics issues (see Chapter 4)
– Stockholders/ownership issues
– Supply chain management (see Chapter 18)
• People competence, for example:
– Personality types (see Chapter 8, Section 2)
– Managing styles (see Chapter 8, Section 2)
– Diversity issues
– Behavior management
– Interacting
– Communicating (see Chapter 9)
• Human resource competence, for example:
– Hiring
– Training
– Affirmative action
– Benefits
26 Part I: Leadership
Part I.B.3
– Recognition and rewards
– Compensation
– Safety and well-being
– Professional development
• Environmental competence, for example:
– Factors affecting the world
– Politics and power issues
– Earth sciences
– Competition
Drucker identifies four tasks of management:
18
• The task of economic performance. Business enterprises exist for the
purpose of economic performance—profitability. Other societal needs
can not be fulfilled without a surplus of economic resources.
• The task to make work productive and the worker achieving. Performance is
accomplished through work. Achieving implies consideration of the
human resource as human beings and not as things.
• The task of managing the social impacts and the social responsibilities of the
enterprise. No institution can exist outside of community and society.
• The task of managing within the dimension of time. Management always
has to consider both the present and the future, both the short run
and the long run.
See Chapter 8 for a discussion of management principles, skills, and abilities.
Persons holding management positions lower in the organizational structure
usually are responsible for designated short-term outputs, for example, parts pro-
duced, engines serviced, reports generated, and so on. Managerial personnel at
the high end of the organizational hierarchy are more likely to be responsible for
longer-term strategic outcomes affecting the profitability, growth, and overall suc-
cess of the enterprise.
3. CHANGE MANAGEMENT
Use various change management strategies
to overcome organizational roadblocks and
achieve desired change levels, and review
outcomes for effectiveness. Define and
describe factors that contribute to an
organization’s culture. (Evaluate)
Body of Knowledge I.B.3
Part I.B.3
Chapter 2: B. Leadership Challenges 27
Techniques for Facilitating or Managing Organizational Change
External change is inevitable; internal change is probable. Organizations that
continually improve their processes will have a greater probability of success
than those who only react to problems. As an organization evolves, there are not
only incremental changes, but also increasingly major shifts in strategy, tech-
nology, and work organization. Change can occur as a result of outside forces or
inside forces.
Fear of change is also a real and valid concern. People are afraid of change
because of its potential impact on them. Corporate downsizing and outsourc-
ing cause major disruptions of people’s work and personal lives, and continual
improvement efforts are sometimes blamed for job losses.
Change management is a process for ensuring that the people affected by
change understand the nature of the change and the reasons for it, with the expec-
tation that the new methods of operating will be internalized without creating
undue resistance, conflict, and fear. To reduce fear, it’s important that the vision
of the future be well communicated and that jobs be protected when feasible.
On going and open communication during any change process is paramount.
Although these precautions will not totally remove fear, they can remove some of
the uncertainty of not knowing the direction in which the organization is headed.
Change Agents
Change agents are individuals who play a specific role in the planning and imple-
mentation of the change management process.
19
They may be members of the
organization or may be outsiders. Collaboration of an internal change agent with
an external change agent who has extensive experience in the type of change to be
implemented can be a useful strategy.
An internal change agent is a person within the organization designated,
usually by management, to facilitate a particular change effort. Internal change
agents possess an understanding of the organization’s culture, infrastructure, and
the business, and also have a vested interest in seeing change efforts succeed.
However, they can be hindered by political pressures that can influence objective
feedback when problems arise. They might also lack perspective of the big pic-
ture or have a vested interest in preserving certain traditions that keep them from
seeing specific opportunities for improvement. The role of the internal change
agent may be filled by a staff or line person depending on the type and magnitude
of the change being implemented.
An external change agent is a person from outside the organization who has
been retained to advise and help facilitate the change process. An external change
agent often has a greater degree of freedom and should be better able to objec-
tively assess activities and provide honest feedback to senior management with-
out fear of repercussion. Also, organizational members are less likely to have
previous experiences with the change agent that might impact effectiveness, and
the agent does not have a vested interest in preserving long-held organizational
traditions. The danger, of course, is that organizations can become so dependent
on an external change agent that the change process is adversely affected when
the agent leaves. Another disadvantage of external change agents can be their lack
of familiarity with the specific corporate culture.
28 Part I: Leadership
Part I.B.3
External change agents must work diligently to build a relationship with
the client organization. This includes becoming familiar with company norms,
shared beliefs, and behaviors, as well as understanding both formal and informal
leadership structures. In most organizations, the change agent needs to become
acquainted with persons who serve as informal leaders and to whom others turn
for new ideas. Building a relationship between informal leaders can be beneficial
because other members of the organization will check with them for affirmation
that it is beneficial or safe to support the change process.
Deming emphasized the role of change agents in his view of organizational
transformation by stating, “A system can not understand itself. The transormation
requires a view from outside.”
20
Guidelines for Implementing Change
The following steps are key to implementing change:
1. Create an awareness of the need for change.
2. Organize a project with sufficient authority to guide the process.
3. Define the vision and strategies for achieving it.
4. Communicate the vision and demonstrate personal commitment to it.
5. Remove obstacles that prevent others from acting on the vision.
6. Go for early and visible successes.
7. Build on success by rewarding supporters and involving more people.
8. Institutionalize the new methods by aligning other systems with them.
21
The following are common errors made in managing change:
• Notsufficientlyemphasizingtheurgencyandallowingpeopletobe
complacent.
• Thoseguidingtheprocessdonothavesufficientpower.
• Lackingaclearandcompellingvisionornotcommunicatingit
strongly and/or frequently enough.
• Failingtomanagetheforcesthatresistchange.
• Notensuringsomeearlysuccessesthatencourageothers.
• Celebratingvictoryprematurely.
• Notchangingotherorganizationalsystemsandculturalelementsthat
are required for long-term continuation of the change.
22
In Peter Senge’s The Fifth Discipline, he refers to the parable of the boiling frog to
emphasize how threats to corporate and personal survival are perceived when
transformational change is taking place: A frog suddenly placed in boiling water—
the turbulence of organizational change—will scramble out. Placing a frog in
water that is room temperature will not upset the frog. In fact, the frog might even
Part I.B.3
Chapter 2: B. Leadership Challenges 29
be calmed. Now the water can be gradually heated until it is boiling. As the heat
increases, the frog will become groggier until it can no longer climb out. When the
water is boiling, the transformation is now complete. The frog’s internal apparatus
senses the change as a threat to survival and instinctively seeks to avoid the situ-
ation. For effective organizational change, use a slow and gradual process change,
while paying attention to the subtle reactions from employees.
At the same time, a significant lesson that psychologists will emphasize is that
the change process, from an individual perspective, is a progressive one that usu-
ally occurs over a considerable length of time. For major changes in culture, this is
also true at the organizational level. Trying to shortcut the process may create an
illusion of speed, but will not produce the desired results.
Techniques and Roles of Change Agents
Change agents may assume several roles and use a variety of techniques, such as:
• Coachingtopmanagementto:
– Create an environment in which change can take place with
minimum resistance.
– Develop and support an improvement plan.
– Provide the resources to implement the plan.
• Supportingandadvisingmanagementcolleaguesonhowto:
– Deal with technical issues.
– Cope with intellectual and emotional resistance.
– Measure, monitor, and report progress.
– Handle behavioral issues.
– Provide performance feedback, including reinforcement of top
management for the decision it made and reinforcing the work of
those implementing the change.
– Use the change agent as a facilitator when needed.
• Managingaspecificprojectorsegmentofalargeprojectto:
– Fill in where no other suitable resource person is available.
– Serve as a role model for other project management efforts.
• Guidingthedevelopmentofanetworkto:
– Support the implementation of the change.
– Deploy the principles and practices for managing change
throughout the organization.
• Guidingtheassessmentoftheresultsandclosureofthechange,
including:
30 Part I: Leadership
Part I.B.3
– Reviewing lessons learned.
– Evaluating the economic case for the change.
– Documenting the change.
Organizational Roadblocks
Organizational change is difficult, partially due to the inherent nature of
how organizations are designed and operated. That is, by constructing an orga-
nization in one way (for example, defining the specific roles and processes to be
used), other options are excluded by default. Although the boundaries of orga-
nizational structure, policies and procedures, and norms are actually quite per-
meable, the fact that they are defined, documented, and reinforced makes them
appear permanent in the minds of many employees. This may be especially true
in an organization with a history of success, where that success is linked mentally
to the way things have been done in the past.
The division of labor in an organization, both horizontally and vertically, cre-
ates several roadblocks. Following are some examples along with methods for
reducing the effect on the organization’s ability to change:
• Lack of cross-functional collaboration. Functional or other forms of work units
are created in order to help clarify the mission and focus of each particular group
in the organization. An organization, however, is a system with interdependencies
in many different directions. When the interdependencies (for example, internal
customer–supplier relationships) are not clearly defined and fostered, each work
unit may view a request for change only as it relates to their own processes, rather
than the entire organization.
A possible solution is to ensure that improvement initiatives, performance
measures, and rewards are designed such that collaboration (teamwork across
boundaries) will be necessary in order to achieve objectives. Develop internal
customer–supplier agreements and performance measures, along with ongoing
joint reviews of progress.
• Lack of authority. The reason for dividing up work processes and tasks is
because time and/or skills constraints prevent any one person from carrying
out all the necessary activities. This means that responsibility and authority are
divided among many. When a change in work activity is required, however, new
roles, responsibilities, and processes may not fit into the predefined boundaries.
A possible solution is to ensure that someone (for example, a champion/
sponsor) is identified who has authority over the entire area to be impacted by the
change, and that they have a direct link to higher levels of the organization in
the event they need additional support outside their area of authority.
• Inward focus. Similar to the lack of cross-functional collaboration is the prob-
lem of the boundaries between the organization and its environment. By defini-
tion, each organization consists of only certain processes and people, and outside
these boundaries are suppliers, customers, regulators, and other stakeholders. The
day-to-day attention of many members of the organization, however, is on internal
Part I.B.3
Chapter 2: B. Leadership Challenges 31
processes, resources, and knowledge. Being willing to look externally for ideas,
support, and feedback may not come naturally.
A possible solution is to have employees go outside the organizational walls,
for example, visiting customer sites, locations where the final product/service is
in the hands of the final user, or where other sources of information on new ideas
might exist (such as trade shows, conferences, workshops).
• Internal competition for resources or rewards. All organizations have limited
resources and opportunities, and must allocate them so as to best accomplish
the mission with high efficiency. Limited funds, people, or promotions can cause
employees to compete against each other—not wanting to suboptimize their
area—instead of seeing their efforts as needing to be focused on maximization of
the enterprise.
A possible solution is to ensure that strategic and operational plans clearly
indicate the priorities and strategies of the organization, and where and how
resources are to be allocated. Involve employees in creating these plans through a
catchball-type process (see Chapter 7).
• Lack of understanding. In a typical organization there are so many different
strategies, initiatives, projects, and day-to-day activities always going on that it is
often difficult to keep everyone fully informed. People therefore put their focus
where it seems best placed, but this may not agree with what is actually expected
or desired.
A possible solution is to communicate, communicate, communicate! The big-
gest problem noted in many employee surveys is lack of adequate communication.
When people have gaps in their understanding, they often fill them in as best they
can, even though what they hear or think may be incorrect. Management must
ensure that information relative to organizational direction (for example, vision,
mission, values, strategy, objectives, projects, and performance) is continuously
communicated, with the amount and type of communication being adapted to the
message and audience (see Chapter 9 for more on communications).
• Slow decision making. Although an organization may have clearly communi-
cated plans and have good cross-functional relationships, levels of the hierarchy
slow down and frustrate some people who are actively working on improvement
initiatives. Vertical communication is meant to ensure ongoing alignment of goals
and activities, but is often slower than optimal due to the number of channels
through which it may travel and differing time perspectives at each level.
A possible solution is to ensure that authority levels are clearly spelled out
for typical situations and use an exception basis where a few key people have the
authority to act if the decision involves crossing a particularly difficult organi-
zational boundary. Specify decision-making channels that do not require every-
one in the hierarchy to be involved in all decisions, especially those related to
improvement opportunities.
Those who study human development discover a tension within many individu-
als who on the one hand want to improve their lives, but at the same time want a
life that is stable and without chaos. Similar paradoxical issues impact an organi-
zation’s ability to change. Following are some examples:
32 Part I: Leadership
Part I.B.3
• Lack of willingness to invest for the long term. Managers are often
measured according to the end-of-quarter financial results. Yet, a
significant commitment of funds and other resources is usually
required in the early part of organizational transformation, with the
more strategic payoffs occurring perhaps three or more years later.
• Wanting results fast. Many of the cause-and-effect relationships dealt
with on a day-to-day basis in organizations are quickly resolved.
This gets translated into people’s expectations for many other issues,
although there is often a significant time lag between cause and effect.
People become impatient and want to stop taking action if they aren’t
seeing results.
• Be selective in what to work on first. Take the classic low-hanging fruit
approach. Make sure that initial efforts are focused on areas where
success and payoff are highly probable.
• Poor history of change. Some organizations have a long record of
unsuccessful change efforts, which causes people to become cynical
and to want to avoid future attempts.
• Learn from errors. Study and admit past mistakes, and ensure that
future efforts don’t repeat them.
• Fear of the unknown. By definition, change means that things will be
different than in the past. People are often uncertain of what their new
roles will be and whether they will be able to adapt to the changes, or
want to.
• Provide support for change. Allow employees to talk with others
who have been through similar changes. Provide reassurance that
necessary support will be available throughout the change.
• Ensurethatthereisacommonvisionofchange;communicatethe
purpose and importance. Figure 2.1 depicts the change process and
causes for resistance to change.
Change process
Current state
• Like the current condition
• Indicates time is wrong
• Poor history of change
• Don’t like change
• Poorly communicated
• Wrong people, method, timing
• Future status unknown
• Fear of failure
• Additional workload
Future state
Figure 2.
1
Causes for resistance to change.
Source:
Reprinted with permission of APLOMET.
Part I.B.3
Chapter 2: B. Leadership Challenges 33
• Understandtheemotionalimpactofchange.
• Understandthesystemsview—thatis,beawareofhowchangingone
process or part of the organization will affect other processes or parts.
• Communicatewhatwillandwhatwillnotchange.
• Modelthebehaviorsthataredesired.
• Provideeffectivefeedback,rewards,andconsequences.
• Beconsistentinrespondingtoresistance.
• Beflexible,patient,andsupportive.
23
Constraint Management
Managing change is particularly complex due to the fact that much of what must
be changed often consists of intangibles such as beliefs, behaviors, and policies.
These types of constraints are more difficult to identify and manage than issues
such as the capacity limitation of a piece of equipment. Conceptual models or dia-
grams are useful for representing situations, however, making them more visible
and aiding understanding of intangible constraints that may need to be addressed.
Following are some examples of how these diagrams can be used. (Chapter 14 con-
tains additional information based on Goldratt’s theory of constraints.)
Identifying Constraints with an Interrelationship Digraph. Creating the inter-
relationship digraph is a method for representing several elements involved in a
process and their cause-and-effect relationship. The digraph involves first devel-
oping an affinity diagram, then analyzing and organizing the components into
their respective relationships (see Chapter 13 for more about constructing an
affinity diagram and an interrelationship digraph).
Figure 2.2 is an example of a diagram developed by an organization that was
considering developing a suggestion system. Some people had reservations about
whether it would be worthwhile, so the management team developed the dia-
gram to represent its thinking about the issues involved. Team members included
whether the relationships between components were positive or negative (for
example, would or would not be beneficial) as some members of management had
reservations about the costs, both resource and financial, of administering the
program. They subsequently discovered that they could design the system to fit
their particular needs rather than basing it solely on the systems they’d seen and
read about. The diagram helped them understand the true cause-and-effect rela-
tionships involved and that the design they selected would be the major driver for
both costs and resources. An organization unhappy with an existing suggestion
system might also learn from a similar analysis.
This type of analysis allows a group to develop a common view of how some-
thing is working or should work. The model can also be used as a diagnostic
tool to guide collection of data to determine which components of the system are
not working as desired. Managing constraints requires understanding the issues
involved in the situation, how they are interrelated, which have the most leverage,
and which will or may block the desired outcome.
34 Part I: Leadership
Part I.B.3
Identifying Constraints Using a Tree Diagram. Another approach to finding con-
straints is to break the situation down into component parts using a logic tree dia-
gram. Figure 2.3 demonstrates the use of the process by an organization that has
offered a scholarship program for three years, but had no applicants. The organi-
zation had widely publicized the program, so elected to not look at that branch of
the tree. By breaking down the other two branches, however, it found some likely
Design of
system
(+/–)
(–)
(–)
(–)
(–)
(+)
(+)
(+)
(+)
(+)
(+)
(+)
Impact on
customers
Impact on
bottom line
Employee
rewards
Administration
of system
Employee
suggestions
Improvement
projects
Figure 2.2
Analysis of an employee suggestion system.
No one
applies for
scholarships
People are
unaware of
the program
Scholarship
isn’t deemed
worthwhile
Students don’t
qualify to
apply
Amount of
funds given
is too low
Application
process too
complicated
Grade level
required is
too high
Qualification
requirements
too narrow
Figure 2.3 Logic tree analysis.
Part I.B.4
Chapter 2: B. Leadership Challenges 35
sources of the problem. It may again ignore some of the branches (for example,
keeping the required grade level at what is deemed necessary for true scholarship
purposes) and either investigate or alter other aspects of the program in order to
affect the next application period.
The logic tree diagram uses a top-down approach to analyzing the situation.
As with many improvement tools, the process can also be enhanced by involving
key stakeholders in developing the model and in gathering information to identify
the constraint(s) for which action will be taken.
4. LEADERSHIP TECHNIQUES
Develop and implement techniques that motivate
employees and sustain their enthusiasm. Use
negotiation techniques to enable parties with different
or opposing outlooks to recognize common goals and
work together to achieve them. Determine when and
how to use influence to resolve a problem or move a
project forward. (Create)
Body of Knowledge I.B.4
It is impossible for one person to motivate another person. Motivation is derived
from within a person—a person needs to feel motivated. Therefore, motivating
a person can only be done by creating an environment in which the person feels
motivated. When one person (for example, a supervisor) says she is going to moti-
vate a subordinate, she means (or should mean) she is going to do something
that will cause the subordinate to become motivated. The idea that a “kick in the
butt” will motivate a subordinate is incorrect; it may just move the subordinate,
and usually will make the subordinate angry and/or afraid. That kind of move-
ment is erroneously perceived as motivation.
Theories of Motivation and Influence
Two types of motivation have been identified:
24
• Extrinsic motivation. The satisfaction of either material or psychological
needs that is applied by others or the organization through pre-action
incentive or post-action reward.
• Intrinsic motivation. The qualities of work itself or of relationships,
events, or situations that satisfy basic psychological needs (such as
achievement, power, affiliation, autonomy, responsibility, creativity,
and self-actualization) in a self-rewarding process.
Abraham Maslow developed a model demonstrating a hierarchy of needs through
which he believed people progressed.
25
Maslow’s pyramid (see Figure 2.4) assumes
that once humans satisfy the basic, physiologically driven needs, they will then be
36 Part I: Leadership
Part I.B.4
motivated by higher-level needs, and this process will continue until achieving
self-actualization. The workplace is obviously a key aspect in allowing an indi-
vidual to satisfy physiological and safety needs, but someone who has satisfied
these levels and is working to satisfy higher levels can quickly return to the bot-
tom of the hierarchy in the event of a job loss. The workplace can also allow them
to reach higher levels, assuming there are job opportunities that enable their per-
sonal desire for recognition and achievement to be satisfied. It is important to note
that since Maslow’s theory is based very much on values, it would not necessarily
apply to people from all cultures or socioeconomic strata.
Frederick Herzberg identified two categories into which work motivation fac-
tors could be classified—satisfiers and dissatisfiers.
26
Dissatisfiers included factors
such as work conditions, salary, company policies, and relationship with one’s
supervisor. He also called them hygiene factors, since although they create dissat-
isfaction if not adequately addressed, correcting the deficiencies would not cre-
ate satisfaction. Satisfiers included items such as responsibility, achievement,
advancement, and recognition.
There are also three motivational theories specifically related to recognition
and rewards:
• Equity theory. Job motivation depends on how equitable the person
believes the rewards (or punishment) to be.
• Expectancy theory. What people do is based on what they expect to gain
from the activity (Victor Vroom).
Self-
actualization
Esteem
Belonging
Safety
Physiological
Stage Process Needs
1st
2nd
3rd
4th
5th
To eat, sleep, have shelter
To have economic and physical security
To be accepted by family and friends
To be held in high regard; status
To achieve one’s best
Physiological
Safety
Belonging
Esteem
Self-actualization
Figure 2.4 Maslow’s hierarchy of needs.
Part I.B.4
Chapter 2: B. Leadership Challenges 37
• Reinforcement theory. What people do depends on what triggers a
behavior initially (the antecedent) and the consequences that have
in the past resulted from such behavior, or the consequences the
performer believes will happen as a result of a behavior (B. F. Skinner).
What motivates one person may not motivate another. McClelland and others
have posited that:
• Anindividualwhoenjoysworkingcloselywithotherpeopleis
motivated by affiliation.
• Someonewhoworksinordertoaccomplishpersonalgoalsis
motivated by achievement.
• Apersonwhoworksinordertocontributetothewell-beingofothers
is motivated by altruism.
• Someonewhowantstohavecontrolovertheirworkismotivated
by power.
These motivations are not mutually exclusive, nor is any one person driven only
by a single factor. In fact, in order to satisfy their many different needs, people are
often involved in several different activities at work, in their local community, and
in other organizations.
A paradoxical view of motivation is the division between intrinsic motiva-
tion and extrinsic motivation. Some people are driven more by their own internal
needs or desires, while others are motivated primarily by external factors. This
is partially a function of whether the person has an internal or external locus of
control—whether you believe your future is impacted more by your own actions
or by actions/decisions of others.
Caution is advised in assuming that what stimulates motivation for an indi-
vidual in one situation or time frame will continue to motivate the next time. Also,
what provides motivation for one person may not do so for another.
Consider this example: Work is backing up, and the manager tells her work
unit personnel that the unit will have to work overtime each day for the next 10
days. Rose, a young woman who is saving money to buy a dirt bike, is delighted
about the prospect of extra compensation. Ray, a single father whose baby is cared
for during the day by a babysitter, is distraught because he has to be home by 6
p.m. to relieve the babysitter and realizes that any other option would cost more
than he will earn on overtime. Rose is motivated, Ray is not. Six months later, the
same need for overtime occurs. Rose resents the mandate (she has purchased her
dirt bike and wants to ride it in the early evening before the sun sets). Ray’s aunt
has moved in with him and now cares for the baby. Ray needs the additional com-
pensation to help with his expanded family. Ray is motivated, Rose is not.
Negotiation
In order for multiple parties, whether individuals or groups, to work together
to achieve common goals, there must be agreement on the goals, the methods for
achieving them, and what will occur when difficulties arise. Each party will typi-
cally have different values and priorities that need to be addressed, and that calls
38 Part I: Leadership
Part I.B.4
for negotiations resulting in an agreement acceptable to all parties. Management–
union negotiations are perhaps the most widely discussed example, but negotia-
tion also occurs as part of many other normal business processes, such as:
• Establishingspecificationsforpurchasedcomponentsfora
new product
• Settingperformancemeasuresforaprocessordepartment
• Definingthedesiredoutcomesforanimprovementproject
• Identifyingpersonaldevelopmentgoals
Parties involved in such negotiations might include customers and suppliers,
senior management and middle management, sponsor and team leader, or man-
ager and employee.
A difficulty in the negotiation process is that the two parties often approach
the task as though there were only two sides to the situation, when, in fact, there
are multiple views that could be taken. This is exacerbated when a win–lose atti-
tude is taken, as the process will become divisive and usually result in outcomes
that are not seen as beneficial by either party. There are four orientations to nego-
tiation: win–win, win–lose, lose–win, and lose–lose. When both parties approach
negotiation with an anticipation of achieving mutual benefit, both parties tend to
win. The other three orientations leave the parties striving not to lose at any cost.
Principled negotiation based on a win–win orientation includes:
• Separatingthepeoplefromtheproblem
• Focusingoninterests,notposition
• Understandingwhatbothsideswanttoachieve
• Inventingoptionsformutualgain
• Insistingonobjectivecriteria
Timing also affects negotiations, both long-term and short-term. For negotiations
that recur on a long-term periodic basis (such as labor agreements), the years
between sessions allow the parties to store up their frustrations and release them
just as they come together to forge a new contract. At the same time, allowing
a break between negotiation sessions allows the parties to back off from what may
be an emotional discussion and reflect on their primary purposes.
Negotiations should take place in an environment that is conducive to open
discussion and allows all involved to see each other face to face. Rather than mak-
ing presentations to each other, both parties should focus on a conversation with
each other, which means that listening in order to understand the other person’s
viewpoint is a key requirement. A set of ground rules or a third-party media-
tor may be useful if the negotiations involve a highly controversial or emotional
subject.
Some techniques that have been found to improve the negotiation process
include:
• Focusingoncommonobjectivesbeforediscussingareasofdifference.
Part I.B.4
Chapter 2: B. Leadership Challenges 39
• Avoidingpowerstrategiessuchaslyingaboutone’sprioritiesinorder
to get the other party to submit to lowered expectations.
• Doingsomethingfortheotherparty,evenifsymbolic,tocreate
positive energy.
• Separatingoutdiscussionissuesthatarenotinterconnectedsothat
they can be discussed based on their own merit.
• Bringinginotherpartiesthatmayhaveadditionalordifferent
information about the situation.
27
Additional techniques include:
• Identifying,upfront,arangeofacceptableoutcomes—andwhyyou
want what you want.
• Determiningtherealintentionsoftheotherparty:thegoals,
objectives, and priorities.
• Beingpreparedwithsupportinginformation.
• Notrushingtheprocess.
• Keepingthemostdifficulttoresolveissuesforlast.
• Beingsensitivetoface-savingneedsoftheotherparty.
• Beingfirm,fair,andfactual.
• Alwayscontrollingyouremotions.
• Evaluatingeachmoveagainstyourobjectivesandassessinghowit
relates to all other moves.
• Beingadeptatformulatingawin–wincompromise.
• Beingawareoftheeffectoftheoutcomesofthepresentnegotiationon
future negotiations.
• Activelylisteningandseekingclarityofexpectations.
• Beingflexiblewithyourpositionandbeingabletostepbackand
look critically at your position—there may be multiple ways the same
overall objective can be achieved. This view involves going up the
vertical hierarchy of one’s cognitive view of the situation, rather than
only going horizontally across perceived options.
28
Figure 2.5 is a portion of a decision option hierarchy for reducing deficit spend-
ing by a city government. Negotiations between city officials and the school board
often focus only on option C, while negotiations with the citizenry focus only on
options A and B. By limiting the focus to the hows, the larger picture of the higher
why is often ignored, which means that option D is often not even understood as
a possibility.
Negotiating is a skill very much needed in the project management arena.
Often, the project manager/leader has less authority than ongoing operations
40 Part I: Leadership
Part I.B.4
managers, and that necessitates negotiating for needed resources. This is espe-
cially problematic when the project team is not dedicated solely to the project.
Then, one of the largest problems is ensuring that the project team members get
the release time needed to work on the project.
Negotiating in a different culture can be a challenge, but is essential in the
growing global marketplace. Communicating in a global economy is discussed in
Chapter 9, Section 3.
Change management usually involves negotiation in eliminating organi-
zational roadblocks and managing constraints. (Change management will also
involve conflict resolution.)
Some common uses for negotiation are:
• Customer–supplierpurchasingcontracts
• Negotiationofcompensationtermsbetweenapotentialnewhireand
the organization
• Labor–managementcontracts
• Facilites/equipmentrentalcontracts
• Negotiatingforapprovaloftheannualbudgetforaworkunit
Having effectively completed negotiations usually means that the relationship
between the parties will continue and that the agreement should be documented.
The agreement should include the standards against which compliance of each
Responsible management
of societal resources
(Why)
Reduce deficit
spending
Why
Raise
revenues
Reduce
expenses
What
Option A
Increase a
current tax
Option B
Create a
new tax
How
Option C
Cut education
budget
Option D
Reduce
waste
Figure 2.5
A decision option hierarchy.
Part I.B.4
Chapter 2: B. Leadership Challenges 41
party will be compared, a frequency or process for reviewing performance, and
what is to take place if a violation should occur.
Conflict
Sources and Views of Conflict. Because organizations consist of individuals and
groups with different backgrounds and responsibilities, some conflict is inevi-
table. A conflict might occur between two individuals (for example, between
a manager and an employee, or between peers), between groups (for example,
departments or teams), or between organizations (for example, customer and
supplier). Although conflict will often be created by disagreements over goals or
resource allocation, beneath the surface are differences in values, priorities, roles,
and personal styles that cause the conflict to become emotional and/or personal.
Conflict occurs when two or more options appear to be mutually exclusive,
and a viable alternative is felt to be absent. Conflict can not be resolved when the
parties involved firmly believe that what each wants is incompatible with what
the other wants.
Conflict may be due to personal issues or may be caused by underlying orga-
nizational issues (for example, incongruent policies or unclear boundaries). The
effect is that energy that should be focused on the organization’s mission instead
gets transferred to activities that are unproductive. Regardless of whether the
activities are unseen or visible, it is in the best interests of the organization to iden-
tify and address the conflict. Quality managers, because of their expanded role
in facilitating cross-functional cooperation for strategic alignment and continual
improvement, should be aware of and develop their conflict management abilities.
On the plus side, conflict can also be viewed as an energizing force. Manage-
ment and resolution of differences between individuals and groups can unlock
creativity. “Contrary to conventional wisdom, the most important single thing
about conflict is that it is good for you. While this is not a scientific statement of
fact, it reflects a basic and unprecedented shift in emphasis—a move away from
the old human relations point of view where all conflict was basically seen as bad.
In brief, in our new frontier environment, conflict is the order of the day.”
29
One model for understanding conflict resolution is based on the dimensions
of assertiveness (extent to which a party attempts to satisfy his/her own concerns)
versus cooperativeness (extent to which the party attempts to satisfy the other’s
concerns).
30
The resulting matrix (see Figure 2.6) has been incorporated in an
assessment instrument that can be used to evaluate conflict-handling style. Inter-
pretation of the instrument emphasizes that each conflict mode might be appropri-
ate for a particular situation. The following list further expands on these options:
• Approachitasaproblemtobesolved.Utilizefactsandinformation
that can be useful for looking at and evaluating different options.
• Smoothovertheconflictbyemphasizingthepositivesandtryingto
avoid the negatives. This is obviously only a temporary solution if the
conflict is substantial.
• Transfertheproblemtoahigherlevelofauthority.
• Resolveanyscarcityofresourcesthatiscreatingtheconflict.
42 Part I: Leadership
Part I.B.4
• Avoidtheconflictifitisnotintheorganization’sbestintereststo
continue to pursue it.
• Seeifcompromisewillresolveittothesatisfactionofbothparties.
• Changethemindsofthepeopleinvolved.
31
Since the latter option involves trying to change a person’s mind, it is not a very
viable one. Research indicates that people’s basic personality does not change sub-
stantially over their lifetime, so changing a mind is obviously difficult. Addition-
ally, organizations do not have the right to change a person’s thought processes
per se. The option is viable if interpreted differently—people may be transferred
or otherwise removed from the conflict situation as a final option. In a quality
organization, however, it is more likely that additional methods for resolving the
situation would be attempted.
Techniques for Conflict Resolution. The best method for resolving a particular
conflict depends on the situation. If there is clearly a solution that simply needs to
be identified and agreed to, and the parties involved are not adamantly opposed
to each other, then simple discussions utilizing brainstorming, multivoting, and
consensus may be sufficient. The brainstorming process can be used to identify
several possible solutions, followed by a multivoting process (see Chapter 13) that
narrows the list to a smaller, more viable list. Looking at the positive and nega-
tive attributes of each option may then result in agreement of all parties on what
action(s) will be taken. This discussion can be aided by looking at each of the
activities that would be required by each party in the conflict, the effort it would
require, and the impact it would have both on resolving the issues and on the rela-
tionship between the parties.
Compromising
Competing
Collaborating
Avoiding
Accommodating
Uncooperative Cooperative
Cooperativeness
Unassertive Assertive
Assertiveness
Figure 2.6 Conflict-handling modes.
Part I.B.4
Chapter 2: B. Leadership Challenges 43
A more difficult situation arises when, although there may be several viable
solutions, the involved parties do not appear to be prepared to work cooperatively
in order to reach a joint decision. A process such as interest-based bargaining (also
called principled negotiation) might then be used to attempt to satisfy as many inter-
ests as possible using the following steps:
1. Define the problem in a way that distinguishes it from the people
involved.
2. Clarify the interests of the parties (as opposed to their positions on
the issue).
3. Identify new and creative options beneficial to all parties.
4. Determine objective criteria to be used to evaluate fairness of the
outcomes for all parties.
Conflict resolution may also involve intervention by a third party. For example, a
person trained in human process interventions might help parties involved in
a conflict by engaging them in dialogue. Strategies that might be used include:
• Helpingthepartiesavoidthefactorsthattriggerconflict
• Settingguidelinesforinteractionoftheparties
• Helpingthepartiesfindwaystocopewiththeconflict
• Identifyingandeliminatingtheunderlyingissues
32
Real dialogue involves not only listening to what the other party says, but also
taking care to truly comprehend his or her perspective and why it is important
to him or her. It also requires that one understand the values and assumptions
underlying one’s own position and be willing to share them.
Core Issues in Conflict Management. Conflict management is difficult when
people take a “What’s in it for me?” viewpoint. A win–win approach provides the
following benefits:
• Aunifieddirection—aplatformforachievingtheorganization’sgoals
and objectives
• Higheremployeesatisfaction,especiallywhenactivelisteningisused
and the search for alternatives is expanded
• Improvedhealthandsafetyofemployeesduetoencounteringless
stress in their lives
Following are components of an approach to resolving conflict to the mutual ben-
efit of all involved parties:
• Definetheconflictasamutualproblem.
• Identifygoalscommontoallparties.
• Findcreativealternativesthatsatisfyallparties.
• Ensurethatallpartiesunderstandtheirownneedsandcommunicate
them clearly.
44 Part I: Leadership
Part I.B.5
• Emphasizemutualinterdependence(asopposedtoindependenceor
dependence).
• Becertainthatcontactsaremadeonabasisofequalpower.
• Communicateneeds,goals,positions,andproposalsopenly,honestly,
and accurately.
• Stateneeds,goals,andpositionsintheopeningoffer.
• Empathizewithandunderstandothers’positions,feelings,and
frames of reference.
• Reducedefensivenessbyavoidingthreats,harassment,or
inconveniencing other parties.
A conflict is not likely to be resolved successfully when either party does the
following:
• Definestheconflictasawin–losestrategy.
• Pursueshisorherowngoalsorhiddenagenda.
• Forcestheotherpartyintosubmission.
• Increasespowerbyemphasizingindependencefromtheotherparty
and the other party’s dependence on them.
• Triestoarrangecontactsbasedonpowerrelationships.
• Usesinaccurateormisleadingcommunications.
• Overemphasizesneeds,goals,andpositionintheopeningoffer.
• Avoidsempathyandunderstandingofothers’positions,feelings,and
frames of reference.
• Wouldratherbothpartieslose(lose–lose)thanhavetheotherparty
get his or her way.
5. EMPOWERMENT
Apply various techniques to empower
individuals and teams. Identify typical
obstacles to empowerment and appropriate
strategies for overcoming them. Describe and
distinguish between job enrichment and job
enlargement, job design and job tasks. (Apply)
Body of Knowledge I.B.5
One of the core components of quality leadership is having everyone in the orga-
nization involved in managing and improving quality of the processes for which
Part I.B.5
Chapter 2: B. Leadership Challenges 45
they are responsible. This might be done as part of day-to-day operations as a
member of a natural work team or a self-directed team, or in becoming part of a
group that is going to take on a special process design or improvement project.
Regardless of the way it occurs, it involves giving employees greater responsibil-
ity and authority, and is commonly labeled empowerment.
Empowerment is based on the belief that employees have the ability to take
on more responsibility and authority than has traditionally been given them, and
that heightened productivity and a better quality of work life will result. Differ-
ent words and phrases are used to define empowerment, but most are variations
on a theme: to provide employees with the means for making influential deci-
sions. Juran defined empowerment as “conferring the right to make decisions and
take action.”
33
Empowerment means different things in different organizations, depending
on culture and work design; however, empowerment is based on the concepts of job
enlargement and job enrichment. Job enlargement means changing the scope of the
job to include a greater portion of the horizontal process. An example would be a
bank teller who not only handles deposits and disbursements, but now distributes
traveler’s checks and sells certificates of deposit. Job enrichment means increasing
the depth of the job to include responsibilities that have been traditionally car-
ried out at higher levels of the organization. An example would be if a bank teller
also had the authority to help a client fill out a loan application and complete ini-
tial screening to determine whether or not to refer the customer to the loan officer.
As these examples show, empowerment of employees will require:
• Aworkenvironmentandmanagingstylethatsupportsempowerment
• Trainingintheskillsnecessaryinordertocarryouttheadditional
responsibilities
• Accesstoinformationonwhichdecisionscanbemade
• Willingnessandconfidenceonthepartoftheemployeetotakeon
greater responsibility
Empowerment also means management giving up some of the power tradition-
ally held by it, which means management must take on new roles and responsi-
bilities and gain new knowledge. It does not mean that management relinquishes
all authority, totally delegates decision making, and allows operating without
accountability. It requires a significant investment of time and effort to develop
mutual trust, assess, and add to individuals’ competencies, as well as develop clear
agreements about roles, responsibilities, risk taking, and boundaries.
Empowerment is difficult to implement because it is often a major culture
change from past ways of working. It involves behavioral changes in all members
of the organization: management, operations personnel, and support staff. There-
fore, it is critical that the organization lay the appropriate groundwork. To start,
an organization should develop an operational definition of empowerment and
communicate a strong commitment to it, starting with top management. It should
develop a time-phased implementation plan and build or modify the necessary
organizational systems to support empowerment.
Empowerment requires the transfer of authority with a clear agreement
about expectations, responsibilities, and boundaries. This process takes place
46 Part I: Leadership
Part I.B.5
over a period of time as both managers and workers become comfortable with the
concepts and implications of empowerment. Four principles that foster this tran-
sition are:
1. Give people important work to do on critical issues.
2. Give people discretion and autonomy over their tasks and resources.
3. Give visibility to others and provide recognition for their efforts.
4. Build relationships by finding them sponsors and mentors.
34
Empowerment often also calls for restructuring the organization to reduce levels
of hierarchy or to provide a more customer- and process-focused organization.
Empowerment is often viewed as an inverted triangle of organizational power. In
the traditional view, management is at the top while customers are on the bottom,
whereas in an empowered environment, customers are at the top while manage-
ment is in a support role at the bottom (see Figure 2.7).
For empowerment to be successfully implemented, the leader’s role must shift
from that of a traditional manager to that of an enabler. Leaders must balance their
need for personal control with the ability to provide freedom for others to act on
their own authority. This is a mind-set as well as a negotiated agreement between
leaders and their subordinates. Leaders who empower others create an environ-
ment in which this balance can take place. They involve their subordinates in plan-
ning, delegate responsibility, clarify the scope of authority, delineate boundaries,
encourage, provide a motivational environment, and reward accomplishments.
The process also needs to occur from top to bottom. Frontline managers need
to understand how to implement the process and how to transition from a tradi-
tional role to that of an empowering leader. Middle management needs to work
to remove barriers to empowerment and to help coach frontline managers in their
Traditional hierarchical structure
(management on top, customers
on bottom, employees squeezed
in between)
Empowered organizational structure
(customers on top, management in a
support role to help employees in their
role of satisfying customers)
Manage-
ment
Employees
Customers
Manage-
ment
Employees
Customers
Figure 2.7 Traditional versus empowered organization.
Part I.B.5
Chapter 2: B. Leadership Challenges 47
new roles. Changes in performance review and compensation systems are usually
required to align these systems with the new responsibilities.
People who are well matched with the jobs they hold don’t require force, coer-
cion, bribery, or trickery to work hard and produce quality work. They are inter-
nally motivated.
An example of a mismatch is assigning a usually gregarious extrovert to
spray-painting parts in an isolated room, wearing a protective mask all day.
This would certainly be totally dissatisfying and lead to poor work. Another exam-
ple would be reassigning an operator who formerly worked on a help desk solving
customers’ problems to a role as a telemarketer where he or she has to cold-call
prospective customers. Initiating customer contact may be a totally distasteful job
for the individual. Type of personality, personal beliefs and interests, fear of dan-
ger, and so on, are all factors to consider when matching people to jobs—assuming
a motivated workforce is desired.
For a person to be internally motivated from the job itself, the person must:
• Receivesufficientskillstrainingandknowledgetosucceedinthe
job assigned
• Knowwhatlevelofperformanceandresultisexpectedofhimorher
• Beprovidedwithappropriatetools,equipment,andaworkplace
conducive to producing a quality product or service, within a safe,
secure, and healthful (physical and mental) environment
• Experienceresponsibilityfortheresultsofthework
• Experienceachallenge,butnotbeoverwhelmed
• Havetheauthoritytomakedecisionscommensuratewiththejob
responsibilities and personal competence, and within preestablished
boundaries
• Experiencetheworkascontributingvalue
• Knowhowtheresultsfrompersonalworkcontributetothe
organization
• Knowhowworkismeasuredandevaluated
• Havetheopportunitytoimprovetheprocessesusedinthework
• Knowthatmanagementisawareof,supports,andappreciates
the work
Although work design is the most visible change in empowerment, the relation-
ships of managers and employees is perhaps the most significant and difficult
aspect of that change. Table 2.1 summarizes these changes, emphasizing the inher-
ent difficulty in trying to change from a traditional to an empowered organization.
Common mistakes and barriers to empowerment include:
• Alackofaclearcommitment.Tosucceed,topmanagementmust
clearly communicate its support. Without this commitment,
empowerment will be impossible to implement.
48 Part I: Leadership
Part I.B.5
• Failuretodefineempowerment.Failingtodevelopanoperational
definition of empowerment results in confusion and inconsistent
implementation. Many managers do not understand the term and
can unwittingly block its effective implementation by sending
conflicting messages.
• Failuretoestablishtheboundarieswithinwhichemployeescanbe
empowered.
• Failuretoprovideappropriatetrainingtomanagementandthe
performers.
• Failuretoimplementappropriateincentives.Peoplewhohavebeen
rewarded for behavior that serves a traditional hierarchical system
will resist transitioning to a new role unless incentives to encourage
change are in place.
