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Intro to Quality Management By Ali Sajid, PhD
([email protected])DirectorInst of Business & MgmtUET
LahoreAn Exclusive Presentation for PEC October 14, 2012
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Dr Ali Sajid, PhD, TI, is a graduate mechanical engr from UET,
Lahore. Masters and Ph.D. in Engg Mgment from the George Washington
University, Washington DC, USA. ISO - 9000 Certified Lead Auditor
from BSI, UK. Taught in various US Universities & worked at the
World Bank, multi national and multi racial corporate environment
of Washington D.C. Member of American Society for Quality Pakistan
Engineering Council. Since last Sixteen years, he been teaching at
various Pakistani & US Universities. Advisor to Planning
Commission, Govt of Pakistan on TQM & Productivity. Areas of
interest. Increasing Industrial Competitiveness & Productivity
in White/Blue Collar Environment, & Application of Quality
Management in Industry
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National level trainer/consultant.Extensively involved in
Executive Training of Managers at all level in the filed of Total
Quality Management, Scientific Management, Project Management
,Competitiveness, Productivity, HRD etc related topics at all
important national forum with a view to enhance organizational
effectiveness of federal agencies and private enterprises. Govt. of
Pakistan has recently conferred him with Tamiga-a-Imtiaz. Founding
Chairperson Dept of Engg Mgmt at CASE and presently working as
Director Strategic Affairs, CASE, Islamabad. Founding Director of
Islamabad based Institute of Professional Trainers, LAMDA
(Leadership & Management Development Associates).
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The will to win, the desire to succeed, the urge to reach your
full potentials are the keys to unlock the doors to the personal
excellence
Confucius
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Character cannot be developed in Ease & Quiet. Only through
Experience of Trial & Suffering can the soul be strengthened,
ambition inspired, & success achieved.
Helen Keller (1880 - 1968)
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I have learnt Silence from the talkative, Toleration from the
intolerant, & Kindness from the unkind; yet strange, I am
ungrateful to these teachers.
Kahlil Gibran (1883 - 1931)
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Never to suffer would never to have been blessed. Edgar Allan
Poe (1809 - 1849)
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So much of what we call management consists in making it
difficult for people to work. Peter Drucker (1909 - 2005)
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The Test of Courage Comes when we are in The Minority. The Test
of Tolerance comes when we are in The Majority. Ralph W.
Sockman
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Nobody Could make a greater mistake than he who did nothing
because he could do a little
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When person does good deed When he or she didnt have to, God
looks down & smiles & says For This moment alone it was
worth creating world
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Characteristics of OrganizationAn organization is a systematic
arrangement of people to accomplish some specific purpose. Each
organization has a distinct purpose.
This purpose is typically expressed in terms of a goal or set of
goals.Systematic StructureDistinct PurposePeople
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Org ExcellenceKey to Competitiveness CostQuality SpeedValue
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Organizational ExcellenceThrough Competitiveness using Quality
as a Tool
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Quality is a Habit not an Act.
Aristotle
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What is Quality
Classical IdeaQ: Degree of conformance to a standard(As a
product or service)Product or ServiceSpecification or RuleProduct
or ServiceProduct or ServiceSpecification or RuleBuild
InReflectGive SatisfactionConformance Modern IdeaQ: Users
Satisfaction or fitness for use
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What is Quality?* The totality of characteristics of an entity
that bear on its ability to satisfy stated & implied needs.
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What is QualityCustomerExpectationsMeet/exceedFreedom from
deficiencyFeatures
Doing the right thingDoing the things right
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History of Quality EffortsEgyptian Pharaohs Books of Dead an
extensively documented ,Quality system related to the burial of
Nobility, describes how requisite rituals should be carried out
& funerary goods to be buried with deceased.Hummurabis Code
1730 BC penalties for sub standard stuff
Necropolis Achievement of requirement standard was attested to
by the application by suptd mark.
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Roman Empire External Audit was instituted & Specialists
known as Argenterii sealers in silver Required to keep certain
records.
