Adopting Quality Management for Business Success

Abstract

Many organizations are taking advantage of Quality Management methodologies (such

as Six Sigma®) to improve productivity, efficiency, and customer satisfaction. These

methodologies require employees to perform set tasks and adhere to structured processes,

involving changes to work habits that can sometimes be disruptive to organizations.

Familiar, integrated IT tools can streamline Quality Management tasks and reduce user

resistance, enabling organizations to get the maximum benefit from Quality Management

techniques at lower risk. Microsoft delivers an integrated portfolio of offerings to address

the challenges of Quality Management with the benefits of familiarity, ease of integration,

and flexibility.
 Table of Contents

Executive Overview .......................................................................... 3

Quality Management at a Glance .................................................... 4

The Customer: ................................................................................................... 4
Microsoft Solution: ............................................................................................. 4
Microsoft Differentiators .................................................................................... 4
Evidence ............................................................................................................4

The Role of Quality Management in Business Today ................... 4

Quality Management Methodologies .............................................. 5

Pains for Companies Implementing a Quality

Management Methodology .............................................................. 6

Technology Facilitates Program Adoption..................................... 7

Technology’s role in Improving Performance ..................................................... 7
Define Strategic Goals ................................................................................... 7
Review and Analyze ...................................................................................... 7
Assess and Optimize ..................................................................................... 7

Market Overview ............................................................................... 8

The Microsoft Quality Management Approach .............................. 8

The Microsoft Quality Management Portfolio ................................................ 9
Specific Benefits to Customers ........................................................................ 10
Implementing Microsoft’s Solution for Six Sigma ............................................. 11
Defining Needs with Implementation Partners ............................................ 11
Business Process Design ............................................................................ 11
Training Participants .................................................................................... 11
Implementation ............................................................................................ 12
Deploying ..................................................................................................... 12
CASE STUDY: Six Sigma at Microsoft ........................................................ 12

Conclusion ...................................................................................... 13

EPM-PDL Vision Paper p. 2

Executive Overview
“Quality Management” refers to any systematic, data-driven approach that organizations use
to improve operations. Since the mid-1980s, a number of specific methodologies for Quality
Management have emerged, including Six Sigma,® ISO, TQM, and others (see sidebar on page
2 for an overview of these methodologies). Although Quality Management has been traditionally
associated with manufacturing or IT, the philosophy of Quality Management delivers tangible
benefits to any process, such as greater cost-control, visibility, and alignment with strategic
objectives. Consequently, other industries and departmental groups, from marketing to customer
help desks, have adopted Quality Management techniques as organizations strive to meet the
challenges of increasing complexity and competition. Despite the promised benefits, however,
many organizations experience pain when implementing Quality Management processes due to
resistance to change, inadequate tools, and poor internal communication.

The spread of Quality Management across the business world has led to the development of
technologies to help organizations plan, track, and manage projects according to the specific
procedures set forth by their chosen methodology. Today, discrete project management tools are
coalescing into integrated portfolios of solutions to address Quality Management at all points in the
enterprise. Microsoft® is among those leading the way in this emerging market.

This paper will indicate how Microsoft’s Quality Management offering—specifically Microsoft’s Six
Sigma® Solution built on the Microsoft Office Enterprise Project Management Solution platform—
can help organizations overcome commonly experienced barriers to a successful implementation
through the use of Microsoft technology and methodology and help them to achieve maximum
benefit from their Quality Management initiatives.

