Goal Translation Concept in Continuous Improvement Order Instructions: Note: To prepare for this essay please read the required articles that are 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 organization you know well? Explain your answers with examples.
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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.
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Note: To prepare for this essay please read the required articles that are attached
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Goal Translation Concept in Continuous Improvement Sample Answer
TQM W8 DISC
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.
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 a continuous focused improvement, and Level Two is a 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 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 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 losing 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, behavioral, and operational facets. Largely process oriented; and (ii) the what goals – those that are large 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 the corporate level at the top to the group level in the middle, 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.
Goal Translation Concept in Continuous Improvement 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.