Bible -Gives by work of Quality System. An Ounce of prevention
is worth a pound of cure
Byzantine Empire Every action regulated byprocedures that had to
be followed.Enforcement is done by an official inspector
(Logothate) attached with court to inspect all workshop &
Operations performed.
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Merchant Guild Their products have to be of hi standards then
others. Cloth Colchester Guild had mark on its bales and guarantee
a certain level of quality.
Defense and Quality a close partner
Geoffrey Chaucer- 1300s surveyor of supplies for Royal Wardrobe
Assessor of Armors, Saddle. & other equipment to establish
Suitability for Royal Armory.
World War One - Quality in Air Royal Aircraft Establishment
improve Reliability of British Engines.
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First Standard Attempt in USA MIS-Q-9858 (Q System Specs), MIL-1
45208 (Inspection Sys Requirements)Still Used in Defense
Contracts.NATO formed Allied Quality Assurance Publications (AQAP)
1,4,9UK had its DEF. STAN (later AQAP aligned with DEF. STAN).UK
Min of Defense, buy only from DEF.STAN registered firms (Second
Party Assessment)AQAP -militaristic in their content &
wording
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1979-BS 5750Very Subjective, large explanatory,mandatory
notes,First version used onlyin a contractual sense between buyer
&seller. 3rd Party certification register. British situation
excited throughout worldISO in Geneva set up a committee
underCanada to produce Intl. Q-Standards.
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Qualitymeanspleasing consumersnotjust protecting themfrom
annoyances
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Basic Quality
Function2.COMPLAINTS3.CONSISTENCY4.PRECISION5.ACCURACY6.VARIATION
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Quality ControlTechnique to Control & Check Quality
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What is Quality Assuranceall planned & systematic activities
implemented within quality system, & demonstrated as needed, to
provide adequate confidence that an entity will fulfill
requirements for quality.
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QUALITY ASSURANCEAny action directed towards providing consumers
with products (goods & services) of appropriate Quality.THERE
ARE NO FACTS ONLY INTERPRETATIONS-FRIEDRICH NIETZSCHE
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Quality ManagementAll activities of the overall management
function that determine the quality policy, objectives and
responsibilities and implement planning, quality control, quality
assurance and quality improvement within the quality system (ISO
840)
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DEFINING QUALITYPerfectionConsistencyEliminating wasteSpeed of
deliveryCompliance with policies & proceduresProviding good,
usable productsDoing it right the first timeDelighting or pleasing
customersTotal customer service & satisfaction
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PRINCIPAL QUALITY DIMENSIONS
PerformanceFeaturesReliabilityConformanceDurabilityServiceabilityAestheticsPerceived
quality
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PRINCIPAL QUALITY DIMENSIONS Performance: a products primary
operating characteristics. Example: A cars acceleration, braking
distance, steering and handling
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PRINCIPAL QUALITY DIMENSIONS Features: the bells and whistles of
a product. A car may have power options, a tape or CD deck,
antilock brakes, and reclining seats
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PRINCIPAL QUALITY DIMENSIONS Reliability: the probability of a
products surviving over a specified period of time under stated
conditions of use. A cars ability to start on cold days and
frequency of failures are reliability factors
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PRINCIPAL QUALITY DIMENSIONS Conformance: the degree to which
physical and performance characteristics of a product match
pre-established standards. cars fit/finish, freedom from noises can
reflect this.
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PRINCIPAL QUALITY DIMENSIONS Durability: the amount of use one
gets from a product before it physically deteriorates or until
replacement is preferable. For car - corrosion resistance &
long wear of upholstery fabric
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PRINCIPAL QUALITY DIMENSIONS Serviceability:speed, courtesy,
competence of repair work. auto owner -access to spare parts.