This paper will:

• Provide a brief overview of the Quality Management process and identify common
Quality Management practices
• Identify the overall goals and pains of customers who implement Quality
Management methodologies
• Identify areas where information technology (IT) can reduce pains and improve
practices
• Compare various IT approaches to Quality Management in the enterprise
• Present the benefits and features of Microsoft’s Quality Management offering
• Demonstrate Microsoft’s own experience in implementing Six Sigma Quality
Management processes in its Operations Technology Group (OTG) as a case study
of a successful deployment

EPM-PDL Vision Paper p. 3

Quality Management at a Glance
The Customer
• Fortune 500 or Global 500 (large enterprise)
• Decision maker: C-level, VP, or Senior Director in charge of Quality Management
• Customer benefits: cost control, quality assurance, executive visibility into management
processes, consistent project management across enterprise
• Customer pains: cost and complexity of implementation, lack of user acceptance,
limitations of technology tools, lack of integrated solution
Microsoft Solution
• Enterprise Project Management platform
• Microsoft® Office Solution Accelerator for Six Sigma®
• Microsoft® Windows SharePoint™ Services
• Microsoft® BizTalk® Server
• Microsoft® Office System 2003
Microsoft Differentiators
• Simplified automation of Quality Management tasks
• Familiar software tools to speed implementation
• Improved communication and collaboration tools for Quality Management
• Integration and flexibility of technology for ease of management
• Ability to leverage current investment
Evidence
• Microsoft Operations Technology Group (OTG)
• Dr. Reddy’s Laboratories
http://www.microsoft.com/resources/casestudies/CaseStudy.asp?CaseStudyID=15139
• More information on the Microsoft Enterprise Project Management platform at
http://office.microsoft.com/en-us/FX010857951033.aspx
• More information on the Microsoft Office Solution Accelerator for Six Sigma at
http://newmarkets/SixSigmaAccelerator/default.aspx

The Role of Quality Management in Business Today

The implementation of Quality Management systems is shown to dramatically improve the
performance of organizations. In the United States, the Malcolm Baldrige National Quality Award is
the highest honor for performance excellence. Studies by the National Institute of Standards and
Technology (NIST) and the U.S. General Accounting Office have found that investing in quality
principles and performance excellence pays off in increased productivity, satisfied employees and

1
“Selecting the Right PDA Technology and Avoiding ‘Tool Hype’,” Product Development & Management Association 2003 sponsor insert,
January 2004

EPM-PDL Vision Paper p. 4

customers, and improved profitability—both for customers and investors.
For example, NIST has tracked a hypothetical stock investment in Baldrige
Quality Management
Award winners and Baldrige award applicants. The studies have shown Methodologies
that companies who adopt systematic approaches to Quality Management
• Malcolm Baldrige
soundly outperform the Standard & Poor’s 500. Provides a set of criteria
to improve performance
by focusing on two goals:
delivering ever-improving
Organizations have recognized the value of Quality Management initiatives value to customers and
improving the organization’s
as a means of staying competitive and driving revenues; and a multitude of overall performance.

Quality Management programs have been developed and implemented by • LEAN Employs tools
and techniques to satisfy
organizations around the world. customers by identifying and
optimizing processes that
develop and deliver products
to the customer.
While the concept behind Six Sigma has stayed fundamentally the same
since Motorola pioneered the methodology in 1986, the methods and • Total Quality Management
(TQM) Improves quality
technologies used to administer Six Sigma and other Quality Management by teaching managers
and workers to eliminate
initiatives have evolved from ad-hoc processes developed by individuals waste and bureaucracy,
save money, and make
and small factions focused on quality to a highly integrated set of tools resources available for the
specific activities that satisfy
and systems developed to manage performance across multi-national customers.

corporations. • Balanced Scorecard

Extends the key concepts
of TQM, including
customer-defined quality,
continuous improvement,
Quality Management Methodologies employee empowerment,
and measurement-based
There are many Quality Management methodologies in wide use today. Each management and feedback.

methodology may indicate a different measure of success, be motivated by • ISO 9000 A family of
international industry
unique drivers, or apply to broader or narrower functional business units. standards that helps
enterprises—typically IT
For example, many methodologies, including Six Sigma and variations on organizations—improve
their performance with
Six Sigma, are driven by customers’ expectations. Six Sigma is a term that a framework for building
a Quality Management
refers to measuring the standard deviation from the mean. For example, a system. Primarily develops
repeatability and consistency
Six Sigma performance with regard to product quality would mean delivering for doing the same job the
to the customer a perfect, defect-free product, 3.4 times out of one million. same way every time.

