Quality_Managmenet

GM 588: Quality Management Final Project Febbruary 20, 2010 Introduction Verizon Wireless is the organization Darlene will discuss in the final paper. Verizon Wireless is a leader in providing wireless communications for phone and mobile broadband devices. It is not a publically traded company but a joint venture of Verizon Communications (NYSE: VZ) and Videophone (NYSE and LSE: VOD). It is headquartered in basking Ridge, N.J and it the most reliable and largest voice and data service provider with 101 million United States customers. Verizon Wireless services include cell phone service, text messaging, internet access, a navigation program, child tracking product, global and mobile broadband services. The products they sell to provide those services include cell phones, smart phones, net books, mobile broadband cards and most recently the Ipad, Iphone and LTE devices. Darlene, based on internet research thinks a thinks that a variety of Quality management processes are used at Verizon Wireless. These include Six Sigma, Jurans Quality Trilogy, and ISO 9001. Interviewing Dublin call center director, associate directors and managers revealed that these are not in place for maintain and creating representative troubleshooting guides. Guides are often missing, incorrect or missing information causing representatives to learn by trial and error on a phone call. This causes customer frustration, representative frustration and longer calls times. Problem Statement Verizon Wireless has set one of their top priorities to call efficiency and respecting the customer’s time based on customer feedback surveys. They have tightened the amount of time they want the representatives to stay on the phone call but often do not update the troubleshooting guides to reflect these changes. Often on the first day of a new product launch there is no training on the new product or 15 to 30 minute online trainings that day. The representatives are still expected to assist customer on these call types. In the beginning there is often a trial and error period where the representatives needs to test the tool and advise management of any issues that are missing, incorrect or new and not like any previous product. calls on new products are longer and involve learning the product. This research paper is going to discuss whether a six sigma, lean approach would be beneficial to this process and how using Mistake proofing and prevention (Poka-Yoke) (appendix A) when creating and maintaining the guides can lead to internal and external customer satisfaction. This can have a direct effect on improving customer service experience and insuring a positive customer experience. An example of this was when Verizon wireless launched a new WIFI broadband device called the five spot. The troubleshooting guides advised us to us the guides for s similar product the MIFI2200. Well the guides did not work, so on the call the representatives had to spend time reading threw the device use guide. Threw reading this guide we learned that you had to turn this device on while plugged into the computer so the device know it was in mobile broadband mode and to turn it on while it is unplugged from the computer to turn it WIFI mode where the customer could connect up to five devices. Another thing we learned about this device was after we plugged it in for the first time to install the software, we had to unplug the device, turn it off, plug it back into the computer and then turn it on in order for the computer and Verizon wireless internet connection software to detect the device. This took up much time on the calls and the AHT for the month went to 1500 since our sales department was pushing the sales of this new device. In the beginning, the representative thought many of the problems were device issues and sent customer back to the store to replace the device as they thought they were defective. 30% of the devices sold were being returned, so management once again turned to us to ask us about the problem with the device. It took 2 months to learn how to navigate how the device worked and to educate the representatives on how to navigate an effective phone call for this device. The changes are still not in the troubleshooting guides. The argument is had Verizon wireless used a tool to plan for the implementation of this product there would have been a shorter learning period, internal employees and external customers would be less frustrated with the product and process for installing it. This would lead to more efficient and effect calls and improves customer satisfaction threw respecting the customer time on the call. The potential gain from implementing efficient correct troubleshooting tools will be an increase in morale and productivity in the customer service/technical support area and happier customers. The literature review in this paper will discuss the possibility of using Total Quality Management (TQM), Six sigma, Lean, systematic problem solving and mistake proofing to resolve this problem. The obstacles of communication, shared beliefs and politics and geographical location will also be discussed. This discussion will assist in analyzing the best approach for implementing a solution. Literature review This literature review provides support for a scholarly study that will investigate and