TQM- In PM -PEC

April 21, 2023 Total Quality Management by Dr. Ali Sajid TI

Introduction to Quality in ProjectSpecial Presentation for

PEC Dr ALI SAJID

[email protected]

PhD, TI October 9, , 2008

Leadership & Management Development Associates (LMDA)House 302, St 14, F 10/2

051-2291794


• Nobody Could make a greater mistake

than he who did nothing

because he could do a little


•When person does good deed When he or she didn’t have to, God looks down &

smiles & says “for this moment alone it was worth

creating world”


The trouble with self-made men is that

they tend to worship their

creator.


Commencement address by Sir Winston Churchill

at a graduation ceremony: "Never give up. Never give up. Never, never, never."

- this was his entire speech.


• Three step solution to depression:- GIVING- For GIVING- Thanks GIVING

The growth & development of people is the highest calling of leadership."

s- Harvey S. Fireston


"Little deeds of kindness, little words of love, help to make earth happy like

the heaven above." Julia A. Fletcher Carney


"Don't curse the darkness -- light a candle."

Chinese proverb.

Pleasure in the job puts Perfection in the work

Aristotle


• Key to Competitiveness in Projects –Quality –Speed–Value–Cost


What is Quality?

A simpler, more powerful definition came up….

“ Quality is meeting or exceeding customer expectations ”

“The totality of characteristics of an entity that bear on its ability to satisfy stated & implied needs.”


What is QualityClassical IdeaQ: Degree of conformance to a standard

(As a product or service)

Product or Service

Specification or Rule

Product or Service

Product or Service

Specification or Rule

Build In Reflect

Give Satisfaction

Conformance

Modern Idea

Q: User’s Satisfaction or fitness for use


Qualitymeans

Pleasing consumers

notjust protecting them

from annoyances


What is Quality

CustomerExpectationsMeet/exceed

Freedom from

deficiencyFeatures

Doing the right thingDoing the things right


Basic Quality Function

1. DEFECTS / REJECTS

2. COMPLAINTS

3. CONSISTENCY

4. PRECISION

5. ACCURACY

6. VARIATION


PRINCIPAL QUALITY DIMENSIONS

1. Performance2. Features3. Reliability4. Conformance5. Durability6. Serviceability7. Aesthetics8. Perceived quality9. Affordability, Variety, simplicity etc



• Performance: a product’s primary operating characteristics. Example: A car’s acceleration, braking distance, steering and handling



• Features: the “bells and whistles” of a product. A car may have power options, a tape or CD deck, antilock brakes, and reclining seats


PRINCIPAL QUALITY DIMENSIONS • Reliability: the probability of a product’s

surviving over a specified period of time under stated conditions of use.

A car’s ability to start on cold days and frequency of failures are reliability factors

• 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


PRINCIPAL QUALITY DIMENSIONS • Conformance: the degree to which physical and

performance characteristics of a product match pre-established standards.

• car’s fit/finish, freedom from noises can reflect this.

• Serviceability:• Speed, courtesy, competence of repair work. • auto owner -access to spare parts.


PRINCIPAL QUALITY DIMENSIONS Aesthetics:how a product looks, feels, sounds, tastes, or smells. car’s color, instrument panel design and “feel of road” –make aesthetically pleasingPerceived Quality:• Subjective assessment of quality resulting from

image, advertising, or brand names. • car, - shaped by magazine reviews-manufacturers’

brochures


MANUFACTURING BASED CRITERIA

• Quality = Conformance to specifications• Quality is “about manufacturing a product that people

can depend on every time they reach for it”• Achieved at Coca-Cola through rigorous

quality & packaging standards


JUDGEMENTAL CRITERIA

• Quality = superiority or excellence• “Goodness of a Product”• “You just know it when you see it”• little practical value to managers• No means through which quality can be

measured for decision making


PRODUCT-BASED CRITERIA

• Quality is a function of a specific, measurable variable

• Higher amount of product characteristics = higher quality

• Quality is mistakenly related to price• Higher the price, higher the quality (Not

necessarily true)


USER-BASED CRITERIA

• Quality is determined by what customer wants

• Quality = Fitness for intended use• How well the product:– Performs its intended purpose– Meets consumers’ needs