While ISO 9000 also prescribes to delivering high quality to the customer, it • Six Sigma A customer
driven, five-step quality
makes the additional demand of achieving optimal operational performance methodology to: define
opportunities, measure
in adhering to regulatory requirements. These methodologies also differ in performance, analyze
opportunities, improve
their scope: ISO 9000 criteria, for example, only encompassed 10 percent of performance, and control
performance that aims to
the criteria that the Malcolm Baldrige Quality criteria measures. minimize defects in new
and existing products and
services. .
Despite the differences in these methodologies, each has the ultimate goal
of improving performance and quality and, therefore, shares steps commonly

EPM-PDL Vision Paper p. 5

found in the Six Sigma methodology. These include:
• Defining strategic goals: This will typically set the stage for measurement of
organizational objectives.
• Reviewing and analyzing: Once goals and optimal measurements have been defined,
the organization must conduct a continual review and analysis of performance data and
measurements. This analysis will indicate where opportunities for improvement lie in the
overall organizational process.
• Assessing and optimizing: As new projects are funneled into the improvement cycle,
the organization must then continue to review performance and create a plan of action for
maintaining optimal performance.

Pains for Companies Implementing a Quality Management

Methodology
Many of these common pain points can be addressed by the use and implementation
of the right tools. In a project that incorporates multiple business units, requires a change in
employees’ day-to-day task list, mandates usage of new tools and systems, and requires complex
communication between all members, there are many points at which an implementation can break
down. It is crucial that Quality Management professionals, team members, and executives have
tools that help, rather than hinder, a successful Quality Management implementation.

Common Pain Points Technology Tools to Reduce Pain

• Resistance to organizational change • Use of familiar, widely-adopted tools
reduces learning curve and increases user
adoption.

• Visualization and diagramming tools allow

for easy display of complex processes and
data.
• Data aggregation challenges Technologies and tools that are easily
integrated can serve as the basis for an
enterprise-wide Quality Management platform,
streamlining processes and ensuring data
integrity as it moves across an organization
• Inflexible tools • Tools that provide a methodology framework
while allowing users to customize them as
needed help teams drive efficiencies within
their own projects.
• Poor communication • Collaborative tools that can be used within
the context of the process and integrate with
back-end systems and a centralized project
server can enhance communication across the
enterprise.

EPM-PDL Vision Paper p. 6

Technology Facilitates Program Adoption
Quality Management initiatives often fail because of poor user adoption. For this reason, customers
investing heavily in the implementation of Quality Management initiatives should pay special
attention to these key issues to maximize their chances for success:
• Familiarity: Smooth the path to success by letting end-users work with the tools they use
every day.
• Integration: Integrate technologies by design to enable content authoring, communication
and collaboration, and process management across the entire enterprise.
• Leverageable investments: Look to leverage current investment in technology, support,
and user expertise to speed and simplify the implementation of Quality Management
initiatives for fast return on investment (ROI).

Technology’s Role in Improving Performance

The effective use of technology can enable the rapid, cohesive, and consistent deployment and
administration of any Quality Management initiative. From the initial stages of defining process
requirements to the final stages of optimization and maintenance, technology plays a key role in
any Quality Management initiative.

Define Strategic Goals

The initial planning and requirement definition stages necessitate the alignment of business
processes with critical quality/customer requirements. Visualization and graphical tools help map
processes and work flows and create data analysis graphics.

Teams and leaders can use knowledge management and authoring tools to develop and document
program guidelines, then track the project status using a Project Management tool and applications.

Review and Analyze

Establishing a performance baseline requires gathering and analyzing existing performance data,
using statistical analysis tools, such as Minitab, to identify input, process, and output indicators.
Data analysis tools can also identify root causes of sub-standard performance.

