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MGT510 - Total Quality Management - Lecture Handout 41

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Building Quality through SPC

Statistical Process Control

  • Capable processes also must be controlled
  • SPC distinguishes 2 types of variability
    • Normal (Random) Variability
    • Abnormal (Structural) Variability

SPC requires the use of Statistics

MGT510 - Total Quality Management - Lecture Handout 34

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Hoshin Kanri and Strategic Policy Deployment

Strategy Implementation:

Top management requires a method to ensure that their plans and strategies are successfully executed (the term “deployed” is frequently used) within the organization. The Japanese deploy strategy through a process known as Hoshin Planning, or Policy Deployment. Hoshin means policy or policy deployment. Policy deployment is a systems approach to managing change in critical business processes. It emphasizes organization-wide planning and setting of priorities, providing resources to meet objectives, and measuring performance as a basis for improving performance. Policy deployment is essentially a TQ-based approach to executing a strategy. King describes it eloquently.

Imagine an organization that knows what customers will want five to ten years from now and exactly what they will do to meet and exceed all expectations. Imagine a planning system tat has integrated [Plan, Do, Check, Act] language and activity based on clear, long-term thinking, a realistic measurement system with a focus on process and results, identification of what’s important, alignment of groups, decisions by people who have the necessary information, planning integrated with daily activity, good vertical communication, cross-functional communication, and everyone planning for himself or herself, and the buy-in that results. That is Hoshin Planning.

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