discuss Total Quality Management (TQM), Six Sigma and the mistake proofing step of quality. It will also discuss issues that might stop a corporate from installing a TQM system and how it affects Customer focus and Customer satisfaction. Literature is reviewed that develops relevant information that supports the effectiveness of the TQM and Six Sigma high-profile management systems. Literature is also reviewed in relation to systematic problem solving and customer focus and using the Define-measure-Analyze-Improve-Control (DMAIC) for structured problem solving (Appendix b). Total Quality In a research article by Natarajan (2008) TQM initiatives were examined to decide whether it impacted business processes positively. They concluded that TQM works and has had positive impact on “internal measures from productivity to inventory turns” and “market measurements such as stock prices, market share, revenue growth and customer satisfaction”. (Narajan, 2008) This research defines Quality as“meeting or exceeding the requirements, expectations and needs of the customers even those needs which are latent and not articulated by the customers”. (Natarajan, 2008). They explain the importance of implementing TQM throughout the total system. The total system -includes design, products, distributions, service and the involvement of all categories of employees, customers and suppliers in the quality imitative. There are many different frameworks of quality management approaches that are used and advocated by one of the quality gurus, i.e. Deming, Juran, Crosby, and Feingenbaum, Isjikawa or other experts. A total quality research article by Natarajan (2008) recommends the ISO9000 series of quality standards as a starting framework for developing a quality system. It is recommended as a starting point since “The criteria provide only minimum requirements for a quality system and therefore, certification should be viewed only as the beginning and not the end of the evolutions and not the end of the evolution towards TQM.”(Natarajan, 2008) Huff and Prybutok (2009) researched the importance of project management when implementing any project it is best to have a quality project manager because “Problems occur when project management does not recognize the risks of the project and then fails to achieve the goal of shepherding the project toward completion in an acceptable manger, either in terms of elapse times, accumulates cost and /or functionality”.(Huff and Prybutok, 2009) ”Project management has become a major component of productivity and innovation in out high-technology society” (Huff and Prybutok 2009) Now that quality is defined and we know the implementation of a total quality system with a Project manager will have a positive effect on the company we will look at the Lean Six Sigma method. Lean Six Sigma – A study by Shah, Chandrasekaran and Linderman (2008), use performance data on the implementation of lean and Six sigma projects to determine if this approach had significant performance benefits. The conclusion was that”Previous empirical research indicates that implementing Lean practices leads to superior firm performance.” (Shah, Chandrasekaran & Linderman, 2008). The difference between Lean and six Sigma as discussed are: “Lean practices and techniques focus on streamlining processes, where as Six Sigma practices and techniques help identify and eliminate root causes of problems. “(Shah, Chandrasekaran &Lindeman, 2008). Once the difference is explained it is easy to see how they would work well together to implement a solid quality management system. “Structured problem solving is important methodology in quality improvement” (Liang & Zhang, 2010), so the next literature review will look at the problem solving. Problem solving A Ponca (2003) article examines how to improve work force capabilities in a lean environment. A recommendation was the use of systematic problem solving “the solutions of quality relate problems using systematic problem-solving methods have been shown to be more effective than trial and error methods.”(Pionka, 2003) . In addition, “Communication plays an important role in the process of problem solving” (Liang & Zhang, 2010). Specifically “how the difference in the department functions and boundaries between the departments define the form of problem solving” (Liang & Zhang 2010). “A Problem is defined as a discrepancy between an existing standard or expectations and the actual situation” (Liang &Zhang, 2010). GM’s defines “problem solving as a structured process that identified, analyzes and eliminates the discrepancy between the current situation and an existing standard or expectation, and prevents recurrence of the root cause.” (Liang &Zhang, 2010). The main argument for a structured problem solving method is from Shingo. Shingo is best known for his error and mistake proofing (Poka-Yoke) and resource inspection system. “He is the exponential of the zero defect quality control concept” (Liang & Zhang, 2010). Shingo philosophy thinks that the problem should be prevented in the product design phase. The argument made against having a formal problem solving process is that the problem will still be there while developing the problem solving method and charting the process. DMAIC is a structured problem-solving methodology widely used in business, these