Assess and Optimize

Performance evaluation is an ongoing process, where the results feed back into the process to
drive improvements. Potential process improvements can be modeled with process mapping or
diagramming tools. Graphic tools help team members visualize process possibilities.

2
“What Ails the Pharmaceutical Market?” October, 2003

EPM-PDL Vision Paper p. 7

As team members arrive at solutions, they must communicate and gain support of their
recommended quality solutions from stakeholders using visualization and presentation tools.

Process mapping tools can identify the best ways to integrate improvements into daily work
processes. Best practices can be developed and documented using knowledge management tools,
then disseminated through the organization via portals, team workspaces, and structured and ad-
hoc collaboration technologies. This communication and collaboration infrastructure can also be
used for training, team evaluation, and communicating standards and procedures for continued
success.

Market Overview
Most software offerings are designed specifically for a single Quality Management methodology.
While the market for Quality Management technology covers multiple methodologies, the scope
and capabilities of vendors offering Six Sigma solutions is representative of the whole. Six Sigma
offerings currently available include both consultative and software solutions designed to support
Six Sigma and other Quality Management initiatives. These specialized software tools often
require training and ramp-up time for team members, with associated risks, costs, and
delays that can lengthen time to ROI and endanger the overall project success.

Proprietary, methodology-specific tools also increase the complexity by adding yet another
application or program that must be accessed throughout the workday. And because these tools are
often highly customized, they may not integrate well with the productivity applications in general
use.

Many of the leading Quality Management tools are offered by privately-held, mid-sized companies
that may lack the resources, track record, and stability that guarantee successful quality initiatives.
This introduces further risks in terms of future support and investment protection for
customers.

The Microsoft Quality Management Approach

Microsoft’s Quality Management approach addresses organizations’ pain points through a
combination of learning and training tools, collaboration tools, and metrics tracking tools for project
managers, team members, and management involved in Quality Management endeavors. Microsoft
arrived at this approach by consulting with corporations that have implemented Six Sigma and
incorporating key findings from its own experience implementing Six Sigma processes.

EPM-PDL Vision Paper p. 8

By adapting widely-used information worker productivity tools to the strict
discipline of Quality Management methodologies (including, but not limited to, Microsoft Quality
Management
Six Sigma), Microsoft’s approach promises several important differentiating
Products
benefits from competitive offerings:
Microsoft® Office Suite
Excel macros can be used
to customize statistical tools.
• Simplified processes: Microsoft’s integrated set of products speed Microsoft® Visio® lets Six
Sigma practitioners create
and simplify many typical Quality Management tasks, from data templates and visualize
key data and information.
analysis and visualization to reporting to cost assessment. Its diagramming and
smart capabilities permit
• Ease and speed of adoption: The use of familiar Microsoft products customization and flexibility
in views. Presentation and
allows users to quickly leverage their current skills and expertise in documentation templates can
the new context of Quality Management processes. be standardized throughout an
enterprise.
• Better communication: Microsoft products integrate powerful
Microsoft ® Office Enterprise
communication and collaboration technologies into the entire platform, Project Management
(EPM) EPM is implemented
making it contextual and intuitive to share information among team as the project and portfolio
management platform.
members as part of the workflow process or as a way to resolve
Microsoft® Windows
questions and problems more quickly. SharePoint™ Services
This collaborative document
management service provided
through the Windows 2003
The Microsoft Quality Management Portfolio operating system can enhance
the enterprise-wide adoption
Microsoft products serve as an integrated toolset that supports any Quality of the initiative through
Management task. The Microsoft Office Solution Accelerator for Six Sigma improved access to project
documentation and data to
functions as a framework for implementing and managing a Six Sigma Quality enhance Quality Management
project lead effectiveness.
Management initiative and touches the process at these key points:
Microsoft® BizTalk® Server
This server lets all practitioners
share and transfer information
• Information management: The information management, workflow, between the Six Sigma
system and other enterprise
communication, and project management functions of a Quality applications, such as financial
management software, to
Management initiative support Quality Management professionals in facilitate communication,
process, and work flow.
their management of data-driven projects.
Microsoft Office Solution
• Data sharing across the enterprise: Microsoft Project, Sharepoint, Accelerator for Six
BizTalk, and Office integrate smoothly to serve as an organization- Sigma Provides a reliable
methodology framework from
wide Quality Management platform. a stable and established
software company Based upon
• Data mining and reporting: Because the Microsoft Quality the Microsoft Project user
experience, helps Six Sigma
Management approach is built upon integrated products and adopters avoid the change
management issues that come
technologies, data mining and reporting becomes a simple task of with the introduction of new,
proprietary software.
exporting data from back office HR and financial systems to integrated
presentation applications like Visio and PowerPoint and storage and
formatting tools like Excel and Word.

