ASQ CMQ/OE Preparation

Quality Management
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Intro โ€” Quality Evolution

SPC to BPM. Pioneers. Three converging streams.

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Ch 1 โ€” Org Structures

Design factors, vertical/horizontal, centralization, matrix.

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Ch 2 โ€” Leadership

Styles, change mgmt, motivation, conflict, empowerment.

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Ch 3 โ€” Teams & Processes

8 types, Tuckman, KESAA, roles, facilitation, groupthink.

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Key Captures

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Detailed notes for every exam topic.

The 100-Year Quality Evolution

From statistical measurement to enterprise-wide management.

Quality evolved through distinct phases. SPC (1920s): Shewhart's control charts at Western Electric/Bell Labs โ€” distinguished assignable-cause from chance-cause variation. TQM (1980s): Organization-wide continuous improvement; customer focus, data-driven, all employees. BPR (late 1980s): Hammer & Champy's radical redesign โ€” discard old processes, start from scratch, often tied to major IT. Six Sigma (1990s): Motorola/GE, DMAIC methodology, targeting 3.4 DPMO. BPM (modern): Integrated process management crossing departmental lines.

SPC
1920s
โ†’
TQM
1980s
โ†’
BPR
1980s
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Six Sigma
1990s
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BPM
Modern
Quality Pioneers โ€” Know Each One

Shewhart ยท Deming ยท Juran ยท Crosby ยท Feigenbaum

Shewhart & Deming

  • Shewhart: Father of SPC, control charts, assignable vs. chance-cause variation, Western Electric/Bell Labs 1920s
  • Deming: Brought SPC to Japan, 14 Points for Management, PDSA cycle (Plan-Do-Study-Act)
  • Deming: System of Profound Knowledge โ€” appreciation for a system, knowledge of variation, theory of knowledge, psychology

Juran, Crosby & Feigenbaum

  • Juran: Quality Trilogy (Planning, Control, Improvement), Pareto Principle โ€” vital few vs. trivial many
  • Crosby: Zero Defects, "Quality is Free" โ€” cost of prevention < cost of failure, conformance to requirements
  • Feigenbaum: Total Quality Control (TQC) โ€” quality is everyone's job, not just QC department
Productivity Stream โ€” Detailed

Ford โ†’ TPS โ†’ JIT โ†’ Lean.

Ford: Assembly line, mass production, interchangeable parts. TPS: Added continuous flow, pull systems, respect for workers. JIT: Produce only what's needed, when needed, in the amount needed โ€” eliminates inventory waste. Lean: Eliminates 7 wastes (overproduction, waiting, transport, over-processing, inventory, motion, defects). All driven by eliminating non-value-added activities.

IT Stream + Convergence

MRP โ†’ ERP โ†’ CRM โ†’ BPM โ†’ SBPA.

MRP: Material Requirements Planning โ€” shop floor inventory. MRP II: Added capacity planning. ERP: Integrated all business functions (finance, HR, manufacturing, supply chain). CRM: Customer interactions and retention. BPM Systems: Enterprise-wide process optimization. Lean-Six Sigma: Merged waste + defect reduction. SBPA: Strategic Business Process Architecture โ€” systems engineering aligning strategy with CMO/CIO/COO. BPM processes: standardized, measurable, repeatable, reusable.

BoK I.A โ€” Why Structure Matters

No other factor has greater impact on quality than leadership and structure.

Strategic leadership includes defining structures to achieve the overall vision/mission. It is NOT solely top management's responsibility โ€” anyone can participate. Organization design is defined by three factors: Complexity (number of entities, reporting levels, departments, physical locations), Formalization (extent of rules, procedures, standardized guidelines), Centralization (where decision-making authority is located in the hierarchy).

Vertical Design โ€” Deep Dive

Chain of command, authority, and span of control.

