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HomeMy WebLinkAboutWD-14-94 i THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON T(~+fx~R~iBF~t~3Pa;f4t~z§tkX3~;t~x~;!(S~iFX~I~Jf~Fi'(^fe~i~~ REPORT SPECIAL GENERAL PURPOSE '~~~,, ~~ ,, ~~// Meeting: AND ADMINISTRATION COMMITTEE File # _1.~eSL~J.L` Res. # ~~PA - 94-`x`}, Date: MARCH 4, 1994 By-Law # Report #: wn-14-94 File #: An _ 20 _ [15 Subject: TOTAL QIIALITY Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report WD-14-94 be received; 2. THAT Council give approval to commence training on Total Quality Management in 1994; 3. THAT the proposed budget for staff training and development (Attachment 'No. to Report WD-14-94) be considered during budget discussions; 4. THAT Council view the five videos that are available on Total Quality Management; 5. THAT the members of Council and the management staff of Clarington Hydro and the Clarington Library Board be invited to join in with Clarington staff on Total Quality Management training and that David Clarke, Manager, Clarington Hydro and Barbara Baker, Chief Librarian, Bowmanville Branch be provided with a copy of Report WD-14-94; and 6. THAT Clarington become a member of the Bureau for Excellence in Durham Region. ,.oE °®.~.~.E REPORT NO.: WD-14-94 PAGE 2 REPORT 1.0 ATTACHMENTS No. 1: Proposed 1994 Budget for Staff Training and Development and for Conferences and Conventions No. 2: Copy of Pamphlet from The Bureau of Excellence from Durham Region 2.0 BACKGROUND 2.1 One of the recommendations of the Chait Report and the Mayor's Task Force. on Economic Development was that Clarington implement Total Quality Management within the administration. 2.2 At a regular meeting of the General Purpose and Administration Committee held on Monday, February 7, 1994, the Committee requested staff to submit a report to the General .Purpose and .Administration Committee to advise Council in conjunction with the budget discussions, of Total Quality Management Training. 3.0 REVIEW AND COMMBNT 3.1 Proposed 1994 Budget The proposed 1994 Budget for staff training and development and for conferences and conventions is detailed on Attachment No. 1. 3.2 Provincial Requirement As part of the Social Contract, the Province requires that Municipalities spend 1$ of gross payroll for staff training and development. 3.3 Total Ouality Management Certificate Durham College .offers a night school course which leads to the participants obtaining a Total Quality Management Certificate upon successful completion of the course comprising of: REPORT NO.: WD-14-94 PAGE 3 No. of Hours Total Quality Management 30 Leadership and Team Building 30 Problem Solving Tools and Techniques 30 Quality Customer Service 30 TOTAL HOURS 120 The course consists of lectures, assignments, a mid-term exam and a final exam. 3.4 The Bureau for Excellence in Durham Region A Bureau for Excellence in Durham Region has been established. Attachment No. 2, which is a copy. of the Bureau's pamphlet, explains the bureau's mandate. 3.5 What Is Total Quality Management There are many definitions of Total Quality Management. One definition is that Total Quality Management is a philosophy of continual improvement which involves everyone within an organization and everyone external to an organization who is involved in delivering or receiving a product or a service. We have five (5) videos which provide a good understanding of Total Quality Management. Three (3) of the videos, which are each about one (1) hour in length, are titled "Total Quality Management". The fourth video, which is about 30 minutes in length, is titled "Paradigms", and the fifth video is titled, "Why Customers Leave And How To Get Them To Stay". REPORT NO.: WD-14-94 PAGE 4 3.6 Fourteen Points for Management Dr. W. Edwards Deming, who is considered to be the father of Total Quality Management, listed fourteen (14) points for management.. Although these points appear to be directed to manufacturing, they are applicable to all areas of the work force. 1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business and to provide jobs. 2. Adopt a new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by .building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership (see point 12). The aim of leadership should be to help people and machines to do a REPORT NO.: WD-14-94 PAGE S better job. Leadership of management is in need of overhaul, as well as leadership of production workers. 8. Drive out fear, so that everyone may work effectively for the company. 