EPM-PDL Vision Paper p. 9

The Microsoft Office Solution Accelerator for Six Sigma
To successfully deploy the Microsoft Accelerator for Six Sigma , partners and IT implementers first
implement the Enterprise Project Management solution. Deploying the Accelerator for Six Sigma
requires just a few additional steps:
• Granting access rights to individuals
• Ensuring that the correct set of users have Microsoft Project Professional installed on their
systems
• Ensuring users know how to connect to the Six Sigma project.

Once deployed, the Microsoft Office Solution Accelerator for Six Sigma helps relieve the
complexities and expenses associated with Six Sigma rollouts by:
• Accurately reflecting the financial impact of projects
• Optimizing Six Sigma resources
• Integrating Microsoft Office and other collaboration tools with Six Sigma methodologies
• Leveraging knowledge and data gathered across the enterprise

By integrating common Microsoft collaboration tools with back-end systems through the Microsoft
Office Solution Accelerator for Six Sigma , the Microsoft approach to Quality Management delivers
a stack of tools and technologies that help organizations quickly reap the benefit of applying these
technologies to a quality improvement methodology.

Specific Benefits to Customers

Because Microsoft’s approach to Quality Management is built around common tools and platforms
adapted to work within a specific Quality Management methodology, Microsoft can promise many
compelling benefits for business decision-makers, end-users, and IT. These include:
• Faster ROI because of ease and speed of implementation, familiarity of tools, and
integration of products.
• Reduced risk of user resistance because many users are already comfortable and
familiar with Microsoft products.
• Reduced training and support costs because end-users and IT can leverage their
existing skills with Microsoft products.
• More productive communication within and between groups because of the powerful
communication and collaboration technologies built into Microsoft products.
• Reduced cost and complexity across the enterprise because Microsoft products
provide a consistent platform and a consistent set of tools for Quality Management,

EPM-PDL Vision Paper p. 10

 regardless of the business or operational setting.
• Greater personal and organizational productivity because Microsoft tools are built to
speed up and simplify Quality Management tasks and are flexible enough to be customized
to maximize each user’s experience according to their work habits.
• Better management of process workflow using the visual process management tool that
enables hyperlinks, smart shapes, and smart tags to be customized and updated real-time.

Implementing Microsoft’s Solution for Six Sigma

The implementation of the Microsoft Office Solution Accelerator for Six Sigma can be broken down
into five key steps:
1. Defining needs with implementation partners
2. Designing business process
3. Training participants
4. Implementing the methodology
5. Deploying the technology

Defining Needs with Implementation Partners

Partners for the Microsoft Office Solution Accelerator for Six Sigma include Microsoft Enterprise
Project Management Solution consulting partners, super-regional and regional Microsoft Project
partners, Six Sigma consultancies, and specialized partners dedicated to vertical industries, such
as manufacturing, health care, and financial services. These consultancies will help customers
identify needs and assist in the planning and building of the IT infrastructure to support the Quality
Management initiative.

