This started in Stanfilco when in 1988, Stanfilco changed its paradigm on quality and declared a Vision: to be number one.
The concept of TQM was learned when in 1989 JP Mercado and Henry Betancur attended the Philippine Quality and Productivity Movement (PQPM) Conference in Manila. Here, we heard the concepts of TQM and the quality and productivity philosophies under TQM through the Keynote Speech of Mr. Manlapit, the President of Procter and Gamble Philippines. He described the TQM concepts and practices initiated by Procter and Gamble, These same concepts and TQM continuum were adopted to direct the Dole Number One Program of Stanfilco
in 1990, when JP Mercado headed the Dole Number One Division.
The Dole Number Divsion was created in 1989. The task was to facilitate the new Dole Number One Program with goals to be the highest quality, lowest cost producer through customer-focused empowered workforce (Managers, Supervisors,, and workers of business partners.
The TQM initiative would be extended to Dole Asia when in 1997, the Dole University Board of Regents resolved to tairlorfit a TQM initiative for Dole Asia Companies. This will be in support for the practices of the Dole Six Work Values.
The Following is the TQM Framework that will be learned and practiced in time. The Dole University is tasked to facilitate its communication, understanding, and implementation through the various companies in Asia.
Foreword
This Primer is prepared by the Academic Board for use of the Dole University and the Dole Asia Companies in the following directions:
1) For teaching and facilitating a common understanding of TQM and a common language of quality to all Dole Philippines and Dole Asia employees and partners; and
2) For implementing a workable TQM initiative through a common Framework we call Dole Number One Initiative. The Framework is called Dole Number One (DNO) to highlight the Dole Asia Vision to be "Dole Number One Without Number Two" in all Dole's efforts to be a Worldclass Company which will satisfy and delight all its Stakeholders (Owners, Employees, Partners, Customers, an as a Word Citizen),
In this Manual, we define the "Primer" as a small book containing basic principles and guidelines for teaching all Dole Employees and Partners to understand and implement a common Total Quality Approach. We assume that a common understanding of Total Quality and a communal awareness of implementing a common DNO Framework are absolute prerequisites to achieve higher productivity, greater progress and faster growth over the long-term of Dole Philippines and of Dole Asia. Quality as a way of life and as a common culture becomes a jumping board to achieve quantum improvements in our operations- improvement that can really make a big difference in upgrading organizational and business bottomline performance, to levels which we may not have thought attainable. This is the mindset behind the approval of this Primer by the Dole University Board of Regents last May 23, 1997.
To all of us in Dole and to all our Partners, we enjoin to embark with intelligence and enthusiasm into a journey towards Excellence through a common understanding and practice of Total Quality. We become Quality Practitioners by the time we participate in seminars and workshops organized to understand the Primer, and as we continue to understand the language and strategies of Total Quality, and to manifest quality leadership by participating in all the quality initiatives and projects in the Company.
To help us understand the DNO Framework and the TQM definitions, let us read the attached recommended readings, many ideas of which become rich sources of our Primer.
Good luck for a common Quality Journey.
Prepared by the Dole University Academic Board
And approved by the Board of Regents
1st Edition, May 24, 1997
For Dole University use
And for Implementation in Dole Asia.
This Primer was approved by the Dole University Board of Regents during the Board Meeting on May 23, 1997
A. Members of the Board of Regents
Paul S. Cuyegking
Mario R. Morillo Z.
Michael F. O'Brien
Peter D. Jensen
Emmanuel Q. Javellana
Cesar M. Lota Jr.
Jesus P. Mercado
B. Members of the Academic Board
Eduardo D. Alejandro
Rolando G. Blanco
Gilbert F. Ganir
Tani Michelle M. Cruz
Marie L. Mu�ez
Jesus P. Mercado
A. The meaning of Dole Number One Initiative
The Dole Number One Initiative is our journey towards excellence through Total Quality. It is a comprehensive process involving all Dole employees and partners focusing on continuous improvement. It results from the synergy of all organization components working together, and is based on four imperatives:
1. Quality people;
2. Quality management system;
3. Quality products and technology;
4. All united in their focus on customer satisfaction.
The foundation of the quality initiative of any Dole Division of its Company is Dole Quality Policy. Examples follow:1. Stanfilco Quality Policy
"Dole Quality Policy is based on a never-ending quest for excellence Our goal in excellence through the practice of TQM is to provide our internal and external customers with error-free products and services that exceed their needs. Exceeding customer satisfaction is our number one priority,"
2. Dolefil Quality Policy
"We will produce quality products and services that exceed our customers' expectations by "doing it right all the time."