• Lackofanimplementationplan.Empowermentconsumestime,
resources, and up-front costs for training and organizational
support systems. An implementation plan is essential to prepare this
groundwork. An organization that does not think through all the
implications sets up serious barriers to success.
• Inabilitytomodifyorganizationalculture.Manytraditional
organizations will hinder empowerment by virtue of their hierarchical
structures, reward processes, and cultural values. Unless appropriate
changes are made, empowerment will fail.
• Somepeoplewillresentashifttoempowerment.Theyoften
don’t want to assume the responsibility involved. Others may feel
management is trying to pass down their responsibility in order to
save money or whatever.
• Noteveryonewillbuyinatfirst.Somewillwaitandseeifthisisjust
another “here today, gone tomorrow” scheme of management. Some
are terrified at the new freedom, fearful they might make a dreadful
mistake and be punished for it.
• Middleandfirst-levelmanagementresentgivinguptheirauthority
(and perhaps the curtain they’ve been hiding behind). Learning and
T
able 2.1 Relationship changes in an empowered organization.
Issue for
comparison
Employees’ primary focus is on:
Management’s r
ole is:
Management–employee r
elationship is:
Traditional
organization
Management
Monitoring and
controlling
Boss-to-subordinate
Empowered
organization
Customers
Facilitating and
coaching
Peer-to-peer
Part I.B.5
Chapter 2: B. Leadership Challenges 49
practicing new behavior is tough on those who grew up in the “old
school” ways.
• Iftopmanagementisnotvisiblyandcontinuallyseenusing
empowerment techniques, the effort will likely not succeed.
• Changingtheculturefromatraditionalhierarchicalmodetoone
where empowerment is practiced takes a long time and costs money.
A high level of sustained commitment is needed for years.
• Theorganizationstructureandreportingrelationshipswillneedto
be changed.
• Majorsystemsandprocesseswillrequiremodificationorreplacement,
for example, strategic planning process, compensation system,
employee recognition and reward process, customer service processes,
expense reimbursement procedure, and so on.
Benefits from Empowerment
Aubrey and Felkins reported a survey administered in several companies to
evaluate the perceived benefits of employee involvement. It indicated signif-
icant improvements in attitudes and behavior. For example, results showed an
increase in individual self-respect, increased respect for employees by supervi-
sors, increased employee understanding of management, reduced conflict, and
increased employees awareness of why many problems are not solved quickly. A
similar survey administered to management indicated that employee involvement
seemed to increase productivity.
35
Customer satisfaction also typically improves when personnel are given
the authority to make decisions directly related to customer problems or needs.
For example, a major credit card service organization reported that through its
employee empowerment program, customer delight helped to propel the organi-
zation to the number two spot in the bank credit card industry and helped it win
the Baldrige Award. Other Baldrige Award winners report similar results.
The very highest leader is barely known by men.
Then comes the leader they know and love.
Then the leader they fear.
Then the leader they despise.
The leader who does not trust enough will not be trusted.
When actions are performed without unnecessary speech
The people say, “We did it ourselves.”
—Lao-tzu
This chapter has discussed a number of leadership challenges and issues. While
theexpression“_________________isabornleader”maybetrueinsomecases,
for the rest of us, being a good, effective leader is a learned skill. In transform-
ing ourselves to become a good leader we may have to change our behavior—
50 Part I: Leadership
Part I.B.5
sometimes drastically. We may have to disregard traditional teachings and prac-
tices from our early years. We’re in a rapidly evolving world that calls for innova-
tive, adaptive, and ethical leaders. Relationships with people are critical, especially
as technology tends to lead us toward dehumanizing internal and external orga-
nizational interactions.
ENDNOTES
1. Frances Hesselbein, “The Habits of Effective Organizations,” in Leader to Leader:
Enduring Insights on Leadership from the Drucker Foundation’s Award-Winning Journal,
ed. F. Hesselbein and P. M. Cohen (San Francisco: Jossey-Bass, 1999).
2. W. E. Deming, Out of the Crisis (Cambridge, MA: MIT Center for Advanced
Engineering Study, 1986).
3. S. R. Covey, “Three Roles of the Leader in the New Paradigm,” in The Leader of the
Future: New Visions, Strategies, and Practices for the Next Era, ed. F. Hesselbein, M.
Goldsmith, and R. Beckhard (San Francisco: Jossey-Bass, 1996).
4. B. M. Bass, Stogdill’s Handbook of Leadership. New York: The Free Press, 1990.
5. R. M. Kanter, “World-Class Leaders: The Power of Partnering,” in The Leader of the
Future: New Visions, Strategies, and Practices for the Next Era, ed. F. M. Hesselbein, M.
Goldsmith, and R. Beckhard (San Francisco: Jossey-Bass, 1996).
6. D. H. Maister, C. H. Green, and R. M. Galford, The Trusted Advisor (New York: The
Free Press, 2000).
7. C. Farren and B. L. Kaye, “New Skills for New Leadership Roles,” in The Leader of the
Future: New Visions, Strategies, and Practices for the Next Era, ed. F. M. Hesselbein, M.
Goldsmith, and R. Beckhard (San Francisco: Jossey-Bass, 1996).
8. D. K. Smith, “The Following Part of Leading,” in The Leader of the Future: New Visions,
Strategies, and Practices for the Next Era, ed. F. M. Hesselbein, M. Goldsmith, and R.
Beckhard (San Francisco: Jossey-Bass, 1996).
9. J. M. Kouzes and B. Z. Posner, The Leadership Challenge: How to Get Extraordinary
Things Done in Organizations (San Francisco: Jossey-Bass, 1987).
10. Ibid., 27, 135.
11. W. Bridges, “Leading the De-Jobbed Organization,” and E. H. Schein, “Leadership
and Organizational Culture,” in The Leader of the Future: New Visions, Strategies, and
Practices for the Next Era, ed. F. M. Hesselbein, M. Goldsmith, and R. Beckhard
(San Francisco: Jossey-Bass, 1996).
12. C. Handy, “The New Language of Organizing and Its Implications for Leaders,”
in The Leader of the Future: New Visions, Strategies, and Practices for the Next Era, ed.
F. M. Hesselbein, M. Goldsmith, and R. Beckhard (San Francisco: Jossey-Bass, 1996).
13. E. H. Schein, “Leadership and Organizational Culture,” in The Leader of the Future:
New Visions, Strategies, and Practices for the Next Era, ed. F. M. Hesselbein,
M. Goldsmith, and R. Beckhard (San Francisco: Jossey-Bass, 1996).
14. W. E. Deming, The New Economics (Cambridge: Massachusetts Institute of
Technology, 1994), 116.
15. D. Goleman, Working with Emotional Intelligence (New York: Bantam, 1998).
16. R. T. Pascale and A. G. Athos, The Art of Japanese Management (London: Penguin
Books, 1986).
17. R. T. Westcott defines “competency = knowledge, experience, skills, aptitude, and
attitude—KESAA Factors,” and discusses examples of competence requisites in
“The Metamorphosis of the Quality Professional,” Quality Progress (October 2004):
22–32.
Part I.B.5
Chapter 2: B. Leadership Challenges 51
18. P. F. Drucker, Management: Tasks, Responsibilities, Practices (New York: Harper & Row,
1974).
19. D. W. Hutton, The Change Agents’ Handbook: A Survival Guide for Quality Improvement
Champions (Milwaukee: ASQC Quality Press, 1994).
20. Deming, New Economics.
21. J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996).
22. Ibid., 16.
23. D. W. Okes, “Developing Effective Change Agent Skills,” 32nd Annual Quality
Clinic, Knoxville, TN, March 1991.
24. J. M. Brion, Organizational Leadership of Human Resources: The Knowledge and the Skills,
Part I, The Individual (Greenwich, CT: JAI Press, 1989).
25. A. H. Maslow, “Self-Actualization and Beyond,” in Challenges of Humanistic
Psychology, ed. J. F. T. Bugental (New York: McGraw-Hill, 1967).
26. F. Herzberg, “One More Time: How Do You Motivate Employees?” Harvard Business
Review (January–February 1968).
27. K. W. Thomas, “Conflict and Conflict Management,” in Handbook of Industrial and
Organizational Psychology, Vol. II, ed. M. D. Dunnette. (Chicago: Rand McNally, 1976).
28. J. F. Brett, G. B. Northcraft, and R. L. Pinkley, “Stairways to Heaven: An Interlocking
Self-Regulation Model of Negotiation,” Academy of Management Review (July 1999):
435–51.
29. J. Kelly, “Making Conflict Work for You,” Harvard Business Review 48, no. 6 (July–
August 1970).
30. K. W. Thomas and R. H. Kilman, Thomas-Kilman Conflict Mode Instrument (Tu xedo,
NY: XICOM, 1974).
31. M. A. Bittel, ed., Handbook for Professional Managers (New York: McGraw-Hill, 1985).
32. T. G. Cummings and E. F. Huse, Organizational Development and Change, 4th ed.
(St. Paul, MN: West Publishing, 1989), 171.
33. J. M. Juran, The Last Word: Lessons of a Lifetime in Managing for Quality (Wilton, CT:
Juran Institute, 1993), 332.
34. Kouzes and Posner, The Leadership Challenge.
35. C. A. Aubrey and P. K. Felkins, Teamwork: Involving People in Quality and Productivity
Improvement (Milwaukee: ASQC Quality Press, 1988).
See Appendix A for additional references for this chapter.
52
Chapter 3
C. Teams and Team Processes
A
team is a group of people who perform interdependent tasks to work
toward a common mission. Some teams have a limited life, for example,
a design team developing a new product or a process improvement team
organized to solve a particular problem. Other teams are ongoing, for example, a
departmental team that meets regularly to review goals, objectives, activities, and
performance. Understanding the many interrelationships that exist between orga-
nizational units and processes, and the impact of these relationships on quality,
productivity, and cost, makes the value of teams apparent.
Many of today’s team concepts were initiated in the United States during the
1970s through the use of quality circles or employee involvement initiatives.
The initiatives were often seen as separate from normal work activities rather than
being integrated with other organizational systems and processes. Team designs
have since evolved into a broader concept that includes many types of teams
formed for different purposes.
Difficulty with teams in the United States is often blamed on a cultural empha-
sis on individual accomplishments versus shared responsibility and success. The
problems are also due to inadequate organizational support structures. For exam-
ple, since reward systems often reinforce individual performance, it is logical
that people would be less interested in sharing responsibilities. Formal gainshar-
ing programs that reward individuals financially based on performance of the
company, division, facility, product line, and/or project of which they are part are
more likely to reinforce the need for working together toward common goals.
Just as individuals develop over their life-span, groups tend to change over
time. Being aware of this normal progression and ways to overcome difficul-
ties that arise can help the team process be a very positive experience. As Senge
pointed out in The Fifth Discipline, if a team really jells, the resulting experience can
be a highlight of one’s career.
The team process also helps an organization change and begin working in dif-
ferent ways. If decisions are made in a multidisciplinary way, the team will con-
sider a broader perspective and will be likely to better address problems. Other
members of the organization will often more readily accept the decisions. Some
work design changes mean that people from formerly separate functional areas
now work together in a newly designed process. These types of changes require
more significant attention to organizational change issues to help the group focus
on its new mission.
Part I.C
Team processes offer the following benefits to the organization:
• Synergisticprocessdesignorproblemsolving
• Objectiveanalysisofproblemsoropportunities
• Promotionofcross-functionalunderstanding
• Improvedqualityandproductivity
• Greaterinnovation
• Reducedoperatingcosts
• Increasedcommitmenttoorganizationalmission
• Moreflexibleresponsetochange
• Increasedownershipandstewardship
• Reducedturnoverandabsenteeism
Individuals can gain the following benefits from teams:
• Enhancedproblem-solvingskills
• Increasedknowledgeofinterpersonaldynamics
• Broaderknowledgeofbusinessprocesses
• Newskillsforfutureleadershiproles
• Increasedqualityofworklife
• Feelingsofsatisfactionandcommitment
• Senseofbeingpartofsomethinggreaterthanonecould
accomplish alone
Numerous reasons have been noted for why teams often fail to reach their full
potential. Common reasons are:
• Failingtointegratecooperativeworkmethodsintotheorganizational
culture
• Lackoforganizationalsystemsnecessarytosupporttheteamprocess
• Minimalup-frontplanningofhowtheorganizationplanstoutilize
teams
• Failuretopreparemanagersfortheirchangingroles
• Failuretoprepareteammembersfortheirnewroles
• Inappropriaterecognitionandcompensationsystems
• Inadequatetraining
• Impatienceoftopmanagementwiththetimeneededformaturation
• Incompleteunderstandingofgroupdynamics
Chapter 3: C. Teams and Team Processes 53
Part I.C
54 Part I: Leadership
Part I.C.1
1. TYPES OF TEAMS
Identify different types of teams and their
purpose, including process improvement,
self-managed, temporary or ad hoc (special
project), and work groups or workcells.
(Understand)
Body of Knowledge I.C.1
Team Configurations
Consider the differences between a baseball team, a jazz quartet, and a bomb
squad. They differ according to the number of members, the range and complex-
ity of skills required, the forms of leadership used, the frequency of working
together, and the total time spent working together. As Louis Sullivan, a mentor
of Frank Lloyd Wright, stated, “form follows function,” and this also applies to
teams. Although they may take different names in different industries or organi-
zations, this section presents eight types of teams:
• Processimprovementteams
• Self-managedteams
• Temporary/adhocteams
• Workgroups
• Cellularteams
• Specialprojectteams
• Virtualteams
• Combinationsoftwoormoreoftheabovetypes
Process Improvement Teams. A process improvement team is a project team that
focuses on improving or developing a specific business process and is more likely
to be trying to accomplish breakthrough-level improvement. The team comes
together to achieve a specific goal, is guided by a well-defined project plan, and
has a negotiated beginning and end. Such teams are typically cross-disciplinary,
bringing together people from different functions and with different skills related
to the process to be improved. The team may have a management sponsor who
charters the team and ensures that the team has the appropriate resources and
organizational support.
The leader of a process improvement team is usually selected by the project
sponsor, and the team meets on a regular basis (for example, weekly) to plan activ-
ities that will be carried out outside the meeting, review information gathered
since the previous meeting, and make decisions regarding implementation of pro-
cess changes. An independent facilitator who has no involvement in the process to
Part I.C.1
Chapter 3: C. Teams and Team Processes 55
be improved may also work with the team if team members do not have sufficient
skills or experience with team facilitation.
In today’s fast-paced environment, many organizations also do process
improvement through an accelerated team process sometimes called a kaizen event
or kaizen blitz. These teams spend three to five consecutive full days focusing on
a very narrow project scope and implement many of their recommended changes
during that period. Gains on the order of 70 percent (for example, increase in pro-
ductivity or reduction in changeover time) are not uncommon. In order to accel-
erate the pace of progress, the facilitator typically has more authority than with
most teams.
Self-Managed Teams. Self-managed teams are groups of employees involved in
directly managing the day-to-day operation of their particular process or depart-
ment. They are authorized to make decisions on a wide range of issues (for exam-
ple, safety, quality, maintenance, scheduling, and some personnel decisions).
Their responsibilities also include processes traditionally performed by manag-
ers, such as setting objectives, allocation of assignments, and conflict resolution.
These teams are also called self-directed teams or high-performance work teams. They
give employees much broader responsibility and ownership of a work process.
The leader of a self-managed team is usually selected by the team members,
and in many cases the role is rotated among the members over time. Also often
rotated is the responsibility for providing within-team coordination of particular
technical aspects of the team’s processes, such as safety or scheduling.
All the elements that apply to work groups also apply to self-managed teams.
Self-managed work teams, however, require more up-front planning, support
structures, and nurturing. The transition will usually take a significant time
period, and needs consistent support from management.
The following key lessons related to self-managed teams were identified dur-
ing a study of a financial organization:
• Implementawell-thought-outstructuretodesignandguidethe
implementation process, such as a steering committee, a design team,
and a pilot effort.
• Providespecialtrainingtomanagersandsupervisorstohelpthem
make the transition from their current role to the new support role.
• Developacarefulplantomanagepeoplethroughoutthetransition.
The new team structure will cause changes that will appear
threatening to many involved, as they interpret the changes as a loss.
• Setrealisticexpectationsthatconsiderthelongandenergy-consuming
time required for the process to become integrated into the business.
1
Comprehensive training is also critical in order to move from a traditional to a
self-managed work environment. For example, one Fortune 500 company pro-
vides training in the following subjects:
• Howtomaintainafocusonthecustomer
• Howtodevelopavisionandmissionthatareintegratedwiththe
larger organization’s mission
56 Part I: Leadership
Part I.C.1
• Understandingofrolesandoperatingguidelines
• Skillsrequiredforworkingtogethertomakedecisions,planwork,
resolve differences, and conduct meetings
• Theconceptsandstrategyforempowerment
• Settinggoals(objectives)andsolvingproblemsforcontinuous
improvement
2
Self-managed teams are more likely to be successful when they are created as part
of starting up a new facility (a greenfield site) since the cultural change required
if an existing facility (a brownfield site) attempts to transition from a traditional
work design is so dramatic. In order to smooth the transition to self-managed
teams, an existing organization may begin by first implementing cross-functional
process improvement teams and/or work teams as a means for learning.
Temporary/Ad Hoc Teams. In a flexible organization, a need for a temporary
team may be identified due to a specific problem or situation. Although such ad
hoc teams may not use the same formal structures (for example, agenda, regular
meeting frequency), the same general principles and processes are still necessary.
An empowered organization often sanctions the use of such teams when deemed
useful to carry out a short-term mission. For example, many organizations regu-
larly use temporary teams to conduct internal audits of compliance of their quality
management system with the ISO 9001 standard.
A problem or situation may arise that requires immediate and dedicated
attention, for example:
• Afloodorfirehasoccurred,anddecisionshavetobemaderegarding
temporary relocation of the process. What emergency plans need
upgrading to deal with a similar future emergency?
• Amajorcustomerissendinginanauditingteamtoassessthe
adequacy of your quality management system. What needs to be done
to prepare for the audit?
• Yourinformationmanagementcomputersystemhasbeen
compromised by an outside virus. What processes have been affected,
and what emergency steps must be taken to recover from the infected
data and programs? What safeguards need upgrading or replacement
to prevent a similar future disaster?
Usually, management designates the person to form the team to address the sit-
uation. Typically, and depending on the nature of the situation, the team will be
small and cross-functional, and will call on other technical expertise as needed.
Situations less critical than those listed may also be addressed by a temporary
team, for example, the disposition of an unusually large return or recall of unac-
ceptable product.
Work Groups. Work groups, sometimes called natural teams, are teams of employ-
ees who have responsibility for a particular process (for example, a department, a
product line, or a stage of a business process) and who work together in a partici-
pative environment. The degree of authority and autonomy of the team can range
Part I.C.1
Chapter 3: C. Teams and Team Processes 57
from relatively limited to full self-management depending on the organizational
culture. The participative approach is based on the belief that employees will be
more productive if they have a higher level of responsibility for their work (see
Chapter 2, Section 5). Since the team understands the work processes, the mem-
bers should monitor and improve the processes on an ongoing basis. The team
leader is usually the individual responsible for the work area, such as a depart-
ment supervisor.
Work groups function similarly to quality circles, in which department per-
sonnel meet weekly or monthly to review performance of their process. They
monitor feedback from their customers and track internal performance measures
of processes and suppliers. These teams focus on continual, incremental improve-
ments in their work processes. They are similar to process improvement teams,
with the key differences being that they are neither cross-functional nor tempo-
rary. Again, a facilitator is usually available for teams if needed. Other outside per-
sonnel may be brought in as resources on a temporary basis.
More effective use of the work group team design involves applying it at all
levels of an organization, with each level linked to the one above and below it
(see Figure 3.1). The top management team monitors performance of processes for
which it is responsible (for example, overall business performance), teams at the
next level monitor and improve their processes (for example, logistics and delivery
performance), and teams at the next level track and improve their performance.
Since performance of a work area can be impacted by issues outside the team’s
control, one work group might request that another (for example, the supplier
work group) improve a particular process. Alternatively, a process improvement
team may be organized that involves both departments working together.
Since work groups are an ongoing organizational structure, it is critical that
the organizational systems and values support the effort. Certain basic elements
should be considered when an organization is attempting to initiate work groups:
• Topmanagementsupport
• Clearcommunication
• Improvementobjectivesandexpectations
• Teamtraining
• Appropriatecompetencies
• Supportivecompensationandperformanceappraisalsystems
Other issues to consider include:
• Team’sscopeofresponsibilityandauthority
• Degreeofautonomy
• Informationneededbyteamandwhereobtained
• Decision-makingprocess
• Performancemeasuresandsuccessfactors
• Recognitionandrewardsforperformance
• Competenciesthatmustbedeveloped
58 Part I: Leadership
Part I.C.1
Facility
leader
Department C
leader
Department B
leader
Department D
leader
Department A
leader
Four interlocking
teams, each at a
different level of
the organization
Unit C1
leader
Unit C2
leader
Unit C3
leader
Unit C4
leader
Process 1
leader
Process 2
leader
Process 3
leader
Associate Associate Associate Associate Associate
Figure 3.1 Linking team structure.
Part I.C.1
Chapter 3: C. Teams and Team Processes 59
• Selectionprocessforleadersandfacilitators
• Riskmanagementprocess
An implementation plan including the necessary support systems should be
defined before initiating such groups. If work groups are being introduced into
an existing organization where a participative management style has not been
used before, a pilot program in a department where it is likely to succeed is highly
recommended.
Cellular Teams. When processes are organized into cells, the layout of worksta-
tions and/or machines used in a given part of the process typically is arranged
in a U-shape (see Figure 14.8) configuration. This allows operators to proceed
with a part from machine to machine, performing a series of sequential steps to
produce a whole product or a major subassembly.
The team that operates the cell is usually totally cross-trained in every step in
the series. Team effectiveness depends on coordination, timing, and cooperation.
Team members’ competencies must be as closely matched as possible to maintain
a reasonable and consistent work pace and quality.
Cell team members usually assume ownership and responsibility for estab-
lishing and improving the work processes. Leadership of the cell team may be by
a person designated as lead operator, or a similar title. In some cases, the role of
lead operator may be rotated among the members. The lead operator is usually
responsible for training new team members, reporting team output, and balanc-
ing the flow of work through the process. A cellular team is a specialized form of
a self-directed work group.
Special Project Teams. Often, a need develops to form a long-duration, totally
dedicated project team to implement a major new product, system, or process.
Some examples are:
• Reengineeringanentireprocess
• Relocatingamajorsegmentoftheoperation
• Mergers,acquisitions,ordivestitures
• Replacingamajorinformationsystem
• Enteringanewmarketwithanewproduct
• PreparingtoapplyfortheBaldrigeAward
Such special project teams may operate as a parallel organization during their
existence. They may be located away from the main organization, and even be
exempt from some of the policy and work-rules constraints of the main organiza-
tion. The core team members are usually drafted for the duration of the project.
Persons with additional expertise may be called into the team on a temporary, as-
needed basis. Usually, the project is headed by an experienced project manager.
Depending on the nature of the team’s objectives, external specialists or consul-
tants may be retained to augment the core competencies of the team members.
Virtual Teams. In today’s global and electronic business environment, it may
be expedient to have team members who do not work in the same geographic
60 Part I: Leadership
Part I.C.1
location. These virtual teams also require many of the same roles and processes,
but the substitution of electronic communications (for example, e-mail, video-
conferencing) for face-to-face meetings provides an additional challenge to team
leadership. A key competency of team members is the ability and motivation to
self-manage their time and priorities.
Virtual teams have special needs, some of which are:
• Telephones,localareanetworks,satellites,videoconferencing
• Computers,high-speedandwirelessconnections,internettechnology,
e-mail, web-based chat rooms/forums, and so on
• Softwareforcommunications,meetingfacilitation,timemanagement,
project management, groupware, accessing online databases
• Combinationsoftheabovemayfacilitatecommunicationand
performance
The benefits of virtual teams are:
• Teammembersmayworkfromanylocationandatanytimeofday.
• Teammembersareselectedfortheircompetence,notfortheir
geographic location.
• Expensesmaybereducedoreliminated,suchastravel,lodging,
parking, and renting/leasing or owning a building, office equipment,
and furniture.
Team Selection
Management selects the team leader. Team members may be selected by either
management or the team leader. When the choice of the team members is left to
the team leader, however, some methods and tools may be used. To begin, the
team leader should identify the competence needed. Five factors (KESAA) com-
prise competence:
• Knowledge. Formal education, degrees, educational certifications,
professional certifications, and self-study achievements
• Experience. Years spent applying knowledge and skills in pertinent
types of organizations and industries, and in jobs/positions held
• Skills. Skill certifications, training received, and demonstrated
proficiency in use of pertinent tools and equipment
• Aptitude. Natural talent, capability, capacity, innate qualities, deftness,
knack, adaptability to change, natural ability to do things requiring
hand-eye coordination, and fine motor skills
• Attitude. Manner of showing one’s feelings or thoughts; one’s
disposition, opinion, mood, ideas, beliefs, demeanor, state of feeling,
reaction, bias, inclination, emotion, temperament, mental state, frame
of mind, ease in accepting and adopting new or changed plans and
practices
Part I.C.1
Chapter 3: C. Teams and Team Processes 61
By analyzing the tasks facing the team, the team leader can complete a KESAA req-
uisites analysis for each individual role, major task, or task cluster.
3
A sample from
staffing a project team is shown in Figure 3.2.
In addition, the Myers-Briggs Personality Type Indicator may be used to deter-
mine how each potential team member is best suited to the team tasks and team
Project Staffing—KESAA Requisites Analysis
[Define KESAA factors for each key project participant planned on the resource requirements
matrix—personnel]
Task/work package name: Train project managers in using new Microsoft Project software
Task/WP number: 3.10.01.01
Job/position category/title: Application software specialist
Knowledge • Knows proven techniques for designing and delivering software training to
people with diverse knowledge, experience, and skills
• Extensive knowledge of project planning and management techniques, tools,
and practices
• Received Microsoft certificate for completing the advanced MS Project
five-day training program within last four years
• Earned college degree (software major)
Experience • Has instructed project teams in use of MS Project at a previous employer,
two or more times
• Used MS Project on two or more previous large-scale projects
• Has demonstrated proficiency in providing software technical support for
MS Project users working on large-scale projects
• Has demonstrated proficiency in using thorough, rapid, and user-friendly
techniques for training new software users
Skills • Possesses excellent communication skills (reading comprehension,
instructing, technical writing, and listening)
• Proficient in using all Microsoft Office software
• Trained in using proven instructional technology in training design, delivery,
and evaluation
Aptitude • Has capability to adapt the MS Project training to the special needs of each
participant
• Has worked well in a team environment that is subject to frequent changes.
Fast learner.
Attitude • Enjoys imparting his/her knowledge and skills to new software users
• Measures his/her success on the improved performance of those trained by
him/her
• Believes that MS Project is the best selection of project management
software, at this time and place
• Exhibits “What can we do to make this happen?” demeanor
Additional comments:
Prepared by: Anna Lyst Date: June 30, 2013
Figure 3.2
Project staffing—KESAA requisites analysis.
Source: Reprinted with permission of R. T. Westcott & Associates.
62 Part I: Leadership
Part I.C.2
dynamics anticipated. The DiSC model and instrument may also be used (see
Chapter 8). Team leaders should also consider any problems obtaining coopera-
tion from a selected person’s boss relative to time constraints and conflicts, prior
commitments (unfinished work on regular assignment), priorities (which work
is most important?), and reporting relationships (to whom does selected person
report?).
A selected individual’s reluctance to join a team may be because of the
potential for losing interaction with colleagues from the same discipline and
the potential for losing an opportunity for further education and training in the
individual’s chosen field, and potential impact on pay raises and promotion.
2. STAGES OF TEAM DEVELOPMENT
Define and describe the classic stages of team
development: forming, storming, norming,
performing. (Apply)
Body of Knowledge I.C.2
Teams will progress through stages of growth and maturity as the members work
together over time. Understanding these development stages is valuable for the
effective management of the team process. The stages can vary in intensity and
duration depending on the type of team, the environment in which it works,
and the individuals who constitute it. A generic model for the phases of team
development, described by Tuckman,
4
is shown in Figure 3.3:
• Stage 1: Forming. When team members first come together, they bring
with them individual identities and the values and the priorities
of their usual environment. Each team is a new experience, even
for those who have previously been members of teams. Individuals
enter this situation cautiously, feeling uncertain of what their role and
performance will be in this new environment. During the forming
stage, the team usually clarifies its purpose, identifies roles for each
member, and defines rules of acceptable behavior (often called norms).
• Stage 2: Storming. During this phase, the reality of the team’s task sinks
in. Team members still think primarily as individuals, and might
attempt to form decisions on the basis of their individual experiences
rather than pooling information with other members. Collaboration
has not yet become the norm as team members fluctuate in their
attitude about the team’s chances for success. The behaviors exhibited
during this time may involve argument, testing the leader’s authority,
attempts to redefine goals, and competitive or defensive acts.
• Stage 3: Norming. In this phase, the individuals coalesce into a team
by shifting their focus from personal concerns to that of meeting the
Part I.C.2
Chapter 3: C. Teams and Team Processes 63
team-related challenges. Interpersonal conflicts and the tug of external
loyalties are reduced. Team members are willing to discuss differences
for the sake of the team, resulting in more cooperation and dialogue.
• Stage 4: Performing. At this stage, the team has matured to the point
where it is working as a smooth, cohesive unit. Team members have
a good understanding of each other ’s strengths and weaknesses and
how they support the mission, and are now able to work through
group problems. There is a better appreciation of the team’s processes
and a general satisfaction with team membership. During this phase,
the team is making significant progress toward achieving its goals.
Although the four stages of development indicate a logical sequence that occurs
over time, the actual progress made by each team will vary. For example, a team
that has progressed to stage 3 or 4 may fall back to stage 1 or 2. This may occur
if they learn that previous assumptions about one another are not true, informa-
tion they have been using for decision making is found to be inaccurate, or team
membership changes.
Some teams might never progress beyond an earlier stage because of limited
project duration or poor resolution of group dynamics issues.
Some authors have added a stage to Tuckman’s original model: adjourning. It
is the process of closure that occurs when the team has accomplished its mission.
The team should take time to review the lessons learned and what was accom-
plished, complete documentation, celebrate, and formally disband. Frequently,
Stage 1
Stage 2
Stage 4
Stage 3
Performing
• Team has matured
• Smooth, cohesive unit
• Focus on process
• Feelings of satisfaction
• Achieving goals
Norming
• Team coalesces
• Cooperation
• Willing to dialogue
• Conflicts reduced
• Focus on team
objective
Forming
• Proud to be selected
• Anxious
• New team experience
• Forming team structure
Storming
• Individualistic thinking
• Tug of external loyalties
• Fluctuating attitudes
• Confrontations
• Team’s task sinks in
Figure 3.3 Team development phases.
64 Part I: Leadership
Part I.C.3
this stage is either skipped over or incompletely performed, or in some cases, proj-
ect teams just continue to meet without “closing” the project and without a con-
tinuing business purpose.
Team development can be enhanced by making sure that team members have
a basic understanding of how to (1) interact in positive ways, (2) deal with difficult
people or situations, (3) contribute to accomplishing the team’s goals, and (4) give
or receive constructive feedback.
3. TEAM-BUILDING TECHNIQUES
Apply basic team-building steps such as using
ice-breaker activities to enhance team
introductions and membership, developing a
common vision and agreement on team
objectives, identifying and assigning specific
roles on the team. (Apply)
Body of Knowledge I.C.3
Team Processes
There are two major groups of components in team processes—task-type and
maintenance-type. Task-type processes keep a team focused and moving toward
its goal, while maintenance processes help build and preserve the effectiveness of
relationships between team members. Key task components include:
• Reviewinganddocumentingtheteam’sobjective(s).
• Preparinganagendaforeveryteammeetingandstayingfocusedon
the agenda. If other issues come up that need to be addressed, the
agenda can either be intentionally modified, or new issues can be
placed on a list for the next meeting agenda.
• Definingorselecting,andfollowingatechnicalprocessthatfitsthe
particular project mission (for example, a seven-step problem-solving
model if the team is trying to solve a problem; see Chapter 13).
• Usingdecision-makingtechniques(forexample,consensus,
consultative) appropriate to the situation.
• Definingactionitems,responsibilities,andtiming,andholdingteam
members accountable.
Maintenance tasks are somewhat less easily defined, but can also dramatically
impact team performance. An outsider might see only the tasks involved with
meeting objectives as important, but for team members, the dynamics of interac-
tions between team members can be just as critical. Theories and practices of team
dynamics have come from fields as diverse as sociology, psychology, anthropology,
Part I.C.3
Chapter 3: C. Teams and Team Processes 65
organizational development, and political science, where group behavior has been
studied in working, living, academic, and therapeutic environments.
Team maintenance tasks are meant to help alleviate the problems created by
the fact that each individual on the team has his/her own perspectives and pri-
orities. These are shaped by individual personality, current issues in the person’s
personal life, and the attitudes of both the formal and informal groups within
the organization to which the individual belongs. This means that although the
team may have a specific objective and agenda, each individual perceives things
differently.
Preventing Problems with Team Process. Two common ways of preventing team
dynamics problems are to use norms and roles. A list of behavioral expectations
(norms) is defined by the team during the first meeting, or a predetermined set of
norms used by all teams within the organization might be adopted. Following are
a few examples of norms and the purpose of each:
• “Beontimeformeetings.”Emphasizesthatmeetingtimeneedsto
be used effectively, and to wait for someone to arrive is a waste of
others’ time.
• “Atleastfour(offive)teammembersmustbeabletoattend.”
Recognizes that vacation, business travel, and other events may
prevent some team members from attending a particular meeting,
while ensuring that meetings are not held and decisions made by
only a small proportion of the members.
• “Nosideconversations.”Ensuresthatmembersarefullypresentand
listening to what is being said, making sure that each person’s ideas
are heard and considered.
• “Stayingontheagenda.”Althoughsomewhattaskoriented,this
emphasizes that team meetings are not the place for personal gripes,
and that the team has an important mission.
• “Participationbyeveryone.”Clarifiesthatallareexpectedtoplayan
active role, even though the particular skills and activities may differ.
• “Usetheparking lot.” For issues not on the agenda that are set aside to
be dealt with at a later time.
• “Nophonesorotherelectronicdevices”aretobeusedinateam
meeting unless specifically required to accomplish the task at hand.
• “Themanagementofteammembersmustbeapprisedthattheneed
for absolute dedication to the team objectives by team members
is not to be interrupted, except for extreme personal or business
emergencies.”
Having team members take on particular roles helps get them involved and reduces
the likelihood of their feeling that their time is being wasted. Two common roles
often rotated among team members are scribe and timekeeper. A scribe is respon-
sible for capturing information from the team meeting in a record of meeting
minutes and distributing them appropriately following the meeting. A timekeeper
66 Part I: Leadership
Part I.C.3
monitors how well the team is progressing against the timeline spelled out in the
agenda, and will notify the team if they are straying off the scheduled times.
Another method for getting team members more involved and working
together is to have them work in even smaller groups on narrow activities. For
example, if the team needs to acquire some data that are readily available, having
two team members work together to get and present the data will provide an
opportunity for them to develop a closer working relationship that can carry over
into the overall team process.
The first team meeting can set the tone for the entire team effort, and it is
therefore important that it be well planned. Following are some actions that can
enhance the first meeting:
• Havethesponsororotherstakeholdersattendthemeetingto
emphasize the importance of the project, and the support that will
be provided.
• Ensurethatallteammembershaveafullunderstandingoftheteam’s
mission and scope.
• Allowteammemberstogetacquainted.
• Clarifyteammembers’roles.
• Workoutdecision-makingissues.
• Establishmeetinggroundrules(norms).
• Defineorselectthetechnicalprocessimprovementmethodology/
model to be used.
• Define/reviewtheprojectplanandschedule.
• Drafttheteam’sobjectives(maybemodifiedinsecondmeeting).
• Definethestructureforfuturemeetings.
Special exercises (often called icebreakers) can also be conducted during the first
meeting to help team members feel more comfortable in the new environment.
(Training material providers offer a plethora of such exercises.) Aside from struc-
tured exercises, team members can be asked to state what they hope to person-
ally gain from the project experience. The team can come up with a name for
the group. Team members can discuss previous experiences with working in
teams and what they learned from them. Activities such as these allow the per-
sonalities and values of individual team members to become more visible, and
bring team members closer together.
Setting the Team’s Objectives. Setting objectives not only gives the team some
work to do, it begins the team’s development and helps to begin to clarify the task
ahead. It is likely that the first draft will require modification at a subsequent
meeting. As a template, consider the S.M.A.R.T. W.A.Y. (Table 5.1).
Decision-Making Method. Consensus decision making is the process recom-
mended for major project issues. The approach is more time-consuming and
demanding, but provides the most thorough and cohesive results. It allows the
Part I.C.4
Chapter 3: C. Teams and Team Processes 67
team to work out different points of view on an issue and come to a conclusion
that is acceptable. Consensus means that the decision is acceptable enough that all
team members will support it. To achieve consensus, all team members must be
allowed to express their views and must also objectively listen to the views of oth-
ers. The decision and alternatives should be discussed until consensus is reached.
4. TEAM ROLES AND RESPONSIBILITIES
Define and describe typical roles related to team
support and effectiveness such as facilitator, leader,
process owner, champion, project manager, and
contributor. Describe member and leader
responsibilities with regard to group dynamics,
including keeping the team on task, recognizing
hidden agendas, handling disruptive behavior, and
resolving conflict. (Analyze)
Body of Knowledge I.C.4
Of the seven roles described in Table 3.1, the roles of timekeeper and scribe are the
only ones that are optional depending on the ability of a team member to effec-
tively fulfill a dual role of participating member and either scribe or timekeeper.
While the remaining five roles are essential, they may be combined in a variety
of ways. Crucial roles for the success of the team, once it is formed, are the team
leader and facilitator roles. The team leader is responsible for the content, the work
done by the team. The facilitator is responsible for ensuring that the process used
by the team and team dynamics are the best for the stage and situation the team
is in.
5
There is a need for a trained facilitator when:
• Noteammemberistrainedfor,capableof,orwillingtoassumethis
role in addition to functioning as a participating member.
• Theteamhasbeenmeetingforsometimeandisincapableofresolving
conflicting issues.
• Anewmemberhasbeenadded,thusupsettingestablished
relationships.
• Akeycontributorhaslefttheteam.
• Thereareotherfactors,suchasrunningshortonresources,project
cancellation, or major change in requirements, that may disturb the
smooth functioning of the team.
Supplementing the team with on-call experts can often compensate for a short-
fall in either the number of members or members’ competencies. Such temporary
68 Part I: Leadership
Part I.C.4
members must willingly share their expertise, listen attentively, abide by team
norms, and support team decisions.
The selection of a team member to serve as a timekeeper may be helpful, at
least until the team has become more adept at self-monitoring time usage. When
a timekeeper is needed, the role is often rotated, giving consideration to whether
the selected member has a vital role to play in the deliberations at a particular
meeting.
For some team missions where very formal documentation is required, a scribe
or notetaker may be needed. This role can be distracting for a member whose full
attention may be needed on the topics under discussion. For this reason, an assis-
tant, not a regular member of the team, is sometimes assigned to take the minutes
and publish them. Care should be taken to not select a member to serve as a scribe
solely based on the person’s gender or position in the organization.
All team members must adhere to expected standards of quality, fiduciary
responsibility, ethics, and confidentiality (see Chapter 4). It is imperative that the
most competent individuals available are selected for each role. See Table 3.1 for
attributes of good role performance.
Frequently, a team must function in parallel with day-to-day assigned work
and with the members not being relieved of responsibility for the regularly
assigned work. This, of course, places a burden and stress on the team members.
The day-to-day work and the work of the team must both be conducted effectively.
Not being able to be in two places at one time calls for innovative time manage-
ment, conflict resolution, and negotiation skills.
Steering Committee
Top management is ultimately responsible for organizational performance
improvement. One of top management’s key roles, then, is to identify and pri-
oritize opportunities, and initiate teams to address those of greatest value to the
organization. Projects might be selected on the basis of new strategic initiatives
(for example, developing a new service for a new market niche), customer satis-
faction data, cost-of-quality reports, or other strategic or operational performance
measures or initiatives (for example, capacity, throughput, and lean projects such
as waste reduction).
In order to carry out this process and to simultaneously provide opportuni-
ties for learning, a special group called the steering committee is often set up for
guiding and tracking of team efforts. The group usually includes key leaders in
the organ ization (for example, president, operations manager, quality manager)
as well as others who represent particular interests. In an organization working
under a union contract, the union representative is also likely to be a member of
the steering committee. The steering committee is often a diagonal slice represent-
ing all levels of the organization.
One role of the steering committee is to initiate desired organizational improve-
ment efforts. It is vital that each team have a clear understanding of its purpose
and how that purpose is linked to and supports the organization’s strategic plans.
This is done through a written charter that defines the mission and objectives of
each project, as well as key personnel (for example, team leader, members, facili-
tator) and project timing. The charter is a formal document agreed to by both the
Part I.C.4
Chapter 3: C. Teams and Team Processes 69
T
able 3.1 Roles, responsibilities, and performance attributes.
Role name
Champion
Sponsor
T
eam leader
Responsibility
Advocate
Backer,
risk taker
Change agent,
chair, head
Definition
The person initiating a concept or idea for
change/improvement
The person who supports a team’s plans, activities,
and outcomes.
A person who:
•Staffs the team or provides input for staffing
requirements
•Strives to bring about change/improvement
through the team’s outcomes
•Is entrusted by followers to lead them
•Has the authority for, and directs the efforts of,
the team
•Participates as a team member
•Coaches team members in developing or
enhancing necessary competencies
•Communicates with management about the
team’s progress and needs
•Handles the logistics of team meetings
•Takes responsibility for team records
Attributes of good role performance
•Is dedicated to seeing it implemented
•Holds absolute belief it is the right thing to do
•Has perseverance and stamina
•Believes in the concept/idea
•Has sound business acumen
•Is willing to take risk and responsibility for outcomes
•Has authority to approve needed resources
•Will be listened to by upper management
•Is committed to the team’s mission and objectives
•Has experience in planning, organizing, staffing,
controlling, and directing
•Is capable of creating and maintaining channels that
enable members to do their work
•Is capable of gaining the respect of team members;
serves as a role model
•Is firm, fair, and factual in dealing with a team of
diverse individuals
•Facilitates discussion without dominating
•Actively listens
•Empowers team members to the extent possible
within the organization’s culture
•Supports all team members equally
•Respects each team member’s individuality
Continued
70 Part I: Leadership
Part I.C.4
T
able 3.1 Continued.