phases lead a team logically from defining a problem through implementing solutions linked to underlying causes, and establishing best practices to make sure the solutions stay in place. Since companies create product for customers the company would not be in business without the customer s. So now that we looked at possible quality tools and problem solving methods the next logical choice is to look at customer focus. The importance of customer focus and mistake proofing. Customer focus “Customer focus: this puts the customer first for real. The essence of customer focus is identifying the external and internal customers, their needs and expectations and going whatever it takes to satisfy them. The scope of the customer extends to those who are not directly involved in using the products but may have a legitimate concern such as regulators, consumer organizations , the community and the general public, whose concern over safety, health and environment and consumer protection are taken seriously by TQM ”.(Natarajan, 2008) “Decreasing customer defections carries great importance in developing customer satisfaction and loyalty and it should be noted that decreasing customer defection has become a requirement in order to maintain a competitive advantage”. “Demings’ ideas, there is a need to have a systematic procedure that can be applied to reduce errors in the business environment that causes customers dissatisfaction.”(Dengiz, Pakdid,& Ozkok, 2009) “Taking into consideration Deming’s statement, “one part in this step includes a systematic prevention approach to decrease human errors by using a poka -yoke (mistake proofing). Since we know that defects can have a negative effect on customer satisfaction we will take a look at the poka-yoke method for mistake proofing. Poka-Yoke – Mistake Proofing “It should be noted that the emphasis in quality improvement has shifted away from inspecting quality and has refocused on preventing defects” “An error could be defined as the concept of an individual performing a task this is not completed as intended or an individual making a decision that does not produce the desired results” .”(Dengiz, Ozok &Pakdid, 2009). Mistake proofing is a quality tool used to prevent mistakes for occurring. “Anyone wishing to improve quality will have to give consideration to poka-yoke at the planning stage. It is known that the importance of the quality tool”. Suggesting prevention is the key to effective problem solving. ”(Liang & Zhang,2010). “Shingo indicates that it would be possible to eliminate defects entirely by investigating the cause””one of the most efficient methods in root-cause analysis is 5 whys. With this method, the main aim is to discover the root causes not immediately apparent.” (Dengiz, Ozok &Pakdid, 2010). Ponca (2009) study suggests “The needs to design tasks more ergonomically and to perform mistake proofing will be more important than ever. As younger individuals enter the work force, they can be expected to have excellent cognitive abilities that will enable them to perform and make decisions faster. Unfortunately this speed and associated overconfidence also increase error rates and reinforces the need for mistake proofing. (Ponca, 2009)” Corporate Politics/shared beliefs This section of the literature will discuss barriers to implementing a Quality management program. These include coporate politics, shared beliefs, corporate stories and geographic location. “Politics refers to any deliberate attempt on the part of higher ranking executive to enhance, control or protect-self or organizational executives.”(Goya & longenecker, 20''). “It is a well-worn axiom that politics often plays a dominant role in important organizational decisions and actions.” Gioia & longenecker, 20''). “Although everyone wants to be treated fairly and wants others to observe the rules, a surprising number of people will bend those rules to satisfy a personal, departmental or divisional agenda.”( Gioia & longenecker, 20'')..“Although politics is associated with many events in organizational life, the political nature of these events in either too elusive or too cleverly concealed to be discerned easily” (Gioia & longenecker, 20''). “Organizational decisions are affected by organizational structure, context, culture and industry wide economic pressures, but are also strongly affected by individual human roles and the idiosyncratic decision-making styles of organizational leaders.”(Berry, 2010). “Stories that are told to us, or that are even self-centered, are often all that we have to explain organizational or corporate behavior: stories are fundamental way through which we understand the world “. (Berry, 2010). “‘Members of the same organization often share similar beliefs and values”. (Steen, 2010). “The decision process may be enhanced although probably slowed if many people present different frames or perspectives for consideration at this early stage of problem identification” (Berry, 2010). “The assumption of (originally unbiased) differing priors captures the fact that people may have different “mental models’ or “‘belief systems” or different intuition, which may lead people with identical data to draw different conclusions” (Steen, 2010) Since corporation decisions are effected by politics, shared beliefs and values, corporate culture any