9. Break down barriers between departments. People in research, design, .sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. 11. Eliminate work standards (quotas) on the factory floor. Substitute leadership. 12. Remove barriers that rob the hourly worker of his right to pride of workmanship. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. 13. Institute a vigorous program of education' and .self- improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job. 3.7 Seven Deadly Diseases Dr. Deming also listed seven (7) deadly diseases:. REPORT NO.s WD-14-94 PAGE 6 1. Lack of constancy of purpose in planning products and services that will have a market and keep the company in business and provide jobs. 2. Emphasis on short-term profits: short term thinking {just the opposite from constancy of purpose to stay in business), fed by fear of 'unfriendly takeover, and by push from bankers and owners, for dividends.; 3. Personal review system, or evaluation of performance, merit rating, annual review, or annual appraisal, by whatever name, for people in management, the effects of which are devastating. Management by objective, on a go, no-go basis, without a method for accomplishment of the objective, is the same thing by another name. Management by fear would still be better. 4. Mobility of management: job hopping. 5. Use of visible figures only for management, with little or no consideration of figures that are unknown or unknowable. 6. Excessive medical costs. 7. Excessive costs of liability, fuelled by lawyers that work on contingency fees. 3.8 Rey Tools of Total Duality Improvement 1. Working in Teams. 2. Brainstroming. REPORT NO.: WD-14-94 PAGE 7 3. Nominal Group Technique. 4. Cause-and Effect Diagram. 5. Flow Charts. 6. Pareto Chart. 7. Histogram. 8. Run Chart {Plots). 9. Scatter Diagram. 10. Control Charts. 3.9 Quality Princiyles 3.9.1 .Quality is never your problem: Quality improvement is the answer to your problem. 3.9.2 Organized human activity takes place within a system. When there is a problem, 85~ of the time the problem is with the system and 15~ of the time the problem is with a worker. 3.9.3 The essence of quality management is the ability to treat problems of systems and people simultaneously. 3.9.4. All systems exhibit variability. Managing for quality requires the ability to tell signals from noise. Quality management techniques permit intelligent decisions concerning when to take action and when to leave the system alone. REPORT NO.: WD-14-94 PAGE 8 3.9.5 Quality does not cost, high quality pays. High quality. produces profits, lower costs, happier customers, happier workers, better suppliers, and stronger competitive posture. 3.9.6 Successful organizations are customer driven. The concept of the "CUSTOMER" involves more than the outside customer.. Everyone serves a "CUSTOMER". The next person in line is your "CUSTOMER". 3.10 Some Interesting Statements 3.10.1 In the total quality approach, the-word "customer" is interpreted broadly to mean anyone, internal or external to the organization, who comes in contact with the output or product of your work. 3.10.2 if you always do what you've always done, you'll always get what you've always got! 3.10.3 inspection does not improve quality, nor "guarantee it". 3.10.4 Dr. Deming attributed 94~ of quality problems to management. He believed, "The first step is for management to remove the barriers that rob the worker of his right to do a good job". 3.11 Who Should be Laughing They're still laughing about this at IBM. Apparently the computer giant. decided to have some parts manufactured in Japan as a trial project. In the specifications they set out that the limit of defective parts would be acceptable at three parts per 10,000. When the delivery came in there was an accompanying letter. "We Japanese have hard time REPORT NO.: WD-14-94 PAGE 9 understanding North American .business practices. But the .three defective parts per 10,000 have been included and are wrapped separately. Hope this pleases." 3.12 Total Quality Management in the Service Industry Municipal government has nothing to offer but service. The tools of Total Quality Management can be used to examine, ..identify problems and lead to methods to improve every aspect of the service we provide and reduce costs. Following is a partial. list of the things which could be examined to determine if there are ways of improving and how: 3.12.1 Accounting Quality Measurements 1. Number of hours per week correcting or changing documents. 