Role name
Facilitator
T
imekeeper
Responsibility
Helper,
trainer,
adviser,
coach
Gatekeeper,
monitor
Definition
A person who:
•Observes the team’s processes and team
members’ interactions and suggests process
changes to facilitate positive movement toward
the team’s goals and objectives
•Intervenes if discussion develops into multiple
conversations
•Intervenes to skillfully prevent an individual
from dominating the discussion or to engage
an overlooked individual in the discussion
•Assists the team leader in bringing discussions
to a close
•May provide training in team building, conflict
management, and so forth
A person designated by the team to watch the use
of allocated time and remind the team members
when their time objective may be in jeopardy.
Attributes of good role performance
•Is trained in facilitating skills
•Is respected by team members
•Is tactful
•Knows when and when not to intervene
•Deals with the team’s process, not content
•Respects the team leader and does not override his
or her responsibility
•Respects confidential information shared by
individuals or the team as a whole
•Will not accept facilitator role if expected to report to
management information that is proprietary to the
team
•Will abide by the ASQ Code of Ethics
•Is capable of assisting the team leader in keeping
the team meeting within the predetermined time
limitations
•Is sufficiently assertive to intervene in discussions
when the time allocation is in jeopardy
•Is capable of participating as a member while still
serving as a timekeeper
Continued
Part I.C.4
Chapter 3: C. Teams and Team Processes 71
T
able 3.1 Continued.
Role name
Scribe
T
eam
members
Responsibility
Recorder,
note taker
Participants,
subject matter
experts
Definition
A person designated by the team to record critical
data from team meetings. Formal “minutes” of
the meetings may be published and distributed to
interested parties.
The persons selected to work together to bring
about a change/improvement, achieving this in a
created environment of mutual respect, sharing
of expertise, cooperation, and support.
Attributes of good role performance
•Is capable of capturing on paper, or electronically, the
main points and decisions made in a team meeting
and providing a complete, accurate, and legible
document (or formal minutes) for the team’s records
•Is sufficiently assertive to intervene in discussions
to clarify a point or decision in order to record it
accurately
•Is capable of participating as a member while still
serving as a scribe
•Are willing to commit to the purpose of the team
•Are able to express ideas, opinions, and suggestions
in a nonthreatening manner
•Are capable of listening attentively to other team
members
•Are receptive to new ideas and suggestions
•Are even-tempered and able to handle stress and
cope with problems openly
•Are competent in one or more fields of expertise
needed by the team
•Have favorable performance records
•Are willing to function as team members and forfeit
“star” status
72 Part I: Leadership
Part I.C.4
team and by management. It legitimizes the team’s effort and documents a tacit
agreement from management to provide whatever support is necessary to sustain
the team. The charter should also include boundaries of the scope of work, author-
ity and responsibility and related limitations, relationship of the team to other
teams or projects, the team’s reporting relationships within the organization, and
the expected deliverables. (See Chapter 10 for more on project management.)
If a process improvement team is chartered without a clear mission or objec-
tive, the team will either do nothing or will go in the direction it believes best.
One way to test understanding is to ask, “What will you measure to determine
whether the objective has been accomplished?”
The steering committee may also have the responsibility for approving the
team’s recommendations, and certainly has the authority to enable implementa-
tion. This helps ensure that teams’ recommendations are acted on. Inaction will
result in the belief of team members that management is not serious about the pro-
cess, and employees will be reluctant to get involved in future efforts.
Another role of the steering committee is to ensure that managers and team
members are trained in all aspects of the team concept. This should include
team dynamics, project management, process design and improvement method-
ologies, empowerment, managing organizational change, attributes of leadership
and the transformation process, and how to motivate and reward efforts.
Team Structure
How a team is structured will depend on the scope of the process on which it
will work. A cross-functional team is most widely used for process improvement,
as it may be necessary to cover the full range of job functions that the process
involves. The dynamics of individual personalities will affect the team’s devel-
opment and performance, and should be taken into account when selecting team
members. Every team needs a leader, appropriate team members, and, in some
cases, a facilitator.
Team Leader. The team leader is responsible for coordinating meetings, which
includes scheduling of meeting rooms, creating agendas, guiding the team
through the agenda (including reviews of homework assignments), and reporting
progress to the steering committee. The team leader may also coordinate imple-
mentation of the team’s approved recommendations. The team leader should have
a vested interest in the process, and may be a process owner responsible for the
results of the process. The team leader must have strong organizational and inter-
personal skills, and should be sensitive when dealing with diverse opinions.
Team Members. Other team members are those involved with the process to be
improved and may also include internal or external customers and suppliers.
Technical experts and outsiders with no vested interest in the process are some-
times added to help provide additional knowledge, objectivity, or creativity. The
team members will generally have action items to accomplish outside the team
meetings, and will often take on special roles during a meeting (such as scribe or
timekeeper).
Part I.C.4
Chapter 3: C. Teams and Team Processes 73
Team Facilitator. The team facilitator has the responsibility of helping the team to
work effectively. The facilitator can play a critical role by asking questions, thereby
encouraging the group members to look at the technical process on which they’re
working from different points of view. It is important that the team facilitator
understand quality management theory. In particular, he or she should recog-
nize the impact of individual and social psychology in groups. The facilitator may
also provide or arrange for training to assist the team with the technical tools of
improvement, such as process mapping, selecting data collection strategies, using
relevant analysis tools, and ultimately, guiding the development of a project plan
to carry out improvement recommendations.
Dealing with Team Process Problems
Team members are most productive in an environment in which others are
responsive and friendly, encourage contributions, and promote a sense of worth.
Peter Scholtes spelled out 10 problems that frequently occur within teams and are
typical of the types of situations for which team leaders and facilitators must be
prepared. Following is the list along with recommended actions:
6
Problem 1. Floundering or difficulty in starting or ending an activity. Solution:
Redirect team to the project plan and written objectives.
Problem 2. Team members attempt to influence the team process based on their
position of authority in the organization. Solution: Talk to the members off-line;
clarify the impact of their organizational role and the need for consensus, and ask
for cooperation and patience.
Problem 3. Participants who talk too much. Solution: Structure meeting so that
everyone is encouraged to participate (for example, have members write down
their opinions, then discuss them in the meeting one person at a time).
Problem 4. Participants who rarely speak. Solution: Practice gatekeeping by using
phrases such as, “John, what’s your view on this?” or divide tasks into individual
assignments and have all members report.
Problem 5. Unquestioned acceptance of opinions as facts, or participants making
opinions sound like facts. Solution: Do not be afraid to ask whether something is
an opinion or a fact. Ask for supporting data.
Problem 6. Rushing to get to a solution before the problem-solving process is
worked through. Solution: Remind the group of the cost of jumping to conclusions.
Problem 7. Attempting to explain other members’ motives. Solution: Ask the other
person to clarify.
Problem 8. Ignoring or ridiculing another’s values or statements made. Solution:
Emphasize the need for listening and understanding. Support the discounted
person.
Problem 9. Digression/tangents creating unfocused conversations. Solution:
Remind members of the written agenda and time estimates. Continually direct
74 Part I: Leadership
Part I.C.4
the conversation back on track. Remind team of its mission, objectives, and the
norms established.
Problem 10. Conflict involving personal matters. Solution: Request that these
types of conflict be taken off-line. Reinforce ground rules.
Solutions to conflicts should be in the best interest of the team. Team members
should be nonjudgmental, listening to team discussions and new ideas. Group
feelings should be verbalized by periodically surfacing any undercurrents or by
giving feedback.
One important skill needed in working with teams is the ability to provide
constructive feedback during and/or at the end of a meeting. Feedback is an
important vehicle to help the team mature. This feedback can be provided by the
facilitator or by team members.
There are two types of appropriate feedback: motivational and coaching. Moti-
vational feedback must be constructive, that is, specific, sincere, clear, timely, and
descriptive of what actually occurred in the meeting. Coaching, or corrective feed-
back, specifically states the improvements that need to be made. Scholtes provides
the following guidelines for providing constructive feedback (obviously, destruc-
tive or degrading feedback is not acceptable behavior):
7
• Bespecific.
• Makeobservations,notconclusions.
• Shareideasorinformation,notadvice.
• Speakforyourself.
• Restrictfeedbacktoknownthings.
• Avoidusinglabels.
• Donotexaggerate.
• Phrasetheissueasastatement,notaquestion.
Having a team do a self-evaluation at the end of each meeting can be useful in
helping the team to further develop their team skills and to take more responsi-
bility for team progress. Team members can be asked to write down how well the
team is doing on each of the norms (for example, on a scale of 1–5) and to list any
additional norms they believe need to be added. A group discussion of the infor-
mation can then result in revised norms and specific actions the team will take to
improve in the future.
Team Facilitation Techniques
A facilitator is a person who helps a team manage the team dynamics and rela-
tionship processes. A facilitator does not normally get involved in the content—
the technical aspects of what the team is working on. The role of the facilitator is
instead to act as:
• Aguidetocircumventthepitfallsofastoppageordetourindifficult
situations
Part I.C.4
Chapter 3: C. Teams and Team Processes 75
• Acatalysttoassistindevelopingaplanthatprovidesfollow-uptoall
management levels, thus maintaining continuity of support
• Anobjectiveevaluatorandauditorofteamprogress,identifyingany
roadblocks to success and opportunities to improve performance
8
Some specific responsibilities of the facilitator include:
• Cultivatinganunbiasedandimpartialenvironment
• Ensuringthatafullexaminationanddiscussionofissuestakesplace
• Providinganobjectiveframework
• Reinforcingfocusonmissionandobjectives
• Helpingorganizemultipleanddiverseviewpoints
• Regulatinginterruptions
• Ensuringthateveryoneontheteamhastheopportunitytoparticipate
in discussions and decision making
• Defusingdestructivebehaviors
• Encouragingvisualorverbaltrackingofideas
In order to carry out these responsibilities, the facilitator typically does the
following:
• Encouragesreluctantparticipantstospeak
• Helpstoresolveconflictbetweenteammembers
• Providesfeedbacktotheleaderand/orteam
• Ensuresthatgroundrules(agreed-togroupnorms)arefollowed
• Ensuresthatmembersarelisteningtoandunderstandingothers
• Legitimizeseveryone’sperceptionsandfeelings
• Verbalizeswhatisgoingon
• Checksforagreement
• Maintainsorregainsfocusonthemeetingagendaortopicof
discussion
• Providesideasonapproachesforgatheringoranalyzingdata
• Ensuresconsensus
• Periodicallysummarizesresults
A well-trained facilitator is a valuable asset in any team situation. A combina-
tion of formal training and considerable experience will produce the best results.
Facilitators should be trained in meeting process facilitation, conflict resolution,
training and coaching skills, interpersonal skills in a group environment, basic
behavior management skills, quality management principles and practices, and
appropriate use of quality tools.
76 Part I: Leadership
Part I.C.4
Facilitators are less necessary as the team becomes more experienced and
capable. Initially, the facilitator is more of a coach and referee in the team pro-
cess, and therefore requires good communications skills as well as some technical
knowledge of the subject, meeting facilitation skills, and the ability to resolve con-
flict when it occurs. If performance of the team remains dependent on the facilita-
tor, however, then the facilitator has not done an effective job of helping the team to
develop. A highly developed team should have the knowledge and ability to deal
with problems that might arise, such as a deviation from the agenda, interpersonal
conflict, or ineffective decision making—in effect, to become self-facilitating.
Sponsor. Each team usually has a sponsor responsible for ensuring success. The
sponsor is an individual who has a significant stake in the outcome of a particular
team project. He or she is often the process owner. Such a person must be at a level
high enough in the organization to be able to address any difficulties encountered
by the team. In the early part of a continuous improvement effort, the sponsor may
also be a member of the steering committee. A sponsor ’s responsibilities include
the following:
• Helpingtoinitiatetheteameffortbyauthorizingtheactivity
• Definingthepurposeandscopeoftheteam
• Coordinatingthefront-endplanning
• Helpingtoselecttheteamleader,facilitator,andmembers
• Negotiatingadditionalresourcesneeded
During the team effort, the sponsor maintains an awareness of team progress,
monitors team performance problems, acts as a liaison to the steering commit-
tee, top management, or other departments or teams, helps obtain any additional
information and resources that are outside the team’s authority boundaries, and
acts as a coach to the team leader.
Team Leader. The team leader is responsible for the team’s ongoing success. Respon-
sibilities include:
• Organizingandmanagingteammeetings
• Workingwiththesponsortodevelopandmonitortheprojectplan
• Keepingtheteameffortontrack
• Providingstatusupdatestothesponsorandsteeringcommittee
• Addressinggroupdynamicsissues
• Servingasaliaisonbetweentheteamandotherpartsofthe
organization
• Helpingtoresolveproblems
• Handlingadministrativedutiesandkeepingteamrecords
A team leader is also responsible for contributing to the team’s content, although
he or she must be careful that those contributions do not receive greater status
Part I.C.5
Chapter 3: C. Teams and Team Processes 77
than those of other team members. When a facilitator is not involved, the leader
also has the same responsibilities as a facilitator relative to team dynamics and
relationships.
A team’s growth is the responsibility both of individual team members and
of the organization. As shown in Figure 3.4, both must create the cultural synergy
that makes teams productive.
A new type of organizational leadership is necessary to provide teams with
the authority they need to be successful. This requires a transformation from the
old type of autocratic leadership to the new facilitating, coaching, participative
approach.
5. TEAM PERFORMANCE AND EVALUATION
Evaluate team performance in relation
to established metrics to meet goals and
objectives. Determine when and how to
reward teams and celebrate their success.
(Evaluate)
Body of Knowledge I.C.5
Team members and top management will quickly become frustrated if teams are
not making progress. The organization should be tracking progress to identify
problems, such as poor meeting attendance, failure of other departments to pro-
vide the necessary support, or lack of specialized technical knowledge. Long-term
projects also require more-complex project management skills and processes (see
Chapter 10). Measuring and communicating the effectiveness of a team can help
Effective
teamwork
Team member support
• Make a commitment to learning
• Become accountable
• Ta ke a systems point of view
• Become service oriented
• Honor the internal customer
Organizational support
• Integrate respect for teamwork
into culture
• Develop supportive leadership
• Implement organizational support
structures
• Provide training
• Implement rewards and
compensations
Figure 3.4 Supporting factors for effective teamwork.
78 Part I: Leadership
Part I.C.5
promote necessary changes and stimulate improvement. The feedback is impor-
tant to management to indicate the degree to which a team is meeting its objectives.
Objective measures directed toward the project goal could include data such
as changes in process performance (for example, increase in first-time yield,
reduction of customer waiting time), resource utilization (for example, number of
person-hours invested in the project, funds spent), and timing against the project
plan. The team may also use internally oriented measures such as overall percent-
age of team member attendance at meetings and the team’s evaluation of meeting
effectiveness. A team should take responsibility for self-evaluation, with appro-
priate measures reported to the sponsor and steering committee.
One way a team can evaluate itself is to select criteria based on team effec-
tiveness guidelines included in team training materials or based on the team’s
list of behavioral norms. A list of questions and a rating scale can then be used
at the end of each meeting to monitor how well the team performed. The evalua-
tion criteria can also evolve over time as the team develops. Standard instruments
available from providers of training and organization development materials can
also be used.
Questionnaires or interviews can be administered to outside-the-team
personnel—such as internal and external customers, other teams, or management—
and used to capture metrics related to perceived progress on attributes such as
relationship building, effectiveness of the team’s progress, and efficiency of the
team’s process. Maintaining a list of lessons learned can also help the team to
see what additional benefits are being gained, and these lists can be shared with
others to accelerate organization-wide learning.
Teams, like individuals, deserve recognition for their efforts. This recognition
can also provide encouragement for future progress and success. In an organiza-
tion that is just beginning to use the team process, this might be the single most
important factor for sustaining momentum. The following suggestions for recog-
nition and rewards are described by Aubrey and Felkins:
9
• Supportivecommentsandhelpfulsuggestionsprovidedby
management during team presentations
• Publicrecognitionthroughprofessionalsocietiesorthrough
publication of results in such journals as Quality Progress or
industry publications, as well as company newsletters and bulletins
• Performanceappraisalsthatreflectemployees’personalgrowthand
contribution as team members
• Materialrewardssuchascertificates,pins,coffeemugs,andlunches
• Gainsharing,ordistributingsomeofthecostsavingsorrevenue
enhancements to team members
• Bonusesorothermonetaryrewards
What is measured (and recognized/rewarded) and how it is measured and admin-
istered requires careful thought and team members’ input. Applying recognition
and rewards fairly implies the creation of standard performance definitions and
values. Ignoring some achievements, recognizing or rewarding under-standard
Part I.C.5
Chapter 3: C. Teams and Team Processes 79
achievements, and giving the wrong weighting to an achievement are reasons
why care and good judgment are critical, and each are causes of disappointment,
disillusionment, and discontent among team members.
Nonmonetary forms of recognition are used to acknowledge a team’s efforts
in a majority of cases. Examples are public recognition in articles published in
the organization’s newsletter and/or community newspapers, verbal mention at
group meetings, plaques and certificates, T-shirts, pins, and other visible, but low-
cost items. Recognizing an entire team with one standard reward can be less effec-
tive than when team members choose their own rewards, within a value range.
Catalog programs have evolved to service this approach. Sustained performance
excellence may be rewarded by promotions and preferred assignments for team
members.
Rather than focusing on rewarding performance, some organizations create
a pay-for-skills plan. As employees progress through a ladder-style development
program, their pay is increased at predefined increments. This is especially rele-
vant in a self-directed team environment.
In addition to external recognition, it is important that team members and
leaders provide internal recognition for team progress when important milestones
have been accomplished. Recognition might also be given to individuals whose
contributions are exceptional or above expectations, or to people outside the team
who have provided valuable support.
Formal recognition for team-based efforts often involves ceremonies at which
top management recognizes teams that have made significant contributions (for
example, excellent project outcomes and/or significantly enhanced organizational
learning). The recognition might also involve a symbolic award (usually not finan-
cially based). Formal efforts to reward team performance are likely to include a
modification of performance evaluation criteria to include the new behaviors
desired, with an increase in financial compensation or greater job opportunities
being a possible outcome for good performers.
10
Groupthink
In the team selection process, as well as when the team is functioning day-to-day,
care must be taken to avoid groupthink.
11
Groupthink occurs when most or all of
the team members coalesce in supporting an idea or a decision that hasn’t been
fully explored, or when some members may secretly disagree. The members are
more concerned with maintaining friendly relations and avoiding conflict than in
becoming engrossed in a controversial discussion. Actions to forestall groupthink
may include:
• Brainstormingalternativesbeforeselectinganapproach
• Encouragingmemberstoexpresstheirconcerns
• Ensuringthatampletimeisgiventosurface,examine,and
comprehend all ideas and suggestions
• Developingrulesforexaminingeachalternative
• Appointingan“objector”tochallengeproposedactions
80 Part I: Leadership
Part I.C.5
Final Thought
An effective team leader can provide an environment in which team members feel
motivated. This can be achieved by applying the six R’s:
1. Reinforce. Identify and positively reinforce work done well.
2. Request information. Discuss team members’ views. Is anything
preventing expected performance?
3. Resources. Identify needed resources, the lack of which could impede
quality performance.
4. Responsibility. Customers make paydays possible; all employees have a
responsibility to the customers, internal and external.
5. Role. Be a role model. Don’t just tell; demonstrate how to do it. Observe
learners’ performance. Together, critique the approach and work out an
improved method.
6. Repeat. Apply the above principles regularly and repetitively.
12
ENDNOTES
1. C. C. Manz and H. P. Sims Jr., Business without Bosses: How Self-Managed Teams Are
Building High-Performance Companies (New York: John Wiley & Sons, 1993).
2. Ibid.
3. R. T. Westcott, Simplified Project Management for the Quality Professional (Milwaukee:
ASQ Quality Press, 2005), Chapter 5.
4. B. W. Tuckman, “Developmental Sequence in Small Groups,” Psychological Bulletin 63,
no. 6 (1965): 384 –99.
5. J. E. Bauer, G. L. Duffy, and R. T. Westcott, eds. The Quality Improvement Handbook
(Milwaukee: ASQ Quality Press, 2002), Chapter 3.
6. P. R. Scholtes, The Team Handbook (Madison, WI: Joiner Associates Consulting Group,
198 8 ) : 6 – 37.
7. Ibid., 6–24.
8. J. L. Hradesky, Total Quality Management Handbook (New York: McGraw-Hill, 1995), 57.
9. C. A. Aubrey and P. K. Felkins, Teamwork: Involving People in Quality and Productivity
Improvement (Milwaukee: ASQC Quality Press, 1988).
10. J. M. Juran and F. M. Gryna, eds., Juran’s Quality Control Handbook (New York:
McGraw-Hill, 1988), 8.6–8.7.
11. J. E. Bauer, G. L. Duffy, and R. T. Westcott, eds., The Quality Improvement Handbook
(Milwaukee: ASQ Quality Press, 2002), Chapter 3.
12. Ibid.
See Appendix A for additional references for this chapter.
81
Part I.D
Chapter 4
D. ASQ Code of Ethics
Identify and apply behaviors and actions that
comply with this code. (Apply)
Body of Knowledge I.D
I
t is important that people in an organization know and understand the behav-
iors that are considered acceptable. Therefore, another critical role of leader-
ship is to ensure that the organization has defined those behaviors and the
principles behind them as clearly as possible. Documenting and communicating
the values and principles that should be used as a guide for day-to-day decision
making is one way employees learn what is acceptable. Another way is through
observation of the actions of persons in leadership roles and others in influential
or powerful positions. Therefore, it is important that a leader’s actions be congru-
ent with the stated principles and values.
For some fields of professional practice, codes of conduct are defined by pro-
fessional organizations. Following is the code of ethics for quality professionals
established by the American Society for Quality (ASQ). It provides both general
principles and specific actions designed to ensure that ASQ members demonstrate
ethical behaviors in their relationships with the public, employers, customers and
clients, and peers. The code is critical to quality decisions and behavior, and valu-
able when designing systems as well as in day-to-day communications.
It is important for leaders in organizations to take action on the basis of how
well employees meet ethical guidelines. Employees who demonstrate ethical prac-
tices, especially during difficult situations, must be commended for their actions,
whereas those who do not must be dealt with appropriately.
Use the ASQ Code of Ethics as a model to assist your organization in develop-
ing its own code as well as using it to develop your personal code of ethics. Refer
often to your organization’s code and your own code. Ensure that you are behav-
ing at or above the ethical level embodied in the code.
One thing to consider, though, is that unethical behavior in one country may
be an acceptable behavior in another locale.
Although the term supplier is not specifically mentioned, the intent of an ethi-
cal relationship between a customer and a supplier may be implied from the intent
82 Part I: Leadership
Part I.D
of the ASQ code. A code developed for use by a different type of organization
would, no doubt, include specific principles applying to supplier ethics.
There is an increasing concern that the social responsibilities of an organization,
its management, employees, and subcontractors be addressed in any code of eth-
ics. Although this concern is not specifically mentioned in the ASQ Code of Ethics,
it can be assumed the intent exists. The ISO 26000 standard provides guidance.
1
This is a short chapter, but the importance of embracing and sustaining ethi-
cal behavior permeates every aspect of organizations’ operations. Laws and regu-
lations have been enacted to control certain industries and types of organizations
and punish wrongdoers. Behaving ethically, however, has to derive from personal
values and integrity. Controls are useful reminders, but individuals must believe
in and feel the need to conduct themselves ethically.
ASQ CODE OF ETHICS
Fundamental Principles
ASQ requires its members and certification holders to conduct themselves ethically by:
I . Being honest and impartial in serving the public, their employers, customers, and
clients.
II . Striving to increase the competence and prestige of the quality profession.
III . Using their knowledge and skill for the enhancement of human welfare.
Members and certification holders are required to observe the tenets set forth below:
Relations with the Public
Article 1—Hold paramount the safety, health, and welfare of the public in the perfor-
mance of their professional duties.
Relations with Employers and Clients
Article 2—Perform services only in their areas of competence.
Article 3—Continue their professional development throughout their careers and pro-
vide opportunities for the professional and ethical development of others.
Article 4—Act in a professional manner in dealings with ASQ staff and each employer,
customer, or client.
Article 5—Act as faithful agents or trustees and avoid conflict of interest and the appear-
ance of conflicts of interest.
Relations with Peers
Article 6—Build their professional reputation on the merit of their services and not
compete unfairly with others.
Article 7—Assure that credit for the work of others is given to those to whom it is due.
Part I.D
Chapter 4: D. ASQ Code of Ethics 83
ENDNOTE
1. American Society for Quality, ASQ/ANSI/ISO 26000:2010 Guidance on social
responsibility (Milwaukee: ASQ Quality Press, 2010).
See Appendix A for additional references for this chapter.
551
Chapter 20
The Certified Manager of Quality/
Organizational Excellence
Body of Knowledge
Total quality management addresses the quality of management as well as the
management of quality.
—V. Daniel Hunt
CERTIFIED MANAGER OF QUALITY/ORGANIZATIONAL
EXCELLENCE (CMQ/OE) COMPLETE BODY OF
KNOWLEDGE (BoK)—2013
The topics in this new BoK include descriptive details (subtext) that will be used
by the Exam Development Committee as guidelines for writing test questions.
This subtext is also designed to help candidates prepare for the exam by iden-
tifying specific content within each topic that may be tested. The subtext is not
intended to limit the subject matter or be all-inclusive of what might be covered
in an exam but is intended to clarify how the topics relate to a Manager’s role. The
descriptor in parentheses at the end of each entry refers to the maximum cognitive
level at which the topic will be tested. A complete description of cognitive levels is
provided at the end of this document.
I. Leadership (25 Questions)
A. Organizational Structures. Define and describe organizational designs
(i.e., matrix, flat, and parallel) and the effect that a hierarchical
management structure can have on an organization. (Apply)
B. Leadership Challenges
1. Roles and responsibilities of leaders. Describe typical roles,
responsibilities, and competencies of people in leadership positions
and how those attributes influence an organization’s direction and
purpose. (Analyze)
2. Roles and responsibilities of managers. Describe typical roles,
responsibilities, and competencies of people in management
positions and how those attributes contribute to an organization’s
success. (Analyze)
3. Change management. Use various change management strategies
to overcome organizational roadblocks and achieve desired
change levels, and review outcomes for effectiveness. Define
and describe factors that contribute to an organization’s culture.
(Evaluate)
4. Leadership techniques. Develop and implement techniques that
motivate employees and sustain their enthusiasm. Use negotiation
techniques to enable parties with different or opposing outlooks
to recognize common goals and work together to achieve them.
Determine when and how to use influence to resolve a problem or
move a project forward. (Create)
5. Empowerment. Apply various techniques to empower individuals
and teams. Identify typical obstacles to empowerment and
appropriate strategies for overcoming them. Describe and
distinguish between job enrichment and job enlargement, job
design and job tasks. (Apply)
C. Teams and Team Processes
1. Types of teams. Identify different types of teams and their
purpose, including process improvement, self-managed,
temporary or ad hoc (special project), and work groups or
workcells. (Understand)
2. Stages of team development. Define and describe the classic stages
of team development: forming, storming, norming, performing.
(Apply)
3. Team-building techniques. Apply basic team-building steps such
as using ice-breaker activities to enhance team introductions
and membership, developing a common vision and agreement
on team objectives, identifying and assigning specific roles on
the team. (Apply)
4. Team roles and responsibilities. Define and describe typical roles
related to team support and effectiveness such as facilitator, leader,
process owner, champion, project manager, and contributor.
Describe member and leader responsibilities with regard to group
dynamics, including keeping the team on task, recognizing hidden
agendas, handling disruptive behavior, and resolving conflict.
(Analyze)
5. Team performance and evaluation. Evaluate team performance
in relation to established metrics to meet goals and objectives.
Determine when and how to reward teams and celebrate their
success. (Evaluate)
D. ASQ Code of Ethics. Identify and apply behaviors and actions that
comply with this code. (Apply)
552 Chapter 20: The CMQ/OE Body of Knowledge
Chapter 20: The CMQ/OE Body of Knowledge 553
II. Strategic Plan Development and Deployment (18 Questions)
A. Strategic Planning Models. Define, describe, and use basic elements of
strategic planning models, including how mission, vision, and values
as guiding principles relate to the plan. (Apply)
B. Business Environment Analysis
1. SWOT analysis. Analyze an organization’s strengths, weaknesses,
opportunities, and threats, and develop and prioritize actions to
take in response to that analysis. Identify and analyze risk factors
that can influence strategic plans. (Analyze)
2. Market forces. Define and describe various forces that drive strategic
plans, including existing competition, the entry of new competitors,
rivalry among competitors, the threat of substitutes, bargaining
power of buyers and suppliers, current economic conditions, and
how well the organization is positioned for growth and changing
customer expectations. (Apply)
3. Stakeholder analysis. Identify and differentiate various internal and
external stakeholders, as well as their perspectives, needs, and
objectives, to ensure that the organization’s strategic objectives are
aligned with those of the stakeholders. (Analyze)
4. Technology. Describe how changes in technology can have long- and
short-term influences on strategic planning. (Understand)
5. Internal capability analysis. Identify and describe the effects that
influence an organization’s internal capabilities: human resources,
facilities capacity, and operational capabilities. Analyze these factors
in relation to strategy formation. (Analyze)
6. Legal and regulatory factors. Define and describe how these factors
can influence strategic plans. (Understand)
C. Strategic Plan Deployment
1. Tactical plans. Identify basic characteristics of tactics: specific,
measurable, attainable, relevant, time-specific, and linked to
strategic objectives. Evaluate proposed plans to determine whether
they meet these criteria. (Evaluate)
2. Resource allocation and deployment. Evaluate current resources to
ensure they are available and deployed in support of strategic
initiatives. Identify and eliminate administrative barriers to
new initiatives. Ensure that all internal stakeholders understand
the strategic plan and have the competencies and resources to
carry out their responsibilities. (Evaluate)
3. Organizational performance measurement. Develop organizational
performance measures to ensure that they are aligned with strategic
goals, and use those measures to assess the organization in relation
to the strategic plan. (Evaluate)
554 Chapter 20: The CMQ/OE Body of Knowledge
4. Quality in strategic deployment. Support strategic plan deployment
by applying continuous improvement and other quality initiatives
to drive performance outcomes throughout the organization.
(Create)
III. Management Elements and Methods (30 Questions)
A. Management Skills and Abilities
1. Principles of management. Define and apply basic management
principles such as planning, leading, delegating, controlling,
organizing, and re-sourcing, in various situations. (Apply)
2. Management theories and styles. Define and describe management
theories such as scientific, organizational, behavioral, learning,
systems thinking, and situational complexity. Define and describe
management styles such as autocratic, participative, transactional,
transformational, management by fact, coaching, and contingency
approach. Describe how management styles are influenced by
an organization’s size, industry sector, culture, and competitors.
(Apply)
3. Interdependence of functional areas. Describe the interdependence
of an organization’s areas (human resources, engineering, sales,
marketing, finance, research and development, purchasing,
information technology, logistics, production, and service) and how
those dependencies and relationships influence processes
and outputs. (Understand)
4. Human resources (HR) management. Apply HR elements in support
of ongoing professional development: setting goals and objectives,
conducting performance evaluations, developing recognition
programs, ensuring that succession plans are in place where
appropriate. Develop quality-supportive responsibilities to include
in job descriptions for positions throughout the organization.
(Apply)
5. Financial management. Read, interpret, and use various finance
tools including income statements, balance sheets, and product/
service cost structures. Manage budgets and use the language
of cost and profitability to communicate with senior management.
Use potential return on investment (ROI), estimated return on
assets (ROA), net present value (NPV), internal rate of return (IRR),
and portfolio analysis, to analyze project risk, feasibility, and
priority. (Analyze)
6. Risk management. Identify the kinds of risk that can occur
throughout the organization, from such diverse processes as
scheduling, shipping/receiving, financials, production and
operations, employee and user safety, regulatory compliance and
changes. Describe and use risk control and mitigation methods:
avoidance, reduction, prevention, segregation, and transfer. (Apply)
Chapter 20: The CMQ/OE Body of Knowledge 555
7. Knowledge management (KM). Use KM techniques in identifying
core competencies that create a culture and system for collecting
and sharing implicit and explicit knowledge among workers,
customers, competitors, and suppliers. Capture lessons learned
and apply them across the organization to promote best practices.
Identify typical knowledge-sharing barriers and how to overcome
them. (Apply)
B. Communication Skills and Abilities
1. Communication techniques. Define and apply various modes of
communication used within organizations, such as verbal, non-
verbal, written, and visual. Identify factors that can inhibit clear
communication and describe ways of overcoming them. (Apply)
2. Interpersonal skills. Develop skills in empathy, tact, friendliness, and
objectivity. Use open-minded and non-judgmental communication
methods. Develop and use a clear writing style, active listening,
and questioning and dialog techniques that support effective
communication. (Apply)
3. Communications in a global economy. Identify key challenges of
communicating across different time zones, cultures, languages,
terminology, and business practices, and identify ways of
overcoming them. (Understand)
4. Communications and technology. Identify how technology has affected
communications, including improved information availability, its
negative influence on interpersonal communications, and the new
etiquette for e-communications. Use appropriate communication
methods to deliver different kinds of messages in a variety of
situations. (Apply)
C. Project Management
1. Project management basics. Use project management methodology
and ensure that each project is aligned with strategic objectives.
Define the different phases of a project: initiation, planning,
execution, monitoring and controlling, and closure. Recognize the
importance of keeping the project on-time, and within budget.
(Apply)
2. Project planning and estimation tools. Use tools such as risk
assessment, benefit–cost analysis, critical path method (CPM),
Gantt chart, PERT, and work breakdown structure (WBS) to plan
projects and estimate related costs. (Apply)
3. Measure and monitor project activity. Use tools such as cost variance
analysis, milestones, and actual vs. planned budgets to monitor
project activity against project plan. (Evaluate)
4. Project documentation. Use written procedures and project
summaries to document projects. (Apply)
556 Chapter 20: The CMQ/OE Body of Knowledge
D. Quality System
1. Quality mission and policy. Develop and monitor the quality mission
and policy and ensure its alignment with the organization’s broader
mission. (Create)
2. Quality planning, deployment, and documentation. Develop and deploy
the quality plan and ensure that it is documented and accessible
throughout the organization. (Create)
3. Quality system effectiveness. Evaluate the effectiveness of the quality
system using various tools: balanced scorecard, internal audits,
feedback from internal and external stakeholders, skip-level
meetings, warranty data analytics, product traceability and recall
reports, and management reviews. (Evaluate)
E. Quality Models and Theories
1. Organizational and Performance Excellence. Define and describe
common elements and criteria of performance excellence models
such as the Malcolm Baldrige National Quality Award (MBNQA),
Excellence Canada, and European Excellence Award (EFQM).
Describe how these programs are used as management models to
improve processes at an organization level. (Understand)
2. ISO quality management standards. Define and describe how the
ISO 9001 standards can be used to support quality management
systems. (Understand)
3. Other quality methodologies. Describe and differentiate methods
such as total quality management (TQM), continuous improvement,
and benchmarking. (Apply)
4. Quality philosophies. Describe and apply basic methodologies and
theories proposed by quality leaders such as Shewhart, Deming,
Juran, Crosby, Feigenbaum, and Ishikawa. (Apply)
IV. Quality Management Tools (30 Questions)
A. Problem-Solving Tools
1. The seven classic quality tools. Select, interpret, and evaluate
output from these tools: Pareto charts, cause and effect diagrams,
flowcharts, control charts, check sheets, scatter diagrams, and
histograms. (Evaluate)
2. Basic management and planning tools. Select, interpret, and evaluate
output from these tools: affinity diagrams, tree diagrams, process
decision program charts (PDPCs), matrix diagrams, prioritization
matrices, interrelationship digraphs, activity network diagrams,
and Gantt charts. (Evaluate)
3. Process improvement tools. Select, interpret, and apply tools such as
root cause analysis, PDCA, six sigma DMAIC (define, measure,
Chapter 20: The CMQ/OE Body of Knowledge 557
analyze, improve, control), and failure mode and effects analysis
(FMEA). (Evaluate)
4. Innovation and creativity tools. Use various techniques and
exercises for creative decision-making and problem-solving,
including brainstorming, mind mapping, lateral thinking, critical
thinking, 5 whys, and design for six sigma (DFSS). (Apply)
5. Cost of quality (COQ). Define and distinguish between prevention,
appraisal, internal, and external failure cost categories and
evaluate the impact that changes in one category will have on
the others. (Evaluate)
B. Process Management
1. Process goals. Describe how process goals are established,
monitored, and measured and evaluate their impact on product
or service quality. (Evaluate)
2. Process analysis. Use various tools to analyze a process and evaluate
its effectiveness on the basis of procedures, work instructions,
and other documents. Evaluate the process to identify and relieve
bottlenecks, increase capacity, improve throughput, reduce cycle
time, and eliminate waste. (Evaluate)
3. Lean tools. Identify and use lean tools such as cycle-time reduction,
5S, just-in-time (JIT), kanban, value stream mapping, single-minute
exchange of die (SMED), poka-yoke, kaizen, and overall equipment
effectiveness (OEE). (Apply)
4. Theory of constraints (TOC). Define key concepts of TOC; local
vs. system optimization, physical vs. policy constraints, and
throughput. Classify constraints in terms of finite resources and
increased expectations. (Understand)
C. Measurement: Assessment and Metrics
1. Basic statistical use. Use techniques such as the goal-question-
metric (GQM) model and others to identify when, what, and how
to measure projects and processes. Describe how metrics and data
gathering methods affect resources and vice versa. (Apply)
2. Sampling. Define and describe basic sampling techniques such
as random and stratified. Identify when and why sampling is an
appropriate technique to use. (Understand)
3. Statistical analysis. Calculate basic statistics: measures of central
tendency (mean, median, mode), and measures of dispersion
(range, standard deviation, and variance). Identify basic
distribution types (normal, bimodal, skewed) and evaluate
run charts, statistical process control (SPC) reports, and other
control charts to make data-based decisions. (Evaluate)
558 Chapter 20: The CMQ/OE Body of Knowledge
4. Measurement systems analysis. Define basic measurement terms:
accuracy, precision, bias, and linearity. Understand the difference
between repeatability and reproducibility in gauge R&R studies.
(Understand)
5. Trend and pattern analysis. Interpret data graphs and charts to
identify cyclical, seasonal, and environmental trends. Evaluate
control chart patterns to determine process shifts. (Evaluate)
6. Process variation. Analyze data to distinguish between common
and special cause variation. (Analyze)
7. Process capability. Recognize process capability (C
p
and C
pk
,) and
performance indices (P
p
and P
pk
). (Understand)
8. Reliability terminology. Recognize reliability measures such as mean
time between failures (MTBF) and mean time to repair (MTTR).
(Understand)
9. Qualitative assessment. Identify subjective measures such as
verbatim comments from customers, observation records, and
focus group output. Describe how they differ from objective
measures, and determine when measurements should be captured
in categories rather than numeric values. (Analyze)
V. Customer-Focused Organizations (17 Questions)
A. Customer Identification and Segmentation
1. Internal customers. Define and describe the impact an organization’s
treatment of internal customers will have on external customers.
Develop methods for energizing internal customers to improve
products, processes, and services and evaluate the results.
(Evaluate)
2. External customers. Define external customers and describe their
impact on products and services. Develop strategies for working
with them and integrating their requirements and needs to improve
products, services, and processes. (Evaluate)
3. Customer segmentation. Define and describe the process of customer
segmentation and its impact on aligning service and delivery to
meet customer needs. (Evaluate)
B. Customer Relationship Management
1. Customer needs. Use quality function deployment (QFD) to analyze
customer needs in relation to products and services offered. Use
the results of the analysis to prioritize new, future development in
anticipation of changing customer needs. (Analyze)
2. Customer satisfaction and loyalty. Develop systems to capture positive
and negative customer perceptions and experiences, using tools
such as voice of the customer, listening posts, focus groups,
Chapter 20: The CMQ/OE Body of Knowledge 559
complaints and warranty data, surveys, and interviews. Use
customer value analysis to calculate the financial impact of existing
customers and the potential results of losing those customers.
Develop corrective actions and proactive methods to improve
customer satisfaction, loyalty, and retention levels. (Create)
3. Customer service principles. Develop and deploy strategies that
support customer service principles: courtesy, politeness, smiles,
cheerfulness, attention to detail, active listening, empathy, rapid
response, and easy access for information and service. (Apply)
4. Multiple and diverse customer management. Establish and monitor
priorities to avoid or resolve conflicting customer requirements
and demands. Develop methods and systems for managing
capacity and resources to meet the needs of multiple customers.
Describe the impact that diverse customer groups can have on
all aspects of product and service development and delivery.
(Evaluate)
VI. Supply Chain Management (15 Questions)
A. Supplier Selection. Define, develop, and use criteria for selecting
suppliers, including internal rating programs and external
certification standards. Assess and manage the impact these
programs can have on various internal processes of the organization.
(Create)
B. Supplier Communications. Develop and implement specific
communication methods with suppliers, including regularly scheduled
meetings and routine and emergency reporting procedures. Develop
explicit expectations and confirm that the supplier is aware of critical
product and delivery requirements. (Create)
C. Supplier Performance. Define, develop, and monitor supplier
performance in terms of quality, cost, delivery, and service levels,
and establish associated metrics for defect rates, product reliability,
functional performance, timeliness, responsiveness, and availability
of technical support. (Create)
D. Supplier Improvement. Define and conduct supplier audits, evaluate
corrective and preventive action plans, provide feedback, and monitor
process improvements. (Create)
E. Supplier Certification, Partnerships, and Alliances. Define and implement
supplier certification programs that include process reviews and
performance evaluations. Identify strategies for developing customer–
supplier partnerships and alliances. (Create)
F. Supplier Logistics and Material Acceptance. Describe the impact that
purchased products and services can have on final product assembly
or total service package, including ship-to-stock, and just-in-time (JIT).
Plan and conduct incoming material inspections. (Understand)
560 Chapter 20: The CMQ/OE Body of Knowledge
VII. Training and Development (15 Questions)
A. Training Plans. Develop and implement training plans that are aligned
with the organization’s strategic plan and general business needs,
including leadership training and alignment of personal development
plans. (Create)
B. Training Needs Analysis. Use various tools and techniques such as
surveys, performance reviews, regulatory requirements, and gap
analysis to identify training needs. (Create)
C. Training Materials/Curriculum Development and Delivery. Use various
tools, resources, and methodologies to develop training materials and
curricula that address adult learning principles and the learning needs
of an increasingly diverse workforce. Describe various methods of
training delivery: classroom style, workbooks, simulations, computer-
delivered, on-the-job, mentoring, coaching, and self-directed learning.
