December 07, 2009

Towards cultural change

Cultural change requires understanding the company, commitment from everyone in the organization, and identification of proper improvement tools. It is important to be consistant when applying the improvement project as there is a large investment in money, knowledge, and time. Some companies just abandon the projects in a short time because they don't see the benefits coming in a short period, but the outcomes will derive from a correct implementation of the business tools. Phillips is a company which reached excellence by materializing its quality concept into its own new model, the Phillips excellence model, and the company applies this framework in all its subsidiaries.

Changing the culture of the organization is a difficult task, as the current culture has been formed over years of interaction. People are comfortable with the old culture, and changing their minds and way of working will be a whole challenge.


October 25, 2009

No need of Total Inspection

100% inspection is never good, instead, sampling would be a better method.

As discussed in class, total inspection will never work. I was still having some doubts on whether it depends on the industry or not.....let's say, companies with products for exclusive markets such as jewerly or famous brands of cars (Rolls Royce), then, I thought it still needs total inspection for the high cost levels that these products involve, however, it will also depend on improving processes to obtain better final products and avoid inspection which only results in waste of time and money.

There are many methods to measure quality, but we have to indentify errors within processes (bottleneck points) and correct them, and if we base on the EFQM model, there are many elements (enablers) which can be affecting the outcomes. If we identify them, we will reduce the necessity of doing inspection, as every area/department of the company should be aware of continuous improvement.

Now, if we apply the principle of "the responsability of quality guarantee is of the producer", then total responsibility would be on the manufacturing division. In order to avoid this, EVERYONE involve in production should feel responsible and start working hard looking for a guarantee on quality that satisfies the demands of consumers.

Ronald Olortegui


Applying EFQM model

Something I learnt from the discussion we had is that, no models will ensure success, they show options..and it's apt to the organization whether to  follow/apply one model or another (EFQM, TQ, Australian Busines Excellence Award, Belgian Quality Award, ect). A company will decide which model fits the best within the organization no matter what country the award is from (apart from the fact that some awards will only issue the prize to their local companies).

Lots of the Models are based on the EFQM criteria/model (Danish Quality Prize, Finnish Quality Award, German National Quality Award, ect). We all now know the elements of the EFQM model and we also know that a company who relies on this model is definitely improving the business...but...how difficult is to apply the EFQM model?...

People might be impressed of how simple the structure of the model is, and applying the model will generate an initial rejection due to the level of demand and continuous improvement. Individuals are usually more comfortable to living in continuity and this model is about structuring continuous improvement and innovation, a whole cultural change in order to be competitive. So everyone in the company needs to be well-informed of the possible new roles they might assume, and be committed to these new changes, act with flexibility, everyone throughout the company.

Ronald Olortegui


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