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PRINCIPAL QUALITY DIMENSIONS Aesthetics: how a product looks,
feels, sounds, tastes, or smells. cars color, instrument panel
design and feel of road make aesthetically pleasing
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PRINCIPAL QUALITY DIMENSIONS Perceived Quality:Subjective
assessment of quality resulting from image, advertising, or brand
names. car, - shaped by magazine reviews-manufacturers
brochures
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MANUFACTURING BASED CRITERIAQuality = Conformance to
specificationsQuality is about manufacturing a product that people
can depend on every time they reach for itAchieved at Coca-Cola
through rigorous quality & packaging standards
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JUDGEMENTAL CRITERIAQuality = superiority or excellenceGoodness
of a productYou just know it when you see itlittle practical value
to managersNo means through which quality can be measured for
decision making
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PRODUCT-BASED CRITERIAQuality is a function of a specific,
measurable variableHigher amount of product characteristics =
higher qualityQuality is mistakenly related to priceHigher the
price, higher the quality (Not necessarily true)
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USER-BASED CRITERIAQuality is determined by what customer
wantsQuality = Fitness for intended useHow well the
product:Performs its intended purposeMeets consumers needs
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VALUE-BASED CRITERIAQuality is the degree of excellence at an
acceptable price and the control of variability at an acceptable
cost.
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UNCOVERING THE REAL OPPORTUNITIES OF QUALITYValue can be defined
as, what the customer gets per what it costs the customerBut
customer gets more than a physical product.He or she gets:A sense
of confidence in a supplier, &A sense of assurance that the
supplier will be there when needed
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VALUE-BASED CRITERIA
Gales Model of the Purchase
DecisionValueQualityPriceProductService
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VALUE-BASED CRITERIA
Offering greater satisfaction at comparable priceProcter &
Gamble brought in VALUE PRICINGConsumer brand loyaltyMore
consistent salesImprovement of product characteristicsInternal
efficiencies
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WHAT GOOD CAN QUALITY DO ?Provides competitive advantageReduces
costs Lesser returns, rework & scrapIncreases productivity
& profitsGenerates satisfied customers No Quality, no sales. No
sales, no profit. No profits, no jobs.
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COMPETITIVE ADVANTAGEDenotes firms ability to achieve market
superiorityDriven by customer needs & wantsProvides value to
customers that competitors do not haveMakes significant
contribution to business success Allows a firm to use its resources
effectively
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COMPETITIVE ADVANTAGE Durability & dependability difficult
for others to copyProvides basis for further improvementProvides
direction & motivation to the organization
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Quality Evolution in JapanFitness to UseFitness to Cost Fitness
to LatentRequirementsFitness to StandardsDetermining the customers
needs before the customer becomes aware of themObtain high quality
& low cost by effective designing of both the product &
processes.To build a product that meets the needs of customer.To
build a product that meets the specifications set by the
designer.
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What is Total QualityTotal Quality means quality of work,
quality of service, quality of information, quality process,
quality of organization, quality of people, quality of company and
quality of objectives.
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TOTAL QUALITY
Total Quality describes the state of an organization in which
all the activities of all functions are designed and carried out in
such a way that all external customer requirements are met while
reducing internal time and cost, and enhancing the workplace
climate.
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Profile of TQMTQM is a:ScientificSystematicCompany Wide
Activity in whichA company is devoted to customers through its
products and services.
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Total Quality ManagementTQM a philosophy set of guiding
principals that represent foundation of a continuously improving
organization.
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TQM is application of Quantitative methods & HR to improve
material & Services supplied to an org, & All processes
within an org, & Degree to which needs of the Customer are met,
now & in future.
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TQM integrates Fundamental Mgnt Techniques, Existing improvement
efforts, & Technical tools under a Disciplined approach focused
on continuous improvement.
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BASES OF TOTAL QUALITY The Four Bases of Total QualityThe
CustomerStrategicImperativesStatisticalTools and
TechniquesTechniques to Foster TeamworkAnd Create SatisfyingWork
Environment
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A TQM Approach To ManagementA unique blending of : (a)
objective, practical, & quantitative aspects of management,
e.g. Focus on processes and reliance on quantitative data and
statistical analysis for decision-making: and (b) Soft aspects of
management, (Visionary leadership, promoting a spirit of
cooperation/teamwork, & practicing participative mgt.A fully
successful effort requires balanced attention to both.