3. TropisFresh Quality Policy
"We associates of Tropifresh, in teamwork with our suppliers, are committed to producing products and services with a Dole quality t
hat exceeds our customers' expectations by doing it right the first time and every time."
4. Dole Box Manufacturing Plant Quality Policy
"COBOX believes that the customers are the focal point of its business, and that full customer satisfaction depends on the cooperation, teamwork, and efforts of the people in the organization.We, at Cobox, pledge to provide the best quality corrugated containers, kraft paper products, and services to the total satisfaction of our internal and external customers.
In our never-ending quest for excellence, we dedicate ourselves to the practice of TOTAL QUALITY, continuously striving to improve our paper converting processes and our delivery systems.
We commit ourselves to the continued development of our main asset, the PEOPLE, through active participation and further education, to ensure that COBOX is regarded as a plant offering the highest quality products and services to its customers."
This Policy speaks directly to our dedication to quality and is embraced by each of terms/policies employees company-wide. It conveys three basic concepts:
� focus on the customer
� focus on process improvement
� focus on people total involvement (empowerment)
These concepts are our foundation for achieving superior quality.
How Dole Number One Initiative Works
The initiative is divided into seven segments, corresponding to the seven categories of the Baldrige Criteria for Performance Excellence. As we go on our journey to be Dole Number One, we use these criteria as a checklist to ensure that Dole's plan addresses all critical elements of quality.
1. Leadership: This item addresses how the Dole's senior leaders set directions, and build and sustain a leadership system conducive to high performance, individual development, initiative, and organizational learning. It calls for development on the major aspects of leadership: creating values and expectations; setting directions; projecting a strong customer focus; developing an effective leadership system; and effectively communicating values, directions, expectations, and a strong customer focus. It calls for improvement in:
1.1 Leadership System
1.2 Company Responsibility and Citizenship
2. Strategic Planning: This stresses that customer-driven quality and operational performance excellence are key strategic business issues that need to be an integral part of all overall company planning. This includes effective development, translation, and deployment of overall customer and operational performance requirements derived from the strategy. It call for:
2.1 Strategy Development Process
2.2 Company Strategy
3. Customer and Market Focus: This is the focal point within the criteria for examining how Dole seeks to understand the voices of customers and of the marketplace. It stresses relationship enhancement as an important part of an overall listening and learning strategy. Vital information for understanding the voices of customers and of the marketplace must come from customer satisfaction results. This calls for the development of:
3.1 Customer and Market Knowledge
3.2 Customer Satisfaction and Relationship Enhancement
4. Information and Analysis: This is the main point within the criteria for all key information to effectively manage Dole and to drive improvement of company performance and competitiveness. It is the "brain center" for the alignment of Dole's operations with its strategic directions. It calls for development in:
4.1 Selection and Use of Information and Data
4.2 Selection and Use of Comparative Information and Data
4.3 Analysis and Review of Company Performance
5. Human Resource Development and Management: This is the focal point within the criteria for all key human resource practices - those directed toward the creation of a high performance workplace and toward the development of employees that enable them and the company to adapt to change. The criteria address human resource planning as an integral part of company planning in the Strategic Planning Category. It call for the development of:
5.1 Work Systems
5.2 Employee Education, Training, and Development
5.3 Employee Well-Being and Satisfaction
6. Process Management: This is the focal point within the criteria for all key work processes. Built into this category are the central requirements for efficient and effective process management - effective design, a prevention orientation, evaluation and continuous improvement, linkage to suppliers and partners, and overall high performance. It call for the development of:6.1 Management of Product and Service Processes
6.2 Management of Support Processes
6.3 Management of Supplier and Partnering Processes
7. Business Results: This provides a results focus that encompasses the customer's evaluation of the company's products and services, the company's overall financial and market performance, and the results of all key processes and process improvement activities. Through this focus, the criteria's dual purposes - superior value of offerings ass viewed by customers and the marketplace, and superior company performance reflected in operational and financial indicators - are maintained. This addresses:
7.1 Customer Satisfaction Results
7.2 Financial and Market Results
7.3 Human Resource Results
7.4 Supplier and Partner Results
7.5 Company-Specific Results
For further understanding of these seven criteria, refer to the Revised Malcolm Baldrige National Quality Award Criteria for Performance Excellence.