(Apply)
D. Training Effectiveness and Evaluation. Assess training effectiveness and
make improvements based on feedback from training sessions, end-of-
course test results, on-the-job behavior or performance changes, and
departmental or area performance improvements. (Create)
Topics for the Constructed-Response (Essay) Portion of the Certified
Manager of Quality/Organizational Excellence Exam
Candidates will be presented with three open-ended questions from which they
can select the two that they prefer to answer. Candidates will have 45 minutes
in which to write responses to the two chosen situations. Prior to the start of the
constructed-response portion of the exam, candidates will be given 5 minutes to
review and select their situations. Candidates may split their time spent on the
problems as they like. Their responses will be graded on their knowledge of qual-
ity management as it relates to the content areas listed below and in the follow-
ing skills and abilities: communication, critical thinking, personnel management,
general management.
CR-1. Leadership. Demonstrate knowledge of the quality manager’s role in orga-
nizational leadership and as quality champion and customer advocate. Deploy
change agent strategies in support of organization-wide continuous improvement
efforts. Develop teams and participate on them in various roles.
CR-2. Strategy Development and Deployment. Develop and maintain organiza-
tional focus on the importance of quality and performance excellence. Create qual-
ity policies and procedures in support of the strategic plan, and integrate those
policies and processes into the tactics developed to support the strategic plan.
CR-3. Management. Demonstrate management abilities in human resources,
financial, risk, and knowledge management applications. Use effective communi-
Chapter 20: The CMQ/OE Body of Knowledge 561
cation methods in various situations to support continuous improvement efforts.
Select and use appropriate tools and methodologies to plan, implement, and
evaluate projects. Develop, deploy, and evaluate quality plans that can be used
throughout the organization. Evaluate and recommend appropriate quality mod-
els or systems to implement in various situations.
CR-4. Customer Focus. Identify and segment customers using a variety of crite-
ria and tools. Identify and prioritize product or service design and development
on the basis of customer requirements and feedback. Solicit customer input pro-
actively and combine with market analysis and other research to achieve organi-
zational goals. Use customer expectations and feedback to manage continuous
improvement projects.
CR-5. Supplier Management. Develop and deploy supplier management systems
from selection process through partnership agreements, including mutually bene-
ficial continuous improvement programs. Identify methods for assessing supplier
performance at various levels of customer-supplier relationships.
CR-6. Training and Development. Demonstrate knowledge and ability in devel-
oping, implementing, and evaluating needs assessment, training delivery meth-
ods, and outcomes of training efforts.
Levels of Cognition
(Based on Bloom’s Taxonomy—Revised (2001)
In addition to content specifics, the subtext for each topic in this BoK also indicates
the intended complexity level of the test questions for that topic. These levels are
based on “Levels of Cognition” (from Bloom’s Taxonomy—Revised, 2001) and are
presented below in rank order, from least complex to most complex.
Remember (Knowledge Level). Recall or recognize terms, definitions, facts, ideas,
materials, patterns, sequences, methods, principles, etc.
Understand (Comprehension Level). Read and understand descriptions, commu-
nications, reports, tables, diagrams, directions, regulations, etc.
Apply (Application Level). Know when and how to use ideas, procedures, meth-
ods, formulas, principles, theories, etc.
Analyze (Analysis Level). Break down information into its constituent parts and
recognize their relationship to one another and how they are organized; identify
sublevel factors or salient data from a complex scenario.
Evaluate (Evaluation Level). Make judgments about the value of proposed ideas,
solutions, etc., by comparing the proposal to specific criteria or standards.
Create (Synthesis Level). Put parts or elements together in such a way as to reveal
a pattern or structure not clearly there before; identify which data or information
from a complex set is appropriate to examine further or from which supported
conclusions can be drawn.
562 Chapter 20: The CMQ/OE Body of Knowledge
B. INTEGRATING THE BoK AS A SYSTEM
Up to this point the BoK has been presented as seven separate parts. In reality, the
quality manager or director seldom deals with only one part at a time in perform-
ing her or his job—in planning, organizing, staffing, directing, and controlling.
Typically, problem solving, decision making, and overseeing a function will call
for thinking and acting using combinations of all or several of the BoK parts as a
system for reaching a resolution.
In the CMQ/OE examination, the multiple-choice questions will not be pre-
sented as clusters addressing one part of the BoK at a time, but will be randomly
interspersed. Even at that, it is only the constructed response (CR) questions that
more realistically test the participant on the value of treating the BoK as a system.
As a guideline, it is recommended that when answering a CR question, the exam
taker should run a self-check against the memorized parts of the BoK, asking,
Which parts of the BoK should be integrated in preparing the CR answer?
In the CMQ/OE refresher courses given by ASQ it is recommended that par-
ticipants commit to memory as much of the BoK structure as possible in order to
facilitate the integration mentioned above. Also, class participants are involved
with a case study with the instruction (1) scan the case to get an overview of its
content, (2) list the accomplishments made, and the issues and concerns not ade-
quately addressed, (3) note on the list the parts of the BoK that could be com-
bined to either strengthen the gains or address the weaknesses. The exercise
is often done as a total group effort, either with a volunteer leader, or leaderless.
The case study is used to help the participants pull it all together in discussing the
decisions, actions, and events of a simulated organization over a span of time.
The case study is provided in Section C.
(Note: the examination does not include a case study.)
C. APPLYING THE BoK—CASE STUDY*
Glo, Inc. (GLO) produces and distributes products based on a proprietary process
for depositing reflective metallic material on plastic substrates. Their products are
highway and construction site warning signs, educational institution signage, and
containers for personal grooming products.
GLO employs a total of 440 workers and management. The breakdown is
shown in Table 20.1.
Originally called Yonkers Signboard Co., the company was founded by the
Batterson brothers in 1937. It was inherited by Alfred Batterson, son of one of the
brothers, after an auto accident in 1973 killed the owners. The cosmetic container
line was introduced in 1974 when Al became the CEO and reorganized the com-
pany as Glo, Inc. Al was instrumental in capturing a significant share of the cos-
metic container market, partly because of the patent on their deposition process.
Al, supported by his top team, lead GLO in a series of quality initiatives from
1994 through 1998:
• Introductionofstrategicplanning
* Reprinted with permission of R. T. Westcott & Associates
Chapter 20: The CMQ/OE Body of Knowledge 563
• IntroductionofSPCintheplants
• Introductionofacompanywideenterpriseresourceplanning
computer system
• ImplementationofanISO9001:1994–basedqualitymanagement
system (QMS) at all plants and warehouses, and certification of all
locations
• EntryintotheEmpireStateQualityAward(obtainedsitevisitlevel)
Some of the deficiencies noted by the Empire State Quality Award site visit team
included:
• Thereisnoevidencethatseniorleadershipsolicitsandreviewskey
performance information from all locations.
• Thereisinadequateevidenceofhowthecompanyaddressesitspublic
responsibilities.
T
able 20.1 Employee breakdown at Glo, Inc.
Functions
Location Employee total Management Nonmanagement
Administrative:
Yonkers, NY
Of
ficers/staff 10 4 6
Marketing
17 5 12
Engineering
7 5 2
Finance
13 4 9
Human r
esources 9 3 6
Pur
chasing 4 2 2
Sales of
fices: Yonkers, NY (included above)
Chicago, IL 12 2 10
Miami, FL 5 1 4
Denver, CO 4 1 3
San Francisco 10 3 7
Plants:
Outdoor signs
Troy, NY 95 7 88
Containers
Cicero, IL 116 11 105
Indoor signs
Mobile, AL 27 3 24
Containers
Downey, CA 69 6 63
Wa
rehouses: Yonkers, NY 7 1 6
Cicero, IL 14 2 12
Pomona, CA 21 2 19
564 Chapter 20: The CMQ/OE Body of Knowledge
• Thereisinsufficientevidencethatcorporatestrategy(includinggoals
and objectives) has been adequately deployed to all locations, and that
there are facility action plans to support such goals and objectives.
• Thereisnocoherentprocessevidentfordiscerningthesatisfaction
of customers, nor is there evidence of actions taken to specifically
improve customer satisfaction and retention.
• ThereisnoevidencethatGLOmakesanefforttodistinguishits
customer base beyond just three categories: external signage, internal
signage, and containers.
• Itisunclearhowthehumanresourcepoliciesandpractices
promulgated by headquarters are applied at the various locations.
• Thereisinsufficientevidencethatemployeetraininganddevelopment
is universally utilized at all locations.
• Thereisnoevidencethatproductionmanagementparticipateinnew
product design or changes to design to ensure manufacturability.
• Thereisnoevidenceofexistingorpendingpartneringwithkey
suppliers.
• Theonlyinformationreportedisfinancialandoperationalresults.
There are no results shown for customer focus, market penetration,
employee well-being and satisfaction, or supplier partnering.
GLO has shown relatively steady progress in recent years, throughout the ups
and downs of the economy. GLO appears poised for a major upturn in growth and
profitability, partially due to new military contracts for both external and internal
signage, and also an upsurge in sales of women’s cosmetics (lipstick especially).
In the strategic planning for years 2002–2007, the top team identified three
goals: (1) improve customer satisfaction and retention, (2) introduce “lean think-
ing” as a means to improve product production and delivery, and reduce costs,
and (3) prepare an application for the Malcolm Baldrige National Quality Award,
to be submitted for the 2006 award program.
Glancing Forward Two Years
Looking at the following information through the CMQ/OE BoK lens, how would
you evaluate the work GLO has done in the last two years (for example, what was
done well, and what wasn’t?) Be ready to present your rationale based on QM
theories/principles.
1. GLO has neither added nor dropped any of its locations, or modified its
employee count and mix. GLO has recently hired a director of corporate
quality to head a top-level Award Task Force to guide the changes and
preparation for applying for the Baldrige award. It is expected that a
management person from each of the plants and each headquarters
function will serve on this task force. The stated objective is to win the
Chapter 20: The CMQ/OE Body of Knowledge 565
Baldrige Award. (It is assumed by the rank and file that this means “at
any cost.”)
2. The director has hired Baldrige Award coordinators for each of the
plants, reporting to the director but with a “dotted-line” relationship
with the plant managers.
3. Responding to the deficiencies cited by the Empire State site visit
team, teams have been established at some of the plants to address the
deficiencies at the plant level. The coordinators send a status report to
the quality director quarterly.
4. Human Resources devised a temporary reward system to recognize
team achievements with a pay bonus. There is inconsistent information
at the locations as to the criteria to be used and how the bonus is to be
computed. No team has received a bonus yet. The director of quality
opposed the bonus plan but was overruled by the majority of the task
force. One of the teams from Cicero has applied for the bonus and been
rejected by the vice president of human resources. These team members
feel they have been wronged and have appealed to the director of quality
to intervene on their behalf.
5. The task force wants to have Human Resources conduct an employee
survey, the company’s first, to provide data that can be analyzed to aid
in improving employee satisfaction. Human Resources is resisting the
request on several grounds: (a) with so much going on in the company,
the timing is not good, (b) HR has reservations about the practicality
of surveying employees, expressing fear that it can do more harm than
good, (c) concern exists that HR does not have the expertise to design,
implement, and analyze a survey, and (d) HR really doesn’t have the
expertise to evaluate outside resources that could help.
6. The coordinators at the two product container plants have been
collaborating and have developed good support from their plant
managers in setting up improvement teams to address the Baldrige
criteria. They frequently share ideas, techniques, and tools via e-mail
and other media, although they have never met face to face.
7. Sales and production maintain a traditional adversarial relationship, as
does purchasing with suppliers.
8. There are no integrated plans and programs for employee training and
development. What training is done is on-the-job training for persons
having an impact on quality—skills training to qualify employees for
their assigned tasks—an ISO 9001 requirement. Requests to attend
outside training and educational events are seldom approved. Those
employees who pursue a formal education do so on their own.
9. The director receives status reports, via e-mail, from each of the plant
coordinators on a quarterly basis. These are summarized and presented
at the quarterly management meeting.
566 Chapter 20: The CMQ/OE Body of Knowledge
10. Two of the coordinators have been pressing the director to hold a
joint meeting of the coordinators with the task force members, at least
quarterly, suggesting teleconferencing as a means for doing so.
11. The quality director has not yet personally visited any sites outside
of New York state. It is unclear whether the director has initiated any
action at sites and with other internal functions than just the plants.
12. The top team’s attention has very recently been focused on the
development of a new market with a new product line—rear-view
mirrors for vehicles. This new focus resulted from a “brilliant idea”
that the process used to develop the mirror-like finish on lipstick
containers could be used for rear-view mirrors, especially for military
vehicles. The resulting product could, ultimately, replace all metal
and glass-type vehicle mirrors at a significant savings to vehicle
manufacturers. (It is noted that the strategic planning process did not
surface any future indication that a shift in product and marketplace
was imminent.)
13. The goals from the strategic plan have taken somewhat of a “back
seat,” except that the quality director is now viewed as the “owner”
of the Baldrige Award initiative.
14. GLO employees do participate as volunteers and elected officials
within their communities. These efforts are not company sponsored,
not recognized by the company, and are undocumented.
15. Recent financials place GLO as an attractive target for a hostile
takeover by a huge conglomerate.
16. A Malaysian company has perfected a deposition process that is
competitive with GLO’s. GLO alleges their process was stolen.
567
Appendix A
References
A
list that the preparers of the CMQ/OE examination may use to create ques-
tions is available for download from http://prdweb.asq.org/certification/
control/manager-of-quality/references).
QUALITY MANAGEMENT—GENERAL
(These references address multiple sections and topics from the Body of
Knowledge.)
Bauer, J. E., G. L. Duffy, and R. T. Westcott, eds. The Quality Improvement Handbook. 2nd ed.
Milwaukee: ASQ Quality Press, 2006.
Beecroft, G. D., G. L. Duffy, and J. W. Moran, eds. The Executive Guide to Improvement and
Change. Milwaukee: ASQ Quality Press, 2003.
Cartin, Thomas J., Principles and Practices of Organizational Performance Excellence.
Milwaukee: ASQ Quality Press, 1999.
Christensen, E. H., K. M. Coombes-Betz, and M. S. Stein. The Certified Quality Process
Analyst Handbook. Milwaukee: ASQ Quality Press, 2007.
Dorf, R. C., ed. The Technology Management Handbook. Boca Raton, FL: CRC Press, 1999.
Duffy, Grace L., ed. The ASQ Quality Improvement Pocket Guide. Milwaukee, WI: ASQ
Quality Press, 2013.
Evans, J. R., and W. M. Lindsay. The Management and Control of Quality. 6th ed. Cincinnati:
South Western, 2004.
Feigenbaum, A. V. Total Quality Control. 3rd rev. ed. New York: McGraw-Hill, 1991.
GOAL/QPC. The Memory Jogger II: Tools for Continuous Improvement and Effective Planning.
2nd ed. 2010; The Six Sigma Memory Jogger II. 2002; The Process Management Memory
Jogger: Building Cross-Functional Excellence. 2008; Value Methodology: To Reduce Cost and
Improve Value Through Function Analysis. 2008. Salem, NH.
Juran, J. M., ed. A History of Managing for Quality: The Evolution, Trends, and Future
Directions of Managing for Quality. Milwaukee: ASQC Quality Press, 1995.
Juran, J. M., and A. B. Godfrey, eds. Juran’s Quality Handbook. 5th ed. New York: McGraw-
Hill, 1999.
Liebesman, S. Competitive Advantage: Linked Management Systems. Chico, CA: Paton
Professional, 2011.
Pyzdek, T. and P. Keller, The Handbook for Quality Management: A Complete Guide to
Operational Excellence, 2nd ed. New York: McGraw-Hill, 2013.
———. The Six Sigma Handbook: A Complete Guide for Green Belts, Black Belts, and Managers
at All Levels. 3rd ed. Milwaukee: ASQ Quality Press, 2009.
ReVelle, J. B. Quality Essentials: A Reference Guide from A to Z. Milwaukee: ASQ Quality
Press, 2004.
568 Appendix A: References
ReVelle, J. B., ed. Manufacturing Handbook of Best Practices: An Innovation, Productivity, and
Quality Focus. Boca Raton, FL: St. Lucie Press, 2002.
Siebels, D. L. The Quality Improvement Glossary. Milwaukee: ASQ Quality Press, 2004.
Sirkin, M. The Secret Life of Corporations: Understanding the True Nature of Business. White
Plains, NY: New Chrysalis Press, 2004.
Summers, D. C. S. Quality. 2nd ed. Upper Saddle River, NJ: Prentice Hall, 2000.
Tague, N. R. The Quality Toolbox. 2nd ed. Milwaukee: ASQ Quality Press, 2005.
Townsend, P. L., and J. E. Gebhardt. The Excutive Guide to Understanding and Implementing
Employee Engagement Programs: Expand Production Capacity, Increase Revenue, and Save
Jobs. Milwaukee: ASQ Quality Press, 2007.
West, J. E., and C. A. Cianfrani. Unlocking the Power of Your QMS: Keys to Business Process
Improvement. Milwaukee: ASQ Quality Press, 2004.
PART I LEADERSHIP
A. Chapter 1 Organizational Structures
Ashkenas, R., D. Ulrich, T. Jich, and S. Herr. The Boundaryless Organization: Breaking the
Chains of Organizational Structure. San Francisco: Jossey-Bass, 1995.
Harrington, H. J., and F. Voehl. The Organizational Alignment Handbook: A Catalyst for
Performance Acceleration. Boca Raton, FL: CRC Press, 2012.
Hesselbein, F., and P. M. Cohen, eds. Leader to Leader: Enduring Insights on Leadership from
the Drucker Foundation’s Award-Winning Journal. San Francisco: Jossey-Bass, 1999.
B. Chapter 2 Leadership Challenges
Attong, M., and T. Metz. Change or Die: The Business Process Improvement Manual.
Milwaukee: ASQ Quality Press, 2013.
Bellman, G. M. Getting Things Done When You Are Not in Charge: How to Succeed from a
Support Position. San Francisco: Berrett-Koehler, 2001.
Benowitz, E. A. Cliffs Quick Review Principles of Management. Hoboken, NJ: Wiley
Publishing, 2001.
Blank, W. The 108 Skills of Natural Born Leaders. New York: AMACOM, 2001.
Camarota, A. G. Finding the Leader in You: A Practical Guide to Expanding Your Leadership
Skills. Milwaukee: ASQ Quality Press, 2005.
Covey, S. R. Principle-Centered Leadership. New York: Summit Books, 1991.
Cramer, A., and Z. Karabell. Sustainable Excellence: The Future of Business in a Fast-Changing
World. New York: Macmillan-Rodale, 2010.
Duck, J. D. The Change Monster: The Human Forces That Fuel or Foil Corporate Transformation
and Change. New York: Random House (Crown Business), 2001.
Ducoff, N. No-Compromise Leadership: A Higher Standrad of Leadership Thinking and Behavior.
Sanford, FL: DC Press, 2009.
Everly, G., Strause, D., and Everly III, G. The Secrets of Resilient Leadership. Milwaukee: ASQ
Quality Press, 2009.
Gawande, Atul, The Checklist Manifesto: How to Get Things Right. New York: Metropolitan
Books-Henry Holt and Company, 2009.
Goleman, D. Working with Emotional Intelligence. New York: Bantam Books, 1998.
Gostick, A., and C. Elton. The Carrot Principle: How the Best Managers Use Recognition to
Engage Their People, Retain Talent, and Accelerate Performance. New York: Free Press,
20 07.
Appendix A: References 569
Hacker, S., and T. Roberts. Transformational Leadership: Creating Organizations of Meaning.
Milwaukee: ASQ Quality Press, 2004.
Heath, C., and D. Heath, Switch: How to Change Things When Change Is Hard. New York:
Crown Business, 2010.
Hersey, P., The Situational Leader. Escondido, CA: Center for Leadership Studies, 2004.
Hersey, P., K. Blanchard, and D. E. Johnson. Management of Organizational Behavior: Leading
Human Resources. Upper Saddle River, NJ: Prentice-Hall, 2001.
Hesselbein, F., and P. M. Cohen, eds. Leader to Leader: Enduring Insights on Leadership from
the Drucker Foundation’s Award-Winning Journal. San Francisco: Jossey-Bass, 1999.
Hirzel, R. C. “Leadership Is Personal.” Paper published by the ASQ Human Development
and Leadership Division. Milwaukee, 2003.
Hopen, D. “Guiding Corporate Behavior: A Leadership Obligation, Not a Choice,” The
Journal for Quality and Participation 25 (Winter 2002):15–19
Hutton, D. The Change Agent’s Handbook. Milwaukee: ASQ Quality Press, 1994.
Jossey-Bass. Business Leadership: A Jossey-Bass Reader. San Francisco: Jossey-Bass, 2003.
Kotter, J. P. Leading Change. Boston: Harvard Business School Press, 2012.
Kouzes, J., and B. Posner. The Leadership Challenge. 4th ed. San Francisco: Jossey-Bass, 2008.
Labovitz, G., and V. Rosansky. Rapid Improvement. Milwaukee: ASQ Quality Press, 2013.
Lee, J. Rising Above All. Milwaukee: ASQ Quality Press, 2013.
Miller, K. The Change Agent’s Guide to Radical Improvement. Milwaukee: ASQ Quality Press,
2002.
Mundy, Lee. A Journey to Quality Leadership, Milwaukee: ASQ Quality Press, 2011.
Palmer, B. Making Change Work: Practical Tools for Overcoming Human Resistance to Change.
Milwaukee: ASQ Quality Press, 2004.
Pauley, J. A., and J. Pauley, Communication: The Key to Effective Leadership. Milwaukee: ASQ
Quality Press, 2009.
Perseus Publishing. Best Practice: Ideas and Insights From the World’s Foremost Business
Thinkers. Cambridge, MA: Perseus, 2003.
Pietenpol, D. Leadership, Quality, and Learning. Milwaukee: ASQ Quality Press, 2008.
Senge, P. The Fifth Discipline. New York: Random House, 2005.
Shearer, C. Everyday Excellence: Creating a Better Workplace Through Attitude, Action, and
Appreciation. Milwaukee: ASQ Quality Press, 2006.
Smart, B. D. Topgrading: How Leading Companies Win by Hiring, Coaching, and Keeping the
Best People. New York: Portfolio-Penguin Group, 2005.
Weiner, E., and A. Brown. Future Think: How to Think Clearly in a Time of Change. Upper
Saddle River, NJ: Pearson-Prentice Hall, 2006.
Weiss, A. “Good Enough” Isn’t Enough: Nine Challenges for Companies That Choose to Be Great.
New York: AMACOM, 2000.
C. Chapter 3 Teams and Team Processes
Dreo, H., P. Kunkel, and T. Mitchell. The Virtual Teams Guidebook for Managers. Milwaukee:
ASQ Quality Press, 2003.
McDermott, L. C., N. Brawley, and W. W. Waite. World Class Teams: Working across Borders.
New York: John Wiley & Sons, 1998.
Scholtes, P. R., B. L. Joiner, and B. J. Streibel. The Team Handbook. 3rd ed. Madison, WI:
Joiner Associates, 2003.
Wilson, S. “Forming Virtual Teams.” Quality Progress (June 2003): 36–41.
570 Appendix A: References
D. Chapter 4 ASQ Code of Ethics
Anderson, B. Bringing Business Ethics to Life: Achieving Corporate Social Responsibility.
Milwaukee: ASQ Quality Press, 2004.
AuBuchon, D. “Integrity in Management.” The Quality Management Forum (Fall 2004).
Geissler, P. Managing with Conscience for Competitive Advantage. Milwaukee: ASQ Quality
Press, 2004.
Sarbanes-Oxley Act of 2002. Public Law 107-204, July 30, 2002. (Addresses concerns,
among other issues, about corporate responsibility for financial reports. A top
corporate officer must review and sign financial reports signifying that “the report
does not contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements made, in light of the circumstances
under which such statements were made, not misleading.”)
Stimson, W. A. “A Deming Inspired Management Code of Ethics.” Quality Progress
(February 2005): 67–75.
PART II STRATEGIC PLAN DEVELOPMENT
AND DEPLOYMENT
A. Chapter 5 Strategic Planning Models
Cobb, C. G. From Quality to Business Excellence: A Systems Approach to Management.
Milwaukee: ASQ Quality Press, 2003.
Colletti, J. Hoshin Kanri Memory Jogger. Salem, NH: GOAL/QPC, 2013.
Haines, S. G. Strategic and Business Planning: The Systems Thinking Approach. Amherst, MA:
HRD Press, 1999.
National Institute of Standards and Technology. Baldrige Performance Excellence Program:
Criteria for Performance Excellence. Gaithersburg, MD: NIST, 2012. (Individual copies
of the criteria booklets may be obtained free of charge from: Baldrige Performance
Excellence Program, NIST, Administration Building, Room A600, 100 Bureau Drive,
Stop 1020, Gaithersburg, MD 20899-1020, telephone (301) 975-2036, fax (301) 948-3716,
e-mail nqp@nist.gov or download from www.baldrige.nist.gov/Criteria.htm). Note:
There are separate criteria for healthcare and for education.
B. Chapter 6 Business Environment Analysis
Babcock, C. Management Strategies for the Cloud Revolution: How Cloud Computing Is
Transforming Business and Why You Can’t Afford to Be Left Behind. New York: McGraw-
Hill, 2010.
C. Chapter 7 Strategic Plan Deployment
DeFeo, J. A. “Strategic Deployment,” Section 13 in Juran’s Quality Handbook. 5th ed. J. M.
Juran and A. B. Godfrey, eds. New York: McGraw-Hill, 1999.
Haines, S. G. Strategic and Business Planning: The Systems Thinking Approach. Amherst, MA:
HRD Press, 1999.
Appendix A: References 571
PART III MANAGEMENT ELEMENTS AND METHODS
A. Chapter 8 Management Skills and Abilities
Principles of Management, Management Theories, and Tools
Hersey, P., K. Blanchard, and D. E. Johnson. Management of Organizational Behavior: Leading
Human Resources. Upper Saddle River, NJ: Prentice-Hall, 2001.
Hofstede, G., G. J. Hofstede, and M. Mikov. Cultures and Organizations. 4th ed. New York:
McGraw-Hill, 2010.
Liker, J. The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer.
New York: McGraw-Hill, 2004.
Schein, E. H. The Corporate Culture Survival Guide: Sense and Nonsense About Culture Change.
San Francisco: Jossey-Bass, 1999.
Schermerhorn Jr., J. R., J. G. Hunt, and R. N. Osborn. Organizational Behavior. 9th ed. New
York: John Wiley & Sons, 2005.
Senge, P. M. The Fifth Discipline: The Art & Practice of the Learning Organization. New York:
Doubleday, 1990.
Senge, P. M., A. Kleiner, C. Roberts, R. B. Ross, and B. J. Smith. The Fifth Discipline
Fieldbook: Strategies and Tools for Building a Learning Organization. New York:
Doubleday, 1994.
Woodson, W., P. Tillman, and B. Tillman. Human Factors Design Handbook. 2nd ed. New
York: McGraw-Hill, 1992.
Interdependence of Functional Areas
Cobb, C. G. From Quality to Business Excellence: A Systems Approach to Management.
Milwaukee: ASQ Quality Press, 2003.
Sirkin, M. The Secret Life of Corporations: Understanding the True Nature of Business. White
Plains, NY: New Chrysalis Press, 2004.
Human Resources Management
Holbeche, L. Aligning Human Resources and Business Strategy. New York: Butterworth
Heinemann, 2001.
Mathis, R. L., and J. H. Jackson. Human Resource Management. 11th ed. Mason, OH:
Thomson South-Western, 2000.
Financial Management
Chang, R. Y., and M. W. Morgan. Performance Scorecards: Measuring the Right Things in the
Real World. San Francisco: Jossey-Bass, 2000.
Drickhamer, D. “House of Cards.” Industry Week (January 2005): 49–51.
Finkler, S. A. Finance and Accounting for Nonfinancial Managers. 3rd ed. New York: Aspen
Publishers, 2003.
Garrison, R. H., and E. W. Noreen. Managerial Accounting. Boston: McGraw-Hill/Irwin,
2003.
George, S. “How to Speak the Language of Senior Management.” Quality Progress (May
2003): 30–36.
Hoisington, S. H., and E. C. Menzer. “Learn to Talk Money.” Quality Progress (May 2004):
44–49.
Kaplan, R. S., and D. P. Norton. The Balanced Scorecard: Translating Strategy into Action.
Boston: Harvard Business School Press, 1996.
Livingston, J. L., and T. Grossman. The Portable MBA in Finance and Accounting. 3rd ed.
New York: John Wiley & Sons, 2001.
572 Appendix A: References
Ryan, J. Making the Economic Case for Quality. An ASQ White Paper. Milwaukee: American
Society for Quality, 2004.
Tracy, J. A. Accounting for Dummies: A Reference for the Rest of Us. 2nd ed. New York:
Hungry Minds, 2001.
Risk Management
Drickhamer, D. “House of Cards.” Industry Week (January 2005): 49–51.
Getto, G. “Risk Management Supporting Quality Management of Software Acquisition
Projects,” in Software Quality Professional (ASQ) 2, no. 2 (2000): 42–53.
Goodden, R. L. Product Liability Prevention: A Strategic Guide. Milwaukee: ASQ Quality
Press, 2000.
Hutchins, G., and D. Gould. “The Growth of Risk Management.” Quality Progress
(September 2004): 73–75.
Kolka, J. W. “ISO 9001 and 9004: A Framework for Disaster Preparedness.” Quality
Progress (February 2002): 57–62.
Snow, A. “Integrating Risk Management into the Design and Development Process.”
Medical Device & Diagnostic Industry (March 2001): 99–113.
Vinas, T., and J. Jusko. “5 Threats That Could Sink Your Company.” Industry Week
(September 2004): 53–62.
Westcott, R. T. Stepping Up to ISO 9004:2000. Chico, CA: Paton Press, 2005, Chapter 4.
Knowledge Management
Bajaria, H. J. “Knowledge Creation and Management: Integrated Issues.” ASQ’s 54th
Annual Quality Conference Proceedings. Milwaukee: ASQ, 2002.
Davenport, T. H., and L. Prusak. Working Knowledge: How Organizations Manage What They
Know. Boston: Harvard Business School Press, 1998.
Shockley III, W. “Planning for Knowledge Management.” Quality Progress (March 2000).
Von Krogh, G., K. Ichijo, and I. Nonaka. Enabling Knowledge Creation: How to Unlock the
Mystery of Tacit Knowledge and Release the Power of Innovation. New York: Oxford
University Press, 2000.
Wilson, L. T., and D. Asay. “Putting Quality in Knowledge Management.” Quality Progress
(January 1999): 25–31.
Product Development
Cooper, R. G. Winning at New Products: Accelerating the Process from Idea to Launch. 3rd ed.
Cambridge, MA: Perseus, 2001.
Monczka, R. M., R. B. Handfield, T. V. Scannell, G. L. Ragatz, and D. J. Frayer. New Product
Development: Strategies for Supplier Integration. Milwaukee: ASQ Quality Press, 2000.
Reilly, N. B. The Team Based Product Development Guidebook. Milwaukee: ASQ Quality
Press, 1999.
B. Chapter 9 Communication Skills and Abilities
Brounstein, M. Communicating Effectively for Dummies: A Reference for the Rest of Us. New
York: John Wiley & Sons, 2001.
Harrington, H. J., and F. Voehl. “Managing Global Quality: Directing a Worldwide
Organization Demands Keen Strategy and Innovative Planning.” Quality Digest
(November 2004): 33–37.
Morrison, T., W. A. Conaway, and G. A. Borden. Kiss, Bow, or Shake Hands: How to Do
Business in Sixty Countries. Holbrook, MA: Adams Media Corporation, 1994.
Appendix A: References 573
C. Chapter 10 Project Management
Baker, S., and K. Baker. The Complete Idiot’s Guide to Project Management. Indianapolis, IN:
Alpha Books, 2000.
Barkley, B. T., and J. H. Saylor. Customer-Driven Project Management: Building Quality into
Project Processes. 2nd ed. New York: McGraw-Hill, 2001.
Chapman, C., and S. Ward. Project Risk Management. New York: John Wiley & Sons, 2003.
Chatfield, C. S., and T. D. Johnson. Microsoft Project 2000 Step by Step. Redmond, WA:
Microsoft Press, 2002.
Conklin, J. D. “Smart Project Selection.” Quality Progress (March 2003): 81–83.
Cooper, R. G. Winning at New Products: Accelerating the Process from Idea to Launch. 3rd ed.
Cambridge, MA: Perseus, 2001.
Dobson, M. Project Management for the Technical Professional. Upper Darby, PA: Project
Management Institute, 2001.
Fleming, Q. W., and J. M. Koppelman. Earned Value: Project Management. Newtown
Square, PA: Project Management Institute, 2000.
Frame, J. D. Managing Risk in Organizations: A Guide for Managers. New York: John Wiley &
Sons, 2003.
———. The New Project Management. 2nd ed. San Francisco: Jossey-Bass, 2002.
Graham, R. J., and R. L. Englund. Creating an Environment for Successful Projects. 2nd ed.
Milwaukee: ASQ Quality Press, 2003.
Kerzner, H. Project Management: A Systems Approach to Planning, Scheduling, and Controlling.
8th ed. New York: Van Nostrand Reinhold, 2003.
LaBrosse, M. A. Accelerated Project Management. New York: HNB, 2002.
Lewis, J. P. Project Planning, Scheduling & Control: A Hands-On Guide to Bringing Projects in
on Time and on Budget. 3rd ed. Chicago: Probus, 2001.
Lowenthal, J. N. Six Sigma Project Management: A Pocket Guide. Milwaukee: ASQ Quality
Press, 2002.
Milosevic, D. Z. Project Management Toolbox: Tools and Techniques for the Practicing Project
Manager. New York: John Wiley & Sons, 2003.
Phillips, J. J., T. W. Bothell, and G. L. Snead. The Project Management Scorecard: Measuring
the Success of Project Management Solutions. New York: Butterworth Heinemann, 2002.
PMI Standards Committee. A Guide to the Project Management Body of Knowledge. Upper
Darby, PA: Project Management Institute, 2000.
Pyzdek, T. “Selecting Winning Projects.” Quality Digest (August 2000): 26.
Rad, P. F., and G. Levin. Achieving Project Management Success Using Virtual Teams. Boca
Raton, FL: J. Ross, 2003.
Stevenson, N. Microsoft Project for Dummies. Foster City, CA: IDG, 2000.
Uyttewaal, E. Dynamic Scheduling with Microsoft Project 2002. Boca Raton, FL: J. Ross, 2003.
———. The Portable MBA in Project Management. New York: John Wiley & Sons, 2003.
Westcott, R. T. Simplified Project Management for the Quality Professional. Milwaukee: ASQ
Quality Press, 2004.
Wysocki, R. K., and J. P. Lewis. The World Class Project Manager: A Professional Development
Guide. Cambridge, MA: Perseus, 2001.
D. Chapter 11 Quality System
Arter, D. R. Quality Audits for Improved Performance. 3rd ed. Milwaukee: ASQ Quality
Press, 2003.
Arter, D. R., C. A. Cianfrani, and J. E. West. How to Audit the Process-Based QMS.
Milwaukee: ASQ Quality Press, 2003.
574 Appendix A: References
Palmes, P. C. Process Driven Comprehensive Auditing. Milwaukee: ASQ Quality Press,
2005.
———. The Internal Auditing Pocket Guide. Milwaukee: ASQ Quality Press, 2003.
———. Continual Improvement Assessment Guide: Promoting and Sustaining Business Results.
Milwaukee: ASQ Quality Press, 2004.
West, J., and C. A. Cianfrani. Unlocking the Power of Your QMS: Keys to Business Performance
Improvement. Milwaukee: ASQ Quality Press, 2005.
E. Chapter 12 Quality Models and Theories
Bernhart, M. S., and F. J. Maher. ISO 26000 in Practice. Milwaukee: ASQ Quality Press,
2011.
Blazey, M. L. Insights to Performance Excellence 2013–2014: Understanding the Integrated
Management System and the Baldrige Criteria: An Inside Look at the 2005 Baldrige Award
Criteria. Milwaukee: ASQ Quality Press, 2013.
Brown, M. G. Baldrige Award Winning Quality: How to Interpret the Baldrige Criteria for
Performance Excellence. 14th ed. New York: Productivity Press, 2005.
Byrnes, M. A., and J. C. Baxter. There Is Another Way! Launch a Baldrige-Based Quality
Classroom. Milwaukee: ASQ Quality Press, 2005.
Cianfrani, C. A., and J. E. West. ISO 9001:2008 Explained Expanded: Optimizing Your QMS
for Success. Milwaukee: ASQ Quality Press, 2013.
Collins Jr., J. W., and D. S. Steiger. The Memory Jogger 9001:2008: Implementing a Process
Approach Compliant to ISO 9001:2008 Quality Management Systems. Salem, NH: GOAL/
QPC, 2011.
Crosby, P. B. Quality Is Free. New York: Mentor Books, 1979.
Deming, W. E. The New Economics. 2nd ed. Cambridge, MA: MIT Center for Advanced
Educational Studies, 1994.
———. Out of the Crisis. Cambridge, MA: MIT Center for Advanced Engineering Study,
1986.
Imai, M. Kaizen: The Key to Japan’s Competitive Success. New York: Random House Business
Division, 1986.
Ishikawa, L. Guide to Quality Control. Tokyo: Asian Productivity Organization, 1982.
Leonard, D., and M. McGuire. Executive Guide to Understanding and Implementing the
Baldrige Criteria: Improve Revenue and Create Organizational Excellence. Milwaukee:
ASQ Quality Press, 2007.
Myhrberg, E. V. A Practical Field Guide for ISO 9001:2008. Milwaukee: ASQ Quality Press,
2009.
Russell, J.P. Continual Improvement Assessment Guide. Milwaukee: ASQ Quality Press, 2004.
———. The Internal Auditing Pocket Guide. Milwaukee: ASQ Quality Press, 2003.
West, J. E., and C. A. Cianfrani. Unlocking the Power of Your QMS: Keys to Business
Performance Improvement. Milwaukee: ASQ Quality Press, 2005.
Westcott, R. T. Stepping Up to ISO 9004:2000: A Practical Guide for Creating a World-Class
Organization. Chico, CA: Paton Press, 2003.
PART IV QUALITY MANAGEMENT TOOLS
A. Chapter 13 Problem-Solving Tools
Seven Classic Quality Tools and Basic Management and Planning Tools
Andersen, B., T. Fagerhaug, B. Henriksen, and L. F. Onsøyen. Mapping Work Processes.
Milwaukee: ASQ Quality Press, 2008
Appendix A: References 575
Brassard, M., and D. Ritter. The Memory Jogger 2. 2nd ed. Salem, NH: GOAL/QPC, 2010.
Process Improvement Tools
ABS Consulting—L. N. Vanden Heuvel, D. K. Lorenzo, R. L. Montgomery, W.E. Hanson,
and J. R. Rooney. Root Cause Analysis Handbook. 3rd ed. Milwaukee: ASQ Quality
Press, 2008.
Andersen, B., and T. Fagerhaug. Root Cause Analysis: Simplified Tools and Techniques. 2nd
ed. Milwaukee: ASQ Quality Press, 2006.
Barry, R., and A. C. Smith. The Manager’s Guide to Six Sigma in Healthcare: Practical Tips and
Tools for Improvement. Milwaukee: ASQ Quality Press, 2005.
Brassard, M., L. Finn, D. Ginn, and D. Ritter. The Six Sigma Memory Jogger II: A Pocket
Guide of Tools for Six Sigma Improvement Teams. Salem, NH: GOAL/QPC, 2002.
GOAL/QPC. The Problem Solving Memory Jogger: Seven Steps to Improved Processes.
Lawrence, MA: GOAL/QPC, 2000.
Munro, R. A. Six Sigma for the Shop Floor. Milwaukee: ASQ Quality Press, 2002.
Okes, D., Root Cause Analysis: The Core of Problem Solving and Corrective Action. Milwaukee:
ASQ Quality Press, 2009.
Pande, P. S., and L. Holpp. What Is Six Sigma? New York: McGraw-Hill, 2001.
Pande, P. S., R. R. Cavanagh, and R. P. Neuman. The Six Sigma Way: How GE, Motorola,
and Other Top Companies Are Honing Their Performance. New York: McGraw-Hill,
2000.
Plenert, G. Strategic Continuous Process Improvement: Which Quality Tools to Use, and When
to Use Them. New York: McGraw-Hill, 2012.
Pries, K. H. Six Sigma for the Next Millennium. 2nd ed. Milwaukee: ASQ Quality Press,
2009.
Six Sigma Academy. The Black Belt Memory Jogger: A Pocket Guide for Six Sigma Success.
Salem, NH: GOAL/QPC, 2002.
Stamatis, D. H. Failure Mode Effect Analysis: FMEA from Theory to Execution. 2nd ed.
Milwaukee: ASQ Quality Press, 2003.
Tague, N. R. The Quality Toolbox. 2nd ed. Milwaukee: ASQ Quality Press, 2005.
Watson, G. Six Sigma for Business Leaders: A Guide to Implementation. Salem, NH: GOAL/
QPC, 2004.
Innovation and Creativity Tools
Cook, H. E. Design for Six Sigma As Strategic Experimentation: Planning, Designing, and
Building World-Class Products and Services. Milwaukee: ASQ Quality Press, 2005.
GOAL/QPC. The Design for Six Sigma Memory Jogger. Salem, NH: GOAL/QPC, 2004.
Hidahl, J. W. “DFMA/DFSS.” In Manufacturing Handbook of Best Practices, edited by J. B.
ReVelle. Boca Raton, FL: St. Lucie Press, 2002.
Mader, D. P. “Design for Six Sigma: You Need More Than Standard Six Sigma
Approaches to Optimize Your Product or Service Development.” Quality Progress
(July 2002): 82–86.
Tague, N. R. The Quality Toolbox. 2nd ed. Milwaukee: ASQ Quality Press, 2005.
Ungvari, S. F. “TRIZ.” Chapter 19 in Manufacturing Handbook of Best Practices: An
Innovation, Productivity, and Quality Focus, edited by J. B. ReVelle. Boca Raton, FL: St.
Lucie Press, 2002, 399–425.
Watson, G. H. Design for Six Sigma: Innovation for Enhanced Competitiveness. Salem, NH:
GOAL/QPC, 2005.
Cost of Quality
Beecroft, G. D. “Cost of Quality and Quality Planning Affect the Bottom Line.” The
Quality Management Forum (Winter 2001).
576 Appendix A: References
DeFeo, J. A. “The Tip of the Iceberg: When Accounting for Quality, Don’t Forget the Often
Hidden Costs of Poor Quality.” Quality Progress (May 2001): 29–37.
Freiesleben, J. “Quality Problems and Their Real Costs.” Quality Progress (December
2004): 49–55.
