Total Quality Management - CII Institute of Logistics

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Total Quality Management 6. Process decision program chart--A method for mapping out every conceivable event and contingency that can occur when moving from a problem statement to possible solutions. 7 Arrow diagrams-- Arrow diagrams are another name for PERT/CPM project planning diagrams. Students who have had a basic operations management course may be familiar with the term network diagram 1.12 Structure and Strategy The implications for quality are that the quality philosophy, systems, procedures, and people must be aligned with the organization structure and vice-versa. It has been said that “structure follows strategy,” so, the quality strategy will ideally “drive” the development of a structure in order to carry it out. In reality, structures that have been in place for a long time are often difficult to change when the strategy changes, which creates significant misalignment and organizational stress. For example, when a highly regulated industry, such as telecommunications or electric power is deregulated, then the need for customer focus, increased service quality, and organizational structural change becomes painfully apparent, but difficult to accomplish. Many variations of organization structure exist, but they are commonly based on one of the following three forms: 1) line organization, 2) line and staff organization, or 3) matrix organization forms. The line organization is a simple form that is most successful in small firms. It is not generally used in large organizations, where the line and staff structure is most prevalent. Neither the pure line organization nor line and staff organization works very well where the environment of the firm and its industry is changing very rapidly. That is because these types of organizations tend to be rigidly structured. The matrix organizational form is better suited to rapidly changing environments, but it is more difficult to develop effective control of outcomes in order to meet goals using this form of organization. CII Institute of Logistics 32 Website: www.ciilogistics.com
Total Quality Management TQ focused organizations are often taking a process view of organization. Therefore, they are increasingly structuring their organization around functional or crossfunctional teams. To carry out the work, high performance teams that focus on core processes, quality improvement or other targets are often formed. These are frequently coordinated through cross-functional coordinating committees, management (or quality management) councils, etc. to overcome the problems of lack of control and accountability inherent in such matrix-form organizations. Essence of Strategic Planning Strategic Planning focuses on drivers of customer satisfaction, customer retention, and market share that lead to higher competitiveness, profitability, and business success. The category is divided into two sections, labeled as Strategy Development and Strategy Deployment. Strategy Development requires applicants to outline how they create a view of the future that takes into account the market factors in which they compete and the process of “how” they compete. Strategy Deployment seeks information about specific action plans that a company develops, how they are deployed, and a projection of performance. The Strategic Planning category requirements are intended to encourage strategic thinking and action, but do not imply that formalized plans or planning systems must be developed. CII Institute of Logistics 33 Website: www.ciilogistics.com
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