2. Payroll processing time. 3. Length of time to prepare and send a bill. 4. Travel expense accounts. 3.12.2 Clerical Quality Measurements 1. Misfiles per week. 2. Errors per typed page. 3. 4. Administration errors (not using the right procedure). Number of times a manager is late to meetings. 5. Number of times messages are not delivered.. RBPORT NO.: WD-14-94 PAGL 10 6. Percent of action items not done on schedule. 7. Percent of telephone calls answered in two rings. 3.12.3 Finance Ouality Measurements 1. Percent of error in budget predictions. 2. Percent of bills paid so that the municipality gets a price break. 3. Percent of errors in cheques. 4. Percent of errors in expense accounts detected by auditors. 3.12.4 Complaints From Taanavers (Customers) 1. Number of complaints. 2. Response time to complaints. 3. Processes put in place to reduce complaints. 4. Method of tracking complaints. 3.12.5 Management Quality Measurements 1. Percent variation from budget. 2. Percent personnel turnover rate. 3. Percent absenteeism. 4. Percent of meetings that start on time. REPORT NO.: WD-14-94 PAGS,11 5. Number of job improvement ideas per employee. 6. Number of grievances per month. 7. Percent of professional employees active in professional societies. 8. Percent of managers active in community activities. 9. Percent of employees taking higher education. 10. Improvement in customer satisfaction survey. 11. Number of reports with fewer than three (3) acronyms and abbreviations. 3.12.7 Procurement/Pnrchasinq Oualitv Neas~•rPmpnt 1. Number of orders received with no purchase order. 2. Percent of supplies delivered on schedule. 3. Stock costs. 4. Labour hours per $10,000 purchases. 5. Time to answer customer complaints. 6. Cost of rush shipments. REPORT NO.: WD-14-94 PAGE 12 3.12.8 Council Meetings 1. Time spent by delegations. 2. Time spent making speeches rather than asking questions. 3. Time spent reading by-laws. 4. Number of items referred for a report that could be handled by a memo. 3.13 Training Training of staff on Total Quality Management was started in the fall of 1993. Each Tuesday morning following a Council meeting, the department heads and managers meet to review the Council Meeting and to discuss items of concern to the group. As of March 1, the Department Heads and Managers will have viewed the video "Paradigms", and volume 1 and 2 of the videos on Total Quality Management. The training will develop over time as it is a continual process. 3.14 Success Depends on Involvement by Council One of the fundamental principles of Total Quality Management is that the entire organization must participate. In our environment, this means that it is not sufficient for Council to only endorse the training of staff in Total Quality Management; Council must be a participant 'and indeed provide some leadership. REPORT NO.: FTD-14-94 PAGE i!3 3.15 Clarinaton Hydro Commission and Clarinqton Library On the assumption that we will be proceeding with a training program in 1994 on Total Quality Management, it is suggested that Council and the Management of Clarington Hydro .and the Clarington Libraries be offered the opportunity to participate in our program. Respectfully submitted, Recommended for presentation to the Committee, Walter A. Evans, P.Eng. Director of Public Works WAE*ph February 11, 1994 Attachments Mr. David Clarke Manager Clarington Hydro Box 130 2849 Hwy #2 at Lambs Road Bowmanville, ON L1C 3K9 Barbara Baker Director Clarington Public Library Bowmanville Branch 62 Temperance Street Bowmanville, ON L1C 3A8 atgr"ie Marano, H.B.Sc., AMCT Acting Chief Administrative Officer SCIIEDUL6 "A" DEPAK'I'MENTS # 1.'OSI'1'IONS ~~ 1-I'U13L[C 11`OKI:S SG 2-COMA4UNI'I'Y SEKVICES 31 3-PLANNING 4-T'INANCE-GENERAL S-CLEKICS 6-ADMIN/COUNCIL, 7-FI KE-GENERAL B-TOTAL 8-COMPUTER- (COKP.&GIS) 9-UNCLASSIFIEll ('CQM) 10-b1AY0 K 11-COUNCIL($1,000 EACH) 31 20 J 4 23 174 CONF/CONY STAFF TRAINING OBJECT' #231 OBJECT' #233 P 100/I'OST'PION nx (x)$150/POSITION r . 45,600 $8,460 3,100 3,100 2,000 'I00 400 2,300 17,40(1 4,650 4,650 3,000 1,350 600 3,450 26,100 13,000 15,000$ 2,500 6,000 TOTAL 4.14,000 7,750 7,750 5,000 2,250 1,000 5,750 43,5011 13,000 15,000 2,500 6,000 TOTAL 174 $25,;00 $54,100 $80,Ot10 ~ A focus ou ToL31 Quality Managewent (T.Q.M.) training and initiative was a reconuuendation from the Chait Report and the Mayor's Task Force which was endorsed by the Mayor and Members of Council. It is therefore included in the budget for consideration of in-house seminars to all management staff. The T.Q.M. courses offered by Durham College consist of several units and it is therefore anticipated that complete training in this area will span a few years. NO"['L~ _ ere may be Bowe overlap between Staff training and conferences and conventions; i.e. some cor.:Icrenc:; :may oe tailored to workshops etc. which may ultimately be allocated through the Staff Training account at the discretion of the Department Head. ATTACHMENT N0. 