ASQ CMQ Part 3
ASQ CMQ Part 3
PART III
Management Elements and Methods
8. Management Skills and Abilities
9. Communication Skills and Abilities
10. Project Management
11. Quality System
12. Quality Models and Theories
Body of Knowledge III.A.1
• Define and apply basic management principles such as
planning, leading, delegating, controlling, organizing, and
allocating resources. (Apply)
Management Skills and Abilities
1. Principles of Management
2. Management Theories, Styles, and Tools
3. Interdependence of functional areas
4. Human resources management
5. Financial Management
6. Risk Management
7. Knowledge Management
Principles of Management
• Management Processes:
• Planning
• setting of goals and objectives and the methods for achieving
them.
• Organizing
• structuring the organization and the work to be done, obtaining
and allocating resources in order to carry out the plans
• Staffing
• acquiring and placing the right people for the right job as well as
further developing their competencies
• Directing
• guiding members of the organization to achieve the mission,
plans, and objectives of the organizational work unit.
• Controlling
• monitoring activities and results to ensure that desired outputs
and outcomes are obtained
Core values and concepts
• Baldrige Performance Excellence Program embodies:
• Visionary leadership
• Creating a sustainable organisation
• Communication and organisational performance
• Strategy development and deployment
• Customer driven engagement and excellence
• Performance measurement, analysis, review, and improvement –
management by fact
• Management of information, knowledge, and IT
• Building a competent, effective, supportive, and valued workforce
• Organisational and personal learning
• Designing, managing and improving work processes
• Achieving measurable outcomes
• Managing for innovation
• CSR
Body of Knowledge III.A.2
• Define and describe management theories such as scientific,
organizational, behavioral, learning, systems thinking, and
situational complexity. Define and describe management
styles such as autocratic, participative, transactional,
transformational, management by fact, coaching, and
contingency approach. Describe how management styles are
influenced by an organization’s size, industry sector, culture,
and competitors. (Apply)
Management theories, styles, and tools
• Scientific Management
• Frederick Taylor
• Define the skill sets required for each job
• Select workers with appropriate abilities for each
job.
• Setting standards on method for performing each
job.
• Training for standard task.
• Planning work and eliminating interruptions.
• Wage incentive for increased output. (Henry
Gantt)
• Frederick Herzberg
• Hygiene Factor & Motivating Agent
• Douglas McGregor
• Theory X and Y
• William Ouchi
• Theory Z
Learning Theories
• David Kolb
• Experiential learning model whereby a person:
• Has an experience
• Reflects on the experience
• Develops abstract theories based on the experience
• Applies what he or she has learned
Learning Theories
• Howard Gardener proposed multiple types of
intelligence:
• Linguistic
• Logical/Mathematical
• Visual/Spatial
• Musical
• Kinesthetic
• Interpersonal
• Intrapersonal
Behavior Management
• Performance management is a technique
involving an analysis of the antecedents of a
behavior and the consequences of a behavior for
the purpose of reinforcing desirable behavior to
obtain or maintain positive consequences.
• B.F. Skinner – Behavior Modification / Operant
Conditioning Studies.
Other Theories
• Paul Hershey and Ken Blanchard’s – Situational Leadership
• Peter M. Senge – Systems Thinking
• Okes – Complexity Theory
• Blake and Mouton – Managerial Grid
• Stephen R. Covey – Seven Habits
• Being proactive
• Beginning with the end in mind
• First things first
• Win-win
• First understand then understood
• Synergising
• Sharpening
• Physical
• Social/emotional
• Spiritual
• mental
DiSC – Willian Marston
• Dominance – This dimension emphasizes shaping the
environment, overcoming opposition, and accomplishing
results.
• Influence – This dimension emphasizes influencing
others in shaping the environment.
• Steadiness – The emphasis in this dimension is on
cooperating with others within the existing
circumstances in order to perform a task.
• Conscientiousness – The focus of this dimension is
performing conscientiously to ensure quality and
accuracy within existing conditions.
Myers-Briggs Type Indicator
• Autocratic Management
• Participative Management
• Transactional Leadership
• Transformational Leadership
• Management by Fact
• Coaching
• Contingency Approach
Organisational culture
• Organisation integration of two systems
• Technical systems
• Social systems
• Culture is a function of the artifacts, values, and underlying
assumptions sharedby members of the organization.
• Culture manifests through:
• Use/sharing of power
• Risk orientation of the organisation
• Mistake treatment
• Perceiving and treating of outsiders
• Vision, mission, policy etc..
• Artifacts, layouts
Juran’s 5 step change to quality
culture
• 1. Create and maintain an awareness of quality.
• 2. Provide evidence of management leadership on quality.
• 3. Provide for self-development and empowerment.
• 4. Provide participation as a means of inspiring action.
• 5. Provide recognition and rewards.