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The Essence of TQMInvolving & empowering entire workforce to
improve quality of goods & services continuously in order to
satisfy, & even delight customer.
TQM tools & technical methods - used to accomplish specific
tasks.
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Means of implementing TQM. Can be used by everyone to identify:
Problem Areas, Structure Data Collection efforts, Analyze data,
Focus Problem Solving efforts on areas of special
concern.,Disseminate info throughout the org. Used Primarily to:
Collect & Analyze Numerical Data.
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TQMUmbrella term:Philosophy emphasizes shared responsibilities
for quality. Quality improvement achieved by:a) Focusing on
customer needs & b) Streamlining production process to
eliminate defects /waste.x
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It ultimately Facilitates continuous improvement thorough a
collective vision of quality.From acceptable Levels of Defects to
Continuous PI
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A Manager Who Fails To Provide Resources And Time For Prevention
Activities Is Practicing False EconomyConcentrate on Prevention,
Not CorrectionPrevention has more leverage when improving
qualityPreventionCorrectionQuality
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THE QUALITY
CHALLENGEINDIVIDUALCRAFTSMANFOREMANINSPECTIONSTATISTICAL
CONTROLQUALITY ASSURANCETOTAL QUALITY CONTROLORGANIZATIONWIDETOTAL
QUALITYMANAGEMENT19001920194019601980THE EVOLUTION OF QUALITY
MANAGEMENT
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Meanings of Total In TQMObjectivesNot only quality and
environment but also other parameters including cost, delivery,
safety.2.Every DepartmentNot only a manufacturing department but
also other departments including R&D marketing, administration,
etc.3.Every EchelonNot only engineers but also top managers, middle
managers, supervisors, workers, and clerks.4.Group-WideTQM is not
lonely implemented by am company but also by all its group
companies.All The Industries:Not only in manufacturing industry but
also in all the industries such as: construction, real estate,
electric power, city gas, water supply, transportation,
communications, servicing.
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TQM & Customer OrientationTQM Provides a system of methods
on how to realize the principle of customer orientation beyond a
slogan.
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WHO IS A CUSTOMER ?The ultimate purchaser of a product or
serviceExternal customers purchase products or services from other
companies/plantsInternal customers receive goods or services from
within the company
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WHY IS IT IMPORTANT TO MEET CUSTOMER EXPECTATIONS? Needs of
customers have to be metUnderstanding of ones customers leads to
customer satisfactionJapanese relate quality to customer
satisfactionInadequate internal facilitiesPoorly designed
processesPoor quality product
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Looking at your organization from you customers point of view
and improving processes to enable you to meet and exceed your
customers expectations is the only way to achieve quality, because
quality is defined by the customer.
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Customer SatisfactionMore Features
Satisfaction
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Results of Total Quality ManagementLower CostHigh Revenue
Empowered EmployersDelightedCustomer
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Conventional WisdomDemings Approach
Quality is meeting conformance standards.Quality is an
intangible good.Quality is meeting & exceeding customer
expectation.Quality is defined by the customer.Finding and Fixing
problems results in improvements, which may or may not be
sustainable.Making changes to the system to prevent problems
results in sustainable improvements.Effectiveness & efficiency
are achieved by meeting acceptable defect levels.Effectiveness
& efficiency are achieved by continually improving.Crisis
management is the dominant management mode.Preventative
management.Performance standards & quotas improve
productivity.Changes in the process improve productivity.Decisions
are made by superiors.Decisions are made through collaboration
between staff & management.
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Top management evaluates the organization on financial
performance.on process performance & customer satisfaction as
well as on financial performance.Process improvement is
expensive.Process improvement leads to lower costs.Only managers
are capable of identifying & making Workers know the process
best & will suggest excellent ways to improve it when given a
chance.Managers command functions & are concerned with
directing & controlling.Team leaders guide cross-functional
improvement teams & are concerned with planning &
prevention.Employees receive instruction & information from
above, as deemed appropriate by management.Management shares
information with employees on a routine basis & on
request.Leadership for an improvement effort can be delegated to
outside expert. Leadership for an improvement effort is provided by
executives within the org, who are accountable for results. Reviews
are necessary only when things go wrong.Regularly scheduled
performance-improvement reviews are a key to improved
processes.