1 WD-14-94 The Bureau for Excellence in Durham Region (BEDR) is anon-profit regional initiative to promote total quality commitment in all endeavours including manufacturing and service industries, educational institutions, local government, health care, agriculture, retail and tourism. TQC is a way of doing business which results in continuous, permanent improvement and innovation through: • The absolute and unwavering commitment of business leaders to the principles of total quality. • Improved work systems involving the principles of statistical process control, systematic problem solving and enhanced personal interaction. • Capitalizing on the benefits of involving knowledgeable employees in problem solving and process improvement. • Enhanced customer service by knowing and satisfying customer requirements in all aspects. The financial leverage of supplying a product or service to the customer's requirement on time, every time, is greatly underestimated. The cost of not doing things right the first time i.e. scrap, rework, delays etc. has been estimated at 20% to 40% cost of sales. In addition, customers subjected to inadequate product or service quality do not hesitate in taking their business elsewhere. Quality is what the customers say it is. In today's emphasis of consistency of performance customers will remain loyal to a supplier who understands their needs and satisfies their demands. • Elimination of waste and rework. • Increased productivity, profitability and competitiveness. • Improved customer satisfaction. • Increased product quality and service value. • Market share growth. • Ability to compete internationally. • Amore skilled workforce. • Enhanced managemenUiabour relations. • Economic and employment stability and growth. • High employee morale and job satisfaction. • Lower turnover rates. • Create an environment conducive to new business and investment. Create value added business and jobs in Durham Region through raised awareness of and proficiency in Total Quality Commitment; and establish Durham Region as a community where business, labour, government, education and other organizations are committed to the development of high quality products and services, which constantly meet or exceed customer expectations. A number of working Task Groups drive the BEDR initiatives. The Task Groups report to the Board of Directors. They are comprised of Board members, the Executive Director and individuals within the community. The Task Groups established to date are: • Membership, and Marketing • Finance • Education and Training • Programs • Awards and Recognition • Audit and Evaluation WD-14-94 ATTACHMENT N0. 2 BEDR's services are built to meet client needs. Their delivery is Flexible with regard to format, location and time. BEDR realizes that providing quality service to its members, establishing partnerships and commitment are key to its success. Typical examples of sources and products offered by BEDR are; An overview of a concept or program in a lecture format; • Basic TOC concepts. • Profiles of organizations implementing TOC. • Panels on the evolution of TOC. • Using TOC tools in administrative processes. "Hands on" interaction for groups of up to 40 people; • Conducting surveys to measure quality. • Measuring employee perceptions and attitudes toward TOC. • Developing systems thinking. • Statistical tools such as SPC, FMEA, OFD, DOE. •. Group skillsJteam building/leadership training. • Project implementation. • Just-In-Time. • Benchmarking. • Worker satisfaction. Highlight one organization's implementation efforts; • Old style management vs. new style management. • Getting a new team started. • Removing obstacles to team success. • Management planning tools. • Keeping a team on track. Co-sponsored with another group(s) such as an educational institution; • TOC in the educational system. • New TOC technology. • TOC in health care, retail, tourism etc. Awards and recognition day. ~" Nettivorlt D~rec, ow4 w To facilitate the ability of members to make connections with each other. The directory comprises: • List of