Body of Knowledge III.A.3
• Describe the interdependence of an organization’s areas
(human resources, engineering, sales, marketing, finance,
research and development, purchasing, information
technology, logistics, production, and service) and how those
dependencies and relationships influence processes and
outputs. (Understand)
Modern business
• Systems
• A group of interrelated processes designed to accomplish a
mission
• Not a stand alone
• Outside awareness
• Knowledge of interfacing
• External business functions
• Internal business functions
Internal functions
• Information technology
• Finance
• Human Resources
• Marketing
• Product Development
• Sales and Customer service
• Materials Management
• Inventory
• Production control
• Engineering
• Product
• Process
• Industrial
• Facilities
• Research and development
• Operations
• Quality
Interdependence of functional areas
• Internal functions are those activities that create and
operate the processes that enable the organization to
accomplish its mission.
• IT, Finance, Human Resources, Sales and Marketing, etc.,
• not explicit in ISO while BPEP is more inclusive
Integrated Business Process
• Refer fig 8.3 and 8.4
• Concurrent engineering
System Thinking
• It is unique approach to problem solving, in that it views
certain 'problems' as a part of the overall system so
focusing on these outcomes will only further develop the
undesired element or problem.
• Advantages:
• Freer to commit to any approach, practice relevant to
achieving their strategy; for example, Six Sigma
methodology is only one option of several available.
• Integrate multiple approaches
• Easily adaptable
• Understanding relationships more easier
• boundryless
Body of Knowledge III.A.3
• Apply HR elements in support of ongoing professional
development: setting goals and objectives, conducting
performance evaluations, developing recognition programs,
ensuring that succession plans are in place where appropriate.
Develop quality-supportive responsibilities to include in job
descriptions for positions throughout the organization. (Apply)
HR Functions
• HR planning, Succession
• Staffing
• Training
• Compensation
• Management performance appraisal
• Non-Management Performance evaluation
• Benefits management
• Labour relations
• Safety security and welfare
• Employee termination, layoff, medical
• Organisation Development
• Public relations
• Personnel records
Human Resources Management
• Key responsibilities includes:
• Identifying Job Positions
• Personnel Selection, Hiring, and Assimilation
• Employee Development
• Performance Evaluation
• Competency Analysis (KESAA)
• Staffing the Quality Function
Body of Knowledge III.A.3
• Read, interpret, and use various finance tools including
income statements, balance sheets, and product/service cost
structures. Manage budgets and use the language of cost and
profitability to communicate with senior management. Use
potential return on investment (ROI), estimated return on
assets (ROA), net present value (NPV), internal rate of return
(IRR), and portfolio analysis, to analyze project risk, feasibility,
and priority. (Analyze)
Financial Management
• The management language – ROI!
• Financial Reporting
• Balance Sheet
• Profit and Loss statement
• Cash flow statement
• Bookkeeping Methods
• Cash basis
• Accrual basis
• Ratios
• Product/service cost
• Budgets
Balanced Scorecard
• Financial Perspective
• Customer Perspective
• Internal Business Process
• Learning and Growth Perspective
Body of Knowledge III.A.6
• Identify the kinds of risk that can occur throughout the
organization, from such diverse processes as scheduling,
shipping/receiving, financials, production and operations,
employee and user safety, regulatorcompliance and changes.
Describe and use risk control and mitigation methods:
avoidance, reduction, prevention, segregation, and transfer.
(Apply)
Risk Management
• Types of Risks
• Refer table 8.1
• The Risk Management Process
• Plan
• Do
• Check
• Act
• Improve
Risk Exposure Techniques and tools
• Analyze reported incidents involving potential or actual losses
• Data from internal sources
• Audit financial statements and supporting documents
• Complete and analyze process maps
• Conduct a what-if brainstorming session
• Perform periodic inspections and process audits
• Use failure mode and effect analysis
• Assess the robustness of management systems and processes.
• Contract out surveillance services
• Access exposure statistics from insurance carriers, trade
associations, and regulatory agencies
Responding to risk exposure
• 1. Find a way to avoid the exposure.
• 2. Find ways to reduce the potential loss.
• 3. Find ways to prevent the occasion for the loss to ever occur.
• 4. Segregate the loss exposures to concentrate efforts on
those exposures most probable to occur and/or cause the
greatest loss (for example, exposure triage—minimum,
medium, maximum).
• 5. Transfer the risk (for example, through insurance or other
contractual arrangement).
Computing potential for loss
and taking action
• Prioritise the identified tasks
• For each risk envision the worst case
• Categorise the consequences
• Assign financial estimates
• mitigation./elimination
• Risk ratio
• Decide the action
• reassess
Body of Knowledge III.A.7
• Use KM techniques in identifying core competencies that
create a culture and system for collecting and sharing implicit
and explicit knowledge among workers, customers,
competitors, and suppliers. Capture lessons learned and apply
them across the organization to promote best practices.
Identify typical knowledge-sharing barriers and how to
overcome them. (Apply)
Knowledge Management
Wisdom
Knowledge
Information
Data
Knowledge Management
• Tacit Knowledge
• Explicit knowledge
• Capturing, sharing and acess to information
• Types of data
• Capture procedure
• How to convert to information
• Use of information/data
• Policies to use and access
• Protocols and for sharing
• Evaluate the system continuously
• Knowledge Management ('KM') comprises a range of
practices used by organizations to identify, create,
represent, and distribute knowledge.