Implementing Dole Number One Initiative
When an organization expects to perform a massive transformation among its people, it requires continuous leadership and firm commitment at all levels of management. Quality improvement does not come from slogans, banners, exhortations, or from publishing a five-year plan. It requires mechanisms to foster change and drive continuous quality improvement. To that end, we identified specific change mechanisms called the "five change mechanisms," which help us t o implement the Dole Number One Initiative:
- A management communication process
- A core education program
- A management network
- A quality improvement process
- A recognition and reward program
These mechanisms are published regularly in the Company's newsletter. We call this piece the roadmap, which helps us remain on course and monitor our progress. If we want anything done, we get it on the roadmap.
1. Management Communication: To establish credibility for long-term change, we must open and maintain communication channels. A value system centered on quality must be communicated to all employees and supported by visible management action.
2. Core Education Program: In addition to communicating our belief in Dole Number One Initiative, we have to assure its results. The primary method of assuring success in any program is through education. We base Dole Number One Initiative core quality training on what many experts are saying, including Dr. Deming, Dr. Juran, Phil Crosby, and Val Feigenbaum. Our Dole Number One Initiative is really a combination of these theories, and based on latest developments in TQM.
Internet links:
The Deming Teaching Slides
THEDeming 14 Points
The Works of Dr. Deming
NASA's Design For Competitive Advantage
Articles Three Experts on Quality Management
3/ Management Network: This network establishes the basic leadership structure for implementing our plan. The network begins at the very top with the President or General manager, who chairs the highest level process improvement council, composed of Division Managers, Leaders, and Councilors, in the case of Stanfilco. The Division Leaders chair their own Quality Council. Quality officers are in every Division around the company. Their roles are to communicate with the corporate quality organization and network throughout the company to assure that Dole Number One Initiative is implemented in an expeditious manner.
4. Quality Improvement Process: This is the key implementation strategy, following the quality process cycle of Plan-Do-Check-Act (PDCA), which contains nine elements:
PLAN
a.) Develop process flows
b.) Identify customer requirements
c.) Identify quality costs
DO
d.) Prioritize improvement opportunities
e.) Organize teams and develop plans
CHECK
f.) Present plants to management
ACT
g.) Implement plans
h.) Maintain solutions
i.) Recognize and reward
The quality improvement process and the use of its tools help individuals and work groups define their mission, responsibilities, and customer requirements, and continuously evaluate and improve the quality of the work they perform. The problem-solving process, part of the quality improvement process, enables our employees to thoroughly analyze a problem based on numerical data, determine the true cause, and carefully plan solutions.
We use the nine-step quality improvement process to reach four major strategic goals of the company:
a.) to increase inventory turnover;
b.) to reduce time to market (cycle time);
c.) to improve quality of products and services;
d.) to optimize use of resources to achieve competitive cost structure (to save cost or reduce waste).
Internet link: The Deming Cycle
5. Rewards and Recognition: As a result of our efforts, we must reward our accomplishments. We are continually assuring alignment of compensation in the recognition system within the principles of excellence through quality. We strike a balance between individual and team incentives and create celebration awards to celebrate every success.
Our understanding of Total Quality Management (TQM)
- What is Total Quality?
Overall, Total Quality is a proven means to achieve our corporate vision, objectives, goals, strategies, and measures.
Specifically, TQ is a demonstrated commitment by every member of the company:
1.) to thoroughly understand and consistently exceed the expectations of our customers and consumers better than competition; and
2.) to effectively work together for continuous process improvement to achieve better performance compared before (last year or last month or yesterday).
The key works are:
1) Empowerment and development of people
2) Continuous process improvement and prevention orientation
3) Focus on customer satisfaction
Link:
TQM Customer-Focused Quality
Dole Number One Framework
Dole Number One is more than the sum of many different individual quality initiatives. Rather, it results from the synergy of all organization components working together.
"Together we can keep Dole Number One."
Our Total Quality model is based on four imperatives:1. quality people;
2. quality products and technology;
3. quality management system;
4. all united in their focus on customer satisfaction.
The Dole Number One Umbrella
TQM and relationship to other Quality initiatives.
Characteristics of TQM
Regardless of the "author," methodology or program, all approaches to TQM have elements in common.
1. Focuses on the customer. Virtually all literature in the field of total quality emphasizes paying attention to the needs of internal and external customers.