Chain of command: Unbroken line of authority from top to bottom. Unity of command: Each person reports to only one supervisor โ€” avoids conflicting orders. Authority: Rights inherent in a managerial position, delegated from top down โ€” tied to the position, NOT the person. Span of control: Number of subordinates per manager. No universal ideal. 9 factors: task complexity, similarity of tasks, physical proximity, employee training level, standardized procedures, management info systems, manager's preferred style, organizational culture, financial/competitive pressures. Managers favor small spans; organizations favor wider for efficiency.

Horizontal Design โ€” Deep Dive

Division of labor and 5 departmentalization types.

Division of labor: Breaking work into specialized tasks โ€” assembly line is classic example. Benefits: efficiency, expertise. Risk: monotony, narrow view. 5 Departmentalization types: (1) Functional โ€” by function (HR, Mfg, Acct, Eng); most common. (2) Product โ€” by product line. (3) Customer โ€” by segment (wholesale, retail, gov't). (4) Geographic โ€” by territory/region. (5) Process โ€” by production flow (casting, pressing, tubing, finishing, inspection, packaging). Key question: "How will work best be allocated?"

Centralization vs. Decentralization โ€” Detailed

Fayol: "The proper amount depends on the situation."

Centralization

  • Decision-making concentrated at top management
  • Fayol listed it as one of his 14 management principles
  • Few orgs can function if ALL decisions made at top
  • More appropriate for stable environments, consistent strategy

5 Conditions Favoring Decentralization

  • Complex or uncertain environment โ€” rapid change needs local decisions
  • Lower-level managers are experienced and capable
  • Organizational culture values employee involvement and voice
  • Operations geographically dispersed across multiple locations
  • Strategy implementation depends on local/on-ground knowledge
Matrix Organizations โ€” Detailed

Dual reporting structure, born in aerospace.

Developed in 1960s U.S. aerospace industry. Employees report to BOTH a functional manager AND a project/product manager. Advantages: Flexible resource allocation, cross-functional expertise integration, specialist knowledge on complex projects. Risks: Role conflict, competing demands from two bosses, power struggles. Bob Galvin used transformational leadership at Motorola with matrix principles.

Modern Structures + 6 External Factors

Teams, Cells, Boundaryless + what shapes design.

Teams: Cross-functional, each member brings specialization. Cells: Self-contained manufacturing units, operators cross-trained. Boundaryless: Virtual/network, tech-enabled, breaks internal and external barriers. Coined by Jack Welch at GE. 6 External factors: (1) Strategy โ€” structure follows strategy. (2) Size โ€” larger = more specialized/formal. (3) Technology โ€” impacts structure. (4) Environment โ€” stable vs. dynamic. (5) Regulations/Laws/Unions. (6) Competition โ€” market pace drives flexibility needs.

Management Hierarchy โ€” 3 Levels Detailed

Top โ†’ Middle โ†’ First-line: distinct responsibilities at each level.

Top Management

  • Sets vision, mission, goals, strategic objectives
  • Responsible for policies, systems, organizational boundaries
  • Allocates resources and monitors results
  • Stakeholder management โ€” investors, board, community

Middle & First-line Management

  • Middle: Translates strategy into operational plans
  • Middle: Manages cross-departmental communication
  • First-line (Supervisors): Direct oversight of workers
  • First-line: Must communicate BOTH up (to middle mgmt) and down (to workers)
BoK I.B.1 โ€” Leader vs. Manager (Detailed)

"Leadership lies more in character than in technical competence." โ€” Stephen Covey

A leader may not hold an official position โ€” leadership is earned through influence. One can be a leader without being a manager. A leader gathers followers voluntarily. A manager is officially designated, granted authority from above, and controls resources (people, material, money, time). Deming: "The job of management is not supervision, but leadership." Covey: "Leadership focuses on doing the right things; management focuses on doing things right." Gallup 2005-2008: Followers most value Trust, Compassion, Stability, and Hope in their leaders. Key leader roles: Enabler, Follower, Advocate, Appraiser, Facilitator.

