Reengineering TQM.

There is no getting away from the facts. In today's marketplace, customers want shorter lead times, on-time performance, unsurpassable quality and, of course, a good price. The mission for any manufacturer is clearly one of using total customer focus to become the best.

Any CEO will rank customer satisfaction among his most important competitive weapons. Yet in the past, when TABULAR DATA OMITTED choices existed, the customer usually lost out to cost reduction. Now, however, business conditions dictate that no choice exists. Its customer satisfaction or you lose!

Is TQM Worthwhile?

Total, quality management (TQM) is one of the hottest topics in business today. Whether lauded as essential to the competitive advantage or slammed as a fad that doesn't work, it is everywhere in books, newspapers and business magazines.

Achieving TQM simply means to successfully focus your entire organization on customer satisfaction. More than a concern with the quality of the tangible product, TQM is a business philosophy of continual improvement--of always perfecting operations rather than correcting mistakes. Done right, it should fundamentally transform the way the entire organization thinks, works and responds to customers.

How could such a seemingly sound business philosophy attract waves of controversy? Because, at least in part, TQM has failed.

The perception of some that TQM doesn't work springs directly from a lack of understanding by many. Executives seduced by books, articles, seminars and consultants can't resist the rational pursuit of common sense that TQM embodies, and end up falling for the misleading simplicity of it all.

They enter the program without a clear idea of what performance improvement should mean and what its results should be. Efforts are therefore fragmented and expectations are never met. It must be emphasized that it is not the philosophy of TQM that is flawed, but the way it is applied--or misapplied.

TQM programs usually begin as high-profile, cross-organizational efforts aimed at the attainment of worthwhile goals. Often, they end up fading into low-profile neglect. This is because at the outset of a TQM program, it is common to find people ill prepared for what TQM really requires--the changing of attitudes, practices, business processes and measurements.

Effective TQM requires a bottom-up approach to the careful reexamination and subsequent reengineering of how the business is run. Breakthrough performances aren't the product of improved quality control techniques, but are the result of completely rebuilding business processes. Real progress doesn't occur because of an either/or selection of what to improve. Rather, clear results are attained by working on several fronts simultaneously, and doing the fight things on each front.

Reengineering the Process

Evolving from the "as is" condition to the reengineered one must be done quickly and properly. Even the simplest business process can be difficult to revamp and successfully implement. Effective reengineering is a complex operation involving policies, procedures, practices, systems and measurements.

TQM can't be introduced in a passive manner. The CEO cannot simply assign it as a project for others. Success is highly dependent on the passionate application of TQM principles as a strategic and tactical part of all day-to-day practices. Without this kind of commitment as a foundation, lasting results will not be attained.

Breakthrough Improvements

Most executives are all too familiar with systems, techniques and programs that promise big results, but never seem to deliver a payoff. However, the potential for a breakthrough or for quantum performance gains do exist, and results can happen surprisingly fast.

One foundry that made the most of TQM reengineering saw benefits within four months. The cycle time decreased from six weeks to four days, sales were projected to more than double and gross margin rose 12 points. Similar results have been documented in other manufacturing industries.

How do companies achieve such breakthrough gains? While consulting expertise and books can help, the primary success element is management's unwavering determination to attain new, higher levels of success. Very simply, management initiates the required actions, actively participates in the process and fosters the mindset that results are required.

In launching a TQM program, don't overlook the fact that an unbiased assessment of your current position and subsequent planning are critical to a good start. The task of defining and initiating needed improvements will make or break the quantum leap potential. With that in mind, put your entire management team to work answering the following questions:

* What specific aspect of customer satisfaction needs to be improved immediately?

* What is the time frame for these specific, measurable improvements.

* What three immediate actions are required to initiate, invigorate or enhance our TQM reengineering effort?

* Do we have clear assignments of accountability for meeting time-phased, measurable quality improvement goals?

* What outside assistance is required to help achieve our goals more quickly?

Once you've received answers to these questions, get your management team together to discuss the results and formulate action steps. Besides producing a plan, the team may lead itself to an important discovery. Management often mistakenly believes that all members of the management team share similar goals, values and perceptions of the company's needs. A little probing often creates an awareness of that diverse and fragmented thinking, and can perhaps help the members converge on a single-minded purpose that draws on everyone's best ideas.