TQM Lecture by Dr Ali Sajid

8/12/2019 TQM Lecture by Dr Ali Sajid

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Intro to Quality Management

By Ali Sajid, PhD

([email protected])

Director

Inst of Business & Mgmt

UET Lahore An Exclusive Presentation for PEC

October 14, 2012



Dr Ali Sajid, PhD, TI, is a graduate mechanical engrfrom UET, Lahore.

Masters and Ph.D. in Engg Mgment from the GeorgeWashington 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 corporateenvironment 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” onTQM & Productivity.

Areas of interest.

Increasing Industrial Competitiveness & Productivity inWhite/Blue Collar Environment, &

Application of Quality Management in Industry





“The will to win,

the desire to succeed, theurge to reach your full

potentials are the keys tounlock the doors to the

personal excellence”

Confucius



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)

http://www.quotationspage.com/quote/30186.html







http://www.quotationspage.com/quotes/Helen_Keller/


















I have learnt “Silence” from

the talkative,“Toleration” from the “intolerant”,

& “Kindness” from the unkind; yet

strange, I amungrateful to

these teachers.

Kahlil Gibran (1883 - 1931)








http://www.quotationspage.com/quotes/Kahlil_Gibran/


















Never to sufferwould never to

have beenblessed.

Edgar Allan Poe (1809 - 1849)





http://www.quotationspage.com/quotes/Edgar_Allan_Poe/









So much of what we

call managementconsists in making it

difficult for

people to work. Peter Drucker (1909 - 2005)






http://www.quotationspage.com/quotes/Peter_Drucker/











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







http://www.quotationspage.com/quotes/Ralph_W._Sockman/












Nobody Could

make a greatermistake

than hewho did nothing

because he could

do a little



When person does good

deed When he or shedidn’t have to,

God looks down &smiles & says

“For This moment alone itwas worth creating

world”



Characteristics of Organization An 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 agoal or set of goals.

Systematic

StructureDistinct

Purpose

People



Org Excellence

Key to Competitiveness

CostQuality

Speed Value



Organizational Excellence

Through

Competitiveness

using

Qualityas a Tool



Quality is

a Habit

not

an Act.

Aristotle



What is Quality

Classical 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



What is Quality?

* “The totality ofcharacteristics of an entitythat bear on its ability tosatisfy stated & implied

needs.”



What is Quality

Customer

Expectations

Meet/exceed

Freedom from

deficiency

Features

Doing the right thingDoing the things right



History of Quality Efforts

Egyptian Pharaohs – Books of Dead – anextensively documented ,Quality systemrelated to the burial of Nobility, describes howrequisite rituals should be carried out &funerary goods to be buried with deceased.

Hummurabi’s Code – 1730 BC penalties for substandard stuff

Necropolis – Achievement of requirementstandard was attested to by the application bysuptd mark.



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 by

procedures that had to be followed.Enforcement is done by an official inspector

(Logothate) attached with court to inspect all

workshop & Operations performed.



Merchant Guild – Their products have to be of histandards then others. Cloth Colchester Guild hadmark on its bales and guarantee a certain level ofquality.

Defense and Quality – a close partner

Geoffrey Chaucer- 1300s surveyor of supplies forRoyal Wardrobe Assessor of Armors , Saddle. & other equipment to

establish “Suitability for Royal Armory” .

World War One - “Quality in Air” – Royal Aircraft Establishmentimprove “Reliability of British Engines” .



First Standard Attempt in USA MIS-Q-9858 (QSystem Specs), MIL-1 45208 (InspectionSys Requirements)

Still Used in Defense Contracts.

NATO formed Allied Quality AssurancePublications (AQAP) 1,4,9

UK had its DEF. STAN (later AQAP aligned withDEF. STAN).

UK Min of Defense, buy only from DEF.STANregistered firms (Second Party Assessment)

AQAP -militaristic in their content & wording

1979 BS 5750



1979-BS 5750

Very Subjective, large explanatory,

mandatory notes,First version used only

in a contractual sense between buyer &

seller.

3rd Party certification register.

British situation excited throughout world

ISO in Geneva set up a committee under

Canada to produce Intl. Q-Standards.



Qualitymeans

pleasing consumersnot

just protecting themfrom annoyances



Basic Quality Function

1. DEFECTS / REJECTS

2. COMPLAINTS

3. CONSISTENCY

4. PRECISION

5. ACCURACY

6. VARIATION



Quality Control

Technique to Control &Check Quality



What is Quality Assurance

“all planned & systematicactivities implemented withinquality system,

& demonstrated as needed, toprovide adequate confidencethat an entity will fulfillrequirements for quality” .