Leadership Styles โ€” Detailed Comparison

Cause ยท Transactional ยท Transformational ยท Situational

Cause & Transactional

  • Cause leader: Gathers followers to a common goal through personal motivation/power โ€” highly visible
  • Multidimensional: Uses charisma, empathy, trust, empowerment, ethics, convincing speech, experience
  • Transactional: Clear task/reward structure โ€” contractual relationship
  • Transactional = "hired gun" who follows defined procedures and rewards/punishes based on performance

Transformational & Situational

  • Transformational: Articulates vision/values for success, elevates goals and self-confidence
  • Bob Galvin at Motorola โ€” positioned as high-quality reliable competitor using transformation
  • Hersey-Blanchard Situational: Style varies by task behavior, relationship behavior, and follower readiness/maturity
  • 4 styles: Telling (high task/low rel), Selling (high/high), Participating (low task/high rel), Delegating (low/low)
Emotional Intelligence (Goleman)

5 dimensions of EI.

Personal competence: (1) Self-awareness โ€” knowing your emotions, strengths, weaknesses. (2) Self-regulation โ€” managing disruptive impulses, thinking before acting. (3) Motivation โ€” drive to achieve beyond expectations. Social competence: (4) Empathy โ€” understanding others' feelings and perspectives. (5) Social skills โ€” managing relationships, building networks, finding common ground. Leaders with high EI create better team dynamics and organizational results.

Organizational Culture (Schein)

Shared assumptions, values & artifacts.

Edgar Schein defined culture as shared basic assumptions learned by a group, considered valid, taught to new members as the correct way to perceive, think, and feel. 3 levels: (1) Artifacts โ€” visible structures, processes, symbols, stories, myths (surface). (2) Espoused values โ€” strategies, goals, philosophies. (3) Underlying assumptions โ€” unconscious beliefs taken for granted (deepest). Must understand culture BEFORE attempting change. Different regions prioritize differently (N. America: strategic planning; Europe: benchmarking; S. America: strategic planning + outsourcing).

BoK I.B.3 โ€” Change Management (Deep)

Kotter's 8 Steps + Resistance Causes + Change Agents

Kotter's 8-Step Model

  • 1. Create awareness and urgency for the need to change
  • 2. Organize a team with sufficient authority to guide the process
  • 3. Define the vision and develop strategy for achieving change
  • 4. Communicate the vision broadly and repeatedly
  • 5. Empower people to act and remove obstacles
  • 6. Go for early, visible successes ("quick wins") to build momentum
  • 7. Build on success โ€” consolidate gains, keep pushing
  • 8. Institutionalize new approaches โ€” anchor changes in organizational culture

Resistance (Figure 2.1) & Change Agents

  • Like the current condition โ€” comfort with status quo
  • Change poorly communicated โ€” wrong people, method, timing
  • Fear of failure, fear of unknown, additional workload
  • Poor history of past changes in the organization
  • Internal agents: Org knowledge + vested interest โˆ’ may lack objectivity
  • External agents: Fresh perspective + freedom โˆ’ unfamiliar with culture
  • Senge's "boiling frog" โ€” gradual change goes unnoticed until too late
  • Constraint management: use interrelationship diagrams and tree diagrams to find root blockers
BoK I.B.4 โ€” Motivation Theories (Detailed)

Maslow ยท Herzberg ยท Vroom ยท Equity ยท Intrinsic/Extrinsic

Maslow & Herzberg

  • Maslow 5 levels: Physiological โ†’ Safety โ†’ Belonging โ†’ Esteem โ†’ Self-actualization
  • Must satisfy lower needs first โ€” job loss immediately returns person to safety/physiological level
  • Workplace is key for physiological and safety needs
  • Herzberg Satisfiers (motivators): achievement, recognition, work itself, responsibility, growth
  • Herzberg Dissatisfiers (hygiene): salary, working conditions, company policy, supervision, relationships
  • KEY INSIGHT: Removing dissatisfiers does NOT create motivation โ€” only removes dissatisfaction

Vroom, Equity & Types

  • Vroom Expectancy: Motivation = Expectancy ร— Instrumentality ร— Valence
  • People do what they believe will lead to valued rewards
  • Reinforcement (Skinner): Behavior shaped by consequences โ€” antecedent โ†’ behavior โ†’ consequence
  • Equity Theory: Compare own input/output ratio to others โ€” perceived inequity creates tension
  • Intrinsic: From work itself โ€” satisfaction, achievement, autonomy, creativity, personal growth
  • Extrinsic: External โ€” pay, bonuses, recognition, promotions
  • Both types coexist; neither is mutually exclusive; one person may have both
Conflict Resolution โ€” 5 Modes

Mapped on assertiveness vs. cooperativeness.