Designing Business Process

The initial stages of any Quality Management endeavor must include a rigorous process of defining
strategic objectives, processes and their owners, measurements of success, and criteria for project
selection. Because quality improvement is based on a solid understanding of current processes,
and recognizing the successful and unsuccessful components of the process, it is vital to invest
time mapping processes at the outset of the project to ensure success.

Training Participants
Participant training follows the business process design phase of the implementation. Project
participants must be trained on the chosen Quality Management methodology and philosophy and
Quality Management Project leads appointed. This training will also include ramping participants on
the technologies that will be used.

EPM-PDL Vision Paper p. 11

Implementing the Methodology
Upon completion of the “set-up” phases of business process management and training, the final
step is implementing the methodology. Each methodology will follow prescribed steps but will
generally include a combination of the following: measure performance, improve performance,
and control performance. Through a process of gaining insight into the success and failure of
workflows and providing a framework for analysis, the ultimate goal of the implementation is to give
stakeholders control over performance of projects and organizations.

Deploying the Technology

The first four steps will provide necessary inputs for planning the deployment and rollout of the
Microsoft technologies to support your Six Sigma initiative. Information gathered during these
phases, such as the number of planned users of the system, the types of reporting to be generated,
and the organizations’ plan for increased adoption, will contribute to deploying the application
infrastructure with appropriate hardware, networking capabilities, and architecture design to support
the environment.

CASE STUDY: Six Sigma at Microsoft

The Microsoft Operations and Technology Group (OTG) operates the company’s internal networks,
telecommunication systems, corporate servers, and line of business applications. The OTG
mission extends to testing advanced project management methods that can improve operational
efficiency within Microsoft and provide practical information crucial to development of new project
management software.

During the past two years, Microsoft OTG has implemented the Six Sigma management approach
and has begun to incorporate its methods and philosophy into the group’s projects. When properly
implemented, the Six Sigma approach can yield powerful business results. However, translating
Six Sigma methodologies into workable business processes can be a complex process. To
achieve better results with its Six Sigma program, OTG implemented the Microsoft Office Solution
Accelerator for Six Sigma .

To lead the implementation of this solution, Microsoft engaged Immedient, a Microsoft Gold
Certified Solution Provider. The Solution Accelerator for Six Sigma provided Immedient with a solid
foundation for their configuration of Microsoft Project, including a library of Six Sigma tools and
powerful enhancements tailored to the specific needs of OTG. The Solution Accelerator enabled
Immedient to deploy the solution in a timely and efficient manner with minimal risk.
Adopting the Microsoft Office Solution Accelerator for Six Sigma has enabled the OTG staff to

EPM-PDL Vision Paper p. 12

improve operational efficiency, deliver greater value to internal customers,
and gain better insight into the financial impact of OTG Six Sigma programs.
Microsoft plans to continue the Solution Accelerator deployment beyond OTG
to additional business divisions through 2004.

Conclusion
Adopting Quality Management practices can help organizations dramatically
improve their performance, customer satisfaction levels, and overall
competitiveness. Microsoft can bring those benefits within closer reach for
customers by helping to reduce the cultural and technological barriers that
contribute to the risks and costs of implementing and managing a Quality
Management methodology. The key pillars of Microsoft’s approach to Quality
Management are:
• Familiar, productive tools to speed user adoption and success.
• A consistent, easily managed platform to reduce the costs and
complexity across an enterprise and enable customers to leverage
current investments.
• Flexible products and solutions that fit specific Quality
Management processes with proven results, such as Microsoft’s own
Six Sigma implementation.

To find out more about Microsoft’s approach to Quality Management:

• URL for Microsoft Office Solution Accelerator for Six Sigma
http://newmarkets/SixSigmaAccelerator/default.aspx
• URL for information on the Microsoft Office Project 2003 Enteprise
Project Management Solution:
http://office.microsoft.com/en-us/FX010857951033.aspx

Six Sigma® is a registered trademark of Motorola.

EPM-PDL Vision Paper p. 13