QUALITY ASSURANCE

Any action directed towards

providing consumers withproducts (goods & services) ofappropriate Quality.

THERE ARE NO FACTS ONLY INTERPRETATIONS

-FRIEDRICH NIETZSCHE



Quality Management

All activities of the overallmanagement function thatdetermine the quality policy,objectives and responsibilities andimplement planning, qualitycontrol, quality assurance and

quality improvement within thequality system” (ISO 840)



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



PRINCIPAL QUALITY

DIMENSIONS 1. Performance

2. Features

3. Reliability

4. Conformance

5. Durability

6. Serviceability7. Aesthetics

8. Perceived quality



PRINCIPAL QUALITY DIMENSIONS

• Performance:

• a product’s primary operatingcharacteristics. Example: A car’sacceleration, braking distance,steering and handling



PRINCIPAL QUALITY

DIMENSIONS • Features:

• the “bells and whistles” of a product. A car may have power options, a tapeor CD deck, antilock brakes, andreclining seats




• Reliability:

• the probability of a product’s surviving

over a specified period of time understated conditions of use. A car’s abilityto start on cold days and frequency of

failures are reliability factors




• Conformance:

• the degree to which physical and

performance characteristics of aproduct match pre-establishedstandards.

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




• Durability:

• the amount of use one gets from a

product before it physicallydeteriorates or until replacement ispreferable.

• For car - corrosion resistance & longwear of upholstery fabric




• Serviceability:

• speed, courtesy, competence of

repair work.

• auto owner -access to spare parts.




• Aesthetics:

• how a product looks, feels, sounds,

tastes, or smells.

• car’s color, instrument panel designand “feel of road” –

• make aesthetically pleasing




• Perceived Quality:

• Subjective assessment of qualityresulting from image, advertising, orbrand 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 bemeasured 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 (Notnecessarily 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

“Quality is the degree of excellence at

an acceptable price and the control ofvariability at an acceptable cost.”



UNCOVERING THE REALOPPORTUNITIES OF QUALITY

Value can be defined as, “what the customergets per what it costs the customer”

But customer “gets” more than a physicalproduct.

He or she gets:

A sense of confidence in a supplier, & A sense of assurance that the supplier will

be there when needed




Gales Model of the Purchase Decision

Value

Quality

Price

Product

Service




Offering greater satisfaction atcomparable price

Procter & Gamble brought in VALUEPRICING

Consumer brand loyalty

More consistent sales Improvement of product characteristics

Internal efficiencies



WHAT GOOD CAN QUALITY DO ?

Provides competitive advantage

Reduces costs Lesser returns, rework & scrap

Increases productivity & profits

Generates satisfied customers

“ No Quality, no sales. No sales, noprofit. No profits, no jobs.”



COMPETITIVE ADVANTAGE

Denotes firm’s ability to achieve marketsuperiority

Driven by customer needs & wants Provides value to customers that competitors

do not have

Makes significant contribution to businesssuccess

Allows a firm to use its resources effectively





Durability & dependability – difficult forothers to copy

Provides basis for further improvement

Provides direction & motivation to theorganization

Q alit E ol tion in Japan



Quality Evolution in Japan

Fitness to

Use

Fitness to

Cost

Fitness to Latent

Requirements

Fitness toStandards

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.



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.



TOTAL QUALITY

Total Quality describes the state of anorganization in which all the activities ofall functions are designed and carried out

in such a way that

all external customer requirements aremet

while reducing internal time and cost,

and enhancing the workplace climate.



Profile of TQM

TQM is a:• Scientific

• Systematic• Company – Wide

Activity in which

A company is devoted to customers throughits products and services.

l li



Total Quality Management

TQM a philosophy set of guidingprincipals that represent foundation

of a continuously improvingorganization.



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 theCustomer are met,

now & in future.



TQM integrates

Fundamental Mgnt Techniques,

Existing improvement efforts, &Technical tools under a

Disciplined approach

focused on

continuous improvement.



BASES OF TOTAL QUALITY

The Four Bases of Total Quality

The

Customer

Strategic

Imperatives

Statistical

Tools and

Techniques

Techniques to

Foster Teamwork

And Create Satisfying

Work Environment

A TQM Approach To Management



A TQM Approach To Management

A unique blending of :

(a) objective, practical, & quantitative aspects ofmanagement, e.g. Focus on processes andreliance on quantitative data and statisticalanalysis for decision-making: and

(b) “Soft” aspects of management, (Visionaryleadership, promoting a spirit ofcooperation/teamwork, & practicing participativemgt.

A fully successful effort requires balanced attentionto both.



The Essence of TQM

Involving & empowering entireworkforce to improve quality ofgoods & services continuously inorder to satisfy, & even delight

customer.