VALUE-BASED CRITERIA• Value• “what the customer gets per what it costs the customer”• But customer “gets” more than a physical product.• He or she gets:– A sense of confidence in a supplier, and– A sense of assurance that the supplier will be there when

needed

• “Quality is the degree of excellence at an acceptable price and control of variability at an acceptable cost.”–


VALUE-BASED CRITERIA

• Purchase decision involves trading off the quality against the price

• Because many of attributes of quality are subjective assessments, therefore most of these definitions - subjective

• Unlike manufacturing & product-based approaches

Value

Quality

Price

Product

Service


DEFINING QUALITY• Perfection• Consistency• Eliminating waste• Speed of delivery• Compliance with policies & procedures• Providing good, usable products• Doing it right the first time• Delighting or pleasing customers• Total customer service & satisfaction


WHAT GOOD CAN QUALITY DO ?

• Provides competitive advantage• Reduces costs • Lesser returns, rework & scrap• Increases productivity & profits• Generates satisfied customers• “ No Quality, poor service poor service

more waste, delay in delivery”


COMPETITIVE ADVANTAGE

• Driven by customer needs & wants• Provides value to customers -competitors

do not• Makes significant contribution to success • Allows Prj to use its resources Effectively• Durability & dependability – Difficult for

others to copy• Provides basis for further improvement• Provides direction & motivation to org


Quality Evolution in Japan

Fitness to Use

Fitness to

Cost

Fitness to LatentRequirements

Fitness to Standards

Determining the customer’s needs before the customer

becomes aware of them

Obtain 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.


Inspection• (ISO8402)– “Activity such as measuring, examining, testing, or

gauging one or more characteristics of an entity and comparing the results with specified requirements in order to establish whether conformity is achieved for each characteristic”

• Application points within the process• Third party inspection or operator self inspection• Decisions scrap, rework, modification, concession

– After-the-event screening process


Inspection

• Lowest level of quality development– Key product characteristics examined

• Compared to known standard• Lack of ownership• After the event• Lack of feedback to source

– Inspection will not provide any basis for process improvement– Debatable if it provides an effective screening against defects

reaching the external customer


Quality Control

• Defined as (ISO8402)– “Operational techniques and activities that are

used to fulfil requirements for quality”

– Developed from inspection of methods, systems and tools & techniques

– More emphasis on feedback– Main mechanism still inspection based• Physical characteristics of product


Quality Control• QC is the systematic assessment of goods and

services to check their conformance

• It will not improve quality, just highlight when it is not present

• In many cases QC does not identify the root cause of the non-conformance


Quality Control• The second level of quality development– Implied use of control systems

• Raw materials, drawing issues, inspection reports– Development of inspection procedures

• Calibration, limited quality audits• Use of basic QM tools

– Defect recording and analysis– Quality costs still unknown

• Limited use of operator self inspection– Still largely based on goods inwards inspection

• Reliance on inspection to catch non-conforming work


Quality ControlSystematic Techniques to control quality.

What is Quality Assurance

“Quality assurance includes “all planned & systematic activities implemented within the quality system, & demonstrated as

needed, to provide adequate confidence that an entity will fulfill requirements for

quality”.


QUALITY ASSURANCE

• Any action directed towards providing consumers with products (goods & services) of appropriate quality

• Quality Management

• All 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)


What is Total Quality

Total 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.


DEFINITION OF TOTAL QUALITY

Total Quality describes- State of an org in which all the activities of all functions are designed & carried out in such a way that: • All external customer requirement-met • while reducing internal Time & Cost, • & Enhancing “Workplace climate”.


Profile of TQMTQM is a:

• Scientific• Systematic• Company – Wide

Activity in whichA company is devoted to customers through its products and services.

TQM integrates: Fundamental mgmt techniques,

Existing improvement efforts, & Technical tools under a disciplined approach

focused on: Continuous improvement.


Total Quality Management

TQM a philosophy set of guiding principals that represent foundation of a continuously improving org.

TQM is application of (a) Quantitative methods and (b) HR to improve material & services supplied to an organization, & all processes within an org, & degree to which needs of customer are met, now & in future.