Gryna, F. M. “Section 8: Quality and Costs.” In Juran’s Quality Handbook. 5th ed. Edited by
J. M. Juran and A. B. Godfrey New York: McGraw-Hill, 1999.
Wood, D. C., ed. Principles of Quality Costs: Financial Measures for Strategic Implementation of
Quality Management. 4th ed. Milwaukee: ASQ Quality Press, 2012.
B. Chapter 14 Process Management
Process Goals and Analysis
Alukal, G., and A. Manos. Lean Kaizen: A Simplified Approach to Process Improvement.
Milwaukee: ASQ Quality Press, 2006.
Christensen, E. H., K. M. Coombes-Betz, M. S. Stein, The Certified Quality Process Analyst
Handbook. Milwaukee: ASQ Quality Press, 2007.
Imai, M. Gemba Kaizen: A Commonsense Approach to a Continous Improvement Strategy. 2nd
ed. Milwaukee: ASQ Quality Press, 2012.
Lareau, W. Office Kaizen 2: Harnessing Leadership, Organizations, People, and Tools for Office
Excellence. Milwaukee: ASQ Quality Press, 2011.
Windsor, S. An Introduction to Green Process Management. Milwaukee: ASQ Quality Press,
2011.
Lean Tools
Hinckley, C. M. Make No Mistake!: An Outcome-Based Approach to Mistake-Proofing.
Portland, OR: Productivity Press, 2001.
Lareau, W. Office Kaizen: Transforming Office Operations into a Strategic Competitive
Advantage. Milwaukee: ASQ Quality Press, 2003.
Macinnes, R. L. The Lean Enterprise Memory Jogger: Create Value and Eliminate Waste
throughout Your Company. Salem, NH: GOAL/QPC, 2002.
MCS Media. The New Lean Pocket Guide XL: Tools for the Elimination of Waste! Chelsea, MI:
MCS Media, 2006.
Ohno, T. Toyota Production System: Beyond Large-Scale Production. Portland, OR:
Productivity Press, 1988.
ReVelle, J. B. Manufacturing Handbook of Best Practices: An Innovation, Productivity, and
Quality Focus. Boca Raton, FL: St. Lucie Press, 2002.
Rooney, S. A., and J. K. Rooney. “Lean Glossary.” Quality Progress (June 2005): 41–47.
Schonberger, R. J. “Make Work Cells Work for You.” Quality Progress (April 2004): 58–63.
Tapping, D., T. Luyster, and T. Shuker. Value Stream Management: Eight Steps to Planning,
Mapping, and Sustaining Lean Improvements. New York: Productivity Press, 2002.
Trischler, W. R. Understanding and Applying Value-Added Assessment: Eliminating Business
Process Waste. Milwaukee: ASQC Quality Press, 1996.
Voelkel, J. G., and C. Chapman. “Value Stream Mapping.” Quality Progress (May 2003):
65–69.
Theory of Constraints
Dettmer, W. W. Breaking the Constraints to World-Class Performance. Milwaukee: ASQ
Quality Press, 1998.
———. Goldratt’s Theory of Constraints: A Systems Approach to Continuous Improvement.
Milwaukee: ASQ Quality Press, 1997.
Appendix A: References 577
Nave, D., “How to Compare Six Sigma, Lean, and the Theory of Constraints.” Quality
Progress (March 2002): 73–78.
C. Chapter 15 Measurement: Assessment and Metrics
Andersen, B. Business Process Improvement Toolbox. Milwaukee: ASQ Quality Press, 1999.
Anderson, M. J., and S. L. Kraber. “Eight Keys to Successful DOE.” Quality Digest (July
1999): 39–43.
ASQ Statistics Division. Improving Performance Through Statistical Thinking. Milwaukee:
ASQ Quality Press, 2000.
Barrentine, L. B. Concepts for R&R Studies. 2nd ed. Milwaukee: ASQ Quality Press, 2003.
Blank, R. Basics of Reliability. New York: Productivity Press, 2004.
Borror, C. M., ed. The Certified Quality Engineer Handbook. 3rd ed. Milwaukee: ASQ
Quality Press, 2009.
Brassard, M., L. Finn, D. Ginn, and D. Ritter. Six Sigma Memory Jogger II: A Pocket Guide for
Six Sigma Improvement Teams. Salem, NH: GOAL/QPC, 2002.
Brassard, M., and D. Ritter. The Creativity Tools Memory Jogger. Salem, NH: GOAL/QPC,
1998.
Carey, R. G., and R. C. Lloyd. Measuring Quality Improvement in Healthcare: A Guide to
Statistical Process Control Applications. Milwaukee: ASQ Quality Press, 2001.
Crossley, M. L. The Desk Reference of Statistical Quality Methods. Milwaukee: ASQ Quality
Press, 2000.
Hahn, G. J., W. Q. Meeker, and N. Doganaksoy. “Speedier Reliability Analysis.” Quality
Progress (June 2003): 58–64.
Hunter, J. S. “Improving an Unstable Process.” Quality Progress (February 2004): 68–71.
———. “Making a Decision Under Uncertain Circumstances.” Quality Progress (April
2003): 83–85.
Kimothi, S. K. The Uncertainty of Measurements: Physical and Chemical Metrology Impact and
Analysis. Milwaukee: ASQ Quality Press, 2002.
Okes, D. Performance Metrics: The Levers for Process Management. Milwaukee: ASQ Quality
Press, 2013.
Payne, G. C. “Calibration: What Is It?” Quality Progress (May 2005): 72–76.
Schilling, E. G. “Acceptance Sampling.” In Juran’s Quality Handbook. 5th ed. Edited by J. M.
Juran and A.B. Godfrey. New York: McGraw-Hill, 1999, Section 46.1–46.87.
Stephens, K. S. The Handbook of Applied Acceptance Sampling: Plans, Procedures, and
Principles. Milwaukee: ASQ Quality Press, 2001.
West, J. E., and C. A. Cianfrani. Unlocking the Power of Your QMS: Keys to Business
Performance Improvement. Milwaukee: ASQ Quality Press, 2005.
Wheeler, D. J. Understanding Variation: The Key to Managing Chaos. Knoxville, TN: SPC
Press, 1993.
Wood, D., ed. Principles of Quality Costs: Financial Measures for Strategic Implementation of
Quality Management. 4th ed. Milwaukee: ASQ Quality Press, 2013.
PART V CUSTOMER-FOCUSED ORGANIZATIONS
A. Chapter 16 Customer Identification and Segmentation
Westcott, R. T. “Quality-Level Agreements for Clarity of Expectations.” The Informed
Outlook (December 1999): 13–15.
578 Appendix A: References
B. Chapter 17 Customer Relationship Management
Albrecht, K., and R. Zemke. Service America in the New Economy. New York: McGraw-Hill,
2002.
Barlow, J., and C. Møller. A Complaint Is a Gift: Using Customer Feedback As a Strategic Tool.
San Francisco: Berrett-Koehler, 1996.
Becker, K. “Are You Hearing Voices?” Quality Progress (February 2005): 28–35.
Camarota, A. G. Finding the Leader in You. Milwaukee: ASQ Quality Press, 2004.
Cochran, C. “Leveraging Customer Complaints into Customer Loyalty.” Quality Digest
(December 2004): 26–28.
Allen, D. R., and T. R. Rao. Analysis of Customer Satisfaction Data. Milwaukee: ASQ Quality
Press, 2000.
Fisher, C. M., and J. T. Schutta. Developing New Services: Incorporating the Voice of the
Customer into Strategic Service Development. Milwaukee: ASQ Quality Press, 2003.
Fornell, C. The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference. New
York: Palgrave-Macmillan, 2007.
Harris, E. K. Customer Service: A Practical Approach. Upper Saddle River, NJ: Prentice Hall,
2000.
Hayes, B. E. Measuring Customer Satisfaction and Loyalty: Survey Design, Use, and Statistical
Analysis Methods. 3rd ed. Milwaukee: ASQ Quality Press, 2008.
Jeffries, R. D., and P. R. Sells. “Customer Satisfaction Measurement Instruments: In
Healthcare, Does One Size Fit None?” Quality Progress (February 2000): 118–23.
Kessler, S. Customer Satisfaction Toolkit for ISO 9001:2000. Milwaukee: ASQ Quality Press,
2003.
LeBoeuf, M. How to Win Customers and Keep Them for Life. Rev. ed. New York: Berkeley
Books, 2000.
McKenzie, R. The Relationship-Based Enterprise: Powering Business Success Through Customer
Relationship Management. New York: McGraw-Hill, 2001.
Mody, A. “New Imperative: To Keep Customers, Deliver an Exceptional Experience.” The
Quality Management Forum (Fall): 5–7.
Naumann, E., and S. H. Hoisington. Customer Centered Six Sigma: Linking Customers,
Process Improvement, and Financial Results. Milwaukee: ASQ Quality Press, 2001.
Newell, F. Loyalty.com: Customer Relationship Management in the New Era of Internet
Marketing. New York: McGraw-Hill, 2000.
Nykamp, M. The Customer Differential: The Complete Guide to Implementing Customer
Relationship Management. New York: AMACOM, 2001.
Plsek, P. E. “Creative Thinking for Surprising Quality: The Ability to Innovate Is a Must
in Today’s Competitive Marketplace.” Quality Progress (May 2000): 67–73.
Rosenbluth, H. F., and D. M. Peters. The Customer Comes Second: Put Your People First and
Watch ’Em Kick Butt. New York: HarperCollins, 2002.
Schultz, G. The Customer Care & Contact Center Handbook. Milwaukee: ASQ Quality Press,
2003.
Sewell, C., and P. B. Brown. Customers for Life: How to Turn That One-Time Buyer into a
Lifetime Customer. New York: Doubleday, 2002.
Timm, P. R. Seven Power Strategies for Building Customer Loyalty. New York: AMACOM,
2001.
Ulwick, A. W. What Customers Want: Using Outcome-Driven Innovation to Create
Breakthrough Products and Services. New York: McGraw-Hill, 2005.
Vavra, T. G. Customer Satisfaction Measurement Simplified: A Step-by-Step Guide for ISO
9001:2000 Certification. Milwaukee: ASQ Quality Press, 2002.
Warner, C. M. In Real World Customer Service Strategies That Work. Sevierville, TN: Insight,
2004.
Appendix A: References 579
Westcott, R. T. “Stepping Up to ISO 9004:2000: Focusing on the Customer.” The Informed
Outlook (July 2001): 3–8 and (August 2001): 19–24.
———. “Tapping the Many Voices of the Customer.” The Informed Outlook (June 2000):
20–23.
———. “Safeguard Your Customer Base.” The Quality Management Forum (Summer 1998):
10–13.
———. “Unconditional Guarantee: Implications for Your Business.” The Quality
Management Forum (Spring 1994): 3–6.
Wilburn, M. W. Managing the Customer Experience: A Measurement-Based Approach.
Milwaukee: ASQ Quality Press, 2007.
Xie, M., K. C. Tan, T. N. Goh. Advanced QFD Applications. Milwaukee: ASQ Quality Press,
2003.
Zeithaml, V. A., A. Parasuraman, and L. L. Berry. Delivering Quality Service: Balancing
Customer Perceptions and Expectations. Milwaukee: ASQ Quality Press, 2002.
PART VI SUPPLY CHAIN MANAGEMENT
Chapter 18 Supply Chain
Andrews, D. L. “How to Manage Cross-Cultural Change.” Chief Supply Chain Officer (May
2005): 34–39.
Ayers, J. B. Supply Chain Project Management: A Structured Collaborative and Measurable
Approach. 2nd ed. Boca Raton, FL: CRC Press, 2010.
Balasubramanian, R., and S. Baumgardner. “Good Supplier Management Aids New
Product Launch.” Quality Progress (June 2004): 49–57.
Barney, D. “Get Ripped!: 20 Steps to a Lean, Mean Supply Chain Machine.” Chief Supply
Chain Officer (May 2005): 18–25.
———. “10 Rules of Supply Chain Excellence.” Chief Supply Chain Officer (February 2005):
22–29.
Bolstorff, P., and R. Rosenbaum. Supply Chain Excellence: A Handbook for Dramatic
Improvement Using the SCOR Model. 2nd ed. New York: AMACOM, 2003.
Boone, T., and R. Ganeshan. New Directions in Supply-Chain Management: Technology,
Strategy, and Implementation. New York: AMACOM, 2002.
Bossert, J. L., ed. The Supplier Management Handbook. 6th ed. Milwaukee: ASQ Quality
Press, 2004.
CQI-19 AIAG Sub-tier Supplier Management Process Guideline, Version I, Issued August
2012.
Dittmann, P. J. Supply Chain Transformation: Building and Executing an Integrated Supply
Chain. Milwaukee: ASQ Quality Press, 2013.
Dominick, C., and S. Lunney. The Procurement Game Plan: Winning Strategies and Techniques
for Supply Management Professionals. Fort Lauderdale, FL: J. Ross, 2012.
Fawcett, S. E., and G. M. Magnan. Achieving World-Class Supply Chain Alignment: Benefits,
Barriers, and Bridges. Center for Advanced Purchasing Studies, 2001. http://www.
capsresearch.org.
Gilmore, D. “Integrated Supply Chains Require Effective Sales and Operations Planning.”
Chief Supply Chain Officer (May 2005): 48–47.
Gordon, S. “Seven Steps to Measure Supplier Performance.” Quality Progress (August
2005): 20–25.
Handfield, R. B., and E. L. Nichols Jr. Supply Chain Redesign: Transforming Supply Chains
into Integrated Value Systems. Upper Saddle River, NJ: Prentice Hall, 2002.
580 Appendix A: References
“How to Give a Quality Score to Your Supplier.” Metric Stream. Accessed August 1, 2013.
http://www.metricstream.com/insights/qualityScore.htm.
Navas, D. “The Global Supply Chain: 3PLs Lead the Way.” SCS (May 2005): 10–17.
Norausky, P. H. The Customer and Supplier Innovation Team Guidebook. Milwaukee: ASQ
Quality Press, 2000.
ReVelle, J. B., ed. Manufacturing Handbook of Best Practices: An Innovation, Productivity, and
Quality Focus. Boca Raton, FL: St.Lucie Press, 2002, Chapters 16 and 17.
Stauffer, D. “Risk: The Weak Link in Your Supply Chain.” Harvard Business Review (March
1, 2003): 3–5.
Supply and Demand Executive: Solutions-Based Intelligence for Supply Chain ROI . Magazine
published five times per year, Northbrook, IL, omeda.com.
Supply Chain Metric.com. Accessed August 1, 2013. http://www.supplychainmetric.
com/.
Terry, L. “Supply Chain Execution Expands Its Footprint: The Distinction between
Supply Chain Planning and Supply Chain Execution Software Is Beginning to Blur,
As Businesses Build Cross-Functional, Integrated Demand-Driven Networks.” SCS
(May 2005): 18–25.
Watkins, D. K. “Quality Management’s Role in Global Sourcing.” Quality Progress (April
2005): 24–31.
Chapter 19 Training and Development
Allen, M. W. Michael Allen’s Guide to E-Learning: Building Interactive, Fun, and Effective
Learning Programs for Any Company. Hoboken, NJ: John Wiley & Sons, 2003.
Kruse, K., and J. Keil. Technology-Based Training: The Art and Science of Design, Development,
and Delivery. San Francisco: Jossey-Bass, 2000.
Phillips, J. J., Handbook of Training Evaluation and Measurement Methods, 3rd ed. Woburn,
MA: Butterworth-Heinemann, 1997.
———. Return on Investment in Training and Performance Improvement Programs. Houston,
TX: Gulf, 1997.
Rosenberg, M. J. e-Learning: Strategies for Delivering Knowledge in the Digital Age. New York:
McGraw-Hill, 2001.
Rossett, A. The ASTD E-Learning Handbook: Best Practices, Strategies, and Case Studies for an
Emerging Field. New York: McGraw-Hill, 2002.
———. First Things Fast: A Handbook for Performance Analysis. San Francisco: Pfeiffer, 1999.
———. Training Needs Assessment. Techniques in Training and Performance Development
Series. Englewood Cliffs, NJ: Educational Technology Publications, 1987.
Rothwell, W. J., and H. C. Kazanas. Mastering the Instructional Design Process: A Systematic
Approach. 3rd ed. San Francisco: Pfeiffer, 2003.
Stetar, B. “Training: It’s Not Always the Answer.” Quality Progress (March 2005): 44–49.
Westcott, R. T. “Mini-Scule: If You Have No Time or Money to Provide Training, Try a
Mini-Scule.” Quality Progress (June 2005): 104.
581
Appendix B
Glossary and Acronyms
A
A-B-C analysis—A systematic collection and analysis of the behavior observed
of an individual or a work group for the purpose of determining the cause of
specific behaviors.
acceptable quality limit (AQL)—The quality level that is the worst tolerable
process average when a continuing series of lots is submitted for acceptance
sampling.
acceptance sampling—Inspection of a sample from a lot to decide whether to
accept or not accept that lot. There are two types: attributes sampling and vari-
ables sampling. In attributes sampling, the presence or absence of a characteris-
tic is noted in each of the units inspected. In variables sampling, the numerical
magnitude of a characteristic is measured and recorded for each inspected
unit; this involves reference to a continuous scale of some kind.
acceptance sampling plan—Specific plan that indicates the sampling sizes and
the associated acceptance or nonacceptance criteria to be used. In attributes
sampling, for example, there are single, double, multiple, sequential, chain,
and skip-lot sampling plans. In variables sampling, there are single, double,
and sequential sampling plans. For detailed descriptions of these plans, see
ANSI/ISO/ASQ A35342.
accreditation—Certification, by a duly recognized body, of the facilities, capabil-
ity, objectivity, competence, and integrity of an agency, service, or operational
group or individual to provide the specific service or operation needed. For
example, the Registrar Accreditation Board (U.S.) accredits those organiza-
tions that register companies to the ISO 9000 series standards.
accuracy—A characteristic of measurement that addresses how close an observed
value is to the true value. It answers the question, “Is it right?”
ACSI—The American Customer Satisfaction Index is an economic indicator, a
cross-industry measure of the satisfaction of U.S. customers with the quality
of the goods and services available to them—both those goods and services
produced within the United States and those provided as imports from for-
eign firms that have substantial market shares or dollar sales.
action plan—The detailed plan to implement the actions needed to achieve strate-
gic goals and objectives (similar to, but not as detailed as a project plan).
582 Appendix B: Glossary and Acronyms
active listening—Listening closely to what others are saying (for example, rather
than what you think of what they’re saying or what you want to say back
to them).
activity-based management—Managing with an accounting system (activity-
based costing) that allocates costs to products based on resources employed
to produce the product.
ad hoc team—See temporary team.
ADDIE—An instructional design model (analysis, design, development, implementa-
tion, and evaluation).
adult learning principles—Key principles of how adults learn that impact how
education and training of adults should be designed.
affinity diagram—A management and planning tool used to organize ideas into
natural groupings in a way that stimulates new, creative ideas. Also known
as the KJ method.
agile approach—Means to change rapidly to meet changing customer and busi-
ness direction. Also see lean approach.
AIAG—Automotive Industry Action Group.
alignment—Action taken to ensure that a process or activity allows traceability
from an action level upward to support the organization’s strategic goals and
objectives.
alliance—An alliance can be the first step toward a partnership. See partnership/
alliance.
alpha risk—Type 1 error; rejecting a process or lot when it is acceptable. Also see
producer’s risk.
analogies—A technique used to generate new ideas by translating concepts from
one application to another.
analysis of variance (ANOVA)—A basic statistical technique for analyzing exper-
imental data. It subdivides the total variation of a data set into meaningful
component parts associated with specific sources of variation in order to test
a hypothesis on the parameters of the model or to estimate variance compo-
nents. There are three models: fixed, random, and mixed.
analytical thinking—Breaking down a problem or situation into discrete parts to
understand how each part contributes to the whole.
AND—activity network diagram. A management and planning tool used to dia-
gram the sequential relationships of events or processes or deliverables.
The critical path method (CPM) and the program evaluation review tech-
nique (PERT) are derived from the arrow diagram.
andon board—A visual device (usually lights) displaying status alerts that can
easily be seen by those who should respond.
Appendix B: Glossary and Acronyms 583
AOQ—Average outgoing quality.
AOQL—Average outgoing quality limit.
APICS—American Production and Inventory Control Society.
appraisal cost—Costs incurred to determine the degree of conformance to qual-
ity requirements.
AQL—See acceptable quality limit.
AS9100—An international quality management standard for the aeronautics
industry embracing the ISO 9001 standard.
ASME—American Society of Mechanical Engineers.
ASQ—American Society for Quality, a society of individual and organizational
members dedicated to the ongoing development, advancement, and promo-
tion of quality concepts, principles, and technologies.
assessment—An estimate or determination of the significance, importance, or
value of something.
assignable cause—See common cause or special cause.
ASTD—American Society for Training and Development.
ASTM—American Society for Testing and Materials.
attribute data—Does/does not exist data. The control charts based on attribute
data include fraction defective chart, number of affected units chart, count
chart, count-per-unit chart, quality score chart, and demerit chart.
audit—A planned, independent, and documented assessment to determine
whether agreed-on requirements are being met. Common types of audits are
of the quality management system, processes, products, and services. When
an audit is to check on conformance to a standard, specifications, contract
terms, or regulations, it may be called a compliance audit.
audit program—The organized structure, commitment, schedules, and docu-
mented methods used to plan and perform audits.
audit scope—The depth or extent and boundaries within which the audit will be
conducted.
audit team—The group of trained individuals conducting an audit under the
direction of a team leader, relevant to a particular system, product, process,
service, contract, project, or standard.
audit types—“Internal” or “first party” (organization being audited by itself),
“external” or “second party” (an organization conducting an audit of a
supplier, customer, or other company), and “external” or “third party” (audit
conducted by a registrar or another party).
auditee—The individual or organization being audited.
584 Appendix B: Glossary and Acronyms
auditor—An individual or organization carrying out an audit.
autocratic management—Autocratic managers are concerned with developing an
efficient workplace and often have little concern for people (theory X assump-
tions about people). They typically make decisions without input from subor-
dinates. These managers rely on their positional power.
autonomation—Use of specially equipped automated machines capable of detect-
ing a defect in a single part, stopping the process, and signaling for assistance.
See jidoka.
availability—The ability of a process or equipment to be in a state to perform its
designated function under stated conditions at a given time. Availability can
be expressed by the ratio:
Uptime
Downtime
average—The sum of all the pertinent data divided by the number of observations
collected. Also see mean.
average chart—A control chart in which the subgroup average, X-bar, is used to
evaluate the stability of the process level.
average outgoing quality (AOQ)—The expected average quality level of outgo-
ing product for a given value of incoming product quality.
average outgoing quality limit (AOQL)—The maximum average outgoing qual-
ity over all possible levels of incoming quality for a given acceptance sampling
plan and disposal specification.
B
balance sheet—A financial statement showing the assets, liabilities, and owner ’s
equity of a business entity.
balanced scorecard—Translates an organization’s mission and strategy into a
comprehensive set of performance measures to provide a basis for strategic
measurement and management, typically using four balanced views: finan-
cial, customers, internal business processes, and learning and growth.
Baldrige Performance Excellence Program (BPEP)—The Baldrige National Qual-
ity Award was established by Congress in 1987 to raise awareness of quality
management and to recognize U.S. companies that have implemented suc-
cessful quality management systems. A Criteria for Performance Excellence is
published each year. Three awards may be given annually in each of five
categories: manufacturing businesses, service businesses, small businesses,
education institutions, and healthcare organizations. The award is named
after the late Secretary of Commerce Malcolm Baldrige, a proponent of qual-
ity management. The U.S. Commerce Department’s National Institute of
Standards and Technology manages the award, and ASQ administers it. The
major emphasis in determining success is achieving results.
Appendix B: Glossary and Acronyms 585
batch processing—Running large batches of a single product through the process
at one time, resulting in queues awaiting next steps in the process.
BAT F —Bureau of Alcohol, Tobacco, and Firearms.
bathtub curve—Also called life-history curve or Weibull curve. A graphic demon-
stration of the relationship of failures over the life of a product versus the
probable failure rate. Includes three phases: early or infant failure (break-in),
a stable rate during normal use, and wear-out.
behavior management—The management methodology and practices adapted
from B. F. Skinner ’s theories: a practice used in managing people.
behavioral theories—Motivational theories, notably those of Abraham Maslow,
Frederick Herzberg, Douglas McGregor, and others.
benchmarking—An improvement process in which a company measures its per-
formance against that of best-in-class organizations (or others that are good
performers), determines how those organizations achieved their performance
levels, and uses the information to improve its own performance. Areas often
benchmarked include strategies, operations, processes, and procedures.
benefit–cost analysis—Collection of the dollar value of benefits derived from
an initiative and the associated costs incurred and computing the ratio of
benefits to cost.
beta risk—Type 2 error; the possibility that a bad product will be accepted by a
consumer. See consumer’s risk.
bias—A characteristic of measurement that refers to a systematic difference.
Big Q, little q—A term used to contrast the difference between managing for
quality in all processes and products (Big Q) and managing for quality in a
limited capacity (little q).
binomial distribution—Defines the probability of successes from a given num-
ber of trials.
Black Belt—Full-time leader responsible for implementing Six Sigma process
improvement projects using pertinent methodologies, such as DMAIC, DOE,
and others. Usually, the Black Belt trains the Green Belts, and often serves for
a two-year assignment overseeing eight to ten Six Sigma projects.
blemish—An imperfection that is severe enough to be noticed, but should not
cause any real impairment with respect to intended normal or reasonably
foreseeable use. (See also defect, imperfection, and nonconformity.)
block diagram—A diagram that shows the operation, interrelationships, and
interdependencies of components in a system. Boxes, or blocks (hence the
name), represent the components; connecting lines between the blocks rep-
resent interfaces. There are two types of block diagrams: a functional block
diagram, which shows a system’s subsystems and lower-level products, their
interrelationships, and interfaces with other systems; and a reliability block
diagram, which is similar to the functional block diagram except that it is
modified to emphasize those aspects influencing reliability.
586 Appendix B: Glossary and Acronyms
Bloom’s Taxonomy (levels of cognition)—See Appendix A.
body language—The expression of thoughts and emotions through movement or
positioning of the body.
bottom line—An essential point or primary consideration. The line at the bottom
of a financial statement that states the net profit or loss incurred.
boundaryless organization—An organization without the internal or external
boundaries limiting traditional structures. (Also known as a network organiza-
tion, a modular corporation, or a virtual corporation.)
BPR—Business process reengineering. See process reengineering.
brainstorming—A problem-solving tool that teams use to generate as many ideas
as possible related to a particular subject. Team members begin by offering
all their ideas; the ideas are not discussed or reviewed until after the brain-
storming session.
breakthrough—A method of solving chronic problems that results from the effec-
tive execution of a strategy designed to reach the next level of quality. Such
change often requires a paradigm shift within the organization.
brown fields—Abandoned, idle, or underused commercial or industrial facili-
ties or site, often where use is complicated by real or potential environmental
contamination.
BSI—British Standards Institute.
business partnering—The creation of cooperative business alliances between
constituencies within an organization or between an organization and its
customers or suppliers. Partnering occurs through a pooling of resources in
a trusting atmosphere focused on continuous, mutual improvement. See also
customer–supplier partnership.
business processes—Processes that focus on what the organization does as a
business and how it goes about doing it; the functional processes (generating
output within a single department) and cross-functional processes (generat-
ing output across several functions or departments).
C
calibration—The comparison of a measurement instrument or system of unveri-
fied accuracy to a measurement instrument or system of a known accuracy to
detect any variation from the true value.
capability maturity model (CMM)—Description of key elements of an effective
software process, covering planning practices, engineering, managing soft-
ware development and maintenance.
capability ratio (C
p
)— The specification tolerance width divided by the process
capability.
capital expenditure—Money for improvements that will have a useful life of
more than a year.
Appendix B: Glossary and Acronyms 587
cascading training—Training implemented in an organization from the top
down, where each level acts as trainers to those below.
case study—A prepared scenario (story) that, when studied and discussed, serves
to illuminate the learning points of a course of study.
cash
flow
statement—A financial statement showing the flow of cash in and out
of an enterprise within a given time period.
catchball—A term used to describe the interactive process of reaching consensus
in developing and deploying policies and plans with hoshin planning.
cause-and-effect diagram—A tool for analyzing process variables. It is also
referred to as the Ishikawa diagram because Kaoru Ishikawa developed it, and
the fishbone diagram because the complete diagram resembles a fish skeleton.
The diagram illustrates the main causes and sub-causes leading to an effect
(symptom). The cause-and-effect diagram is one of the seven tools of quality.
CBT—Computer-based training. Training delivered via computer software.
c-chart—Count control chart. See also attribute data.
CDC—Centers for Disease Control and Prevention.
CE mark—A mark placed on a product signifying that the product complies with
the essential/safety requirements of the relevant European regulations; from
the French, Conformité Européenne.
cell—A layout of workstations and/or various machines for different operations
(usually in a U shape) in which multitasking operators proceed with a part
from machine to machine to perform a series of sequential steps to produce a
whole product or major subassembly.
cellular team—The cross-trained individuals who work within a cell.
central tendency—The propensity of data collected on a process to concentrate
around a value situated somewhere midway between the lowest and high-
est values.
centralization—Relates to the locus of the decision-making authority within an
organization.
certification—The
receipt of a document from an authorized source stating that a
device, process, or operator has been certified to a known standard.
certification
to a standard—A process in which an accredited, independent
third-party organization conducts an on-site audit of a company’s operations
against the requirements of the standard to which the company wants cer-
tification. Upon successful completion of the audit, the company receives a
certificate indicating that it has met the standard requirements. The third
party (registrar) lists the organization receiving certification (registration).
For example, an ISO 9001–based quality management system (QMS) is imple-
mented, audited, passes, and is certified as compliant with the standard. The
registrar lists the organization as having received a certificate. The organiza-
tion is registered.
588 Appendix B: Glossary and Acronyms
CFR—Code of Federal Regulations.
cGMP—current good manufacturing practices.
chain reaction—A series of interacting events described by W. Edwards Deming:
improve quality > decrease costs > improve productivity > increase market
share with better quality and lower price > stay in business, provide jobs, and
provide more jobs.
chaku–chaku—(Japanese) Means load–load in a cell layout where a part is taken
from one machine and loaded into the next.
champion—An individual who has accountability and responsibility for many
processes or who is involved in making strategic-level decisions for the orga-
nization. The champion ensures ongoing dedication of project resources and
monitors strategic alignment (also referred to as a sponsor).
chance cause—Same as common cause, a random and uncontrollable cause of
variation.
change agent—The person who takes the lead in transforming an organization
into a quality-focused organization by providing guidance during the plan-
ning phase, facilitating implementation, and supporting those who pioneer
the changes.
change management—The strategies, processes, and practices involved in creat-
ing and managing change.
changeover—Changing a machine or process from one type of product or opera-
tion to another.
characteristic—A property that helps to identify or to differentiate between enti-
ties and that can be described or measured to determine conformance or non-
conformance to requirements.
charter—A documented statement officially initiating the formation of a com-
mittee, team, project, or other effort in which a clearly stated purpose and
approval is conferred.
check sheet—A simple data-recording device. The check sheet is custom designed
for the particular use, allowing ease in interpreting the results. The check
sheet is one of the seven tools of quality. Check sheets should not be confused
with data sheets and checklists. Sometimes called tally sheet.
checklist—A tool for organizing and ensuring that all important steps or actions
in an operation have been taken. Checklists contain items that are important
or relevant to an issue or situation. Checklists should not be confused with
check sheets and data sheets.
chi-square—A measurement of how well a set of data fits a proposed distribution,
such as a normal distribution.
chronic problem—A long-standing adverse situation that can be remedied by
changing the status quo. For example, actions such as revising an unrealistic
Appendix B: Glossary and Acronyms 589
manufacturing process or addressing customer defections can change the
status quo and remedy the situation.
clean room—Workplace or process location within which the air is filtered to a
specified level and/or additional environmental controls are present to pre-
vent failures due to contamination or to ensure the personal safety of the
workers.
cloud computing—A model for enabling convenient, on-demand network access
to a shared pool of configurable computing resources, for example, networks,
servers, storage, applications, and services, that can be rapidly provisioned
and released with minimal management effort or service provider interac-
tion. The cloud model promotes availability and is composed of five essential
characteristics, three service models, and four deployment models. (National
Institute of Standards and Technology, Information Technology Laboratory.)
CMI—Certified mechanical inspector (ASQ).
coaching—A continual improvement technique by which people receive one-to-
one learning through demonstration and practice and that is characterized by
immediate feedback and correction.
code of conduct—The expected behavior that has been mutually developed and
agreed on by a team, and communicated to the workforce.
comment cards—Printed cards or slips of paper used to solicit and collect com-
ments from users of a service or product.
common causes of variation—Causes that are inherent in any process all the
time. A process that has only common causes of variation is said to be stable
or predictable or in control. Also called chance causes.
companywide quality control (CWQC)—(Japanese origin) Similar to total qual-
ity management.
competence—Refers to a person’s ability to learn and perform a particular activity.
Competence consists of knowledge, experience, skills, aptitude, and attitude com-
ponents (KESAA factors).
competency-based training—A training methodology that focuses on building
mastery of a predetermined segment or module before moving on to the next.
competitive analysis—The gathering of intelligence relative to competitors in
order to identify opportunities or potential threats to current and future
s t r a t e g y.
complaint handling—The process and practices involved in receiving and resolv-
ing complaints from customers.
complexity—In an organizational context, the number of different entities (job
title, reporting levels, functional departments, and physical work locations)
that comprise the organization.
complexity theory—The theory concerned with the interaction among the parts
of a system, as well as the interaction between the system and its environment.
590 Appendix B: Glossary and Acronyms
compliance—An affirmative indication or judgment that the supplier of a product
or service has met the requirements of the relevant specifications, contract, or
regulation; also the state of meeting the requirements.
computer-based training—Any instruction delivered via a computing device.
concurrent engineering—A process in which an organization designs a prod-
uct or service using input and evaluations from business units and functions
early in the process, anticipating problems, and balancing the needs of all par-
ties. The emphasis is on upstream prevention versus downstream correction.
Sometimes called simultaneous engineering.
conflict
resolution—A process for resolving disagreements in a manner accept-
able to all parties.
conformance—An affirmative indication or judgment that a product or service
has met the requirements of a relevant specification, contract, or regulation.
consensus—Finding a proposal acceptable enough that all team members can
support the decision, and no member opposes it.
constancy of purpose—Occurs when goals and objectives are properly aligned to
the organizational vision and mission. (First of Deming’s 14 steps.)
constraint—A constraint may range from the intangible (for example, beliefs, cul-
ture) to the tangible (for example, posted rule prohibiting smoking, buildup of
work-in-process awaiting the availability of a machine or operator).
constraint management—Identifying a constraint and working to remove or
diminish the constraint, while dealing with resistance to change.
construct—A formally proposed concept representing relationships between
empirically verifiable events and based on observed facts.
consultative—A decision-making approach in which a person talks to others and
considers their input before making a decision.
consumer’s risk—For a sampling plan, refers to the probability of acceptance of a
lot the quality of which has a designated numerical value representing a level
that is seldom desirable. Usually, the designated value will be the lot tolerance
percent defective (LTPD). Also called beta risk or type 2 error.
content analysis—A qualitative analytical technique for categorizing and analyz-
ing the contents of documents.
continual process improvement (CPI)—The actions taken throughout an organi-
zation to increase the effectiveness and efficiency of activities and processes
in order to provide added benefits to the customer and organization. It is
considered a subset of total quality management and operates according to
the premise that organizations can always make improvements. Continual
improvement can also be equated with reducing process variation.
continuous probability distribution—A graph or formula representing the prob-
ability of a particular numeric value of continuous (variable) data, based on a
particular type of process that produces the data.
Appendix B: Glossary and Acronyms 591
continous quality improvement (CQI)—A philosophy and actions for repeat-
edly improving an organization’s cabilitities and processes with the objective
of customer satisfaction.
contract review—Systematic activities carried out by an organization before
agreeing to a contract to ensure that requirements for quality are adequately
defined, free from ambiguity, documented, and can be realized by the supplier.
control chart—A basic tool that consists of a chart with upper and lower control
limits on which values of some statistical measure for a series of samples or
subgroups are plotted. It frequently shows a central line to help detect a trend
of plotted values toward either control limit. It is used to monitor and ana-
lyze variation in a process to see whether the process is in statistical control.
control limits—(1) Calculated boundaries of a process within specified confi-
dence levels, expressed as upper control limit (UCL) and lower control limit
(LCL). (2) The limits on a control chart used as criteria for signaling the need
for action or for judging whether a set of data does or does not indicate a “state
of statistical control.”
control plan—A document, or documents, that may include the characteristics for
quality of a product or service, measurements, and methods of control.
core competency—Pertains to the unique features and characteristics of an orga-
nization’s overall capability.
corporate culture—See organization culture.
correction—When a problem occurs (1) find out how bad it is, (2) decide what to
do to keep it from having a larger impact, and (3) determine what to do with
what has already been impacted. Doing 1 and 2 is containment action, and 3 is
remedial action. This is correcting the problem, but not the causes.
corrective action—Once a problem has been corrected, decide whether or not it
was of enough significant importance (based on frequency, impact, risk, and
so on) to warrant investigating the causes, and take action to eliminate the
root cause(s) and symptom(s) of an existing deviation or nonconformity to
prevent recurrence.
correlation—Refers to the measure of the strength of the relationship between
two sets of numbers or variables. (A scatter chart may be used in the analysis.)
correlation coefficient—Describes the magnitude and direction of the relation-
ship between two variables.
cost–benefit analysis—Compares the potential or actual benefits with the esti-
mated or real cost associated with a problem solution or process improvement,
as a ratio or in dollars.
cost of poor quality—The costs associated with providing poor-quality products
or services.
cost of quality (COQ)—The total costs incurred relating to the quality of a prod-
uct or service. There are four categories of quality costs: internal failure costs
592 Appendix B: Glossary and Acronyms
(costs associated with defects found before delivery of the product or service),
external failure costs (costs associated with defects found during or after prod-
uct or service delivery), appraisal costs (costs incurred to determine the degree
of conformance to quality requirements), and prevention costs (costs incurred
to keep failure and appraisal costs to a minimum).
count chart—A control chart for evaluating the stability of a process in terms of
the count of events of a given classification occurring in a sample.
count-per-unit chart—A control chart for evaluating the stability of a process in
terms of the average count of events of a given classification per unit occur-
ring in a sample.
C
p
—A widely used process capability index. It is expressed as
Upper spec limit – Lower spec limit
6
σ
C
pk
—A widely used process capability index. It is expressed as
(Ratio with smallest answer) Upper specification limit – X-bar
3σ
or
X-bar – Lower specification limit
3σ
Crawford slip method—A method of anonymously gathering and presenting
data from a group.
creativity, stages of— One model gives the following stages: generate, percolate,
illuminate, and verify. May also be defined as visualization, exploration, com-
bination, and modification.
criteria—Stated objectives, guidelines, principles, procedures, and/or standards
used for measuring a project, process, product, or performance.
criterion—A standard, rule, or test on which a judgment or decision can be based.
critical incident—An event that has greater than normal significance, often used
as a learning or feedback opportunity.
critical path—Refers to the sequence of tasks that takes the longest time and
determines a project’s completion date.
critical path method (CPM)—An activity-oriented project management tool that
uses arrow-diagramming techniques to demonstrate both the time and cost
required to complete a project. It provides one time estimate—normal time—
and allows for computing the critical path.
critical success factors (CSF)—Factors identified by the organization as critical to
the organization’s success in achieving its strategic goals and objectives.
Appendix B: Glossary and Acronyms 593
critical thinking—The careful analysis, evaluation, reasoning (both deductive
and inductive), clear thinking, and systems thinking leading to effective
decisions.
critical-to-quality (CTQ)—Characteristics that, from a customer’s perception of
quality, are critical to the achievement of quality goals, objectives, standards,
and/or specifications.
cross-functional team—A group consisting of members from more than one
department, work unit, or technical discipline that is organized to accomplish
a project.
CSR—Customer service representative.
culture—See organization culture.
culture change—Major proposed or actual change in organizational operating
principles, behavior, and attitude.
cumulative sum control chart (CUSUM)—A control chart on which the plotted
value is the cumulative sum of deviations of successive samples from a target
value. The ordinate of each plotted point represents the algebraic sum of the
previous ordinate and the most recent deviations from the target.
current reality tree—A technique used in applying Goldratt’s theory of con-
straints to identify undesirable effects (similar to root cause analysis).
customer—Recipient of a product or service provided by a supplier. See also exter-
nal customer and internal customer.
customer council—A group usually composed of representatives from an organi-
zation’s largest customers who meet to discuss common issues.
customer delight—The result achieved when customer requirements are exceeded
in unexpected ways the customer finds valuable.
customer loyalty/retention—The result of an organization’s plans, processes,
practices, and efforts designed to deliver their services or products in ways
that create retained and committed customers.
customer oriented organization—An organization whose mission, purpose, and
actions are dedicated to serving and satisfying its customers.
customer relationship management (CRM)—Refers to an organization’s knowl-
edge of its customers’ unique requirements and expectations, and using that
knowledge to develop a closer and more profitable link to business processes
and strategies.
customer satisfaction—The result of delivering a product or service that meets
customer requirements, needs, and expectations.
customer segmentation—Refers to the process of differentiating customers based
on one or more characteristics for the purpose of developing a marketing
strategy to address specific segments. The intent is to better address customers’
needs, and improve customer satisfaction and organizational effectiveness.
594 Appendix B: Glossary and Acronyms
customer service—Activities dealing with customer questions; also may be the
designation of the department that takes customer orders or provides post-
delivery services.
customer–supplier partnership—A long-term relationship between a buyer and
supplier characterized by teamwork and mutual confidence. The supplier is
considered an extension of the buyer ’s organization. The partnership is based
on several commitments. The buyer provides long-term contracts and uses
fewer suppliers. The supplier implements quality assurance processes so that
incoming inspection can be minimized. The supplier also helps the buyer
reduce costs and improve product and process designs.
customer value—There are five factors of influence on customer value: price,
product/service quality, innovation, and organization image relative to com-
petition. When customers are satisfied with their perception of the balance
of the product/service meeting their need or want, the quality is satisfactory,
and the price is right for them—customer value has been achieved.
cycle time—Refers to the elapsed time that it takes to complete a process from the
start of the process to completion.
cycle time reduction—To reduce the time that it takes, from start to finish, to com-
plete a particular process.