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



Means of implementing TQM.

Can be used by everyone to identify:Problem Areas,

Structure Data Collection efforts,

Analyze data,

Focus Problem Solving efforts on areasof special concern.,

“Disseminate info” throughout the org.

Used Primarily to: “Collect & AnalyzeNumerical Data” .

TQM



TQMUmbrella term:

Philosophy emphasizes sharedresponsibilities for quality.

Quality improvement achieved

by:a) Focusing on customer needs &b) Streamlining production

process to eliminate defects/waste.

x



It ultimately

“Facilitates continuousimprovement thorough acollective vision of quality” .

From acceptable “Levels ofDefects” to Continuous PI





THE QU LITY CH LLENGE

INDIVIDUAL

CRAFTSMAN

FOREMAN

INSPECTION

STATISTICAL CONTROL

QUALITY ASSURANCE

TOTAL QUALITYCONTROL

ORGANIZATION

WIDE

TOTAL QUALITY

MANAGEMENT

1900 1920 1940 1960 1980

T HE E V OL UT I O N

OF Q UAL I T YM

A NA GE ME NT

i f “ l” Q



Meanings of “Total” In TQM 1. Objectives

Not only quality and environment but also other parametersincluding cost, delivery, safety.

2. Every Department

Not only a manufacturing department but also other departmentsincluding R&D marketing, administration, etc.

3. Every Echelon

Not only engineers but also top managers, middle managers,supervisors, workers, and clerks.

4. Group-Wide

TQM is not lonely implemented by am company but also by all itsgroup companies.

5. All The Industries:

Not only in manufacturing industry but also in all the industries suchas: construction, real estate, electric power, city gas, water supply,transportation, communications, servicing.



TQM & Customer Orientation

TQM Provides a system of

methods on how to realize theprinciple of customerorientation beyond a slogan.



WHO IS A CUSTOMER ?

The ultimate purchaser of aproduct or service

External customers purchaseproducts or services from othercompanies/plants

Internal customers receivegoods or services from within thecompany



WHY IS IT IMPORTANT TO MEETCUSTOMER 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

Looking at your



Looking at yourorganization from you

customers’ point of viewand improving processes

to enable you to meet andexceed your customers’expectations is the onlyway to achieve quality,

because quality is defined

b the customer



Customer Satisfaction

More Features

Satisfaction

Results of Total Quality



Results of Total QualityManagement

Lower Cost

High Revenue

Empowered Employers

DelightedCustomer

C ti l Wi d D i ’ A h



Conventional Wisdom

Quality is meeting conformancestandards.

Quality is an intangible good.

Quality is meeting & exceedingcustomer expectation.

Quality is defined by thecustomer.

Finding and Fixing problemsresults in improvements, which

may or may not be sustainable.

Making changes to the systemto prevent problems results in

sustainable improvements.Effectiveness & efficiency areachieved by meeting acceptabledefect levels.

Effectiveness & efficiency areachieved by continuallyimproving.

Crisis management is the

dominant management mode.

Preventative management.

Performance standards & quotasimprove productivity.

Changes in the process improveproductivity.

Decisions are made by “superiors.”

Decisions are made throughcollaboration between staff &management.

Deming’s Approach

Top management evaluates theorganization on financial

on process performance & customersatisfaction as well as on financial



gperformance. performance.

Process improvement is expensive. Process improvement leads to lowercosts.

Only managers are capable ofidentifying & making

Workers know the process best &will suggest excellent ways toimprove it when given a chance.

Managers command functions & areconcerned with directing &

controlling.

Team leaders guide cross-functionalimprovement teams & are

concerned with planning &prevention.

Employees receive instruction &information from above, as deemedappropriate by management.

Management shares informationwith employees on a routine basis &on request.

Leadership for an improvementeffort can be delegated to outsideexpert.

Leadership for an improvementeffort is provided by executiveswithin the org, who are accountablefor results.

Reviews are necessary only whenthings go wrong.

Regularly scheduled performance-improvement reviews are a key to

improved processes.



Deming’s Dreadful Diseases

1. Looking elsewhere forexamples, or concludingthat “our problems aredifferent”.

2. Creative accountingrather than commitment.

3. Purchasing toan”acceptable level ofquality”.

4. Management’s failure todelegate responsibility.

5. That employees (orunions)cause all theproblems.

6. Quality can be assured byinspection.

7. False starts: noorganization-widecommitment.



“Good fortune is whathappens when opportunitymeets with

planning.” Thomas AlvaEdison (1847-1931)

Dr Sajid

http://thinkexist.com/quotation/good_fortune_is_what_happens_when_opportunity/146543.html




http://thinkexist.com/quotes/thomas_alva_edison/


http://thinkexist.com/birthday/february_11/

http://thinkexist.com/birthday/october_18/

http://thinkexist.com/birthday/october_18/

http://thinkexist.com/birthday/february_11/









“He who fails to plan, plans to fail”

When planning for a year, plant corn.

