CQI is not fully delegable
Continuous Quality Improvement (CQI) in manufacturing and service industries, in India, has not become a way of life. Although, as we all know, CQI is a guaranteed strategy for improving the bottom line of an organization. Please note, CQI reduces chronic waste. As a result, it reduces the Cost Of Poor Quality (COPQ).
CQI has failed in most industries. Why? Because CQI is usually delegated to the Quality Control Department. The existence of the Quality Control Department is based on the existence of recurring failures. Why commit Hara-Kiri? Remember, in Quality Control we treat the symptom of a problem. On the other hand, in Quality Improvement we treat the root cause of a problem.
CQI is not fully delegable. There is a distinct strategic role to be played by the top management of an organization. Namely, that of nominating and selecting chronic problems, to be solved by appropriate cross-functional teams. The Pareto Principle applies. 20% of the chronic problems account for 80% of the COPQ. These are the vital few problems. They must be solved by a cross-functional teams of vital few managers.
The balance 80% of chronic problems are delegable. Perhaps (yes, perhaps), the Quality Control Department can facilitate solving of these small problems. But be prepared for hyper activity with meagre results.
- CQI adds to the knowledge of an organization
- Successful CQI projects create motivation for members of cross-functional teams
- CQI project teams can earn internal and public recognition by participating in events such as, QualTech Prize Competition (www.qimpro.com/qualtech)
- COPQ in any organization is at least 20% of total costs
- Check out organizations that have gained by making CQI a way of life: Mahindra, Tata, Aditya Birla, Reliance, Godrej, L&T, Marico, Bajaj, HDFC…….
My wish list for CQI adoption: Municipalities. Can you think of any more?