D
data—Quantitative or qualitative facts presented in descriptive, numeric, or
graphic form. Two types of numerical data are measured, or variable data, and
counted, or attribute data.
data mining—The process of searching a large computer database (for example,
a customer database) for previously undetected patterns and relationships,
with the intent to transform the data into information for making decisions
about strategy.
decision matrix—A matrix used by teams to evaluate problems or possible solu-
tions. For example, after a matrix is drawn to evaluate possible solutions, the
team lists them in the far left vertical column. Next, the team selects crite-
ria to rate the possible solutions, writing them across the top row. Then, each
possible solution is rated on a scale of 1 to 5 for each criterion and the rating
recorded in the corresponding grid. Finally, the ratings of all the criteria for
each possible solution are added to determine its total score. The total score is
then used to help decide which solution deserves the most attention.
defect—A product’s or service’s nonfulfillment of an intended requirement or rea-
sonable expectation for use, including safety considerations. They are often
classified, such as:
• Class1,critical, leads directly to severe injury or catastrophic
economic loss.
• Class2,serious, leads directly to significant injury or significant
economic loss.
Appendix B: Glossary and Acronyms 595
• Class3,major, is related to major problems with respect to intended
normal or reasonably foreseeable use.
• Class4,minor, is related to minor problems with respect to intended
normal or reasonably foreseeable use. See also blemish, imperfection,
and nonconformity.
defective—A product that contains one or more defects relative to the quality
characteristics being measured.
delighter—Feature of a delivered product or service that unexpectedly pleases a
customer.
demerit chart—A control chart for evaluating a process in terms of a demerit
(or quality score), such as a weighted sum of counts of various classified
nonconformities.
Deming cycle—See plan–do–check–act cycle.
Deming Prize—Award given annually to organizations that, according to the
award guidelines, have successfully applied companywide quality control
based on statistical quality control and will keep up with it in the future.
Although the award is named in honor of W. Edwards Deming, its criteria are
not specifically related to Deming’s teachings. There are three separate divi-
sions for the award: the Deming Application Prize, the Deming Prize for Indi-
viduals, and the Deming Prize for Overseas Companies. The award process is
overseen by the Deming Prize Committee of the Union of Japanese Scientists
and Engineers in Tokyo.
demographics—Variables among buyers in the consumer market, which include
geographic location, age, sex, marital status, family size, social class, educa-
tion, nationality, occupation, and income.
dependability—The degree to which a product is operable and capable of per-
forming its required function at any randomly chosen time during its speci-
fied operating life, provided that the product is available at the start of that
period. (Nonoperation-related influences are not included.) Dependability
can be expressed by the ratio
Time available
Time available + Time required
deployment—Used in strategic planning to describe the process of cascading
goals, objectives, and action plans throughout an organization.
design failure mode and effects analysis (DFMEA)—See FMEA.
design for manufacturing (DFM)—The design of a product for ease in manufac-
turing. Also called design for assembly ( D FA) .
Design for Six Sigma (DFSS)—The aim is for a robust design that is consistent
with applicable manufacturing processes and assures a fully capable process
that will produce quality products.
596 Appendix B: Glossary and Acronyms
design of experiments (DOE)—A branch of applied statistics dealing with plan-
ning, conducting, analyzing, and interpreting controlled tests to evaluate the
factors that control the value of a parameter or group of parameters.
design review—Documented, comprehensive, and systematic examination of a
design to evaluate its capability to fulfill the requirements for quality.
designing-in quality versus inspecting-in quality—See prevention versus
detection.
desired quality—Refers to the additional features and benefits a customer dis-
covers when using a product or service that lead to increased customer satis-
faction. If missing, a customer may become dissatisfied.
deviation—A nonconformance or departure of a characteristic from specified
product, process, or system requirements.
diagnostic journey and remedial journey—A two-phase investigation used by
teams to solve chronic quality problems. In the first phase, the diagnostic jour-
ney, the team moves from the symptom of a problem to its cause. In the sec-
ond phase, the remedial journey, the team moves from the cause to a remedy.
dimensions of quality—Different ways in which quality may be viewed, for
example, meaning of quality, characteristics of quality, or drivers of quality.
DiSC—A profiling instrument that measures characteristic ways in which a per-
son behaves in a particular environment. Four dimensions measured are
dominance, influence, steadiness, and conscientiousness.
discrete probability distribution—The measured process variable takes on a
finite or limited number of values; no other possible values exist. A discrete
variable could be the number of people in a room.
disposition of nonconformity—Action taken to deal with an existing nonconfor-
mity; action may include correct (repair), rework, regrade, scrap, obtain a con-
cession, or amend a requirement.
dissatisfiers—Those
features or functions that the customer or employee has come
to expect, which, if they are no longer present, would result in dissatisfaction.
distance learning—Learning where student(s) and instructor(s) are not colo-
cated; interaction through electronic means.
distribution—Describes the amount of potential variation in outputs of a process;
it is usually described in terms of its shape, average, and standard deviation.
DMAIC—A methodology used in a Six Sigma initiative: define, measure, analyze,
improve, control.
Dodge–Romig sampling plans—Plans for acceptance sampling developed by
Harold F. Dodge and Harry G. Romig. Four sets of tables were published
in 1940: single-sampling lot tolerance tables, double-sampling lot tolerance
tables, single-sampling average outgoing quality limit tables, and double-
sampling average outgoing quality limit tables.
Appendix B: Glossary and Acronyms 597
downsizing—The planned reduction in workforce due to economics, competi-
tion, merger, sale, restructuring, or reengineering.
drivers of quality—Crucial factors that when controlled, the product or service
will be controlled. These factors might include processes, customers, prod-
ucts, services, employee satisfaction, total organizational focus on providing
quality products/services, and so on.
E
earned value analysis (EVA)—A methodology used to measure project perfor-
mance by comparing planned work with actual work accomplished to deter-
mine if performance is adhering to plan.
education—Refers to the individual learner’s process to acquire new or refreshed
knowledge. See also training.
efficiency—Ratio of output to the total input in a process, with an objective to use
less resources, such as time, cost.
eighty–twenty (80–20) rule—A term referring to the Pareto principle, which sug-
gests that most effects come from relatively few causes; that is, 80 percent of
the effects come from 20 percent of the possible causes.
employee involvement—A practice within an organization whereby employees
regularly participate in making decisions on how their work areas operate,
including making suggestions for improvement, planning, objectives setting,
and performance monitoring.
empowerment—A condition whereby employees are given the authority to make
decisions and take action in their work areas, within stated bounds, with-
out prior approval. For example, an operator can stop a production process
upon detecting a problem, or a customer service representative can send out
a replacement product if a customer calls with a problem.
end users—External customers who purchase products/services for their own
use—consumers.
engineering change order (ECO)—An order to make a change in a process, prod-
uct, or service after the initial release of the product or service design. See con-
current engineering for a process for reducing ECOs.
entropy—Tendency of a system or process to run down and collapse.
environmental analysis/scanning—Identifying and monitoring factors from
both inside and outside the organization that may impact the long-term via-
bility of the organization.
environmental management system (EMS)—A management system for address-
ing the environmental policies, objectives, principles, procedures, authority,
responsibility, accountability, and implementation of an organization’s prac-
tices for managing its impact on the environment in which it operates.
E PA —Environmental Protection Agency.
598 Appendix B: Glossary and Acronyms
equity theory—A theory that states that job motivation depends on how equitable
the individual believes the rewards or punishment to be.
error-proofing—See poka-yoke.
ethics—An individual or an organization’s adherence to a belief or documented
code of conduct that is based on moral principles and tries to balance what is
fair for individuals and the organization with what is right for society.
EU—European Union.
event—The starting or ending point for a task or group of tasks. An occurrence
of some attribute.
executive education—Usually refers to the education (and training) provided to
top management.
expectancy theory—A motivational theory inferring that what people do is based
on what they expect to gain from the activity.
expected quality—Also known as basic quality, the minimum benefit or value a
customer expects to receive from a product or service.
experimental design—A formal plan that details the specifics for conducting an
experiment, such as which responses, factors, levels, blocks, treatments, and
tools are to be used.
explicit knowledge—Represented by the captured and recorded tools of the day,
for example, procedures, processes, standards, and other like documents. See
also tacit knowledge.
exponential distribution—A continuous distribution where data are more likely
to occur below the average than above it. Typically used to describe the break-
in portion of the bathtub curve.
external audit—Audit performed by anyone or any organization outside the orga-
nization being audited. See second-party audit or third-party audit.
external customer—A person or organization who receives a product, a service,
or information, but is not part of the organization supplying it. See also inter-
nal customer.
external failure costs—Costs associated with defects found during or after deliv-
ery of the product or service.
F
facilitator—A trained individual who is responsible for creating favorable condi-
tions that will enable a team to reach its purpose or achieve its goals by bring-
ing together the necessary tools, information, and resources to get the job
done. A facilitator addresses the processes a team uses to achieve its purpose.
factor analysis—A statistical technique that examines the relationships between
a single dependent variable and multiple independent variables. For example,
Appendix B: Glossary and Acronyms 599
it is used to determine which questions on a questionnaire are related to a
specific question such as “Would you buy this product again?”
failure mode analysis (FMA)—A procedure for determining which malfunction
symptoms appear immediately before or after a failure of a critical parame-
ter in a system. After all the possible causes are listed for each symptom, the
product is designed to eliminate the problems.
failure mode and effects analysis (FMEA)—A procedure in which each poten-
tial failure mode of every sub-item of an item is analyzed to determine its
effect on other sub-items and on the required function of the item. Typically,
two types of FMEAs are used: DFMEA (design) and PFMEA (process).
failure mode effects and criticality analysis (FMECA)—A procedure that is per-
formed after a failure mode and effects analysis to classify each potential fail-
ure effect according to its severity and probability of occurrence.
false customer—An individual or group within a process that performs activities
that do not add value to the product or service.
fault tree analysis (FTA)—Technique for evaluating the possible causes that
might lead to the failure of a product or service.
FDA— Food and Drug Administration.
feasibility study—Examination of technical and cost data to determine the eco-
nomic potential and practicality of a project or application of equipment. NPV
may be used in this analysis.
feedback—The interpersonal communication response to information received
(written or oral); it may be based on fact or feeling and helps the party who is
receiving the information judge how well he/she is being understood by the
other party. More generally, feedback is information about a process or perfor-
mance and is used to make decisions that are directed toward improving or
adjusting the process or performance as necessary.
feedback loops—Pertains to open-loop and closed-loop feedback. Open-loop
feedback focuses on how to detect or measure problems in the inputs and
how to plan for contingencies. Closed-loop feedback focuses on how to mea-
sure the outputs and how to determine the control points where adjustment
can be made.
filters—Relative
to human-to-human communication, those perceptions (based
on culture, language, demographics, experience, and so on) that affect how
a message is transmitted by the sender and how a message is interpreted by
the receiver.
finding—A
conclusion of importance based on observation(s) and/or research, for
example, an audit finding.
first-party audit—Audit of a process or product/service by auditing personnel
employed by the organization in which the audit is performed. Also called
internal audit.
600 Appendix B: Glossary and Acronyms
fishbone diagram—See cause-and-effect diagram.
fitness for use—A term used to indicate that a product or service fits the customer’s
defined purpose for that product or service.
five S (5S)—(Japanese) Five practices for maintaining a clean and efficient work-
place. Briefly the term embraces: seiri (sort/separate), seiton (arrange and iden-
tify), seiso (clean up), seiketsu (standardize), shitsuke (develop habit of always
following first four S’s).
five whys—A repetitive questioning technique to probe deeper to surface the root
cause of a problem by asking why five times (more or fewer, as needed).
flowchart—A
graphical representation of the steps in a process. Flowcharts are
drawn to better understand processes. The flowchart is one of the seven basic
tools of quality.
focus group—A discussion group consisting of eight to 10 participants, usually
invited from a segment of the customer base to discuss an existing or planned
product or service, led by a facilitator working from predetermined questions
(focus groups may also be used to gather information in a context other than
customers). Information from a focus group is often used as a basis for form-
ing survey questions.
force field
analysis—A technique for analyzing the forces that aid or hinder an
organization in reaching an objective.
formal communication—The officially sanctioned information within an orga-
nization, which includes publications, memoranda, training materials/events,
public relations information, and company meetings.
fourteen (14) points—W. Edwards Deming’s 14 management practices to help
organizations increase their quality and productivity. They are:
1. Create constancy of purpose for improving products and services.
2. Adopt a new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize
total cost by working with a single supplier.
5. Improve constantly and forever every process for planning, production,
and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations, and targets for the workforce.
Appendix B: Glossary and Acronyms 601
11. Eliminate numerical quotas for the workforce and numerical goals for
management.
12. Remove barriers that rob people of pride of workmanship, and eliminate
the annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for
everyone.
14. Put everybody in the company to work to accomplish the
transformation.
fraction defective chart (p-chart)—An attribute control chart used to track the
proportion of defective units.
frequency distribution—Set of all the various values from individual observa-
tions, and the frequency of their occurrence in the sample population. Statisti-
cally, a display of a large volume of data so that the central tendency (average
or mean) and distribution are clear.
functional organization—An organization organized by discrete functions, for
example, marketing/sales, engineering, production, finance, and human
resources.
funnel experiment—An experiment that demonstrates the effects of tampering.
Marbles are dropped through a funnel in an attempt to hit a flat-surfaced
target below. The experiment shows that adjusting a stable process to com-
pensate for an undesirable result, or an extraordinarily good result, will pro-
duce output that is worse than if the process had been left alone.
future reality tree—A technique used in the application of Goldratt’s theory of
constraints to show what to change and how to identify any new unfavorable
aspects to be addressed prior to the change.
G
gage blocks—Standards of precise dimensions, used in combination to form
usable length combinations. The blocks are traceable to national standards in
the country of use (NIST in the United States).
gage repeatability and reproducibility (GR&R)—The evaluation of a gauging
instrument’s accuracy by determining whether the measurements taken with
the gage are repeatable (that is, there is close agreement among a number of
consecutive measurements of the output for the same value of the input under
the same operating conditions) and reproducible (that is, there is close agree-
ment among repeated measurements of the output for the same value of input
made under the same operating conditions over a period of time). Repeatabil-
ity is the variation in results on a single gage when the same part is measured
repeatedly by the same person. Reproducibility is the variation from person to
person using the same gage.
gainsharing—A type of program that rewards individuals financially on the
basis of organizational performance.
602 Appendix B: Glossary and Acronyms
Gantt chart—A type of bar chart used in process/project planning and control
to display planned work and finished work in relation to time. Also called a
milestone chart when interim checkpoints are added. May be used in the plan-
ning stage as well as in tracking progress.
gap analysis—A range of techniques that compares a company’s existing state to
its desired state (as expressed by its long-term plans) to help determine what
needs to be done to remove or minimize the gap between them.
gatekeeper—The role of an individual (often a facilitator) in a group meeting in
helping ensure effective interpersonal interactions (for example, someone’s
ideas are not ignored due to the team moving on to the next topic too quickly).
geographic information system (GIS)—A computer-based method of collect-
ing and displaying data in relation to a specific point or location on earth to
which each datum is related—the computer program maps the data.
geographic organization—An organization structured by geography, territory,
region, or the like.
geometric dimensioning and tolerancing (GDT)—A method used to minimize
production costs by considering the functions or relationships of part features
in order to define dimensions and tolerances.
goal—A statement of general intent, aim, or desire; it is the point toward which
management directs its mission, efforts, and resources; goals are usually non-
quantitative. A goal is measured by the objectives supporting the goal.
goal–question–metric (GQM)—A method used to define measurement of a proj-
ect, process, or product on three levels (conceptual, operational, quantitative).
go/no-go—State of a unit or product. Two parameters are possible: go conforms to
specifications, and no-go does not conform to specifications.
grade—A planned or recognized difference in requirements for quality.
grapevine—The informal communication channels over which information
flows within an organization, usually without a known origin, and without
any confirmation of its accuracy or completeness (sometimes referred to as
the rumor mill).
Green Belt—An individual trained on the improvement methodology of Six
Sigma who will lead a process or quality improvement team.
group dynamics—The interaction (behavior) of individuals within a team.
groupthink—Most or all team members coalesce in supporting an idea or deci-
sion that hasn’t been fully explored, or some members secretly disagree but
go along with the other members in apparent support.
H
Hawthorne effect—Concept that every change in workplace environment results
(initially, at least) in increased productivity. This demonstrates the importance
Appendix B: Glossary and Acronyms 603
of human factors in motivating the workforce. (Based on studies by Elton Mayo
at the Hawthorne Plant of Western Electric Company in Chicago in 1924.)
heijunka—Act of leveling the variety or volume of items produced in a process
over time. Used to avoid excessive batching of product types, volume fluctua-
tions, and excess inventory.
hierarchy structure—Describes an organization that is organized around func-
tional departments/product lines or around customers/customer segments
and is characterized by top-down management (also referred to as a bureau-
cratic model or pyramid structure).
histogram—A graphic summary of variation in a set of data. The pictorial nature
of the histogram lets people see patterns that are difficult to see in a simple
table of numbers. The histogram is one of the seven tools of quality.
hold point—A point, defined in an appropriate document, beyond which an
activity must not proceed without the approval of a designated organization
or authority.
horizontal structure—Describes an organization that is organized along a pro-
cess flow or value-added chain, eliminating hierarchy and functional bound-
aries (also referred to as a systems structure).
hoshin kanri, hoshin planning—Japanese-based strategic planning/policy
deployment process that involves consensus at all levels as plans are cascaded
throughout the organization, resulting in improved actionable plans and con-
tinual monitoring and measurement.
house of quality—A diagram (named for its house-shaped appearance) that clari-
fies the relationships between customer needs and product features. It helps
correlate market or customer requirements and analysis of competitive prod-
ucts with higher-level technical and product characteristics, and makes it
possible to bring several factors into a single figure. Also known as quality
function deployment (QFD).
human relations theory—A theory focusing on the importance of human factors
in motivating employees.
hygiene factors—A term used by Frederick Herzberg to label dissatisfiers. See
dissatisfiers.
I
IEEE—Institute of Electrical and Electronics Engineers.
imagineering—Creative process used to develop, in the mind’s eye, a process
without waste.
imperfection—A quality characteristic’s departure from its intended level or state
without any association to conformance to specification requirements or to
the usability of a product or service. See also blemish, defect, and nonconformity.
604 Appendix B: Glossary and Acronyms
implied warranty—Implicit promise, not necessarily documented, that states that
a product must reasonably operate or comply with the ordinary purposes for
which it is intended or used.
in-control process—A process in which the statistical measure being evaluated is
in a state of statistical control; that is, the variations among the observed sam-
pling results can be attributed to a constant system of chance/common causes.
The process may also be described as stable. See also out-of-control process.
incremental improvement—Improvements implemented on a continual basis.
See kaizen.
indicators—Predetermined measures used to determine how well an organiza-
tion is meeting its customers’ needs and its operational and financial perfor-
mance objectives. Such indicators can be either leading or lagging indicators.
Indicators may also refer to devices used to measure lengths or flow.
indirect customers—Customers who do not receive process output directly, but
are affected if the process output is incorrect or late.
individual development—A process that may include education and training,
but also includes many additional interventions and experiences to enable
an individual to grow and mature intellectually and emotionally , as well as
professionally.
informal communication—The unofficial communication that takes place in an
organization as people talk freely and easily; examples include impromptu
meetings and personal conversations (verbal or e-mail).
information—Data transformed into an ordered format that makes it usable and
allows one to draw conclusions.
information system—Technology-based systems used to support operations, aid
day-to-day decision making, and support strategic analysis. Other names
often seen include management information system, decision system, information
technology (IT), data processing.
input—Material, product, or service that is obtained from an upstream internal
provider or an external supplier and is used by the receiver to produce an
output.
inspection—Measuring, examining, testing, and gauging one or more character-
istics of a product or service and comparing the results with specified require-
ments to determine whether conformity is achieved for each characteristic.
intellectual property—The concepts, ideas, thought, processes, and programs
that are definable, measurable, and proprietary in nature (includes copy-
rights, patents, trademarks, computer software).
interactive multimedia—A term encompassing technology that allows the pre-
sentation of facts and images with physical interaction by the viewers; for
example, taking a simulated certification exam on a computer, or receiving
training embedded in transaction processing software.
Appendix B: Glossary and Acronyms 605
interdependence—Shared dependence between two or more items.
interfaces—Interaction between individuals, departments, work units, outside
organizations, and so on, that allows the meaningful exchange of information.
intermediate customers—Distributors, dealers, or brokers who make products
and services available to the end user by repairing, repackaging, reselling, or
creating finished goods from components or subassemblies.
internal audit—An audit conducted within an organization by members of the
organization to measure its strengths or weaknesses against its own proce-
dures and/or external standards—a first-party audit.
internal capability analysis—A detailed view of the internal workings of the
organization; for example, determining how well the capabilities of the orga-
nization match to strategic needs.
internal customer—The recipient (person or department) of another person’s or
department’s output (product, service, or information) within an organiza-
tion. See also external customer.
internal failure costs—Costs associated with defects found before the product or
service is delivered.
internal rate of return (IRR)—An organization’s acceptable rate of return from
investments. Also, the discount rate that causes net present value to equal
zero.
International Organization for Standardization (ISO)—Based in Geneva,
Switzerland, it is the worldwide controller of ISO standards.
interrelationship digraph—A management and planning tool that displays the
relationship between factors in a complex situation. It identifies meaningful
categories from a mass of ideas and is useful when relationships are difficult
to determine.
intervention—An action taken by a leader or a facilitator to support the effective
functioning of a team or work group.
inventory—A term encompassing all forms of physical accumulation of materi-
als, supplies, work in process, and finished goods held in temporary storage
or warehoused. The term is also used by Goldratt to mean “all the money the
system invests in things it intends to sell” (see theory of constraints).
Ishikawa diagram—See cause-and-effect diagram.
is/is not matrix—A tool that helps to differentiate what is distinctive about a
problem.
ISO—A prefix for a series of standards published by the International Organiza-
tion for Standardization. Iso also means equal in Greek.
ISO 9000 series standards—A set of individual but related international stan-
dards and guidelines on quality management and quality assurance devel-
oped to help companies effectively document the quality system elements
606 Appendix B: Glossary and Acronyms
to be implemented to maintain an efficient quality system. The standards,
initially published in 1987, and revised in 1994, 2000, and 2008–2009, are not
specific to any particular industry, product, or service. The standards were
developed by the International Organization for Standardization, a special-
ized international agency for standardization composed of the national stan-
dards bodies of countries worldwide.
ISO 14000 series—A set of standards and guidelines relevant to developing and
sustaining an environmental management system.
J
jidoka—Japanese method of autonomous control involving the adding of intelli-
gent features to machines to start or stop operations as control parameters are
reached, and to signal operators when necessary.
job aid—Any device, document, or other media that can be provided to a worker
to aid in correctly performing tasks (for example, a laminated setup instruc-
tion card hanging on a machine, photos of product at different stages of
assembly, or a metric conversion table).
job description—A narrative explanation of the work, responsibilities, and basic
requirements of a job.
job enlargement—Expanding the variety of tasks performed by an employee.
job enrichment—Increasing the worker ’s responsibilities and authority in work
to be done.
job
specification—A
list of the important functional and quality attributes
(knowledge, skills, aptitudes, and personal characteristics) needed to succeed
in the job.
joint planning meeting—A meeting involving representatives of a key customer
and the sales and service team for that account to determine how better to
meet the customer ’s requirements and expectations.
Ju ra n’s t r i lo g y—See quality trilogy.
JUSE—Union of Japanese Scientists and Engineers.
just-in-time (JIT) manufacturing—An optimal material requirement planning
system for a manufacturing process in which there is little or no manufac-
turing material inventory on hand at the manufacturing site and little or no
incoming inspection.
just-in-time training—Providing job training coincidental with, or immediately
prior to, an employee’s assignment to a new or expanded task.
K
kaikaku—A Japanese term that means a breakthrough improvement in eliminat-
ing waste.
Appendix B: Glossary and Acronyms 607
kaizen—A Japanese term that means incremental and unending improvement
by doing little things better and setting and achieving increasingly higher
standards. The term was made famous by Masaaki Imai in his book Kaizen:
The Key to Japan’s Competitive Success.
kaizen blitz/event—An intense, short time frame (typically three to five consecu-
tive days), team approach to employ the concepts and techniques of contin-
ual improvement (for example, to reduce cycle time or increase throughput).
kanban—A system inspired by Taiichi Ohno’s (Toyota) visit to a U.S. supermarket.
The system signals the need to replenish stock or materials or to produce more
of an item (also called a pull approach).
Kano model—A representation of the three levels of customer satisfaction defined
as dissatisfaction, neutrality, and delight. Named after Noriaki Kano.
kansei engineering—A Japanese term referring to the translation of consum-
ers’ psychological feelings about a product into perceptual design elements
( sensory engineering, emotional usability).
KESAA factors—See competence.
KJ method—See affinity diagram.
knowledge management—Involves transforming data into information and the
acquisition or creation of knowledge, as well as the processes and technol-
ogy employed in identifying, categorizing, storing, retrieving, disseminating,
and using information and knowledge for the purposes of improving deci-
sions and plans.
KRA (key result area)—Critical customer requirements that are important for
the organization’s success. Also known as key success factor (KSF).
L
lateral thinking—A process that includes recognizing patterns, becoming unen-
cumbered with old ideas, and creating new ones.
LCALI—A process for operating a listening post system for capturing and using
formerly unavailable customer data. LCALI stands for listen, capture, analyze,
learn, and improve.
leader—An individual recognized by others as the person to lead an effort.
Normally one can not be a leader without one or more followers. The term is
often used interchangeably with m a n a ge r. A leader may or may not hold an
officially designated management-type position. See m a n a g e r.
leadership—An essential factor in a quality improvement effort. Organization
leaders must establish a vision, communicate that vision to those in the orga-
nization, and provide the tools, knowledge, and motivation necessary to
accomplish the vision.
608 Appendix B: Glossary and Acronyms
lean approach/lean thinking—A focus on reducing cycle time and waste using a
number of different techniques and tools, for example, value stream mapping,
and identifying and eliminating monuments and non-value-added steps.
lean manufacturing—Applying the lean approach to improving manufacturing
operations.
learner-controlled instruction (LCI)—When a learner works without an instruc-
tor, at an individual pace, building mastery of a task. Computer-based train-
ing is a form of LCI. Also called self-directed learning.
learning curve—The time it takes to achieve mastery of a task, a body of knowl-
edge, or a skill.
learning organization—An organization that has a policy to continue to learn
and improve its products, services, processes, and outcomes—“an organiza-
tion that is continually expanding its capacity to create its future” (Senge).
lesson plan—A detailed plan created to guide an instructor in delivering train-
ing and/or education.
life cycle—A product life cycle is the total time frame from product concept to the
end of its intended use; a project life cycle is typically divided into six stages:
concept, planning, design, implementation, evaluation, and closeout.
life history curve—See bathtub curve.
linear regression—The mathematical application of the concept of a scatter dia-
gram where the correlation is actually a cause-and-effect relationship.
linear responsibility matrix—A matrix providing a three-dimensional view of
project tasks, responsible person, and level of relationship.
line balancing—A method of proportionately distributing workloads within the
value stream to meet takt time.
listening post data—Customer data and information gathered from designated
organizational listening posts.
little q, Big Q—The difference between managing for quality in a limited capac-
ity (q) to managing for quality across all business processes and products (Q).
Attributed to J. M. Juran.
long-term goals—Goals that an organization hopes to achieve in the future, usu-
ally in three to five years. They are commonly referred to as strategic goals.
lost customer analysis—Analysis to determine why a customer or segment of
customers was lost or defected to a competitor.
lot—A defined quantity of product accumulated under conditions that are consid-
ered uniform for sampling purposes.
lot tolerance percent defective (LTPD)—See consumer’s risk.
lower control limit (LCL)—Control limit for points below the central line in a
control chart.
Appendix B: Glossary and Acronyms 609
M
macro processes—Broad, far-ranging processes that often cross functional
boundaries.
maintainability—The probability that a given maintenance action for an item
under given usage conditions can be performed within a stated time interval
when the maintenance is performed under stated conditions using stated pro-
cedures and resources. Maintainability has two categories: serviceability, the
ease of conducting scheduled inspections and servicing, and repairability,
the ease of restoring service after a failure.
Malcolm Baldrige National Quality Award (MBNQA)—Earned by the organi-
zation qualifying under the criteria of the Baldrige Performance Excellence
Program of NIST.
management by fact—A business philosophy that decisions should be based on
data.
management by policy—The organizational infrastructure that ensures that the
right things are done at the right time.
management by walking around (MBWA)—A manager ’s planned, but usually
unannounced, walk-through of the organization to gather information from
employees and make observations; may be viewed in a positive light by vir-
tue of giving employees opportunity to interact with top management; has
the potential of being viewed negatively if punitive action is taken as a result
of information gathered.
management levels—A typical hierarchy of management levels is top manage-
ment (executive level, upper management, top team), middle management
(directors, general managers, plant managers, department managers), and
first-level supervision (persons directly supervising workers).
management representative—A person appointed to act on management’s behalf
to manage the quality/environment system. Also, this person usually handles
the interface with a registration body.
management responsibility categories—Planning, organizing, staffing, direct-
ing, and controlling (POSDC).
management review—Scheduled formal review and evaluation by manage-
ment of the status and adequacy of the quality/environmental management
system(s) in relation to the organization’s strategic objectives and policies.
management styles—The predominant personal styles used by managers; styles
may be based on prevalent management theories and assumptions about
people. Style categories include authoritarian, autocratic, combative, concil-
iatory, consensual, consultative, democratic, disruptive, ethical, facilitating,
intimidating, judicial, laissez-faire, participative, promotional, secretive,
shared, or shareholder management.
610 Appendix B: Glossary and Acronyms
management training—Usually refers to training and/or education provided to
any management or professional-level person from frontline supervision up
to, but usually not including, executives.
manager—An individual who manages and is responsible for resources (people,
facilities, equipment, material, money, time). A person officially designated
with a management-type position title. A manager is granted authority from
above, whereas a leader ’s role is derived by virtue of having followers. The
terms manager and leader are often and unfortunately used interchangeably.
market-perceived quality—The customer ’s opinion of your products or services
as compared to those of your competitors.
Master Black Belt (MBB)—Six Sigma quality expert responsible for strategic
implementation within the organization. The MBB is qualified to instruct
other Six Sigma Black Belts and Green Belts on the methodologies, tools,
and applications in all functions and levels of the organization, and acts as a
resource on process management.
material review board (MRB)—A quality control committee or team, usually
employed in manufacturing or other materials-processing installations, that
has the responsibility and authority to deal with items or materials that do
not conform to fitness-for-use specifications. An equivalent, the error review
board, is sometimes used in software development.
matrix chart/diagram—A management and planning tool that shows the
relationships among various groups of data; it yields information about
the relationships and the importance of task/method elements of the sub-
jects. Typically, a matrix displays the relationship between two topics—with,
perhaps, the impact of a third element—such as a personnel requirements
matrix. There are many varieties of matrices, for example, see quality function
deployment.
matrix structure—Describes an organization that is organized into functional
and product/project departments; it brings together teams of people to work
on projects and is driven by product or project scope. Basically, functional
departments obtain, train, maintain, and sustain the appropriate people, who
are deployed, as needed, to product/project departments or work units. A
given person may be based in a functional department (say, software devel-
opers) and deployed to one or more product/project work teams (say, a new
product development team and also a team working on improving the QMS).
mean—A measure of central tendency, the arithmetic average of all measure-
ments in a data set.
mean time between failures (MTBF)—The average time interval between fail-
ures for repairable product for a defined unit of measure (for example, oper-
ating hours, cycles, or miles).
means (in hoshin planning usage)—The step of identifying the ways by which
multiyear objectives will be met, leading to the development of action plans.
Appendix B: Glossary and Acronyms 611
measurement—Refers to the reference standard or sample used for the compari-
son of properties.
median—The middle number or center value of a set of data when all the data are
arranged in sequence.
mentor—A person who voluntarily assumes a role of trusted advisor and teacher
to another person. The mentor may or may not be the mentored person’s orga-
nizational superior or even in the same organization. Usually, the only reward
the mentor receives is self-gratification in having helped someone else.
metric—A standard of measurement or evaluation.
metrology—Science and practice of measurements.
micro processes—Narrow processes made up of detailed steps and activities that
could be accomplished by a single person.
micromanaging—Managing every little detail (for example, executive approving
requisition for paper clips).
milestone—A specific time when a critical event is to occur; a symbol placed
on a milestone chart to locate the point when a critical event is to occur. (An
upward-pointing triangle signifies the scheduled time of an event, a down-
ward-pointing triangle signifies completion of an event.)
milestone chart—A Gantt chart on which event starting and ending times are
indicated.
mind mapping—A technique for creating a visual representation of a multitude
of issues or concerns by forming a map of the interrelated ideas.
mission statement—An explanation of the core purpose or reasons for existing
as an organization; it provides the focus for the organization and defines its
scope of business. The mission may define customers or markets served, dis-
tinctive competence, or technologies used.
mistake-proofing—See
poka-yoke.
mitigation
—Risk response strategy that decreases risk by lowering the probabil-
ity of a risk event’s occurrence or reduces the effect of the event should it occur.
mode—The value that occurs most frequently in a data set.
moment of truth (MOT)—An MOT is described by Jan Carlzon, former CEO of
Scandinavian Air Services in the 1980s, as, “Any episode where a customer
comes into contact with any aspect of your company, no matter how dis-
tant, and by this contact, has an opportunity to form an opinion about your
c o m p a n y.”
monitoring—Systematic and periodic or continuous surveillance or testing of a
product or process to determine the level of compliance with industry, engi-
neering, or regulatory requirements. No action is implied.
612 Appendix B: Glossary and Acronyms
monument—The point in a process that necessitates a product waiting in a queue
before processing further; a barrier to continuous flow.
motivation—Two types of motivation are extrinsic and intrinsic. Motivating a
person means providing a work environment in which the person feels moti-
vated; that is, one person can not directly motivate another person.
muda—(Japanese) An activity that consumes resources but creates no value; the
seven categories of muda (waste) are correction, processing, inventory, wait-
ing, overproduction, internal transport, and wasted motion.
multi-attribute evaluation—Simpler than QFD, this process rank-orders and
weights customer requirements relative to the competition. In addition, it esti-
mates the cost of each requirement in order to prioritize improvement actions.
multivariate control chart—A control chart for evaluating the stability of a pro-
cess in terms of the levels of two or more variables or characteristics.
multivoting—A decision-making tool that enables a group to sort through a long
list of ideas to identify priorities.
murmurs—A technique to gather information on consumer behavior by watching
customers use the product or service.
Myers-Briggs Type Indicator (MBTI)—A method and instrument for identify-
ing a person’s personality type based on Carl Jung’s theory of personality
preferences.
mystery shopper—A person who pretends to be a regular shopper in order to get
an unrestrained view of how a company’s service process works.
N
n—Sample size (the number of units in a sample).
NAICS—North American Industry Classification System; a system replacing the
Standard Industrial Classification (SIC), used to classify organizations accord-
ing to the products or services produced.
natural team—A work group having responsibility for a particular process.
n-chart—Number defective chart for attribute data, used where each unit is
inspected from a given lot.
negotiation—A process in which individuals or groups work together to achieve
common goals.
next operation as customer (NOAC)—Concept that the organization com-
prises service/product providers and service/product receivers, or internal
customers.
NIST—National Institute of Standards and Technology (U.S.).
nominal group technique—A technique similar to brainstorming, used by teams
to generate ideas on a particular subject. Team members are asked to silently
Appendix B: Glossary and Acronyms 613
come up with as many ideas as possible and write them down. Each mem-
ber is then asked to share one idea, which is recorded. After all the ideas are
recorded, they are discussed and prioritized by the group.
nonconformity—The result of nonfulfillment of a specified requirement. See also
blemish, defect, and imperfection.
nondestructive testing (NDT) and evaluation—Testing and evaluation methods
that do not damage or destroy the product being tested.
non-value-added—Tasks or activities that can be eliminated with no deterioration
in product or service functionality, performance, or quality in the eyes of the
customer.
norm (behavioral)—Expectation of how a person or group will behave in a given
situation based on established protocols, rules of conduct, or accepted social
practices.
normal distribution—A bell-shaped distribution for continuous data where most
of the data are concentrated around the average, and it is equally likely that
an observation will occur above or below the average.
np-chart—A control chart for attribute data showing the number of defective
units in a subgroup. Requires a constant subgroup size.
NPV (net present value)—A discounted cash flow technique for finding the pres-
ent value of each future year ’s cash flow.
O
objective—A quantitative statement of future expectations and an indication of
when the expectations should be achieved; it supports goals, clarifying and
measuring what people must accomplish.
objective evidence—Verifiable qualitative or quantitative observations, infor-
mation, records, or statements of fact pertaining to the quality of an item or
service or to the existence and implementation of a quality system element.
objective setting—See S.M.A.R.T. W.A.Y.
observation—An item or incidence of objective evidence found during an audit.
OC (operating characteristic) curve—For a sampling plan, the OC curve indi-
cates the probability of accepting a lot based on the sample size to be taken
and the fraction defective in the batch.
one-to-one marketing—The concept of knowing customers’ unique require-
ments and expectations and marketing to these. See also customer relationship
management.
on-the-job training (OJT)—Training conducted at the workstation, typically
done one-on-one.
open book management—An approach to managing that exposes employees
to the organization’s financial information, provides instruction in business
614 Appendix B: Glossary and Acronyms
literacy, and enables employees to better understand their role and contribu-
tion and its impact on the organization.
operating characteristic curve—See OC curve.
operating expense—All the money the system spends turning inventory into
throughput (Goldratt’s theory of constraints).
optimization—Achieving planned process results that meet the needs of the cus-
tomer and supplier alike and minimize their combined costs.
organization culture—The collective beliefs, values, attitudes, manners, customs,
behaviors, and artifacts unique to an organization.
organization development (OD)—An organization-wide (usually) planned
effort, managed from the top, to increase organization effectiveness and
health through interventions in the organization’s processes using behavioral
science knowledge and methodologies.
original equipment manufacturer (OEM)—An organization that uses product
components from one or more other outside organizations to build a prod-
uct it sells under its own name and brand. For example, an organization that
furnishes the completed seats that are installed in the automobile that is sold
under the auto assembler’s brand is an OEM. Sometimes the term is misused
to refer to the outside organization that supplies only components.
OSHA— Occupational Safety and Health Administration (U.S.).
out of spec—A term used to indicate that a unit does not meet a given specification.
outcome—The measurable result of a project, a quality initiative, or an improve-
ment. Usually, some time passes between the completion of the action and the
realization of the outcome, for example, improved productivity, quality, cus-
tomer satisfaction, profits, and so on.
out-of-control process—A process in which the statistical measure being evalu-
ated is not in a state of statistical control (that is, the variations among the
observed sampling results can not all be attributed to a constant system of
chance causes; special or assignable causes exist.) See also in-control process.
output—The deliverables resulting from a process, project, quality initiative,
improvement, and so on. Outputs include data, information, documents, deci-
sions, and tangible products. Outputs are generated both from the planning
and management of the activity and the delivered product, service, or pro-
gram. Output is also the item, document, or material delivered by an internal
provider (supplier) to an internal receiver (customer).
outsourcing—A strategy and an action to relieve an organization of processes
and tasks in order to reduce costs, improve quality, reduce cycle time (for
example, by parallel processing), reduce the need for specialized skills, and
increase efficiency. Often, the primary intent is to save money through cheaper
labor costs.
Appendix B: Glossary and Acronyms 615
P
panels—Groups of customers recruited by an organization to provide ad hoc
feedback on performance or product development ideas.
paradigm—The standards, rules, attitudes, culture, and so on, that influence the
way an organization lives and behaves.
paradigm shift—Advent and acceptance of a totally new model that is theory- or
custom-shattering and displaces and/or discredits older theories and models,
for example, a major organizational culture change such as adopting the BPEP
criteria as the new business model.
parallel structure—Describes an organizational model in which groups, such as
quality circles or a quality council, exist in the organization in addition to
and simultaneously with the line organization. Also referred to as collateral
structure.
parameter design (Taguchi)—The use of design of experiments in identifying the
major contributors to variation.
Pareto chart—A basic tool used to graphically rank causes from most significant
(or frequent) to least significant (or frequent). It utilizes a vertical bar graph in
which the bar height reflects the frequency or impact of causes.
Parkinson’s law—States that work expands to fit the organization developed to
perform it, and there is a tendency for each work unit within the organization
to try to build up its importance by expanding the number of jobs and per-
sonnel it controls. Sometimes expressed as “work expands to fit the available
time.”
participative management—A style of managing whereby the manager tends to
work from theory Y assumptions about people, involving the workers in deci-
sions made. See t h e o r y Y.
partnership/alliance—A strategy and a formal relationship between a supplier
and a customer to engender cooperation for their mutual benefit, such as
reducing costs of ownership, maintenance of minimum stocks, just-in-time
deliveries, joint participation in design, exchange of information on materials
and technologies, new production methods, quality improvement strategies,
and the exploitation of market synergy.
payback period—The number of years it will take the results of a project or capi-
tal investment to recover the investment from net cash flows.
p-chart—Fraction defective chart (also called a proportion chart or percent chart).
PDSA cycle—Plan–do–study–act cycle (a variation of PDCA) See plan–do–check-
act cycle (PDCA).
performance appraisal/evaluation—A formal method of measuring employees’
progress against performance standards and providing feedback to them.
616 Appendix B: Glossary and Acronyms
performance management system—A system that supports and contributes
to the creation of high-performance work and work systems by translating
behavioral principles into procedures.
performance plan—A performance management tool that describes desired per-
formance and provides a way to assess the performance objectively.
PERT (program/project evaluation and reporting technique) chart—An
enhanced AND that graphically demonstrates the relationship among project
elements. Unlike the critical path method (CPM), PERT uses three time esti-
mates rather than one.
pilot test—Small-scale implementation of a process or an operation to test its
capability, design, and performance to requirements.
plan–do–check–act (PDCA) cycle—A four-step process for quality improvement.
In the first step (plan), a plan to effect improvement is developed. In the sec-
ond step (do), the plan is carried out, preferably on a small scale. In the third
step (check), the effects of the plan are observed. As part of the last step (act),
the results are studied to determine what was learned and what can be pre-
dicted. The plan–do–check–act cycle is sometimes referred to as the Shewhart
cycle because Walter A. Shewhart discussed the concept in his book Statistical
Method from the Viewpoint of Quality Control, and as the Deming cycle because
W. Edwards Deming introduced the concept in Japan. The Japanese subse-
quently called it the Deming cycle. Sometimes referred to as plan–do–study–
act (PDSA).
Poisson distribution—A distribution used for discrete data, applicable when
there are many opportunities for occurrence of an event but a low probability
(less than 0.10) on each trial.
poka-yoke—(Japanese) A term that means to mistake-proof a process by build-
ing safeguards into the system that avoid or immediately find errors. It comes
from poka, which means error, and yokeru, which means to avoid.