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Demings Dreadful DiseasesLooking elsewhere for examples, or
concluding that our problems are different.Creative accounting
rather than commitment.Purchasing to anacceptable level of
quality.Managements failure to delegate responsibility.That
employees (or unions)cause all the problems.Quality can be assured
by inspection.False starts: no organization-wide commitment.
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Good fortune is what happens when opportunity meets with
planning.Thomas Alva Edison (1847-1931)
Dr Sajid
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He who fails to plan, plans to failWhen planning for a year,
plant corn. When planning for a decade, plant trees. When planning
for life, train & educate people. Chinese Proverbs quotes
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Action for Quality
Action may not always bring happiness, but there is no happiness
without Action
- Benjamin Disraeli
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Goals in Quality Journey
Goals give Purpose. Purpose gives Faith. Faith gives Courage.
Courage gives Enthusiasm. Enthusiasm gives energy. Energy gives
Life. Life lifts you over bar
Bob Richards, Pole Vaulter
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All serious daring starts from within
- Eudora Welty
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Ear of leader must ring with voices of people
- Woodrow Wilson
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Planning is bringing future into present so that you can do
something about it now
- Alan Lakein
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Self-pity is our worst enemy & if we yield to it, we can
never do anything wise in this world
- Helen Keller
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What makes people Sweat for Quality?What Is Quality Sweating
TheoryTheory Of Driving Force For Quality
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Sense of Crisis + LeadershipVision + LeadershipVLSQ ApproachTwo
Approaches in Quality Sweating TheoryCLSQ Approach
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VLSQ ApproachIf a company is so good in its business and if it
has no crisis nor crisis consciousness, what then could serve as a
driving force for TQMA forward looking grand vision would mobilize
people to sweat hard for the sake of achieving that vision.The
vision must be the one which could really motivate people to sweat
willingly. For quality.
the vision approach for TQM promotion needs to conduct an
aggressive public relations activity so that the people fully
understand the integrity of the vision.Vision and Leadership
Encourage People to Sweat for Quality
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Someone has to pull the people in the same direction so that
this sense of crisis will materialize effectively as a moving force
for the entire organization.
Thus the crisis consciousness pushes and the leadership pulls
the organization to motivate people to sweat for quality.Crisis
Consciousness & Leadership Make People Sweat for QualityCLSQ
ApproachThe vision approach for TQM promotion needs to conduct an
aggressive public relations activity so that the people fully
understand the integrity of the vision.
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The lesson LearntThe Enemy for Quality, that is complacent.
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Thats a good idea.ButOur Quality hasalreadyachieved at a certain
high level.Hence, we need not do so to such a extent.We Are
Complacent, Arent We?
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Food For Thought85 percent of the opportunities for improvement
comes from changing the systems Re-engineering work process &
modifying or replacing equipment.
Dr. Deming
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QUALITY IN PRODUCTION SYSTEMSProduction = Converting
organizations resources into goods & servicesProduction System
= The collection of activities involved in production
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THREE COMPONENTS OF PRODUCTION SYSTEMInputs (Physical
facilities, materials, capital, equipment, people &
energy)Processes (Machining, mixing, assembly etc.) Outputs (The
product or services produced)
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THREE LEVELS OF QUALITYQuality must be examined at three
levels
The organizational levelThe process levelThe performer / job
level
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AT THE ORGANIZATIONAL LEVELMeeting requirements of external
customersOrganization must seek regular customer input Use
customer-driven performance standards for:Setting goalsSolving
problemsAllocating resources
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AT THE PERFORMER LEVELStandards of output must be
determinedAccuracyCompletenessInnovationTimelinessCostDetermine how
requirements will be measured
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AT PROCESS LEVELMust Identify:
Products or services the customers desireKey processes Core
inputsOrganizations customer-driven performance standardsNeeds of
internal customers
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A PROCESS FOCUSED APPROACHFOCUSWASTEBased on Need: Refine
Redesign ReengineerIf Process is notNeeded, Can itBe
eliminated?HighThe Need For theProcessLowHighThe Performanceof the
Process
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AT PERFORMER LEVELStandards of output must be
determinedAccuracyCompletenessInnovationTimelinessCostDetermine how
requirements will be measured
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Five Questions of Your QualityWhat is your major
product/service?Who are its major users/customers?What are its
quality requirements which the major users/customer demand?What is
its most competitive product/service which is provided by your
competitor?What kind of comparative study do you have between you
product/service and you competitors for the quality requirements
from the major users/customers?