Senge’s 5 learning principles
• Personal mastery
• Mental methods
• Shared vision
• Team learning
• Systems thinking
KM outcome measurement
• Focus on objectives and tangible outcomes
• Define and communicate measures
• Interdependent KM and organisational measures
• Continual improvement
• Sharing of success and failure
Organisatoinal hurdles to KM
• Top management lack
• KM not a top staretgy
• Inter and intra organisational barrriers
• Process barriers
• Infrastructure issues
• Cultural concerns
• Individual barriers
End of Chapter 8
• Questions ?
Body of Knowledge III.B.1
• Define and apply various modes of communication used
within organizations, such as verbal, non-verbal, written, and
• visual. Identify factors that can inhibit clear communication
and describe ways of overcoming them. (Apply)
Communication Skills and Abilities
• Communications Basics
• Communications in a global economy
• Communications and technology
Communications Basics
• What is Communications?
• Direction of Communication
• Methods of Communication
• Selecting Appropriate Media
• Questioning Techniques
• Using Interpersonal skills and techniques
• Benefits of effective communication techniques
• Written communications
• Listening
• Feedback
• Roadblocks to effective communication
What is Communications?
• Sender
• Receiver
• Filter
• Noise
Direction of Communication
• Top down
• Bottom to Top
• Horizontal Communication
• 360 degree
• Grapevine
Methods of Communication
• Written or Oral
• Body Language
• Tone
Selecting Appropriate Media
• Urgency of the message
• Number and makeup of the receiver
• How dispersed are receivers
• Culture and work climate into which the message will be
received
• Best individual to whom to send the message
• Physical and technical constraint
• Security/privacy/sensitive issues
• Safety health, environmental issues
• Requirement for retention
Questioning Techniques
• Plan beforehand what is to be learned
• Ask mostly open-ended questions
• Actively listen and capture the response
Body of Knowledge III.B.2
• Develop skills in empathy, tact, friendliness, and objectivity.
Use open-minded and non-judgmental communication
methods. Develop and use a clear writing style, active
listening, and questioning and dialog techniques that support
effective communication. (Apply)
Using interpersonal skills and
techniques
• Shows empathy
• Tactful
• Is open minded
• Is ethical
• Shows a friendly attitude
• Is trust worthy
• Sensitivity
• Fair minded
• Authentic
communications
• Written
• Listening
• Feedback
Body of Knowledge III.B.3
• Identify key challenges of communicating across different time
zones, cultures, languages, terminology, and business
• practices, and identify ways of overcoming them.
(Understand)
Communications in a global economy
• Differences in cultures
• Language differences
• Time differentials
• Incompatibility of electronic interfaces
• Incompatibility of organisation structures
• Incompatibility of managing styles
• Incompatibility of workforce competencies
• Additional risks
• Refer pg 213 - 216
Body of Knowledge III.B.4
• Identify how technology has affected communications,
including improved information availability, its negative
influence on interpersonal communications, and the new
etiquette for e-communications. Use appropriate
communication methods to deliver different kinds of
messages in a variety of situations. (Apply)
Communications and technology
• Use of information systems
• The technology in information systems
• Distribution of information
• Information for managing organizational performance
• Obsolescence in the blink of an eye
• Assess risks
Use of information systems
• Strategic analysis
• Day-to-day decision making
• Operations
Technology in IS
• Mainframes
• Servers
• WAN
• LAN
End of Chapter 9
Body of Knowledge III.C.1
• Use project management methodology and ensure that each
project is aligned with strategic objectives. Define the
different phases of a project: initiation, planning, execution,
monitoring and controlling, and closure. Recognize the
importance of keeping the project on-time and within budget.
(Apply)
Project Management
• Projects are temporary endeavor undertaken to create
unique product, services, or results.
• Chapter 7
• assuring conformance to customer requirement
• External/internal standards
• Traceability
• Providing objective evidence
• Basis for training
• Evaluating effectiveness and effecianecy of uality plans
Body of Knowledge III.D.3
• Evaluate the effectiveness of the quality system using various
tools: balanced scorecard, internal audits, feedback from
internal and external stakeholders, skip-level meetings,
warranty data analytics, product traceability and recall
reports, and management reviews. (Evaluate)
Quality system effectiveness
• Balanced Scorecard (Kaplan and Nortan)
• Customer
• Employees
• Shareholders
• Process
• Refer Table 11.1 (page 269)
Baldrige Self-Analysis
• A macro-level evaluation, the worksheet is included in
the BNQP Criteria for Excellence booklet.
• ISO 9004:2000 Quality Management System – Guidelines
for performance improvements
• ISO 9004 Assessment criteria checklist for performance
improvement.
Quality Audits
• “ A systematic and independent examination to
determine whether quality activities and related results
comply with planned arrangements and whether these
arrangements are implemented effectively and are
suitable to achieve objectives.”
Parties involved in Quality audits
• Auditor
• Client
• Auditee