Competing: Assertive + uncooperative (win-lose). Collaborating: Assertive + cooperative โ€” BEST for quality (win-win). Compromising: Middle ground, partial satisfaction. Accommodating: Unassertive + cooperative (yield to others). Avoiding: Unassertive + uncooperative (withdraw). Key principles: Separate people from problem. Focus on interests, not positions. Invent options for mutual gain. Use objective criteria. Negotiations should be principled and aim for win-win.

BoK I.B.5 โ€” Empowerment (Deep)

Invert the hierarchy: customers on top.

Definition: Conferring the right to make decisions AND take action. Not just delegation โ€” a fundamental culture shift. Traditional org: Manager at top, employees at bottom, customers outside. Empowered org: Customers at top, employees next, manager supports from bottom (Figure 2.7). Requirements: Clear boundaries, appropriate training, mutual trust, accountability, aligned rewards. Drucker's 4 tasks: Economic performance, making work productive, managing social impacts, managing within time. Common failures: Managers unwilling to relinquish control; unclear boundaries; inadequate training.

BoK I.C โ€” Teams: Why They Matter and Why They Fail

A team performs interdependent tasks toward a common mission.

Teams differ by number of members, frequency of meetings, leadership type, range/complexity of skills, and total working time together. Why teams fail in the U.S.: Cultural emphasis on individual achievement. Reward systems reinforcing individual performance. Lack of organizational systems to support teams. Failure to prepare managers for changing roles. Inadequate recognition/compensation. Incomplete understanding of group dynamics. Impatience of top management with maturation time. Benefits: Synergistic process design, objective problem analysis, greater innovation, reduced costs and turnover, enhanced problem-solving, increased ownership and commitment, broader knowledge of business processes, new leadership skills, more flexible response to organizational change.

8 Team Types (BoK I.C.1) โ€” Know Each in Detail

Purpose, structure, and operation of each type.

Process Improvement, Work Groups, Self-Managed, Temp

  • Process Improvement: Cross-functional, guided by well-defined improvement plan, breakthrough-level. Leader selected by management. Has sponsor. Meets regularly.
  • Work Groups (Natural Teams): Same department, monitor and improve their processes ongoing. Empowered, report to department supervisor. Understand their processes intimately.
  • Self-Managed (Self-Directed): Day-to-day operational authority. Members decide scheduling, assignments, processes. Best success on greenfield sites (new facilities). Need significant training and organizational support.
  • Temporary/Ad Hoc: Formed for specific problem then disband. Examples: virus response, emergency quality issue, ISO audit preparation, customer complaint investigation.

Cellular, Virtual, Special Project, Steering

  • Cellular: Production cells (often U-shaped). Operators cross-trained for sequential steps. Effectiveness depends on coordination, timing, and cooperation between members.
  • Virtual: Different locations, connected by technology (video, chat, databases). Selected for competence NOT location. Challenge: building trust without face-to-face. Benefits: 24/7 capability, global talent access, reduced costs.
  • Special Project: Major efforts โ€” Baldrige application, mergers/acquisitions, new market entry, reengineering, new IS implementation. May be drawn from across company.
  • Steering Committee: Top management. Initiates teams, provides resources, sets priorities, monitors performance, removes barriers. Every team should link to steering committee.
Tuckman's 5 Stages (BoK I.C.2) โ€” Detailed Behaviors at Each Stage

