This company started the "Quality Process" in the late 1980's as part of the Corporate Plan objective to "improve quality and productivity". Initially this plan focused on creating an awareness on the workers of the quality concepts and philosophy, and training several teams on the basic tools. This effort, which had limited results, continued until 1991. At that time the company decided to contract MRI to evaluate the results.

After evaluating the process, we stressed the need for changes to provide for: a deeper review of the analysis and execution of activities; standardization of the methodology, tools and techniques; and a more precise vision based on focusing on customer satisfaction. In addition, the company agreed to work with all managers in the definition of their departments' missions, indicators and priority areas.

Improvement Teams

When weI started working with this company there were several teams, focused on different improvement activities, but without a structured methodology. Therefore, MRI started a massive training effort on the methodology for improvement--"Tools, Techniques and Methodology". This effort took approximately a year. We employed our vast experience in the utility industry to develop case studies and examples of utility related functions.

During this period twenty internal instructors were trained and certified on the new methodology, with the purpose of creating a multiplying effect within the company. By the end of that same year the company had

• seventy-one teams working on improvement activities that contributed towards the achievement of the corporate plan.
• a series of structures were established throughout the company to support the teams and build up their synergy:
• an organization to provide direction and follow-up of team activities was established.
• an Information Center was established within the Quality Department to collect, analyze, and publish information regarding the effectiveness of the teams, including their progress and results.

The responsibilities inherent to the process were also established at all different levels within the organization, from the executive level to team members. Guidelines for team presentations were also established, including a system to evaluate the projects and a team recognition process.

We also worked with the executive groups, training them on how to motivate the teams, review their presentations, and coordinate their activities. The results of the training started to show in 1994. A common language started to emerge throughout the company on the concepts and improvement methods, with noticeable changes in the analysis and execution of activities, and particularly on the focus on the internal and external customer.

Policy Deployment

Policy Deployment centered around the identification of priority areas for the districts, in order to align resources towards customer satisfaction, especially in the service delivery areas and customer service.

The strategy was to implement Policy Deployment in a phased approach, beginning with one district at the beginning of the year, and the others following through December. To accomplish this, all district managers be- came actively involved. The managers, who were responsible for all departments in the district, divided up into two teams: one group was responsible for analyzing the needs of the customers and actors that impact the business, and the other one, for identifying the problems and opportunities facing the company, and its strengths and weaknesses.

Towards the end of the second year, the first district had transformed its vision, long and short term plans into specific actions, which were being deployed. This district also established clear roles and responsibilities for each member of the organization.

The district also created a systematic and participatory process oriented towards district improvements, which aligned to corporate objectives and focused on the customer. The other districts continue with the process of analyzing and evaluating their priority areas, with the goal of deploying them.

Daily Management (Process Control)

Management decided to implement Daily Management to monitor and control the business processes in the districts. The strategy was to implement this phase of the program beginning with one district and having the other districts follow once results were evident.

We trained/ assisted the pilot district on:

• the methodology to select the most important processes,
• techniques to identify the customer needs (internal and external),
• the method to establish responsibilities,
• the development of indicators and targets
• the establishment of the follow-up system.

The pilot experience also served as a means for us to transfer the Daily Management methodology to the organization. Towards the end of the second year, the pilot district had implemented Daily Management in two of its most important units and the other districts were getting ready for its implementation.

Other Activities

In parallel with the training efforts and the introduction of TQM to the entire organization, five of our consultants worked directly with executives, management, and professionals in the areas of Generation, Transmission, Distribution, Materials, Administration, and Finance providing technical assistance in the development, implementation and follow-up of improvement programs.