Total Quality Management - CII Institute of Logistics

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Total Quality Management 1.11 Strategic Planning for Quality Strategy A strategy is a pattern or plan that integrates an organization's major goals, policies and action sequences into a cohesive whole. Formal strategies contain three elements: 1. Goals to be achieved. 2. Policies that guide or limit action. 3. Action sequences, or programs, that accomplish the goals. The leading practices for firms that do effective strategic planning include: Both top management and employees actively participate in the planning process. They use customer wants and needs to drive the strategy. They involve suppliers in the strategic planning process. They have well-established feedback systems for continuous measurement and re-evaluation of the planning process. Steps in Strategic Planning The steps in the strategic planning process are shown in Figure 3. Once the company's mission, vision, and guiding principles have been determined, the organization must assess the gap as to where it is now, and where it wants to be as described in its vision. Using this assessment, it must then develop goals, strategies, and objectives that will enable it to bridge this gap. CII Institute of Logistics 28 Website: www.ciilogistics.com
Total Quality Management Fig 3 The purpose, or mission, of the organization is a statement of "why the organization is in business" In the past, the purpose of the organization was frequently stated in terms of products or services produced or profitability to stockholders. TQ-focused firms are now stating their purpose in terms of their customer focus and their commitment to strive for higher levels of quality. The vision statement is a statement of guiding values, principles, and direction of expected growth of an organization or some segment of it, and is generally developed by key managers and others who are responsible for planning and carrying out that vision. Vision statements may be developed at any level within the organizational hierarchy from top to bottom. This is a worthwhile activity, as long as the statements are coordinated so as to fit with those of the next higher level and the overall organization's vision. Values, or guiding principles, guide the journey to that vision by defining attitudes and policies for all employees, that are reinforced through conscious and subconscious CII Institute of Logistics 29 Website: www.ciilogistics.com
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