A TQM Approach To Management

• A unique blending of : • (a) Objective, practical, & quantitative aspects of

management, e.g. Focus on processes & reliance on quantitative data & statistical analysis for decision-making:

• (b) “soft” aspects of mgt, e.g. providing visionary leadership, promoting a spirit of cooperation teamwork, and practicing participative management.

• Many orgs when deciding to undertake a TQM effort focus on one or other of these general approaches.

• A fully successful effort requires balanced attention to both.


The Essence of TQM

• Is involving & empowering the entire workforce to improve the

quality of goods and services continuously in order to satisfy, and

even delight the customer.


• TQM tools & technical methods used to accomplish specific tasks.

• These are means of implementing TQM. Can be used by everyone in org to:– identify problem areas, – structure data collection efforts, – analyze data, – focus problem solving efforts on areas of special concern., – disseminate info throughout org.

These tools are used primarily to collect & analyze numerical data.


Achieving Total Quality

techniques

system

philosophy


Meanings of “Total” In TQM

1. ObjectivesNot 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.

5. 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.


A Manager Who Fails To Provide Resources And Time For Prevention Activities Is

Practicing False Economy

Concentrate on Prevention, Not Correction

Prevention has more leverage when improving quality

Prevention

Correction

Quality


Results of Total Quality Management

Lower Cost

High Revenue

Empowered Employers

DelightedCustomer


Food For Thought85 percent of opportunities for improvement in Project comes from:

(a) changing the systems (b) Re-engineering work process © modifying or replacing

equipment.Dr. Deming


• TQM Provides a system of methods on how to realize the principle of customer

orientation beyond a slogan.• Who is a customer• The ultimate purchaser of a product or service• External customers purchase products or

services from other companies/plants• Internal customers receive goods or

services from within the company


Customer Satisfaction

More Features

Satisfaction


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.


WHY IS IT IMPORTANT TO MEET CUSTOMER EXPECTATIONS?

• Needs of customers have to be met• Understanding of one’s customers leads to

customer satisfaction• Japanese relate quality to customer

satisfaction

Inadequate Internal Facilities

Poorly Designed Processes

Poor Quality Product


Conventional Wisdom

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.

Deming’s Approach


Top management evaluates the organization on financial performance.

Top management focuses 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.


TQ & Traditional Management Practices- I

TQ demands new styles of managing An entirely new set of skills. These new styles include:– Thinking in terms of systems– Defining customer requirements– Planning for quality improvement with each customer– Dealing with customer dissatisfaction – Ensuring ongoing quality efforts– Developing a life long learning style– Team building – Encouraging openness


TQ & Traditional Management Practices TQ & Traditional Management Practices

– Encouraging openness– Creating climates of trust & eliminating fear – Listening & providing feedback – Leading & participating in group meetings – Solving problems with data– Clarifying goals & resolving conflicts – Delegating & coaching – Implementing change– Making continuous improvement a way of life.


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


“Quality is never an accident, it is always the

result of an intelligent effort”

John Ruskin


THREE LEVELS OF QUALITY

Quality must be examined at three levels…

1. The organizational level2. The process level3. The performer / job level


AT THE ORGANIZATIONAL LEVEL

• Meeting requirements of external customers• Organization must seek regular customer input • Use customer-driven performance standards for:– Setting goals– Solving problems– Allocating resources


AT PROCESS LEVELMust Identify:

• Products or services the customers desire• Key processes • Core inputs• Organization’s customer-driven

performance standards• Needs of internal customers


AT THE PERFORMER LEVEL

• Standards of output must be determined• Accuracy• Completeness• Innovation• Timeliness• Cost• Determine how requirements will be

measured


Five Questions of Your Quality in Projectrs

1. What is your major product/service?2. Who are its major users/customers?3. What are its quality requirements which the

major users/customer demand?4. What is its most competitive product/service

which is provided by your competitor?5. What kind of comparative study do you have

between you product/service and you competitor’s for the quality requirements from the major users/customers?


The lesson LearntThe Enemy for Quality,

that is complacent.


That’s a good idea.But

Our Quality hasalready

achieved at a certain high level.Hence, we need not do so

to such a extent.

We Are Complacent, Aren’t We?


Q & A

TQM- In PM -PEC

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