PONC—Price of nonconformance: the cost of not doing things right the first time.
population—A group of people, objects, observations, or measurements about
which one wishes to draw conclusions.
portfolio analysis—A process of comparing the value of proposed projects or
acquisitions relative to the financial impacts on current projects as well as
the potential for impact on resources of the proposed projects or acquisitions.
P
pk
—Potential process capability statistic used in the validation stage of a new
product launch (uses the same formula as C
pk
, but a higher value is expected
due to the smaller time span and fewer data from the sample).
ppm—Parts per million.
precision—A characteristic of measurement that addresses the consistency or
repeatability of a measurement system when the identical item is measured a
number of times.
Appendix B: Glossary and Acronyms 617
pre-control—A control process, with simple rules, based on tolerances. It is effec-
tive for any process where a worker can measure a quality characteristic
(dimension, color, strength) and can adjust the process to change that charac-
teristic, and where there is either continuous output or discrete output total-
ing three or more pieces.
prerequisite tree—A technique used to identify obstacles in the application of
Goldratt’s theory of constraints.
prevention costs—Costs incurred to keep internal and external failure costs and
appraisal costs to a minimum.
prevention versus detection—A term used to contrast two types of quality activi-
ties. Prevention refers to those activities designed to prevent nonconformances
in products and services. Detection refers to those activities designed to detect
nonconformances already in products and services. Another phrase used to
describe this distinction is designing-in quality versus inspecting-in quality.
preventive action—Reviewing procedures, processes, and products/services to
evaluate risks, and take action to eliminate the potential causes of a noncon-
formity, defect, or other undesirable situation in order to prevent occurrence.
primary customer—The individual or group who directly receives the output of
a process.
principled negotiation—Based on a win–win orientation, includes:
• Separatethepeoplefromtheproblem.
• Focusoninterest,notposition.
• Understandwhatbothsideswanttoachieve.
• Inventoptionsformutualgain.
• Insistonobjectivecriteria.
priorities matrix—A tool used to choose between several options that have many
useful benefits, but where not all of them are of equal value.
probability—Likelihood of occurrence.
probability distribution—A mathematical formula that relates the values of char-
acteristics to their probability of occurrence in a population.
problem solving—A rational process for identifying, describing, analyzing, and
resolving situations in which something has gone wrong without explanation.
procedure—A document that answers the questions What has to be done? Where
is it to be done? When is it to be done? Who is to do it? Why do it? (Contrasted
with a work instruction, which answers, How is it to be done? With what
materials and tools is it to be done?) In the absence of a work instruction, the
instructions may be embedded in the procedure.
process—An activity or group of activities that takes an input, adds value to it,
and provides an output to an internal or external customer; a planned and
repetitive sequence of steps by which a defined product or service is delivered.
618 Appendix B: Glossary and Acronyms
process analysis—Defining and quantifying the process capability from data
derived from mapping and measurement of the work performed by the
process.
process capability—A statistical measure of the inherent process variability for a
given characteristic. See C
p
, C
pk
, and P
pk
.
process capability index—The value of the tolerance specified for the characteris-
tic divided by the process capability. There are several types of process capa-
bility indexes, including the widely used C
p
and C
pk
.
process control—Methodology for keeping a process within prescribed boundar-
ies and minimizing the inherent variation in the process.
process decision program chart (PDPC)—A management and contingency
planning tool that identifies all events that can go wrong and the appropriate
countermeasures for these events. It graphically represents all sequences that
can lead to an undesirable effect.
process improvement—The act of changing a process to reduce variability and
cycle time and make the process more effective, efficient, and productive.
process improvement team (PIT)—A natural work group or cross-functional
team whose responsibility is to achieve needed improvements in existing pro-
cesses. The life-span of the team is based on the completion of the team’s pur-
pose and specific objectives.
process management—The collection of practices used to implement and improve
process effectiveness; it focuses on holding the gains achieved through pro-
cess improvement and assuring process integrity.
process mapping—The flowcharting of a work process in detail, including key
control measurements.
process organization—A form of departmentalization where each department
specializes in one phase of the process.
process owner—The manager or leader who is responsible for ensuring that a
total process is effective and efficient.
process quality audit—An analysis of elements of a process and appraisal of
completeness, correctness of conditions, and probable effectiveness.
process reengineering—See reengineering.
process village—Refers to an area where machines are grouped by type of opera-
tion performed by the machines (contrast with a cell layout).
producer’s risk—For a sampling plan, the probability of not accepting a lot the
quality of which has a designated numerical value representing a level that is
generally desirable. Usually, the designated value will be the acceptable qual-
ity level. Also called alpha risk and type 1 error.
product life cycle management (PLM)—Concern for a product’s viability, reli-
ability, use, and disposition from its design through manufacturing, delivery,
customer use, and ultimate discard.
Appendix B: Glossary and Acronyms 619
product organization—A departmentalization where each department focuses
on a specific product type or family.
product orientation—A tendency to see customers’ needs in terms of a product
they want to buy, not in terms of the services, value, or benefits the product
will produce.
product quality audit—A quantitative assessment of conformance to required
product characteristics.
product warranty—The organization’s stated policy that it will replace, repair, or
reimburse a customer for a defective product, providing the product defect
occurs under certain conditions and within a stated period of time.
product/service liability—The obligation of a company to make restitution for
loss related to personal injury, property damage, or other harm caused by its
product or service.
professional development plan—An individual development tool for an
employee. Working together, the employee and management create a plan that
coordinates the individual’s career needs and aspirations with organizational
demands.
profit
and loss statement—A financial statement showing the income and
expenses resulting in a profit or loss for an organization within a specified
period of time.
profound knowledge, system of—As defined by W. Edwards Deming, states
that learning can not be based on experience only; it requires comparisons of
results to a prediction, plan, or an expression of theory. Predicting why some-
thing happens is essential to understand results and to continually improve.
The four components of the system of profound knowledge are appreciation
for a system, knowledge of variation, theory of knowledge, and understand-
ing of psychology.
program evaluation and review technique (PERT)—An event-oriented project
management planning and measurement technique that utilizes an arrow
diagram to identify all major project events and demonstrates the amount of
time (critical path) needed to complete a project. It provides three time esti-
mates: optimistic, most likely, and pessimistic.
project life cycle—Six sequential phases of project management: concept, plan-
ning, design, implementation, evaluation, and closeout.
project management—The management of activities and events involved
throughout a project’s life cycle.
project plan—All the documents that comprise the details of why the project is
to be initiated, what the project is to accomplish, when and where it is to be
implemented, who will have responsibility, how the implementation will be
carried out, how much it will cost, what resources are required, and how the
project’s progress and results will be measured.
620 Appendix B: Glossary and Acronyms
project team—A designated group of people working together to produce a
planned project’s outputs and ultimate outcome.
psychographic customer characteristics—Variables among buyers in the con-
sumer market that address lifestyle issues and include consumer interests,
activities, and opinions.
pull system—See kanban.
Q
quality—A subjective term for which each person has his or her own definition.
In technical usage, quality can have two primary meanings: (1) the character-
istics of a product or service that bear on its ability to satisfy stated or implied
needs, and (2) a product or service free of deficiencies.
quality assessment—The process of identifying business practices, attitudes, and
activities that are enhancing or inhibiting the continual achievement of qual-
ity improvement in an organization.
quality assurance/quality control (QA/QC)—Two terms that have many inter-
pretations because of the multiple definitions for the words assurance and con-
trol. For example, assurance can mean the act of giving confidence, the state
of being certain, or the act of making certain; control can mean an evaluation
to indicate needed corrective responses, the act of guiding, or the state of a
process in which the variability is attributable to a constant system of chance
causes. One definition of quality assurance is all the planned and systematic
activities implemented within the quality system that can be demonstrated
to provide confidence that a product or service will fulfill requirements for
quality. One definition for quality control is the operational techniques and
activities used to fulfill requirements for quality. Often, however, quality assur-
ance and quality control are used interchangeably, referring to the actions per-
formed to ensure the quality of a product, service, or process.
quality audit/assessment—A systematic, independent examination and review to
determine whether quality activities and related results comply with planned
arrangements, and whether these arrangements are implemented effectively
and are suitable to achieve the objectives.
quality auditor—A person trained in the auditing/assessing of the appropriate
application of quality principles, policies, protocols, and practices supporting
the producing of high-quality products or services that meet customer needs
and expectations and comply with applicable standards.
quality characteristics—The unique characteristics of products and services by
which customers evaluate their perception of quality.
quality circles—Quality improvement or self-improvement study groups com-
posed of a small number of employees—10 or fewer—and their supervisor,
who meet regularly with an aim to improve a process.
quality control—See quality assurance.
Appendix B: Glossary and Acronyms 621
quality cost reports—A system of collecting quality costs that uses a spreadsheet
to list the elements of quality costs against a spread of the departments, areas,
or projects in which the costs occur, and summarizes the data to enable trend
analysis and decision making. The reports help organizations review preven-
tion costs, appraisal costs, and internal and external failure costs.
quality costs—See cost of quality.
quality council—The group driving the quality improvement effort and usually
having oversight responsibility for the implementation and maintenance of
the quality management system; operates in parallel with the normal opera-
tion of the business. Sometimes called quality steering committee.
quality engineering—The analysis of a manufacturing system at all stages to
maximize the quality of the process itself and the products it produces.
quality function—The entire spectrum of activities through which an organiza-
tion achieves its quality goals and objectives, no matter where these activities
are performed.
quality function deployment (QFD)—A multifaceted matrix in which customer
requirements are translated into appropriate technical requirements for each
stage of product development and production. The QFD process is often
referred to as “listening to the voice of the customer.” See also house of quality.
quality function mission—Derived from and an input into the organization’s
mission, the quality function mission statement includes a customer focus,
a supplier focus, and an employee focus. The statement represents the basic
direction the organization intends to follow regarding quality.
quality improvement—Actions taken in any or all parts of the organization to
increase the effectiveness and efficiency of activities and processes in order to
provide added benefits to both the organization and its customers.
quality inspection—A number of possible activities used with an intent to ascer-
tain or verify compliance to stated standards, prescribed measurements, or
acceptable practices.
quality level agreement (QLA)—Internal service/product providers assist their
internal customers in clearly delineating the level of service/product required
in quantitatively measurable terms. A QLA may contain specifications for accu-
racy, completeness, timeliness, usability, service availability, or responsive-
ness to needs. The QLA provides, in writing, what a service/product receiver
expects from an upstream provider, furnishes data to measure whether the
quality acceptance level has been met, and is the basis for trending progress
toward improvement, and ultimate recognition for quality achievement.
quality loss function—A parabolic approximation of the quality loss that occurs
when a quality characteristic deviates from its target value. The quality loss
function is expressed in monetary units—the cost of deviating from the tar-
get increases as a quadratic function the farther the quality characteristic
moves from the target. The formula used to compute the quality loss function
622 Appendix B: Glossary and Acronyms
depends on the type of quality characteristic being used. The quality loss
function was first introduced in this form by Genichi Taguchi.
quality management—All activities of the overall management function that
determine the quality principles, policy, mission, objectives, responsibili-
ties, and practices that when implemented through quality planning, qual-
ity assurance, quality control, and continual quality improvement within the
quality system provide quality products and services leading to customer sat-
isfaction and organizational benefits.
quality management system (QMS)—The organizational structure, processes,
procedures, and resources designed and implemented to maintain and con-
tinually improve quality management, products, and services.
quality manual—Document stating the organization’s quality policy and
describing the quality system of an organization.
quality metrics—Quantitative measurements that give an organization the abil-
ity to set objectives and evaluate actual performance versus plan.
quality plan—The document, or documents, stating the specific quality practices,
resources, specifications, and sequence of activities relevant to a particular
product, project, or contract. The types of documents differ widely depending
on the industry, type and size of organization, type of product or service pro-
duced, and other factors.
quality planning—The activity of establishing quality objectives and quality
requirements.
quality policy—An organization’s formally stated beliefs about quality, and the
acceptable behavior that will lead to the expected result.
quality principles—Rules, guidelines, or concepts that an organization believes
in, collectively. The principles are formulated by senior management with
input from others and are communicated and understood at every level of
the organization.
quality score chart (Q chart)—A control chart for evaluating the stability of a
process in terms of a quality score. The quality score is the weighted sum of
the count of events of various classifications in which each classification is
assigned a weight.
quality steering committee—See quality council.
quality trilogy—A three-point approach to managing for quality. The three points
are quality planning (developing the products and processes required to meet
customer needs), quality control (meeting product and process objectives), and
quality improvement (achieving unprecedented levels of performance). Attrib-
uted to Joseph M. Juran.
questionnaires—See surveys.
queue processing—Processing in batches (contrast with continuous flow
processing).
Appendix B: Glossary and Acronyms 623
queue time—Wait time of product awaiting the next step in a process.
quincunx—A teaching tool that creates frequency distributions. Beads tumble
over numerous horizontal rows of pins, which force the beads to the right or
left. After a random journey, the beads are dropped into vertical slots. After
many beads are dropped, a frequency distribution results. In the classroom,
quincunxes are often used to simulate a manufacturing process. The quin-
cunx was invented by English scientist Francis Galton in the 1890s.
R
radar chart—A visual method to show in graphic form the size of gaps between
a number of both current organization performance indicators and ideal
performance indicators. The resulting chart resembles a radar screen or a
spider’s web.
random cause—Cause of variation due to chance and not assignable to any factor.
See common cause.
random number generator—Used to select a stated quantity of random numbers
from a table of random numbers. The resulting selection is then used to pull
specific items or records corresponding to the selected numbers to comprise
a random sample.
random sampling—A sampling method in which every element in the popula-
tion has an equal chance of being included.
range—A measure of dispersion, the highest value minus the lowest value.
range chart (R chart)—A control chart in which the subgroup range, R, is used to
evaluate the stability of the variability within a process.
ratio analysis—The process of relating isolated business numbers, such as sales,
margins, expenses, debt, and profits, to make them meaningful.
rational subgroup—A subgroup that is expected to be as free as possible from
assignable causes (usually consecutive items).
recognition and reward system—Management’s recognition of work done well
by individuals or groups, and any monetary or nonmonetary reward that is
provided to those persons recognized.
record—Document or electronic medium that furnishes objective evidence of
activities performed or results achieved, for example, a filled-in form.
red bead experiment—An experiment developed by W. Edwards Deming to
illustrate that it is impossible to put employees in rank order of performance
for the coming year based on their performance during the past year because
performance differences must be attributed to the system, not to employees.
Four thousand red and white beads, 20 percent red, in a bin, and six people
are needed for the experiment. The participants’ goal is to produce white
beads because the customer will not accept red beads. One person begins by
stirring the beads and then, blindfolded, selects a sample of 50 beads. That
person passes the bin to the next person, who repeats the process, and so on.
624 Appendix B: Glossary and Acronyms
When everyone has his or her sample, the number of red beads for each is
counted. The limits of variation between employees that can be attributed to
the system are calculated. Everyone will fall within the calculated limits of
variation that could arise from the system. The calculations will show that
there is no evidence one person will be a better performer than another in the
future. The experiment shows that it would be a waste of management’s time
to try to find out why, say, John produced four red beads and Jane produced
15; instead, management should improve the system, making it possible for
everyone to produce more white beads.
reengineering—Completely redesigning or restructuring a whole organization,
an organizational component, or a complete process. It’s a “start all over again
from the beginning” approach, sometimes called a breakthrough. In terms
of improvement approaches, reengineering is contrasted with incremental
improvement (kaizen).
Registrar Accreditation Board (RAB)—An organization that evaluates the com-
petency and reliability of registrar organizations that audit and register client
organizations to an appropriate standard, such as ISO 9001 or ISO 14001.
registration—See certification to a standard.
regression analysis—A statistical technique for estimating the parameters of an
equation relating a particular variable to one or more variables.
reinforcement of behavior—The process of providing positive consequences
when an individual is applying the correct knowledge and skills to the
job. It has been described as catching people doing things right and recognizing
their behavior. Caution: Less than desirable behavior can also be reinforced
unintentionally.
reliability—In measurement systems analysis, the ability of an instrument to
produce the same results over repeated administration—consistency. In reli-
ability engineering it is the probability of a product performing its intended
function under stated conditions for a given period of time. See also mean time
between failures.
reliability engineering—Science of including those factors in the basic design that
will ensure the required degree of reliability, availability, and maintainability.
remedial journey—See diagnostic journey.
remedy—Something that eliminates or counteracts a problem cause: a solution.
repair—Action taken on a nonconforming product so that it will fulfill the
intended usage requirements, although it may not conform to the originally
specified requirements. See rework.
repeatability and reproducibility (R & R)—A measurement validation process
to determine how much variation exists in the measurement system (includ-
ing the variation in product, the gage used to measure, and the individuals
using the gage).
Appendix B: Glossary and Acronyms 625
reproducibility—Variation in the average of the measurements made by different
appraisers using the same measuring instrument when measuring the identi-
cal characteristics on the same part.
resistance to change—A person or group’s unwillingness to change beliefs, hab-
its, and ways of doing things.
resource requirements matrix—A tool used to relate the resources required to
the project tasks requiring them (used to indicate types of individuals needed,
material needed, subcontractors, and so on).
response surface—A graphical representation of the relationship between impor-
tant independent variables, controlled factors, and a dependent variable.
R E TA D —Rapid exchange of tooling and dies, the same concept as SMED.
return on assets (ROA)—A measure of the return generated by the earning
power of the organization’s investment in assets, such as facilities, large equip-
ment, and so on.
return on equity (ROE)—The net profit after taxes, divided by the previous year’s
tangible stockholders’ equity, and then multiplied by 100 to provide a percent-
age (also referred to as return on net worth).
return on investment (ROI)—An umbrella term for a variety of ratios measur-
ing an organization’s business performance and calculated by dividing some
measure of return by a measure of investment and then multiplying by 100 to
provide a percentage. In its most basic form, ROI indicates what remains from
all money taken in after all expenses are paid.
return on net assets (RONA)—Measure of an organization’s earning power from
investments in assets calculated by dividing net profit after taxes by the pre-
vious year’s tangible total assets, multiplied by 100 to provide a percentage.
return on training investment (ROTI)—A measure of the return generated by
the benefits obtained by the organization’s investment in training.
reverse engineering—Developing new design specifications by inspection and
analysis of the process steps (from last to first) used to produce an existing
product.
rework—Action taken on a nonconforming product so that it will fulfill the speci-
fied requirements (may also pertain to a service).
right the first time—The concept that it is beneficial and more cost-effective to
take the necessary steps up front to ensure that a product or service meets its
requirements than to provide a product or service that will need rework or
not meet customers’ needs. In other words, an organization should engage in
defect prevention more than defect detection.
risk assessment/management—The process of determining what present or
potential risks are possible in a situation (for example, project plan) and what
actions might be taken to eliminate or mitigate them.
626 Appendix B: Glossary and Acronyms
risk priority number (RPN)—The priority of risks assessed expressed as a
number.
robustness—The condition of a product or process design that remains relatively
stable with a minimum of variation even though factors that influence opera-
tions or usage, such as environment and wear, are constantly changing.
role playing—A training technique whereby selected participants, designated to
assume a particular role, spontaneously interact in an assigned scenario.
root cause analysis (RCA)—A set of quality techniques that can be used to distin-
guish the cause of defects or problems. It is a structured approach that focuses
on finding the decisive or original source of a problem or condition.
run—Consecutive points on one side of the centerline on an SPC chart.
run chart—A line graph showing data collected during a run or an uninterrupted
sequence of events. A trend is indicated when the series of collected data
points up or down.
S
sales leveling—A strategy of establishing a long-term relationship with custom-
ers to lead to contracts for fixed amounts and scheduled deliveries in order to
smooth the flow and eliminate surges.
sample—A finite number of items of a similar type taken from a population for
the purpose of examination to determine whether all members of the popula-
tion would conform to quality requirements or specifications.
sample plan—Documented plan showing the scheduled number of samples to be
taken from a lot for the purpose of acceptance or rejection of the lot. There are
several pre-designed sampling plans available.
sample size—The number of units in a sample chosen from a population.
sampling—The process of drawing conclusions about a population based on a
part of the population.
satisfier—Term used to describe the quality level received by a customer when a
product or service meets requirements.
SCAMPER—A list of seven questions used by a team to stimulate creativity.
scatter diagram—A graphical technique used to analyze the relationship between
two variables. Two sets of data are plotted on a graph, with the y-axis being
used for the variable to be predicted and the x-axis for the variable being used
to make the prediction. The graph will show possible relationships (although
two variables might appear to be related, they might not be; those who know
most about the variables must make that evaluation). The scatter diagram is
one of the seven tools of quality.
scenario planning—A strategic planning process that generates multiple stories/
scenarios about possible future conditions, allowing an organization to look
at the potential impact on them, and different ways they could respond.
Appendix B: Glossary and Acronyms 627
scientific management—Finding the one best way to perform a task so as to
increase effectiveness, quality, productivity, and efficiency.
scope—The total number of products, services, processes, people, operations, that
will be affected by an initiative, project, or other action.
scope creep—In a project, job, or other work situation, the gradual expansion of
responsibilities and work load, often invisible in early stages until the addi-
tional time and cost appear as a variation from estimates.
scorecard—Any evaluation device that formally specifies criteria and a means for
rating performance.
secondary customer—Individuals or groups from outside the process boundar-
ies who receive process output but who are not the reason for the process’s
existence.
second-party audit/assessment—An action carried out by a customer on their
suppliers.
segmentation—See customer segmentation.
SEI capability maturity model—A model used to determine current process
capabilities and identify critical software issues for improvement.
selective listening—One hears what they are predisposed to hear.
self-control—Three elements comprise workers’ self-control: knowing what they
are supposed to do, knowing what they are actually doing and how well, and
being able to control the process.
self-directed learning—See learner-controlled instruction.
self-inspection—The process by which employees inspect their own work accord-
ing to specified rules.
self-managed team—A team that requires little supervision and manages itself
and the day-to-day work it does; self-directed teams are responsible for whole
work processes, with each individual performing multiple tasks.
sensor—In an inspection or monitoring system, a device that detects a condition
out of the normal and provides a notification signal of the changed condition.
service level agreement (SLA)—See quality level agreement.
setup time—The time taken to change over a process to run a different product
or service.
seven basic tools of quality—Tools that help organizations understand their pro-
cesses in order to improve them. The tools are the cause-and-effect diagram,
check sheet, control chart, flowchart, histogram, Pareto chart, and scatter dia-
gram. See individual entries.
seven management tools of quality—The tools used primarily for planning and
managing are the activity network diagram (AND), or arrow diagram, affin-
ity diagram (KJ method), interrelationship digraph, matrix diagram, priori-
ties matrix, process decision program chart (PDPC), and tree diagram.
628 Appendix B: Glossary and Acronyms
shape—(1) Pattern or outline formed by the relative position of a large number of
individual values obtained from a process. (2) Removal of material from an
item using a shaper or shaver tool.
shared leadership—Management approach in which the manager believes that
the many functions of management can be effectively spread among various
teams or individuals.
Shewhart cycle—See plan–do–check–act cycle.
shift—Abrupt change in an important variable in a process. Examples include
broken tools, dropped gages, parts slipping, oil stops flowing, missed ingre-
dient in a mix.
ship-to-stock program—An arrangement with a qualified supplier whereby
the supplier ships material directly to the buyer without the buyer ’s incom-
ing inspection; often a result of evaluating and approving the supplier for
certification.
SIC (standard industrial
classification)—Replaced by
NAICS.
sigma—Greek letter (s) that stands for the standard deviation of a process.
silo—(as in functional silo). An organization where cross-functional collabora-
tion and cooperation is minimal and where the functional silos tend to work
toward their own objectives, sometimes to the detriment of the organization
as a whole. The allusion to “silo” is the mental picture of a vertical farm struc-
ture dedicated to serving one purpose without due regard to its relation to the
farm as a whole entity.
single-minute exchange of die (SMED)—A goal to be achieved in reducing the
setup time required for a changeover to a new process; the methodologies
employed in devising and implementing ways to reduce setup.
single-piece
flow—A
method whereby the product proceeds through the process
one piece at a time rather than in large batches, eliminating queues and costly
waste.
SIPOC analysis—A macro-level analysis of the suppliers, inputs, processes, out-
puts, and customers.
situational leadership—Leadership theory that maintains that leadership style
should change based on the person and the situation involved, with the leader
displaying varying degrees of directive and supportive behavior.
Six Sigma approach—A quality philosophy; a collection of techniques and tools
for use in reducing variation; a program of improvement.
six sigma quality—Term generally used to indicate that a process is well con-
trolled, that is, within process limits
±3s
from the centerline in a control
chart, and requirements/tolerance limits
±6s
from the centerline. The term
was originated by Motorola.
Appendix B: Glossary and Acronyms 629
skewness—Measure of a distribution’s symmetry, a skewed distribution has a
longer tail on the right or left side, with its hump (probability) pushed to the
opposite side.
skip-level meeting—Evaluation technique that occurs when a member of senior
management meets with persons two or more organizational levels below,
without the intervening management present, to allow open expression about
the effectiveness of the organization.
skip-lot sampling—An acceptance sampling plan in which some set number of
lots in a series is accepted without inspection. When the set number of lots is
received without inspection, the next lot is inspected unless problems surface
that merit all lots being inspected until the problem is eliminated and confi-
dence is restored.
slack time—The time an activity can be delayed without delaying the entire proj-
ect; it is determined by calculating the difference between the latest allowable
date and the earliest expected date. Also called float.
S.M.A.R.T. W.A.Y.—A template for setting objectives—specific, measurable, achiev-
able, realistic, time, worth, assign, yield.
Society of Automotive Engineers (SAE)—International society for the exchange
of ideas advancing the engineering of powered transportation systems.
spaghetti chart—A before-improvement chart of existing steps in a process, with
lines showing the many back and forth interrelationships (the resulting chart
resembles cooked spaghetti). It is used to identify the redundancies and other
wasted movements of people and material.
span of control—How many subordinates a manager can effectively and effi-
ciently manage.
special causes—Causes of variation that arise because of special circumstances.
They are not an inherent part of a process. Special causes are also referred to
as assignable causes, as contrasted with common causes.
special characteristics—Any characteristics that may affect safety and/or regu-
latory requirements, degradation, customer satisfaction, annoyance, and/or
other criteria.
specification—The engineering requirement used for judging the acceptability of
a particular product/service based on product characteristics such as appear-
ance, performance, and size. In statistical analysis, specification refers to the
document that prescribes the requirements to which the product or service
has to conform.
sponsor—The person who supports a team’s plans, activities, and outcomes—the
team’s “backer.” The sponsor provides for resources and helps define the mis-
sion and scope to set limits. The sponsor may be the same individual as the
“champion.”
630 Appendix B: Glossary and Acronyms
stable process—Process that is in control, with only common causes of variation
present.
stakeholder—People, departments, and outside organizations that have an invest-
ment or interest in the success of—or may be impacted by actions taken by—
the organization.
stakeholder analysis—The identification of stakeholders and delineation of their
needs.
stakeholder requirements matrix—A matrix for capturing and categorizing the
needs of identified stakeholders.
standard—A statement, specification, or quantity of material against which mea-
sured outputs from a process may be judged as acceptable or unacceptable.
standard deviation—A calculated measure of variability that shows how much
the data are spread around the mean.
standardized work—Documented and agreed-on work instructions and prac-
tices that embody the present best known methods and work sequence to
be followed by all performers of each manufacturing or assembly step in a
process.
statement of work (SOW)—A description of the actual work to be accomplished.
It is derived from the work breakdown structure and, when combined with
the project specifications, becomes the basis for the contractual agreement
on the project. See also scope.
statistical
confidence—T he
level of accuracy expected of an analysis of data. Most
frequently it is expressed as either a “95% level of significance” or “5% confi-
dence level.” Also called statistical significance.
statistical process control (SPC)—The application of statistical techniques to con-
trol a process.
statistical quality control (SQC)—The application of statistical techniques to
control quality. Often, the term statistical process control is used interchange-
ably with statistical quality control, although statistical quality control includes
acceptance sampling as well as statistical process control.
statistical thinking—A philosophy of learning and action based on fundamen-
tal principles:
• Allworkoccursinasystemofinterconnectedprocesses.
• Variationexistsinallprocesses.
• Understandingandreducingvariationarevitaltoimprovement.
steering committee—A special group established to guide and track initiatives
or projects.
storyboarding—A technique that visually displays thoughts and ideas and
groups them into sequenced categories (scenes), making all aspects of a
Appendix B: Glossary and Acronyms 631
process visible at once. Often used to communicate to others the activities
performed by a team as they improve a process.
strategic fit review—A process by which senior managers assess the future of
each project or initiative proposed for a particular organization in terms
of its ability to advance the mission, strategies, goals, and objectives of the
organization.
strategic planning—A process for identifying and setting an organization’s
long-range vision, mission, goals, and objectives, and identifying the actions
needed to ultimately achieve the goals.
stratified random sampling—A technique for segmenting (stratifying) a popula-
tion prior to drawing a random sample from each strata, the purpose being to
increase precision when members of different strata would, if not stratified,
cause an unrealistic distortion.
structural variation—Variation caused by regular, systematic changes in output,
such as seasonal patterns and unaccustomed “blips” in long-term trends.
suboptimization—The result occurring when an individual business function
fails to focus on the overall organizational objectives for producing higher
efficiency and effectiveness of the entire system, and instead focuses on the
individual function’s improvement.
supplier—Source of materials, services, or information input provided to a pro-
cess. Internal suppliers provide materials or services to internal customers.
supplier audits—Reviews that are planned and carried out to verify the effective-
ness of a supplier ’s quality program, drive improvement, and increase value.
supplier
certification—P
rocess of evaluating the performance of a supplier with
the intent of authorizing the supplier to self-certify shipments if such autho-
rization is granted.
supplier performance—The monitoring and measurement of supplier confor-
mance to standards, good manufacturing practices, industry norms, and the
customer ’s purchase contract, often with the use of specialized performance
metrics and/or supplier audits.
supplier quality assurance—Confidence that a supplier ’s product or service will
fulfill its customers’ needs. This confidence is achieved by creating a rela-
tionship between the customer and supplier that ensures that the product
will be fit for use with minimal corrective action and inspection. Accord-
ing to J. M. Juran, there are nine primary activities needed: (1) define prod-
uct and program quality requirements, (2) evaluate alternative suppliers, (3)
select suppliers, (4) conduct joint quality planning, (5) cooperate with the sup-
plier during the execution of the contract, (6) obtain proof of conformance to
requirements, (7) certify qualified suppliers, (8) conduct quality improvement
programs as required, and (9) create and use supplier quality ratings.
supplier selection strategy and criteria—Selection of new suppliers is based
on the type and uniqueness of the product or service to be purchased, and
632 Appendix B: Glossary and Acronyms
the total cost. Suppliers of commodity-type items and basic supplies may be
selected from directories and catalogs. For more-sophisticated products and
services, stringent evaluation criteria may be established.
supply chain—The series of processes and/or organizations that are involved in
producing and delivering a product to the final user.
supply chain management (SCM)—The process of effectively integrating and
managing components of the supply chain.
support systems—Starting with top management commitment and visible
involvement, support systems are a cascading series of interrelated practices
or actions aimed at building and sustaining support for continual quality
improvement.
surveillance—Continual monitoring of a process.
surveillance audit—The regular audits conducted by registrars to confirm that
a company registered to the ISO 9001 standard still complies; usually con-
ducted on a six-month or one-year cycle.
survey—Act of examining a process or of questioning a selected sample of
individuals to obtain data about a process, product, or service. A survey is
generally conducted on a selected sample of a population to collect informa-
tion about predetermined questions. A customer satisfaction survey is one
example. Surveys may be conducted orally by a survey-taker, by paper and
pencil, by computer online, and so on. Responses are tabulated and analyzed to
surface significant areas for change.
SWOT analysis—An assessment of an organization’s key strengths, weaknesses,
opportunities, and threats. It considers factors such as the organization’s indus-
try, competitive position, functional areas, and management.
symptom—An indication of a problem or opportunity.
system—A network of interdependent actions, processes, or events that work
together to accomplish a common mission and goal.
system of profound knowledge (SoPK)—See profound knowledge.
systems approach to management—A management theory that views the orga-
nization as a unified, purposeful combination of interrelated parts; manag-
ers must look at the organization as a whole and understand that activity in
one part of the organization affects all parts of the organization (also known
as systems thinking).
T
tacit knowledge—Unarticulated heuristics and assumptions used by any indi-
vidual or organization. The knowledge that comes from experience over time.
tactical plans—Short-term plans, usually of one- to two-year duration, that
describe actions the organization will take to meet its strategic business plan.
Appendix B: Glossary and Acronyms 633
tactics—The techniques and processes that help an organization meet its objectives.
Taguchi loss function—Pertains to where product characteristics deviate from
the target intended and losses increase according to a parabolic function.
Merely attempting to produce a product within specifications doesn’t prevent
loss (loss that is inflicted on society after shipment of a product). Any points
beyond the center of the process, in either direction, even though within speci-
fications, Taguchi considers a loss.
Taguchi methods—The American Supplier Institute’s trademarked term for the
quality engineering methodology developed by Genichi Taguchi. In this engi-
neering approach to quality control, Taguchi calls for off-line quality control,
online quality control, and a system of experimental design to improve qual-
ity and reduce costs.
takt time—The available production time divided by the rate of customer demand.
Operating to takt time sets the production pace to customer demand.
tally sheet—Another name for check sheet.
tampering—Action taken to compensate for variation within the control limits of
a stable system. Tampering increases rather than decreases variation, as evi-
denced in the funnel experiment.
TA R P—U.S. Office of Consumer Affairs/Technical Assistance Research Programs.
task—A specific, definable activity to perform an assigned function, usually
within a specified time frame.
taxonomy—Classification of terms or objects.
team—A group of two or more people who are organized to work together and
held accountable for the accomplishment of a task and specific performance
objective.
team building/development—The process of transforming a group of people
into a coordinated team and developing the team to achieve its purpose.
team dynamics—Interactions that occur among team members under different
conditions.
team facilitation—Process of dealing with both the role of the facilitator on the
team and the techniques and tools for facilitating the team. See facilitator.
team growth, stages of—Refers to the four development stages through which
groups typically progress: forming, storming, norming, and performing. Knowl-
edge of the stages helps team members accept the normal problems that occur
on the path from forming a group to becoming a team. It is suggested that
adjourning be added to the list to deal with closing down a team’s work.
team leader—A person designated to be responsible for the ongoing work and
success of the team, and keeping the team focused on the task assigned.
team performance evaluation, recognition and rewards—Special metrics are
needed to evaluate the work of a team (to avoid focus on any individual on
634 Appendix B: Glossary and Acronyms
the team) and as a basis for the recognition and reward for team effort and
achievements.
team-based organization/structure—A function or entire entity that consists pri-
marily of multiple teams.
telecommuting—Working individually, or as part of a group, performing at least
some work away from the organization’s primary location, and accomplishing
tasks with the aid of electronic technologies.
temporary/ad hoc team—A team, usually small, formed to address a short-term
objective or emergency situation.
theory of constraints (TOC)—Eliyahu Goldratt’s theory deals with techniques
and tools for identifying and eliminating the constraints (bottlenecks) in a
process, to achieve greater flow of money.
theory of knowledge (TOK)—A belief that management is about prediction, and
people learn not only from experience, but also from theory. When people
study a process and develop a theory, they can compare their predictions with
their observations; profound learning results.
theory X and theory Y—A theory developed by Douglas McGregor that main-
tains that there are two contrasting assumptions about people, each of which
is based on the manager ’s view of human nature. Theory X managers take a
negative view and assume that most employees do not like work and try to
avoid it. Theory Y managers take a positive view and believe that employees
want to work, will seek and accept responsibility, and can offer creative solu-
tions to organizational problems.
third-party audit—External audits conducted by personnel who are neither
employees of the organization, nor a supplier, but are usually employees of
certification bodies or of registrars.
three-sixty-degree (360°) feedback process—A people performance evaluation
method that provides feedback from the perspectives of self, peers, direct
reports, superiors, customers, and suppliers.
throughput—The rate at which the entire system generates money through sales
of product or service (Goldratt’s theory of constraints).
throughput time—The total time required (processing + queue) from concept to
launch, or from order received to delivery, or raw materials received to deliv-
ery to customer.
TickIT—A certification of quality management systems that conform to the
requirements of the ISO 9001 standard, specifically pertaining to software
development.
tier—Level, rank, sequence.
TJC—The Joint Commission, formerly the Joint Commission on Accreditation of
Healthcare Organizations (JCAHO).
Appendix B: Glossary and Acronyms 635
TL 9000—Quality management standard series for the telecommunications
indust r y.
tolerance—The variability of a parameter permitted and tolerated above or below
a nominal value.
tolerance design (Taguchi)—Provides a rational grade limit for components of
a system; determines which parts and processes need to be modified and to
what degree it is necessary to increase their control capacity; a method for
rationally determining tolerances.
tolerance limit—The maximum and minimum limit values a product may have
and still meet engineering or customer requirements.
tool—Any implement or technique used for making a desirable change to mate-
rials, process, product, or approach that contributes to a quality product
or service. (A narrow definition—a device used by hand, or a fixture in a
machine, that cuts, strikes, shapes, marks/tags, positions, polishes, or heat-
treats material in a process.)
tool life—Minimum amount of useful production that can be expected from
a tool.
top management commitment—Participation and visible involvement of the
organization’s highest-level officials in their organization’s quality improve-
ment efforts.
total productive maintenance (TPM)—Methodologies for reducing and even-
tually eliminating equipment failure, setup and adjustment, minor stops,
reduced speed, product rework, and scrap; preventive maintenance.
total quality management (TQM)—A term initially coined by the Naval Air
Systems Command (U.S.) to describe its management approach to quality
improvement. Total quality management (TQM) has taken on many mean-
ings. Simply put, TQM is a management approach to long-term success
through customer satisfaction. TQM is based on the participation of all mem-
bers of an organization in improving processes, products, services, and the
culture in which they work. TQM benefits all organization members and
society. Various methods for implementing TQM are found within the teach-
ings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand
V. Feigenbaum, Kaoru Ishikawa, J. M. Juran, and others. The Baldrige Perfor-
mance Excellence Program (U.S.) and other criteria-based programs embody
the principles of TQM.
traceability—The ability to track the history, application, or location of an item or
activity, and like items or activities, by means of recorded identification.
training—The skills that employees need to learn in order to perform or improve
the performance of their current job or tasks, and the process of providing
those skills.
training evaluation—The techniques and tools used and the process of evaluat-
ing the effectiveness of training.
636 Appendix B: Glossary and Acronyms
training needs assessment—The techniques and tools used and the process of
determining an organization’s training needs.
transactional leadership—A style of leading whereby the leader sees the work as
being done through clear definition of tasks and responsibilities and the pro-
vision of resources as needed.
transformational leadership—A style of leading whereby the leader articulates
the vision and values necessary for the organization to succeed.
transition tree—A technique used in applying Goldratt’s theory of constraints.
tree diagram—A management and planning tool that shows the hierarchy of sub-
tasks required to achieve an objective.
trend—Consecutive points plotted against a time period that show a pattern,
and help to identify any unexpected occurrences. Trend plotting of sequen-
tial data points show the direction and rate of change of an organization, work
unit, or process over time.
trend analysis—The charting of data over time to identify a tendency or direction.
trilogy—See quality trilogy.
TRIZ—(Russian) A theory of problem solving that aids in the solution of inven-
tive problems. A set of analytical and knowledge-based tools that are typically
hidden subconsciously in the minds of creative inventors.
t-test—A method for testing hypotheses about the population mean; the t-statistic
measures the deviation between the sample and population means, in terms
of the number of standard errors.
type I error—An incorrect decision to reject something (such as a statistical
hypothesis or a lot of products) when it is acceptable. Also known as produc-
er’s risk and alpha risk.
type II error—An incorrect decision to accept something when it is unacceptable.
Also known as consumer’s risk and beta risk.
U
u-chart—Count per unit chart. Attribute control chart used to show the average
number of defects in a sample; uses variable sample size. A c-chart uses a
fixed sample size.
unconditional guarantee—An organizational policy of providing customers
unquestioned remedy for any product or service deficiency.
unity of command—The concept that a subordinate should be responsible to only
one superior. Note: A matrix-type organization negates this concept.
upper control limit (UCL)—Control limit for points above the central line in a
control chart.
upper specification limit (USL)—Maximum limit for dimensions as specified for
a product to be acceptable.
Appendix B: Glossary and Acronyms 637
USDA—U.S. Department of Agriculture.
V
validation—Confirmation by examination of objective evidence that specific
requirements and/or a specified intended use are met.
validity—Refers to the ability of a feedback instrument, and validation action
taken, to measure what it was intended to measure. Validity may be measured
three ways: (1) criterion related, (2) construct related, and (3) content related.
value added—Parts of the process that add worth from the external customers’
perspective.
value chain—See supply chain.
value stream—The primary actions required to bring a product from concept to
placing the product in the hands of the end user.
value stream mapping—The technique for mapping the value stream, typically
done for the present perception and then the future perspective.
values—Statements that clarify the behaviors that the organization expects in
order to move toward its vision and mission. Values reflect an organization’s
personality and culture.
variable control chart—Data resulting from the measurement of a parameter or
a variable. Control charts based on variable data include average (X-bar) chart,
individuals (X) chart, range (R) chart, sample standard deviation (s) chart,
and CUSUM chart.
variable cost—Cost that varies with production quantity, such as material and
direct labor.
variable sampling plan—A plan in which a sample is taken and a measurement
of a specified quality characteristic is made on each unit. The measurements
are summarized into a simple statistic, and the observed value is compared
with an allowable value defined in the plan.
variables—Quantities that are subject to change.
variance—The difference between a planned amount (usually money or time)
and the actual amount. In math, the measure of dispersion of observations
based on the mean of the squared deviations from the arithmetic mean. The
square of the standard deviation, given by formula.
variation—A change in data, a characteristic, or a function that is caused by one
of four factors: special causes, common causes, tampering, or structural variation.
See individual entries.
verification—T he
act of reviewing, inspecting, testing, checking, auditing, or oth-
erwise establishing and documenting whether items, processes, services, or
documents conform to specified requirements.