2. Prioritizes issues. There are rarely enough resources to attack all the problems that any organization faces. Disciplined use of "quality tools" (such as control charts, Pareto analysis, cause-effect diagrams) enables us to objectively determine a course of action.
3. Plans for the future. Every TQM approach teaches that anticipating trouble spots is more effective than "putting out the fire" since trouble has begun.
4. Applies process management methods. All approaches urge management to shift its focus from achieving en-results to improving the performance of processes.
5. Aims at eliminating waste. Sources indicate that many businesses expend 30-40% of their resources in wasteful activities (including production of poor quality products and services). TQM experts teach that variability reduction is the key to eliminating this waste.
6. Fosters teamwork. Individuals working alone, even though they are doing their best, cannot compete with a team on which members cooperate to achieve common goals. Most approaches advocate removing the focus on individual achievements and competition, and breaking down barriers.
7. Involves everyone. A basic tenet of total quality is involvement and empowerment of every individual.
8. Encourages change. Continuous improvement implies continuous change. Total quality experts generally encourage changes in behaviors and attitudes, especially among management.
Link:
Empowerment Hypertextbook
TQM Principles
1. Work is a process. We perform two roles - a customer role and a supplier role.
Quality is defined by the customer.
2. Doing right thing right the first time and all the time.
3. Continuous improvement.
Six TQM Key Ideas
1. Customer Focus
2. Focus on the Process as well as the Results
3. Prevention versus Inspection
4. Mobilizing the expertise of the workforce: Empowerment and Teamwork
5. Fact-based Decision-making
6. Measure and Feedback
Seven Principles of Customer-Focused Quality (CFQ)
1. Ensure that customers drive quality.
2. Treat everything as a process.
3. Improve continuously.
4. Build in quality from the start.
5. Solve problems using facts and data.
6. Involve everyone.
7. Lead through active engagement.
Five Whys Worksheet
( to know whether business processes/activities are focused on the customers)
Think of a work issue that is extraordinarily important to you. Then, use the "Five Whys" to discover key values associated with that issue.
Example: The computer network is not reliable.
1.Why is that important?
The staff gets frustrated when the network isn't working.
2.Why is that important? I need to take time to help them solve the problem.
3.Why is that important?Projects don't get finished on time.
4.Why is that important?
We can't deliver what we promised to our customers.
5.Why is that important? Customer satisfaction is our top priority.
Dr. Deming's 14 Points
1. Create constancy of purpose.
2. Adopt the new philosophy.
3. Cease dependence on mass inspection.
4. Eliminate suppliers that cannot provide statistical evidence of quality.
5. Find problems. Continue to improve the system.
6. Institute modern methods of training on the job.
7. Improve methods of supervision of production workers.
8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments.
10. Eliminate arbitrary numerical goals, posters, slogans aimed at the work force.
11. Eliminate work standards that prescribe numerical quotas.
12. Remove barriers that stand between the hourly worker and his right to pride of workmanship.
13. Institute a vigorous program of education and training.
14. Create a structure in top management that will push everyday on the above 13 points.
Internet link:
Deming's 14 Points
Internet Links:
NASA: Design for Competitive Edge, by Ed Dean
The Baldrige Criteria
ISO 9000 and ISO 14000
The American Society for Quality (ASQ)
Online Quality Resource Guide
NASA's Design for Competitive Advantage
Introduction to Total Productive Maintenance (TPM)
POKA YOKE
TRIZ
MIT on Dr. Deming
Philip Crosby
Quality Gurus: What can they do to the Company?
The Quality Gurus: Deming, Juran, Crosby,Shingo, Ishikawa,Kondo
TQM The Excellence Model
TQM Books
Collected Wisdom from Juran Entering the "Century of Quality"
The Quality Leaders
The Quality Gurus
The QC Book Problem Solving Tools
Organizational Development and Training
SPC Tutorial: Pareto Chart
Pareto Distributions
Quality Management Books
TeamFlow Approach
Total Quality Management
TQM in Action in the USA
Hypertextbook on Empowerment
Business Management Papers
Feigenbaum Constant
A.V. Feigenbaum
Massachusetts Council for Quality
Five New Quality Powers (Feigenbaum)
Era 2 Quality Gurus
Continuous Quality Improvement (CQI) at Purdue University
We can find these principles in the Web of Dole.Com
Click this for Dole Mission Statement and Business Philosophies.
The MIssion Statements, the Vision, and the Quality Policy Staemments:
(JPM: update, Sept.19, 1999)
Interesting Links about Quality Improvement Initiatives