organization members. • Primary contact within organizations. • Types of. skills, special interests and information that members have and are willing to share. • Specific TOC methods used. To provide group support and an opportunity to exchange information. More specifically, the network will be used for the following purposes: • To allow members to meet other users and find out what's working, what's not and why. • A source of information on both employee and product quality improvement through videos, speakers and information exchange among members. • A forum to maintain enthusiasm for TOC. • An opportunity to learn about training and other available resources. • A chance to meet with CEOs and managers implementing TOC. • Mutual support, validation of resource effectiveness, latest news in the field. • Idea resource, encouragement, sounding board and advice. • To assist organizations in the implementation of TOC. • Screened to meet the needs of the client. Distributed quarterly. Promotes the sharing of resources to assist in avoiding a duplication of efforts. The publication includes a calendar of TOC events and features on local organizations implementing TOC. BEDR's focus is in providing this information for their paid members, but realizes that increasing awareness is crucial to its success. The newsletter reaches 500 companies that are not members but are prospects for TOC service. Training resources, videos, books, standards and research are available for members' use. Dedicated areas are established for health care, labour, education, government, manufacturing, service sectors, and a database of the effort! of community quality centres are maintained to provide an opportunity for interchange among groups of mutual interest. Access to information and resources are unlimited on awalk-in-basis, and viewed as value-added service for members of BEDR. A small conference room is available for use of client groups. Acts as an information clearinghouse, providing general information about BEDR, but more importantly, transfer them to an appropriate TOC resource person. The 1-800 number provides information about TOC services and activities, and also offer more detailed assistance to clients. Available to new members to facilitate their understanding and use of BEDR's services. ~.. BEDR is governed by a Board of Directors. The day to day management of BEDR is undertaken by an Executive Director who reports directly to the Board of Directors. The Board whose composition reflects the diversity of Durham Region, provides active leadership and the support necessary to facilitate and promote total quality within the community. Mr. Terry Bainbridge Community Area Manager Bank of Montreal Mr. Tim Boylin Director of Human Resources Dowry Aerospace Mr. Larry Cann Business Manager UA Local 463, Oshawa Ms. Sue Hillebrand Sr. Tax Manager Deloitte & Touche Mr. David Home President Oshawa General Hospital Mr. Peter LeBel Director of Economic Development Town of Whitby Ms. Elizabeth Barton CEO Whitby General Hospital Mr. John Brown Superintendent of Education Durham Region Roman Catholic Separate School Board Mr. Alex Mackenzie Business Development Manager Andrew Antenna Mr. loe Mulcahy President J. Mulcahy Enterprises Inc. (Chairperson of BEDR) Mr. Pat Olive Commissioner of Economic Dev. Durham Region Mr. Bob Richardson Manager Hardiman, Mount & Richardson Mr. Nigel Schilling Schilling & Evans Barristers & Solicitors Ms. Bev Tumer Vice President Durham College Access & Skills Mr. Allan McPhail Community Representative Mr. Mike J. Nichols Director, Nuclear Operations Eastern Division Mr Warren Clark Manager, Quality Support Office General Motors of Canada Mr. Doug Holtby Vice President CoSteel/Lasco Ms. Pauline Laing Director of Education Durham Board of Education Mr. Bob Lytwynchuck Vice President Machines & Tools Products Dr Richard Hadden Executive Director, BEDR Mr. Doug Radford Division 15 Chairperson COPE Local 1000 Ontario Hydro Mr. Jim Rickard Vice President Ceresmore Farms Ltd. Mr. Stan Titan President Dynex Engineering Inc. Ms. Joan Wideman T.Q. Customer Service Manager Lenbrook Industries Ltd. Mr. Tim Whittaker Publisher Oshawa/Whitby This Week BEDR has established, a number of goals by which it will fulfill its Mission: • Promote the principles of TQC throughout Durham Region, including business, industry, non-profit organizations, local government, and para-public organizations. • Help community enterprises further enhance their internal cultures to TQC. • Assist