Forming โ†’ Storming โ†’ Norming โ†’ Performing โ†’ Adjourning

Forming & Storming

  • Forming (Stage 1): Members proud to be selected, anxious about the new experience. Polite, cautious, testing boundaries. Each brings own identity, values, priorities.
  • Forming: Team defines structure, establishes rules, identifies acceptable behaviors. Leader defines roles and performance expectations.
  • Storming (Stage 2): Individualistic thinking dominates. Tug of external loyalties. Fluctuating attitudes and direct confrontations.
  • Storming: Task reality sinks in. Subgroups may form. Leadership may be challenged. This is the MOST DANGEROUS stage โ€” many teams never get past it.

Norming, Performing & Adjourning

  • Norming (Stage 3): Shift from personal concerns to team-oriented thinking. Competitive attitudes give way to cooperation. Cohesiveness and ground rules emerge.
  • Performing (Stage 4): Team has matured โ€” smooth, cohesive unit. Members collaborate effectively, achieve goals, continuously improve. May not be reached if earlier stages skipped.
  • Adjourning (Stage 5): Team reviews lessons learned, documents achievements, celebrates, and formally disbands. Critical for organizational learning and closure.
  • Some authors add "Adjourning" โ€” team may also be skipped, incomplete, or revisited if membership changes significantly.
KESAA Team Selection (Figure 3.2)

5 factors for choosing the right members.

Knowledge: Formal education, degrees, certifications, professional credentials. Experience: Years spent applying skills in relevant organizations/industries. Skills: Demonstrated proficiency with pertinent tools and equipment. Aptitude: Natural talent, capability, adaptability to change, hand-eye coordination, fine motor skills. Attitude: Manner of showing one's feelings โ€” disposition, mood, bias, openness to change. The KESAA analysis tool (Figure 3.2) can be used by team leaders to evaluate each potential member's suitability for the team's task, role, and dynamics.

7 Team Roles (Table 3.1) โ€” Detailed

Know each role's responsibilities and attributes.

Sponsor: Backer/risk-taker, approves resources, believes in concept, has business acumen. Champion: Advocate promoting change, has absolute belief, needs perseverance. Facilitator: Process coach โ€” observes interactions, suggests process changes, defuses conflict. Deals with process NOT content. Will NOT report proprietary info. Team Leader: Change agent, staffs team, directs efforts, coaches, communicates with management. Must be fair, firm, factual. Timekeeper: Monitors time, assertively intervenes when schedule threatened. Scribe: Records minutes/decisions, must be accurate and assertive. Members (SMEs): Commit to purpose, express ideas, listen attentively, handle stress.

Team Processes & Facilitation (BoK I.C.3-4)

Task type + Maintenance type processes. Facilitator is critical.

Task-type: Keep team focused and moving toward goals. Maintenance-type: Build relationships and preserve effectiveness. Key components: Review agenda, prepare meetings, define action items, use decision-making techniques, assign roles/timing. Consensus: All listen, express views, agree decision is acceptable (not majority vote). Time-consuming but thorough. Facilitator responsibilities: Cultivate unbiased environment, ensure focus on mission, encourage diverse viewpoints, regulate interruptions, defuse destructive behavior, track ideas visually, help discussions reach closure. Training in facilitation, conflict resolution, and group dynamics is essential.

Groupthink + Performance (BoK I.C.5)

Silent agreement kills quality. Metrics drive results.

Groupthink: Members coalesce around an idea without fully exploring alternatives โ€” may secretly disagree but stay silent to maintain harmony. Prevention: Appoint devil's advocate. Brainstorm alternatives before selecting. Encourage open dissent. Ensure all ideas are examined. Performance metrics: Process yield, first-time quality, person-hours invested, customer satisfaction, attendance. Recognition: Monetary (bonuses, gain-sharing, pay-for-skills) AND non-monetary (certificates, plaques, newsletters, public praise). Teams should choose their own standards within a value range. Apply principles regularly and repetitively. Covey: Reinforce, Request info, Responsibility, Role model, Repeat.


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