company without the total quality management philosophy merged into the culture will have to develop a plan to implement total quality values. This may be a barrier for implementing a TQM system in a company that does not already have one. Other barriers can include “information quality may be compromised when the decision maker is further from the business for which the decision is relevant” (Landier, Nair, wolf, 2010). And “Social factors also play a roles in corporate decision making and informational arguments “(Landier, Nair, wolf, 2010) Analysis Threw research by speaking with Customer service and technical support directors and associate directors there is no formal Six Sigma, Lean or ISO 9001 initiative or process when implementing the troubleshooting guides or making changes. There is a feedback tool for the representatives to use to recommend changes. These changes then are researched by the department that is responsible for that particular guide and then makes a decision on whether to implement the change in the guide or to send feed back to the representative as to where the information is and why they don’t think in belongs in the troubleshooting guide. In the literature review it was discussed how politics, shared beliefs and values and location could negatively impact a project on a corporate level. It was also discussed how likelihood of implementing another practice is greatly increased if the organization has already implemented other related manufacturing practices. Since lean production and Six Sigma approaches have gained considerable importance in recent years. Firms from many industries have reports implementation of practices commonly associated with a lean production team and its positive impact on performance”(Shah, chandraske, linderman 2000). While Verizon Wireless is not a manufacturing we will look at the quote as relating to any company that is going to implement a new process. Since Verizon wireless does not have a lean or Six sigma process implemented throughout the customer service departments it would be useful instead to implement a tool from these processes to assist with defining the problem and mistake proofing the troubleshooting guides versus a whole quality implementation at this time The recommended process is mistaking proofing (Appendix A) using the six sigma tools a Define- Measure-Analyze-Improve-Control (Appendix B). It will need a corporate sponsor and this may be a challenge since the shared beliefs of the organization is that the process in place works or is not important enough to improve at this time. In this situation corporate politics will come into play and a sponsor will be necessary to back the implementation of the project. The Define step will validate the problem statement and goal by including the voice of the customer and the business. Explain the financial benefits that correct guides equal less time on a phone call which mean representatives are available to take more phone calls leading to fewer representatives necessary in the business to answer phone calls and saving the company their salary. In Verizon wireless case it would eliminate the need for a certain number of outsources call centers. The process needs to be mapped so that time, error and defects can be assessed. The measurement step will map the current process, and look at places to recommend improvement both short-term and long term. The analyze step will review value-added, non value added and business none value added steps. The improve step will evaluate and choose the potential solutions, perform risk analysis and pilot the solution. The control step will develop supporting methods, tools and documentation and assign a process owner. Conclusion The purpose of this paper was to discuss using a systematic structured approach to problem solving for developing and maintaining correct troubleshooting guides at Verizon wireless. We discussed possibly using lean, six sigma and mistake proofing as possible processes to implement. Since Verizon Wireless presently had their own quality process and their own structured approach the DMIc and mistake proofing processes can be implemented first to tackle the problem at hand. Reflections This project was very interesting having to research other articles to present proof of process, theories and systems that have worked and been successful at other companies. H aving done software development using a formal process thought from the beginning that implementing a lean, or six sigma or a large company initiative would be the best route. Once researching realized that some of the specific methods and tools would be a quicker way to implement the process at Verizon wireless since there is a process for submitting feedback and there are already meeting. Professionally I will be making a presentation for my associate director and recommend these best practices be implemented to improve the present process. This process will be a challenge since the assumption in my department is that the company does not want to spend the money on this upfront in testing since the problem may not occur and then the company would have spent resources it did not need to spend. The most important research was linking the implementation of the tools to customer satisfaction. I will have a presentation for my portofolio. This class was also informative in providing a framework for looking at quality threw different philosophies, theories, methods, and tools and will be helpful in my Project Management career. References 1. Berry, Gregory R. (2010). Improving Organizational Decision-making reframing social, moral and Political stakeholder concerns. Journal of Corporate Citizenship 33-38. 