the region's industries acquire, adapt and develop TQC technology and skills through training and educational opportunities. • Consult with the private and public sectors to provide the most current and appropriate information in the techniques and principles of TQC. • Identify strategies that will assist organizations and the people within them in the implementation of TQC. • Increase the productivity and competitiveness of the region's business and industry, thus creating economic growth, employment opportunities and attracting new business and development. • Provide a network for exchange of information between Durham Region's community organizations and with other communities through linkage with The National Quality Institute. • Assist companies to achieve specific standards to allow them to qualify as suppliers and to work with para-public organizations and the regional and municipal governments to achieve specific standards. • Work with economic development mechanisms to promote economic growth for the region. • Liaise with the Federal, Provincial and Regional Federations of Labour to coordinate TQC initiatives. • Establish Durham Region as a community with superior labour relations. • Act as a catalyst to advocate and support the educational system to adopt the teaching of quality concepts and principles into its curriculums. • Support initiatives at the legislative level aimed at supporting TQC education and training. • Partner with all components of the community. • Establish Durham Region as the paramount example of a TQC community which leads the nation. . ~ ~~ ~ MEMBERSHIP lvlembership in BEDR is available to any individual or organization which conducts or promotes an dperation in Durham Region and who have an expressed interest in the commitment to Total Quality as a means to improving competitiveness through the continuous improvement of their products and services. Organizations within the Durham Region who are a member of their local Chamber of Commerce, Board of Trade, DRMA or DRACT receive a 20% reduction on BEDR fees. The Membership Categories available to Companies and Organizations are: Charter Member: $4,000./year on a 4 year commitment ' The benefits of a Charter Membership are: • Special recognition as a charter member eg. identified in BEDR publications • 2 complimentary tickets to all BEDR sponsored events • Additional 10% discount on member rates for programs, products and service • Free TQC introduction and assessment • Referral of TQC consultants and speakers • Free, unlimited use of video/library resources • Monthly network meetings • Registry of companies and company contacts implementing TQC • Use of TQC resource directory • Telephone consultation with BEDR staff • BEDR quarterly newsletter • Monthly network meetings • Registry of companies and company contacts implementing TQC • Use of TQC resource directory • Telephone consultation with BEDR staff • BEDR quarterly newsletter Membership Categories available to Individuals are: Individual Member: $75./year This category of membership is available to individuals who are not associated with an organization or who wish to participate for their own personal benefit. The benefits of an individual cannot be transferred to an orgahization. An Individual Member receives the following benefits: • Member rate for all BEDR sponsored events • Access to all BEDR mailings and literature • Telephone consultation with BEDR staff • BEDR quarterly newsletter Annual Member: $450./year The benefits of an Annual Member are: • Member rate for all BEDR seminars and sponsored events • Free 7QC indoctrination and assessment • Referral of TQC consultants and speakers • Free, unlimited use of video/library resources Student: (full- time) $50./year A Student Member receives the following benefits: • Member rate for all BEDR sponsored events • Access to all BEDR mailings and literature • Telephone consultation with BEDR staff • BEDR quarterly newsletter • On-site use of video/library resources BEDR MEMBERSHIP ENROLLMENT FORM Please complete this form and forward with your cheque to Bureau for Excellence in Durham Region. Company Name Business Address Mailing Address (if different from above) Nature of Business No. of Employees Key Contacts (Name & Tdle) Telephone Number Fax Number TYPE OF MEMBERSHIP ^ CHARTER ^ ANNUAL ^ INDIVIDUAL ^ STUDENT Please forward completed form with cheque to: Bureau for Excellence in Durham Region: c/o Durham College, Whitby Campus , 1610 Chaplain Ave., Whitby, Ontario L1N 6A7