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QUALITY IS FREE !According to Crosby:
Quality is not only free, it is profit maker Increase of 5% -10%
in profitability by concentrating on quality Quality provides a lot
of money for free
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Quality is never an accident, it is always the result of an
intelligent effortJohn Ruskin
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TQMTools, Techniques and Infrastructure of Quality
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Infrastructure, Practices, & Tools Practices -those
activities occur within a mgt system to achieve hi performance
objectives. Tools - wide variety of graphical & statistical
methods to plan work activities, collect data analyze results,
monitor progress, & solve problems.
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Infrastructure, Practices, & Tools Infrastructure -basic
mgmt systems necessary to function as a hi performing org. Infra
structure that Support TQM Principles are: Leadership Strategic
planningHRMProcess mgt Data & info mgmt
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The Scope of Total Quality Management Infrastructure Tools &
Techniques
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The Scope of Total Quality
ManagementPrinciplesPracticesInfrastructureTools
&TechniquesParticipation and TeamworkCustomer focusContinuous
improvementAnd learning
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Leadership Inventories can be managed, but people must be led.
Their task is to create clear quality values & high
expectations, & then build these in to the company
operations.
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STRATEGIC PLANNING The org must first address some fundamental
strategic questions: Who are our customers?What is our mission?What
principles do we value?What are our long range & short range
goals?How do we accomplish these goals?Strategic business planning
should be the driver for quality improvement throughout the
org.
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Human Resource MgtMajor Challenges:Integration of HR practices
(selection, performance, recognition, training, and career
advancement ) with business directions and strategic change
processes
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Process ManagementInvolves design of processes to develop &
deliver products & services that meet needs of customers, daily
control so that they perform as required & their continual
improvement
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Do You know??Well designed processes lead to better quality
products & services & less waste/ reworkIs this
amazing?
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Data & Info MgmtModern Business depends on measurement &
Analysis of Performance to support a variety of purposes: Planning,
reviewing Company profile, Improving operations, and comparing
companys strategy with competitors.
Statistical Reasoning with factual data provide basis for
problem solving & CI.
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Data & Information Management Many Types of data &
Information are needed for quality assessment & quality
improvement:Customer needsProduct & service performance
Operations performanceMarket assessmentsCompetitive
comparisonsSupplier performanceCost & financial performance
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QUALITY IS FREE !According to Crosby:
Quality is not only free, it is profit maker Increase of 5% -10%
in profitability by concentrating on quality Quality provides a lot
of money for free
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UNCOVERING REAL OPPORTUNITIES of QUALITY
Those assurances are part of the package customers get and for
which they may be willing to payTurning that may into a will has to
do with the degree of understanding of ones customersAnd what this
all costs customer is more than moneyThis is not a panacea It will
not magically provide all the right answersIt will make us far more
likely to ask the right questions, which is a major piece of
progress
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Quality is never an accident, it is always the result of an
intelligent effortJohn Ruskin
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What makes people Sweat for Quality?What Is Quality Sweating
TheoryTheory Of Driving Force For Quality
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Laws alone can not secure freedom of expression;
in order that every man present his views without penalty there
must be Spirit of Tolerance in the entire population.
Albert Einstein (1879 - 1955)
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