638 Appendix B: Glossary and Acronyms
vertically integrate—To bring together more of the steps involved in producing
a product in order to form a continuous chain owned by the same firm; typi-
cally involves taking on activities that were previously in the external portion
of the supply chain.
virtual team—A boundaryless team functioning without a commonly shared
physical structure or physical contact, using electronic technology to link the
team members.
vision—A statement that explains what the company wants to become and what
it hopes to achieve.
visual control—A technique of positioning all tools, parts, production activities,
and performance indicators so that the status of a process can be understood
at a glance by everyone; providing visual cues to aid the performer in cor-
rectly processing a step or series of steps, to reduce cycle time, to cut costs, to
smooth flow of work, and to improve quality.
vital few, useful many—A term used by J. M. Juran to describe his use of the
Pareto principle, which he first defined in 1950. (The principle was used much
earlier in economics and inventory control methodologies.) The principle sug-
gests that most effects come from relatively few causes; that is, 80 percent
of the effects come from 20 percent of the possible causes. The 20 percent
of the possible causes are referred to as the vital few; the remaining causes
are referred to as the useful many. When Juran first defined this principle, he
referred to the remaining causes as the trivial many, but realizing that no prob-
lems are trivial in quality assurance, he changed it to useful many.
voice of the customer—The perceived understanding of the customers’ needs and
expectations (voice) interpreted and passed downward throughout the orga-
nization to ensure, at all levels, that the organization is responding to the cus-
tomers’ voice.
W
walk the talk—Not only talking about what one believes in, but also being
observed acting out those beliefs. Employees’ buy-in to the TQM concept is
more likely when management is seen involved in the process, every day.
walkabout—A visual, group technique used during strategic planning for resolv-
ing resource planning conflicts among organizational components.
warranty—A manufacturers’ published statement that defective or deficient prod-
uct or service experienced by the customer, within a prescribed time period,
will be remedied by the manufacturer.
waste—Activities that consume resources but add no value; visible waste (for
example, scrap, rework, downtime) and invisible waste (for example, ineffi-
cient setups, wait times of people and machines, inventory).
Weibull distribution—A distribution of continuous data that can take on many
different shapes and is used to describe a variety of patterns; in relation to
Appendix B: Glossary and Acronyms 639
the bathtub curve, used to define when the “infant mortality” rate has ended
and a steady state has been reached (decreasing failure rate).
WIIFM—“What’s in it for me?” Ask and answer WIIFM before suggesting that a
change/improvement will be acceptable to affected persons.
win–win—Outcome of a negotiation that results in both parties being better off.
wisdom—The culmination of the continuum from data to information to knowl-
edge to wisdom.
work analysis—The analysis, classification, and study of the way work is done.
Work may be categorized as value-added (necessary work), or non-value-
added (rework, unnecessary work, idle). Collected data may be summarized
on a Pareto chart showing how people within the studied population work.
The need for and value of all work is then questioned, and opportunities
for improvement identified. A time use analysis may also be included in the
s t u d y.
work breakdown structure (WBS)—A project management technique by which
a project is divided into tasks, subtasks, and units of work to be performed,
displayed on a chart.
work group—A team type composed of people from one functional area who
work together on a daily basis and whose goal is to improve the processes of
their function.
work instruction—A document that answers the question “How is the work to
be done?” See procedure.
workbook—A collection of exercises, questions, or problems to be solved during
training; a participant’s repository for documents used in training (for exam-
ple, handouts).
world-class quality—A term used to indicate a standard of excellence; the best
of the best.
X
x-axis—Horizontal axis on a control chart, run chart, or other chart.
X-bar chart—Average chart.
Y
y-axis—Vertical axis on a control chart, run chart, or other chart.
yield—Ratio between salable goods produced and the quantity of raw materials
and/or components input at the beginning of the process.
Z
zero defects—A performance standard popularized by Philip B. Crosby to address
a dual attitude in the workplace: people are willing to accept imperfection in
640 Appendix B: Glossary and Acronyms
some areas, while in other areas they expect the number of defects to be zero.
This dual attitude has developed because of the conditioning that people are
human and humans make mistakes. The zero-defects methodology states,
however, that if people commit themselves to watching details and avoiding
errors, they can move closer to the goal of perfection.
zero investment improvement—Another name for a kaizen blitz.
641
Index
A
A-B-C behavior analysis, 139–40, 144
absolutes of quality management (Crosby),
307
acceptable quality limit (AQL), 400
acceptance sampling, 399–400
accrual basis bookkeeping, 170
accuracy, 425
versus precision, 411
achieved availability, 424
acid test ratio, 175
action plans, 88, 117, 256
deployment, 122
preparing, 93
active listening, 206–7, 210–11
activity network diagram (AND), 243, 323–24
activity-based costing (ABC), 178, 352
activity-based management (ABM), 178
ad hoc teams, 56
ADDIE instructional design model, 531
adult learning principles, 532–33
affinity diagram, 318, 324
Aguayo, Rafael, 431
alignment, of business processes and
performance measures, 221–22
alliances, supplier, 505–9
alpha (a) risk (type I error), 400
American Productivity (and Quality) Center
(APQC), 280, 354
Americans with Disabilities Act (ADA), 150
analogies, in problem solving, 341
analysis of variance (ANOVA), 405
analytical thinking, versus creative, 338–39
ANSI/ASQ Z1.4 standard, 400
Ansoff, H. Igor, 86
appraisal costs, 349
arithmetic mean, 402
ASQ Certified Manager of Quality/
Organizational Excellence
examination, preparing for, xxiii–xxvi,
xxvii–xxviii
ASQ Code of Ethics, 81–83
ASQ Futures of Quality study, xv
Athos, Anthony, 21
attributes control charts, 408
audit
four types (Ishikawa), 310
metrics, 277
post-project, 254
qual it y, 270 –73
supplier, 498, 502–3
tools, 277
auditing, xxi
authority
forms of, 3
lack of as roadblock to change, 30
autocratic management, 144
availability
in OEE, 380
in reliability, 424–25
average, 420
average outgoing quality limit (AOQL), 400
B
Baker, Edward M., 131
balance sheet, 170–72
ratios derived from, 175
balanced scorecard (BSC), 179, 268–70
Baldrige Performance Excellence Program
(BPEP), 279, 280, 291
category descriptions, 280–81
core values and concepts, 135–36
using criteria as management model,
281–83
bathtub curve, 403–5, 423
behavior management, 139–41
behavioral theories, 137
Bell Laboratories, 303
benchmarking, 296–303
in business environment analysis, 105–7
code of conduct, 300
in project risk assessment, 228
steps in, 297–98
what it isn’t, 302
benefit–cost analysis, in projects, 228
Bennis, Warren, 1
best judgment sampling, 399
642 Index
beta (b) risk (type II error), 400
Big Q, xxii–xxiii, 263, 515
binomial distribution, 405
Blake, Robert R., 142
Blanchard, Ken, 141
body language, 203, 209
boiling frog analogy (Senge), 28–29
bookkeeping methods, 169–70
Boston Consulting Group (BCG) matrix, 233
boundaryless organization, 9–10
brainstorming, 339–40
breakthrough improvement, achieving,
419–21
Briggs, Katharine Cook, 143
budget variance, in projects, 251–52
budgets, 178–79
project, 247–48
business environment analysis, 97–115
business functions
external, 148–49
internal, 149–51
business needs, aligning training plans with,
516–18
business principles, 128
business processes, integrated, 151–54
C
calibration, 410–11
capacity, organizational, managing in CRM,
485–87
career development, versus education and
training, 548–49
case studies, in training, 536–37
cash basis bookkeeping, 169
cash flow statement, 173–74
catchball technique, 122, 203
categorized costs, 178
cause leader, 16
cause-and-effect diagram, 318, 319–20
CE mark, 290
cell phones, 222
cellular organizational structure, 9
cellular teams, 59
centralization, in organizational design, 5–6
certificate of certification, supplier, 510
Certified Manager of Quality/
Organizational Excellence Body of
Knowledge, 551–61
applying, case study, 562–66
integrating as a system, 562
Champy, James, 513
change, guidelines for implementing, 28–29
change agents, 27–28
techniques and roles of, 29–30
change management, 26–35
check sheet, 317–18
Chrysler Corporation, Books of Knowledge,
190
classical organizational theory, 137
closed-loop versus open-loop performance
measurement, 124
cluster analysis, in market segmentation, 447
cluster sampling, 399
coaching, 145
in training, 536
Code of Ethics, ASQ, 81–83
collateral organization, 6
comment cards, 470–71
commodity performance index (CPI), 501
common cause variation, 418
communication
definition, 200–202
direction of, 202–3
methods of, 203–4
roadblocks to effective, 212
selecting appropriate media for, 204–5
communication skills and abilities, 200–224
communication techniques, 200–207
benefits of effective, 208
communications
in global economy, 212–16
obstacles to, 212
supplier, 495–97
and technology, 216–23
in TQM, 292
written, 209–10
companywide quality control, 291
competency analysis, of personnel, 166
competition, and organizational structure, 12
competitive analysis, 104–5
competitive benchmarking, 297
competitors, as driver of quality, 262
complaint handling, 467
five-step recovery program, 481–82
complexity theory, 142
computer-based instruction, 538
concurrent engineering, 153–54
conflict, 41–44
sources and views of, 41–42
conflict management, core issues in, 43–44
conflict resolution, techniques for, 42–43
conflict resolution diagram, 389
constraint management, 33–35
constraints, types of, 389
constructive communication, 211–12
construct-related validity, 426
consumer, as customer, 433
consumer’s risk (type II error), 400
content-related validity, 426
contingency approach, to management, 145
Index 643
continual improvement, in TQM, 292
continuous quality improvement, 296–303
contracts, supplier, 493
control charts, 319–20
test for randomness in, 409
types of, 408–9
control plans, 366
controlling, at strategic level, 135
core competencies
and knowledge management, 195
organizational, 111–12
and organizational structure, 11
core customers, 444
core values and concepts, organizational,
under BPEP, 135–36
Corporate Strategy, 86
corrective actions, supplier, 498
corrective and preventive action, 474
supplier, 503
corrective feedback, 211
correlation, 322
cost model, standard, 178
cost of goods sold, 175–76
cost of non-quality, 349
cost of poor quality, 349
cost of quality (COQ), 348–52
institutionalizing, 351
cost structures, product/service, 178
cost-of-quality program, initiating, 350
costs
quality, categorizing, 349–52
supplier, 498
types of, 178
Covey, Stephen R., 14
C
p
, 421
C
pk
, 421
Crawford slip method, of brainstorming, 340
creative thinking, versus analytical, 338–39
creativity tools, 338–48
criterion-related validity, 426
critical path, 323, 371
critical path method (CPM), 243, 323
critical success factors (CSF), 124
critical thinking, 343
critical-to-quality (CTQ) process outputs, 394
Crosby, Philip B., 291, 349
quality philosophy, 307–8
cross-functional collaboration, lack of as
roadblock to change, 30
cross-functional flowchart, 361
culture, organizational, 146–47
current ratio, 175
current reality tree, 389
customer, as driver of quality, 261
customer advisory board, 471
customer councils, 471
customer data
capturing, differentiating, and using, 467
techniques and tools for collecting,
468–74
customer feedback, collecting and analyzing,
276–77
customer focus
defining, 452
in TQM, 291
customer identification, 432–42
customer loyalty, 476–79
customer management, multiple and diverse,
483–87
customer needs, 453–60
anticipating, 453–56
customer organizational structure, 7
customer relationship management (CRM),
443, 452–488
customer retention, 476–79
customer satisfaction, 460–76
determining levels of, 461–62
pitfalls in determining, 475–76
customer satisfaction data, analyzing, 462–65
customer segmentation, 442–50
choosing a strategy, 448–50
concepts, 446–48
differentiating factors, 444–46
process of, 444–46
shift toward, 442–43
customer service, principles, 479–83
customer service function, 150
customer service representative (CSR), skills,
482–83
customer service–oriented organization,
creating, 479–83
customer types, 432–33
importance of identifying, 434
customer value analysis, 472–73, 478–79
customer-focused organizations, 431–88
customers
multiple, managing, 483–84
resolving conflicts with, 484–85
customers’ perceived value matrix (CPVM),
478–79
cycle, versus trend, 412, 413
cycle-time reduction, 371–73
pitfalls to avoid in, 381
D
data, 391
capturing, sharing, and accessing, 191–92
categorizing, 276
versus information, 189
data mining, 193, 414–15, 474
644 Index
data-gathering methods, impact on people,
396–98
Davidow, William, 513
debt/equity ratio, 175
decentralization, in organizational design,
5–6
decision making, slow, as roadblock to
change, 31
decision trees, 414
defect data check sheet, 318
deliverables, of projects, 238
methodologies for designing, 250
delivery performance, supplier, 498
delivery performance index (DPI), 501
demassification, 443
Deming, W. Edwards, 131, 291, 303, 313
quality philosophy, 304–5
Deming Prize, 279, 283, 291, 294
deployment flowchart, 316, 361
design FMEA, 335
design for manufacture/manufacturing and
assembly, 344
design for manufacturing ability (DFMA),
344–45
design for Six Sigma (DFSS), 262, 345
design of experiments (DOE), 405
development
employee, and training, 513–50
individual, versus education and training,
548–49
diagnostic journey (Juran), 307
directing, at strategic level, 135
director of quality, 167
DiSC model, 62, 143
discount buyer, 441
discussion format, in training, 535
dissatisfiers, work motivation factor, 36
distance learning, 538
distributor, 440
division of labor, 4–5
DMAIC (define, measure, analyze, improve,
control) model, 333–35
documentation, project, 255–56
double sampling, 400–402
Drucker, Peter F., 1
four tasks of management, 26
E
earned value analysis (EVA), 252
economic case for quality, 168–69, 180
Economic Control of Quality of Manufactured
Product, xix, 303
education
versus individual development, 548–49
as tool in quality management, 548
versus training, 514–15
by organizational level, 529–31
Einstein, Albert, 313
electronic devices, multifunction, 223
e-mail, 209, 223
e-mail surveys, 469–70
emotional competence of leader, dimensions,
20–21
employee buyer, 441
employee development, 162–63
employee involvement, in TQM, 291
employee satisfaction, as driver of quality,
262
empowerment, 44–50
barriers to, 47–49
benefits from, 49–50
requirements for, 47
end user, as customer, 433
engineering function, 150–51
environment analysis, business, 97–115
Equal Employment Opportunity
Commission (EEOC), 150
equity theory of motivation, 36
ethics, 81–83
European Quality Award, 283
evolutionary operation, 406
executive management, 12, 132
expectancy theory of motivation (Vroom), 36
experiential learning model (Kolb), 137–38
experiential training, 535–36
explicit knowledge, 190
exponential distribution, 403
external audit, 271
external customer, 433, 440–42
how treatment of internal customer
influences, 437–39
process for working with, 450
types of, 440–42
external failure costs, 349
extrinsic motivation, 35, 37
F
face validity, 426
facilitator, team role, 67, 73
roles and responsibilities, 74–76
facilities, and organizational structure, 12
facilities engineering, 151
factor analysis, in market segmentation, 447
failure costs, 349
failure mode and effects analysis (FMEA),
335–36
in risk exposure analysis, 185
false customer, 433
Fayol, Henri, 137
feedback
Index 645
in communication, 211–12
customer, collecting and analyzing,
276–77
in projects, 248
to suppliers, 503
for teams, 74
feedback loops, 123–24
Feigenbaum, Armand V., 291, 348
quality philosophy, 308–9
finance function, 149–50
financial management, 168–80
financial reporting, 169–74
financial statements, 169
internal, 170
external, 170
notes on, 174
first-level supervision, 12, 133
first-party audit, 271
fishbone diagram, 318
five S (5S), 373–74
five steps to quality culture (Juran), 147
five whys, 343–44
Florida Power & Light Company, 294
flowchart, 315–16, 359
focus groups, 465
Follett, Mary Parker, 137
Ford, Henry, 371, 442
forecasting, 86
formal communication, 203
forums, 529
four M’s, as causes, 318
four P’s, as causes, 318
14 points for management (Deming), 304
14 steps to improvement (Crosby), 308
Franklin, Benjamin, 513
functional areas, interdependence of, 147–55
functional benchmarking, 297
functional organizational structure, 6–7
future reality tree, 389
G
gage repeatability and reproducibility (gage
R&R) studies, 410
Galvin, Bob, 145
games, instructional, 537–38
Gantt, Henry, 137
Gantt chart, 239–43, 329–30
Gardner, Howard, 138
General Electric Company, 333
generally accepted accounting principles
(GAAP), 169
generic benchmarking, 297
genetic algorithms, 414
geographic information system (GIS), 415
geographic organizational structure, 8
George, Steven, 85
Gilbreth, Frank, 137
Gilbreth, Lillian, 137
global economy
communications in, 212–26
succeeding in, 215–16
goal–question–metric (GQM), 392–93
Goldratt, Eliyahu, 387
good manufacturing practices (GMP), 290
Gopal, Christopher, 489
“grapevine” communication, 204
gross profit, 175
group interview, 161–62
groupthink, in teams, 79
guarantees, unconditional, 473–74
Guide to Quality Control, 309
guiding principles, in hoshin planning, 91
H
Hamel, Gary, 85
Hammer, Michael, 513
Harari, Owen, 431
Hawthorne effect, 137, 291
Hawthorne Works plant, 137
Hersey, Paul, 141
Hertzberg, Frederick, 36
hierarchical interviews, 161
high-performance work teams, 55
hiring, of personnel, 160–68
histogram, 320–21
horizontal organizational design, 4–5
hoshin planning (hoshin kanri), 89–94, 120,
122
advantages and disadvantages of, 94
house of quality, 456
human factors engineering (HFE), 198
human relations theory, 137
human resources function, 150
functions, 155–57
responsibilities of other functional
managers, 157–58
human resources management, 155–68
hygiene factors (Hertzberg), 36
hypergeometric distribution, 405
I
income statement, 172–73
ratios derived from, 175–76
incoming inspection, 511
indirect customer, 433
industrial engineering, 151
industry-specific documentation, 366
informal communication, 203–4
646 Index
information
distribution of, 191–92, 220–21
versus knowledge, 189
using for managing organizational
performance, 221–22
information systems
assessing risks in, 223
technology in, 219–20
uses of, 216–19
information technology (IT), 149, 216–17
informative communication, 211
inherent availability, 424
innovation tools, 338–48
in-person interviews, 470
inspection, xxi
integrated business processes, 151–54
in TQM, 292
intelligence, types of, 138
intermediary, as customer, 433
internal audit, 271
internal benchmarking, 297
internal capability analysis, 111–14
internal competition for resources, as
roadblock to change, 31
internal customer, 433, 435–39
how treatment of influences external
customer, 437–39
methods to energize, 439
internal failure costs, 349
internal rate of return (IRR), in projects, 231,
232
internet, 222–23
internet surveys, 471
interpersonal skills, 207–12
interrelationship digraph, 325
for constraint identification, 33
interstatement financial ratios, 176–77
interviews
in-person, 470
job candidate, 161–62
questioning techniques for, 205–7
intrinsic motivation, 35, 37
inventory, under theory of constraints, 388
inventory management function, 150
inventory turnover, 176
inventory valuation, 170
invisible waste, 369–70
Ishikawa, Kaoru, 291
quality philosophy, 309–10
Ishikawa diagram, 318
ISO 9000 series standards, 279, 283–88, 291
criticisms of, 288
ISO 9000:2005, 284
ISO 9001:2008, 284–86
ISO 9004:2009, 284, 286
ISO quality management standards, 283–90
ISO/TS 16949 standard, 366
J
job aids, in training, 539
job descriptions, 158–59
job enlargement, 45
job enrichment, 45
job performance, training for, 526
job positions, identifying, 158–59
Joint Commission, The (TJC), 289
joint planning meetings, 472
Jung, Carl, 143
Juran, Joseph M., xxii, 291, 302, 318–19, 348,
419
five steps to quality culture, 147
quality philosophy, 305–7
Juran trilogy, 306
just-in-time (JIT) system, 374
K
kaizen, 296, 379–80
kaizen blitz/event, 55, 296, 379–80
Kamauff, John, 489
kanban, 375
Kano, Noriaki, 462
Kano model, 462–63
KESAA factors, 60–61
key customers, 444
knowledge
definition, 189–91
versus information, 189
types of, 189–91
knowledge management, 189–98
applications of, 193–94
initiating, 192–94
measuring outcomes of, 195
organizational hurdles, 196–97
Kolb, David, 137
Kotler, Philip, 442
L
Lao-tzu, 49
lateral thinking, 343
laws, and organizational structure, 11
lead operator, 13
leader
and employee empowerment, 46
key roles, 17, 22–23
versus manager, 14–15, 22
roles and responsibilities of, 15–21
leadership, 1–83
challenges, 14–51
definitions, 18
in resource allocation, 20
Index 647
techniques, 35–44
lean tools, 371–81
learner-controlled instruction (LCI), 535
learning objectives, 533
learning organization, 194–95
Learning Styles Questionnaire (Honey and
Mumford), 138
learning theories, 137–39
lectures, in training, 535
legal factors, in business environment
analysis, 114–15
lesson plans, 533–35
life-history curve, product, 423
line authority, 3
line management, roles and responsibilities,
12–13
line supervision, 133
linear regression, 405
linear responsibility matrix (LRM), 247
listen–capture–analyze–learn–improve
(LCALI), 463–65
listening, 210–11
listening post data, 463
little q, xxii–xxiii, 263
logistics, supplier, 509–10
logistics function, 150
Lombardi, Vince, 90–91
long-range planning, 86
loss exposure
computing, 187–88
identifying, 181–82
lot tolerance percent defective (LTPD), 400
M
mail surveys, 468–69
maintainability, 424
Malcolm Baldrige National Quality Award
(MBNQA), 49, 280
management
four tasks of (Drucker), 26
levels of, 132–33
principles of, 133–36
in resource allocation, 120
speaking language of, 168–69
strategic-level, 135
tools, 322–30
management by fact, 145, 391
in TQM, 292
management by walking around (MBWA),
145, 273
management elements and methods, 131–311
management functions, 24
management hierarchy, 12–13
management reviews, 273
management skills and abilities, 132–199
management styles and theories, 136–47
interaction of, 144–46
management tools, 143–44
management training, 520
manager
versus leader, 14–15
roles and responsibilities, 21–26
Managerial Breakthrough, 306
managerial competencies, 24–26
managerial grid, 142
market forces, in business environment
analysis, 102–7
marketing, concept, 442–43
marketing function, 150
Marston, William, 143
Maslow, Abraham, 35
Maslow’s hierarchy of needs, 35–36
mass customization, 443
material acceptance, 510–11
materials management function, 150
matrix diagram, 325–26
matrix organizational structure, 6, 9
McGregor, Douglas, 137
mean time between failures (MTBF), 424
mean time between maintenance actions
(MTBMA), 424
mean time to failure (MTTF), 424
mean time to repair (MTTR), 424
means, tactical-level, deployment of, 122
measles chart, 318
measurement
assessment and metrics, 391–429
factors influencing frequency of, 126
of project activity, 250–53
measurement systems analysis (MSA), 410–11
measurements
in projects, 248
quality cost, establishing and tracking,
351
measures, ratio, 174–78
measures of central tendency, 402
measures of dispersion, 402–3
media, selecting appropriate for
communication, 204–5
median, 402
meetings, skip-level, 275–76
metrics
audit, 277
impact on people, 396–98
and organizational alignment, 125–26
for quality system effectiveness
evaluation, 268–77
for supplier performance, 499–501
metrology, xxi
middle management, 133
roles and responsibilities, 12
mind mapping, 340–41
648 Index
Mintzberg, Henry, 86
mission statement
defining, 91
in hoshin planning, 89
mistake-proofing, 377–79
mistakes, categories of, 378–79
mode, 402
modular corporation, 9
moments of truth (Carlzon), 477
money, flow of, under theory of constraints,
388–89
monitoring
of performance, 126
of project activity, 250–53
motivation
four types of, 35
theories of, 35–37
Motorola, 333
Mouton, Jane S., 142
muda, 366
multiple regression, 405
multiple sampling, 402
multivoting, 342
multiyear strategic objectives, 92
murmers, 471
Myers, Isabel, 143
Myers-Briggs Personality Type Indicator,
61–62, 143–44
mystery shoppers, 471
N
Nanus, Burt, 1
National Committee for Quality Assurance
(NCQA), 289–90
natural teams, 56
nearest neighbor, data mining technique, 415
negative correlation, 322
negotiation, 37–41
techniques, 38–39
net present value (NPV), in projects, 231, 232
network diagramming, 243–45
network organization, 9
neural networks, 414
new QC tools, 323
next operation as customer (Ishikawa), 436
nominal group technique (NGT), 341–42
noncore customers, 444
normal distribution, 403
norms, in team processes, 65
O
observation, to collect customer data, 471
obsolescence, 222–23
Ohmae, Kenichi, 131
Ohno, Taiichi, 375
one-to-one interview, 161
one-to-one marketing, 443
on-the-job training (OJT), 530–31, 539–40
open-loop versus closed-loop performance
measurement, 124
operating characteristic (OC) curve, 400
operating expense, under theory of
constraints, 388
operational availability, 425
operational plans, 88, 117
operations function, 151
organization buyer, 442
organization leader, 15–16
organizational alignment, and metrics,
125–26
organizational change
facilitating and managing, 27
roadblocks to, 30–33
organizational culture, 146–47
organizational design, 2–3
horizontal, 4–5
vertical, 3–4
organizational excellence, 279–83
organizational focus, as driver of quality,
262
organizational maturity, levels of, xxiii
organizational structures, 2–13
types of, 6–12
organizing, strategic-level, 134
outcome assessment, post-project, 254–55
outsourcing, 491, 507–8
“over the wall” product development, 153
overall equipment effectiveness (OEE), 380
P
panel interview, 161
panel survey, 471
parallel organization, 6
parallel thinking, 343
Pareto, Vilfredo, 318
Pareto chart, 317, 318–19
participative management, 144–45
partnerships, supplier, 505–9
Partsch, Wolfgang, 489
Pascale, Richard, 21
past performance index (PPI), 501
pattern analysis, 411–16
payback period, of project, 230–31
peer interview, 161
performance, in OEE, 380
performance appraisal system, criteria for
fair, 165
performance evaluation, 163–66
Index 649
problems with poorly managed system,
165–66
performance excellence, 279–83
performance index, formula, 501
performance measurement, organizational,
123–26
performance measures, designing, 123–24
performance monitoring, 126
performance reporting, 126
personnel assimilation, new, 162
personnel selection, 159–60, 160–68
physical constraints, 389
plan–do–check–act (PDCA) cycle, xxvii, 303,
331–32
in auditing, 272
in risk management, 181
plan–do–study–act (PDSA) cycle, 331–32
planning, organizational, 134
planning tools, 322–30
Poisson distribution, 405
poka-yoke, 377–79
policy, definition, 127
policy constraints, 389
portfolio analysis, in projects, 233
POSDC (planning, organizing, staffing,
directing, and controlling), 133–35
positive correlation, 322
post-project audit, 254
post-project outcome assessment, 254–55
potential customers, 444
potential process capability, 422
P
pk
, 422
Prahalad, C. K., 85
precision, 425
versus accuracy, 411
pre-control, 409–10
prerequisite tree, 389
presentations, in training, 535
prevention costs, 349
preventive action, and corrective action, 474
supplier, 503
primary customer, 432, 452
principle-centered leadership, 143
priorities matrix, 326–28
prioritization matrix, for projects, 233
priority matrix, 459–60
probability distributions, 403–5
problem-solving tools, 314–52
procedures, 364–66
process, versus system, 353
process analysis, 358–70
process approach, in TQM, 291
process capability, 421–22
process classification framework, APQC, 354
process decision program chart (PDPC), 328
process engineering, 151
process FMEA, 335
process goals, 354–58
process improvement, 314–15
process improvement model, 336–38
process improvement teams, 54–55
process improvement tools, 330–38
process management, 353–90
process management maturity assessment
tool, 354
process management tools, 381
process mapping, 359–64
process measurement
tenets of, 398
tools and techniques for, 392–93
process measures, establishing, 394–95
process objectives, monitoring, measuring,
and reporting, 357–58
process organizational structure, 8–9
process quality audit, 271
process variables, independent, measuring,
393–94
process variation, 416–21
producer’s risk (type I error), 400
product
definition under ISO, xxvii
as driver of quality, 262
product data, supplier, 498
product design, xxii
product development
function, 150
and knowledge management, 197–98
product engineering, 151
product life cycle, stages, 423
product organizational structure, 7
product quality audit, 271
product reliability, 422–24
product/service cost structures, 178
production control function, 150
professional development, versus education
and training, 548–49
profit and loss (P&L) statement, 172–73
program evaluation and review technique
(PERT), 243–45, 323
project
benefit–cost analysis, 228–29
definition, 225
life cycle, 227–28
method for evaluating and closing out,
253
methodologies for designing deliverables,
250
methodologies for initiating, 228–33
methodologies for planning, 234–50
ranking and prioritizing, 230–32
risk assessment, 228
project budget, 247–48
project closeout actions, 253–55
project concept/scope statement, 234
650 Index
project deliverables measurements, 395
project documentation, 255–56
project funding approval request, 249–50
project implementation and tracking tools,
250–53
project management, 225–59
basics, 227–33
project measurement(s), 248
techniques and tools for, 395
tenets of, 398
project plan approval, 250
project planning and estimation tools,
233–50
project planning and management
measurements, 395
project reports, 248–49
project selection decision analysis, 229–30
project team formation, 238
pull system, 375
purchasing function, 150
Q
qualitative assessment, 426–28
qualitative data, 391
quality
definitions of, 260–61
drivers of, 261–62
historical perspective, xix–xx
in OEE, 380
strategic impact on organization, 263
quality analyst, 167
quality assurance (QA), xxi
quality audit, 270–73
quality auditor, 168
quality awards, miscellaneous, 283
quality characteristics, examples, 261
quality control (QC), xxi, 262
quality coordinator, 167
quality costs, categorizing, 349–52
quality culture, Juran’s five steps to, 147
quality deployment, 267–68
quality engineer, xx, 167
quality function, 151
mission, 263–65
observations on, xx–xxi
staffing, 166–68
what it is not, xxii
quality function deployment (QFD), 456–60
in quality planning, 267
quality improvement, 262
quality improvement project (QIP), 419
quality inspector, 168
quality management
Juran’s three levels, 307
and society, xv
using Baldrige criteria in, 282
quality management principles, defining,
128–29
quality management system (QMS), xxi
ISO 9001–based, benefits, 287–88
quality management tools, 313–429
quality manager, 167
leadership requirements, 17
quality methodologies, miscellaneous,
290–303
quality models, 279–310
quality objectives, 129, 265
quality of conformance, versus quality of
design, 262
quality of design, versus quality of
conformance, 262
quality performance index (QPI), 501
quality philosophies, 303–10
quality plan, 266–67
deployment, 267–68
documentation, 267–68
quality planning, 262, 266–67
quality policies, 265
formulating, 127–28
quality principles, 265
quality specialist, 167
quality supervisor, 167
quality system, 260–78
effectiveness, 268–77
self-assessment, 270
tools and metrics for effectiveness
evaluation, 268–77
quality system audit, 271–72
quality technician, 167
quality theories, 279–310
quality trainer, 168
quality-level agreements (QLAs), 437
quantitative data, 391
questioning techniques, 205–7
questionnaires, supplier, 498
quick ratio, 175
R
random sample, 399
range (R), 402
rapid exchange of tooling and dies (RETAD),
375
rational subgrouping, 399
ratios, financial measures, 174–78
Reagan, Ronald, 280
receiving inspection, 511
recognition and rewards, for teams, 78–79
regression, 405
regulation
in business environment analysis, 115
Index 651
and organizational structure, 11
reinforcement theory of motivation
(Skinner), 37
relationship diagram, 325
reliability
definition, 422, 425
measures of, miscellaneous, 424–26
terminology, 422–26
reliability engineering, xxi
remedial journey (Juran), 307
remote learning, 538
repeatability, in measurement, 410
reporting
performance measures, 126
in projects, 248–49
reproducibility, in measurement, 410
research and development function, 151
resource allocation and deployment, 119–22
allocation, 121–22
availability, 120–21
usage, in projects, 252
resource requirements matrix (RRM), 245
resources, managing, in CRM, 485–87
response surface, 406
retail buyer, 441
retail chain buyer, 440
return on assets (ROA), 177
in projects, 232–33
return on investment (ROI), 176–77
in projects, 231–32
return on net assets, 232–33
risk analysis, in projects, 252–53
risk assessment, in projects, 228, 234
risk exposure
responding to, 186–87
techniques and tools, 184–86
risk management, 180–88
process, 181–82
risks, types of, 181
role playing, in training, 537–38
root cause analysis, 330–31
round-robin brainstorming, 339–40
rule induction, 414
run chart, 319
S
sales function, 150
sampling, 398–402
risks in, 400–402
Sarbanes-Oxley Act of 2002 (SOX), 170
satisfiers, work motivation factor, 36
SCAMPER, 347
scatter diagram, 321–22
scenario planning, 95
scientific management, 136–37, 290
scribe, team role, 65
secondary customer, 432
second-party audit, 271
Securities and Exchange Commission (SEC),
169
segmentation, customer. See customer
segmentation
SEI capability maturity model, 290
self-directed learning (SDL), 535
self-directed teams, 55
self-managed teams, 55–56
Senge, Peter, 313
senior management. See top management
service buyer, 441–42
service design, xxii
service providers, as customer, 441
service user, as customer, 442
services, as driver of quality, 262
seven classic quality tools, 315–22
seven deadly diseases (Deming), 304–5
seven habits of highly effective people,
142–43
seven-step problem solving model, 330–31
Shewhart, Walter, xix, 291, 417
quality philosophy, 303
shift, in trend analysis, 413
Shingo, Shigeo, 377
Shingo Prize for Excellence in
Manufacturing, 283
sigma (s), definitions, 333
silos, functional, 148
simulations, instructional, 537–38
simultaneous engineering, 153
single sampling, 400
single-minute exchange of die (SMED),
375–77
SIPOC analysis, 332–33, 353
situational leadership model (Hersey and
Blanchard), 18–20, 141
Six Sigma methodology, 296, 394
DMAIC model, 333–35
six thinking hats (DeBono), 343
size of organization, and organizational
structure, 10–11
Skinner, B. F., 139
skip-level meetings, 275–76
small business unit, 371–72
S.M.A.R.T. W.A.Y., of setting objectives, 92
Smith, Fred, 85
social responsibility, 108–9
source inspection, 510–11
span of control, 4
special cause variation, 418–19
special project teams, 59
sponsor team, 76
stable process, 418
staffing, strategic level, 135
652 Index
stakeholder analysis, 107–9
stakeholder requirements matrix, 234
standard deviation (s), 402–3
standards
international, 288–89
ISO-related, miscellaneous, 288–89
and organizational structure, 11
statistical analysis, 402–10
statistical control, 418
statistical process control (SPC), xx, 406–9
statistical use, basic, 392–98
statistics, 391
advanced, 405–6
simple, 402–5
steering committee, team function, 68–72
storyboard, 347
strategic fit analysis, in projects, 233
strategic goals, 92
strategic plan(s), 88
deployment, 92–93, 116–30
quality in, 127–30
development and deployment, 85–130
strategic planning, 86–87
aligning training plans with, 516–18
barriers to successful, 95–96
under BPEP, 86
concepts, 87
versus long-range planning, 86
phases of, 88
in TQM, 292
traditional, 88–89
transitioning to new year, 94
strategic planning models, 86–96
strategy, and organizational structure, 10
stratified sample, 399
structural variation, 419
suggestion boxes, 470–71
Sullivan, Louis, 54
supervisors, 133
roles and responsibilities, 12–13
supplier alliances, 505–9
supplier audits, 498, 502–3
supplier capabilities, assessing, 493–95
supplier certification, 504–5
supplier communications, 495–97
supplier improvement, 502–4
monitoring, 504
supplier logistics, 509–10
supplier partnerships, 505–9
supplier performance, 497–502
supplier performance index (SPI), 501
supplier quality, xxi
supplier ratings, 493–95, 498–99
supplier selection, 491–95
supply chain management, 489–512
definition, 490
surveys, analysis and use, 427–28
methods, 468–72
research, 468
swim-lane flowchart, 316, 361
SWOT analysis, 99–102
symposia, 529
system, versus process, 353
system of profound knowledge (Deming),
305
systematic sampling, 399
systems thinking, 141, 154–55
T
tabular data, in trend analysis, 414
tacit knowledge, 190
tactical objectives, 226
tactical plans, 88, 116–17
Taguchi, Genichi, quality philosophy, 310
Taguchi loss function, 310
Taguchi method, 310
tally sheet, 317
Taylor, Frederick, 136–37
team development, stages of, 62–64
team evaluation, 77–80
team facilitation techniques, 74–77
team leader, 67, 72
roles and responsibilities, 76–77
team members, role, 72
team organizational structure, 9
team performance, 77–80
team process problems, dealing with, 73–74
team processes, 64–67
preventing problems with, 65–66
types, 64–65
team selection, 60–62
team sponsor, 76
team structure, 72–73
team-building techniques, 64–67
teams, 52–80
benefits to individual, 53
benefits to organization, 53
configurations, 54–60
decision-making method, 66–67
definition, 52
feedback, 74
problem solving, xxi
reasons for failure, 53
roles and responsibilities, 65–66, 67–77
setting objectives, 66
six R’s for, 80
types of, 54–62
technology
in business environment analysis, 109–11
guidelines for use, 110
in knowledge management, 192–93
obsolescence and change in, 222–23
Index 653
and organizational structure, 11
telephone surveys, 469
temporary teams, 56
terminal objectives, 533
theory of constraints (TOC), 381–89
principles, 387–88
tools, 389
theory X versus theory Y model (McGregor),
137
thinking, creative versus analytical, 338–39
third-party audit, 271
360° feedback, 165
throughput, under theory of constraints, 388
TickIt certification, 290
timekeeper, team role, 65–66, 68
timeliness, in projects, 251
Toffler, Alvin, 443
Toffler, Heidi, 443
tools
audit, 277
creat ivit y, 338 – 48
innovation, 338–48
lean, 371–81
management, 143–44, 322–30
planning, 322–30
problem-solving, 314–52
process improvement, 330–38
process management, 381
process measurement, 392–93
project implementation and tracking,
250–53
project measurement, 395
project planning and estimation, 233–50
quality management, 313–429
quality system effectiveness evaluation,
268–77
seven classic quality, 315–22
theory of constraints, 389
top management, 132–33
communicating with, 179–80
roles and responsibilities, 12
total cost of quality, 349–50
Total Quality Control, 291
total quality management (TQM), xxi, 132,
280, 290–96
benefits of, 292–93
implementation approaches, 293–94
implementation problems, 295–96
Juran’s definition of, 307
primary elements, 291
Toyota Production System (TPS), 371
training, xxi
and development, 513–50
versus education, 514–15
by organizational level, 529–31
to improve job performance, 526
versus individual development, 548–49
keys to more effective, 541–42
process 519–21
reinforcing, 547–48
for self-managed teams, 55–56
as tool in quality management, 548
when to perform, 518–19
training delivery, methods, 535–41
training effectiveness, 543–46
training evaluation, 543–44
rationale for ongoing, 546–47
training materials, 528–42
training needs, assessing, 524
training needs analysis, 521–28
ineffective, impact of, 527–28
purposes of, 523
techniques and tools, 524–26
training plans, 516–21
aligning with strategic planning and
business needs, 516–18
training program
causes of ineffective, 545–46
designing, 531–35
transactional leadership, 16, 145
transformational leadership, 16, 145
transition tree, 389
travelers (work orders), 267
tree diagram, 328
for constraint identification, 34–35
trend, versus cycle or variation, 412
trend analysis, 411–16
barriers to successful, 415–16
long-term versus short-term, 413
patterns in, 413
trivial many (Juran), 319
TRIZ, 345–46
Tyndall, Gene, 489
type I error, 400
type II error, 400
U
unconditional guarantees, 473–74
understanding, lack of as roadblock to
change, 31
undifferentiated costs, 178
unions, and organizational structure, 11
unity of command, 3
U.S. Naval Air Systems Command, 290
useful many (Juran), 319
Uttal, Bro, 513
V
validity, of data, 425–26
value stream mapping (VSM), 375
654 Index
values, in hoshin planning, 91
variables, process, measuring, 393–94
variables control charts, 408
variance, 403
variation
factors affecting, 417
versus trend, 412
types of, 417–19
vertical organizational design, 3–4
vice president of quality, 166–67
VIP (vision–involvement–persistence)
leadership model, 17
virtual corporation, 9
virtual teams, 59–60
visible waste, 369
vision statement, in hoshin planning, 89,
90–91
vital few (Juran), 319
voice of the customer (VOC), 129, 477
information, gathering and deploying,
460
volume buyers, miscellaneous, 440–41
W
walkabout meeting, 122
Walton, Sam, 431
waste, eliminating, 366–70
Watson Jr., Thomas, 85
Weber, Max, 137
website surveys, 469–70
Weibull curve, 423
Weibull distribution, 405
Westcott, Russ, 513
Western Electric Company, 137
What Is Total Quality Control? The Japanese
Way, 309
wholesale buyer, 440
win–win approach, 38
wisdom, versus knowledge, 190
work activities, grouping of, 6
work breakdown structure (WBS), 238–39
work cell, 371–73
work groups, 56–59
work instructions, 364–66
work orders, 267
workbooks, in training, 537
workforce, and organizational structure,
12
World War II, xx
World Wide Web, 222
written surveys, 468–69
Z
zero acceptance number plans, 402
zero defects, 402
zero investment improvement (ZII), 379
ASQ’s online Knowledge Center is the place to:
• StayontopofthelatestinqualitywithEditor’sPicksandHotTopics.
• SearchASQ’scollectionofarticles,books,tools,training,andmore.
• ConnectwithASQstaffforpersonalizedhelphuntingdowntheknowledgeyou
need,thenetworkingopportunitiesthatwillkeepyourcareerandorganization
movingforward,andthepublishingopportunitiesthatarethebesttforyou.
UsetheKnowledgeCenterSearchtoquicklysortthroughhundredsofbooks,articles,
andothersoftware-relatedpublications.
www.asq.org/knowledge-center
Learn about quality. Apply it. Share it.
The Knowledge Center
www.asq.org/knowledge-center
CERTIFICATION MEMBERSHIP PUBLICATIONSTRAININg CONFERENCES
Did you know?
• TheASQQualityInformationCenter
containsawealthofknowledgeand
informationavailabletoASQmembers
andnon-members
• Alibrarianisavailabletoanswer
researchrequestsusingASQ’s
ever-expandinglibraryofrelevant,
crediblequalityresources,including
journals,conferenceproceedings,case
studiesandQualityPresspublications
• ASQmembersreceivefreeinternal
informationsearchesandreducedrates
forarticlepurchases
• YoucanalsocontacttheQuality
InformationCentertorequestpermission
toreuseorreprintASQcopyrighted
material,includingjournalarticlesand
bookexcerpts
• Formoreinformationor
tosubmitaquestion,visit
http://asq.org/knowledge-center/
ask-a-librarian-index
Visit www.asq.org/qic for more information.
Ask a Librarian
CERTIFICATION MEMBERSHIP PUBLICATIONSTRAININg CONFERENCES
