To prepare for this essay please read the required articles that is attached then answer the
following questions:
How important is the concept of ‘goal translation’ in the methodology of continuous improvement used
at STM?
Could this approach be applied effectively in your own company or another organisation you know
well? Explain your answers with examples.
Also,
1) The answer must raise appropriate critical questions.
2) Do include all your references, as per the Harvard Referencing System,
3) Please don�t use Wikipedia web site.
4) I need examples from peer reviewed articles or researches.
5) Turnitin.com copy percentage must be 10% or less.
TQM W8 DISC 2
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ST Microelectronics (STM) is an international semiconductor firm that is involved in
designing, developing, making and marketing an extensive variety of integrated circuits as
well as discrete devices for many microelectronic applications. In the methodology of
continuous improvement, the idea of goal translation utilized at ST Microelectronics is very
important as it enabled corporate goals and objectives to be cascaded into local goals. This
concept allowed goals to be transmitted systematically from the top level of the organization
to the bottom level in order to provide focus, alignment, as well as clarity direction (Oakland
2012).
The process of policy deployment allowed STM’s organizational goals to be cascaded
into local goals that were not just realistic, but also challenging. It is notable that the training
programs which entailed 50 hours for each member of staff annually ensured that STM’s staff
members actually possessed the relevant abilities and expertise to espouse the corporate goals
and then translate those particular into local action plans (Oakland 2012). STM’s
management recognized accomplishment and success at international, national, and even
local levels. Moreover, the management made major efforts to collapse the walls between
different divisions of the company and establish an environment wherein cross-fertilization
was adopted and encouraged actively throughout the organization, until it truly became a
routine.
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Policy deployment is essentially the main approach that the management of STM
employed in making TQM a way of life at the firm instead of something added to operational
management. In the policy of STM, policy deployment is seen as the way of translating the
strategies, objectives, and vision of the company into concrete specific plans, goals, as well as
actions at the operative level. A policy deployment manual was developed as an operative
and methodological user guide for the managers who are in charge of planning and attaining
major improvement goals. In depth explanations, examples, as well as descriptions of
forms/tools were included inside the manual.
Policy deployment at STM operates at 2 levels: Level One is continuous focused
improvement; and Level Two is strategic breakthrough. The annual plan is designed by
developing the budget plan and improvement plan, and bearing in mind the investment plan.
Each of these components has to be both coherent and consistent (Ebrahimi & Sadeghi 2013).
Corporate result goals and objectives of the current year are stated in the budget and the
fundamental capability and operations improvement goals are approached with the use of
policy deployment. Amongst the improvement goals, 2 or 3 of them are chosen per year for a
more rigorous and careful management. In essence, these few improvement goals are the
breakthrough goals that have to be managed with the use of special techniques and attention.
It is worth mentioning that policy deployment goals must be in agreement with long-lasting
policies. In addition, everything has to be in agreement with and should be supported by the
investment plan (Oakland 2012).
At STM, continuously improving capabilities and performance, and particularly
attaining breakthroughs – that is, significant improvements in short periods of time – was in
fact the major undertaking that all managers had to face and perform in their functions. After
the significance of accomplishing major goals and objectives was apparent, the problem came
up of how to recognize those goals and then prioritize them. STM’s management fixed 4
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long-lasting policies – generic and broad objectives which are as follows: (i) to be amongst
the best 3 suppliers in quality; (ii) to be number 1 supplier in service; (iii) to be the leader in
TQM in the West; and (iv) to possess top-notch manufacturing capabilities. These 4 policies
reveal the need for improving strategic capabilities and were put into practice gradually by
accomplishing sequential shorter-term objectives that were focused on operational
performance and capabilities, as well as urgent requirements.
The annual plan consisted of all the performances and goals which STM had to
achieve in the year. Management control, through the budget, managed goals that were
related to loss and profit, sales volume, expenditures, standard costs, and inventories.
Nonetheless, to be increasingly competitive, goals that were harder to achieve had to be
recognized every twelve months. These goals constituted the improvement plan and
necessitated special management using a particular strategy, that is policy deployment,
wherein a policy could be described in full as the combination of targets/goals and means. It
is notable that policy deployment is applicable to (i) the how goals – those related to
organizational, technological, behavioural, and operational facets. Largely process oriented;
and (ii) the what goals – those that are largely results oriented. Every level of the firm has to
carry out its own Hows and Whats deployment (Oakland 2012).
In STM, the senior management believes that for the company to be a total quality
firm, goals, values, philosophy, and strategy have to be conveyed down the firm, from one
level to another in a manner that is systematic so as to give focus, clarity direction, as well as
alignment. At STM, policy deployment is actually the process by which corporate goals and
actions plans for achieving those goals consistent with and in support of the top-level
organizational objectives, mission, and strategic guidelines, are cascaded to every of the
company. Successful policy deployment makes sure that the goals and action plans of ST
Microelectronics are aligned from corporate level at the top, to the group level in the middle,
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and to the division level at the bottom. In essence, the goal cascade entails a decomposition at
all levels to reach comprehensive goals which are readily obtainable.
The approach used by STM could be applied effectively in my own company or
another organization. For instance, by using the process of policy deployment, the corporate
goals of my company could be cascaded into challenging but realistic local goals (Kumar et
al. 2009). My company can provide adequate training to its employees as this will ensure that
all employees have the essential proficiencies and abilities to adopt the corporate goals and
then translate them into local action plans. Cascading the goals at my company would involve
a decomposition at all levels in order to reach detailed goals which can be obtained readily
(Wiengarten et al. 2013). The company can use the x-matrix during the decomposition
process and fix ownership for the detailed goals.
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References
Ebrahimi, M, & Sadeghi, M 2013, ‘Quality management and performance: An annotated
review’, International Journal Of Production Research, 51, 18, pp. 5625-5643,
Business Source Complete, EBSCOhost, viewed 8 May 2015.
Kumar, U, Kumar, V, de Grosbois, D, & Choisne, F 2009, ‘Continuous improvement of
performance measurement by TQM adopters’, Total Quality Management &
Business Excellence, 20, 6, pp. 603-616, Hospitality & Tourism Complete,
EBSCOhost, viewed 8 May 2015.
Oakland, JS 2012, TQM: Text with cases. London, England: Business & Economics.
Wiengarten, F, Fynes, B, Cheng, E, & Chavez, R 2013, ‘Taking an innovative approach to
quality practices: exploring the importance of a company’s innovativeness on the
success of TQM practices’, International Journal Of Production Research, 51, 10,
pp. 3055-3074, Business Source Complete, EBSCOhost, viewed 8 May 2015.