2. Campbell, Michael PMP. (2009). Communication Skills for Project Managers. In developing communication for the projects (pp.115-125). New York: AMACOM. 3. George, Michael L. (2002). Lean Six Sigma – Combining Six Sigma Qualities with Lean Speed (pp 167-181). New York: AMACOM. 4. George, Michael L. (2002). Lean Six Sigma Pocket tool Book (pp 233, 20-22). New York: AMACOM. 5. Goal Dennis A and Longenecker, Clinton O. (Unknown). Delving into the Dark Side: The politics of Executive Appraisal. Organizational Dynamics, 47-58 6. Huff, Richard A, Prybutak, and Victor R. (2009) Information systems project Management Decision Making: The influence of experience and Risk Propensity. Project management journal, 34-44. D01.10.1002 7. Lander, Augustin, Nair Vinay B, and Wolf Julie. (2007) Trade-offs in Staying Close corporate decision Making and geographic Dispersion. Journal of corporate citizenship. 8. Liang kairong, Zhang, Qi. (October 2010). Study on the organizational Structured Problem solving on total Quality management. International journal of Business and management 178- 183. 9. Natarajan, R. Nat . (2008). Total Quality Management. Innovations in competitive manufacturing, 69-81. 10. Pakdil, fatma, Ozoko, onur, Dengiz, Berna, Kara, Imdat, Selvi, Nilay and kargi, alper. (January 2009). A systematic approach to reduce human and system-related errors causing customer dissatisfaction in a production environment. Total quality management, 129-137. 11. Pionka, Francis E. (2003). Developing a Lean and Agile work force. Human factors and ergonomics in manufacturing, 11-20. 12. Steen, Eric Van Den. (2010). On the origin of shared Beliefs and corporate culture. Journal of Economics, 617-648. 13. Shah, R, ChandrasekAran and linderman , K (December 2008). In pursuit of implementation patterns: the context of Lean and Six Sigma. International Journal of production 6679-6600 Appendix A Mistake proofing and prevention (Poka-Yoke) PREVENT a defect from occurring and when this is not possible, DETECT the defect every time one occurs. There are various levels, effort, and costs of error proofing. The team needs to identify the optimal states and examine feasibility of implementation in the new product or process KPIV's. He recognized three types of poka-yokes: 1. Contact method - identifies defects by testing product characteristics. 2. Fixed-value - a specific number of movements every time. 3. Sequence method - determines if procedure were followed. Purpose: Mistake prevention is the ability to stop mistakes before they occur. Mistake Proofing is making it impossible for errors to be passed to the next step in the process. When to use mistake prevention and mistake proofing Use then rework to correct errors or process delays downstream (perhaps caused by a lack of material or information) are hurting process cycle Efficiency. Two Mistake proofing Systems A. Control/warning approach * Shuts down the process or signals personnel when an error occurs * Dials, lights and sounds bring attention to the error * Prevents the suspect work from moving on until the process step is complete * Process steps when irregularity is detected (may be necessary if too costly to implement mistake proofing) * High Capability of achieving zero defects B. Preventative Approach * Employs methods that DO NOT Allow an error to be produced * 100% elimination of mistakes (100% zero defects) 7 step to mistake proofing 1. Describe the Defect and its impact on customers 2. Identify the process steps where the defect is discovered an the step where it is created 3. Detail the standard procedures where the defect is created 4. Identify error in or deviation from the standard procedure 5. Investigate and analyze the root cause for each deviation 6. Brainstorm ideas to eliminate or detect the deviation early 7. Create, test, validate and implement Mistake-proofing device Appendix B DMIAC DEFINE: * Prioritize and select project * Define project boundaries, measures, and project outcome * Charter team, define roles and responsibilities * Define customer and supplier requirements MEASURE: * Assess current measurements, measurement capability * Develop measurement plan, correct measurement system * Gather data on the process, its inputs, and its outputs * Map current value stream ANALYZE: * Use statistical and analytical tools to understand the process * Fix the obvious * Make additional measures as needed * Do detailed process mapping * Create future value stream map IMPROVE: * Eliminate or reduce root causes of input/output process variables * Improve or re-design the process * Implement workplace organization (5S) * Improve material replenishment system (e.g., Kanban) * Implement Visual Controls * Pilot and verify changes, then implement CONTROL: * Error proof the improved process * Study measures to confirm effectiveness, or make changes * Implement statistical process control * Document new value stream * Document and standardize the process * Final report