When planning for a decade, planttrees. When planning for life, train &educate people.”

Chinese Proverbs quotes

Action for Quality

http://thinkexist.com/quotation/he_who_fails_to_plan-plans_to/169985.html

http://en.thinkexist.com/quotes/chinese_proverbs/

http://en.thinkexist.com/quotes/chinese_proverbs/

http://thinkexist.com/quotation/he_who_fails_to_plan-plans_to/169985.html



Action for Quality

“Action may notalways bringhappiness,

but there isno happinesswithout Action”

- Benjamin Disraeli





“All serious daring starts from within”

- Eudora Welty





“Planning is bringing future into present

so that you can do

somethingabout it now”

- Alan Lakein



“Self -pity is our worstenemy &

if we yield to it,we can never do anythingwise in this world”

- Helen Keller



What makes people Sweat for

Quality?

What Is Quality Sweating Theory

Theory Of Driving Force For Quality



Sense of Crisis + Leadership

Vision + Leadership

VLSQ Approach

Two Approaches in

Quality Sweating

Theory

CLSQ Approach

VLSQ Approach



VLSQ Approach If a company is so good in its business and if it has

no crisis nor crisis consciousness, what then couldserve as a driving force for TQM

A forward looking grand vision would mobilize peopleto sweat hard for the sake of achieving that vision.

The vision must be the one which could reallymotivate 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

CLSQ Approach



Someone has to “pull” the people in the same direction

so that this sense of crisis will materialize effectively asa moving force for the entire organization.

Thus the crisis consciousness pushes and the leadershippulls the organization to motivate people to sweat for

quality.

“Crisis Consciousness & LeadershipMake People Sweat 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.



The lesson LearntThe Enemy

for Quality,that is complacent.



Food For Thought



Food For Thought

85 percent of theopportunities for

improvement comesfrom changing the

systems Re-engineeringwork process &

modifying or replacing

equipment.

Dr. Deming

QUALITY IN PRODUCTION



QUALITY IN PRODUCTION

SYSTEMS

Production = Converting

organization’s resources into goods &services

Production System = The collection

of activities involved in production

THREE COMPONENTS OF



THREE COMPONENTS OFPRODUCTION SYSTEM

1. Inputs (Physical facilities, materials,

capital, equipment, people & energy)2. Processes (Machining, mixing,

assembly etc.)

3. Outputs (The product or servicesproduced)



THREE LEVELS OF QUALITY

Quality must be examined at three levels…

1. The organizational level

2.

The process level3. The performer / job level

AT THE ORGANIZATIONAL



AT THE ORGANIZATIONALLEVEL

Meeting requirements of external customers

Organization must seek regular customer input

Use customer-driven performancestandards for:

Setting goals

Solving problems

Allocating resources



AT THE PERFORMER LEVEL

Standards of output must be determined

Accuracy

Completeness Innovation

Timeliness

Cost Determine how requirements will be

measured

AT PROCESS LEVEL



AT PROCESS LEVELMust Identify:

Products or services the customersdesire

Key processes Core inputs

Organization’s customer-driven

performance standards Needs of internal customers



A PROCESS FOCUSED APPROACH

FOCUS

WASTE

Based on Need:

• Refine• Redesign

• Reengineer

If Process is not

Needed, Can itBe eliminated?

High

The Need

For the

Process

Low HighThe Performanceof the Process



AT PERFORMER LEVEL

Standards of output must bedetermined

Accuracy

Completeness Innovation

Timeliness

Cost Determine how requirements will be

measured

Five Questions of Your Quality



Five Questions of Your Quality

1. What is your major product/service?

2. Who are its major users/customers?

3. What are its quality requirementswhich the major users/customerdemand?

4. What is its most competitiveproduct/service which is provided by your competitor?

5. What kind of comparative study do youhave between you product/service and you competitor’s for the qualityrequirements from the majorusers/customers?



QUALITY IS FREE !

According to Crosby:

Quality is not only free, it is profitmaker

Increase of 5% -10% in profitability by

concentrating on quality

Quality provides a lot of money for free



“Quality is never anaccident, it is always

the result of anintelligent effort”

John Ruskin



TQM

Tools, Techniques

and Infrastructureof Quality

Infrastructure Practices & Tools



Infrastructure, Practices, & Tools

Practices -those activities occur within a mgtsystem to achieve hi performance objectives.

Tools - wide variety of graphical & statistical

methods to plan work activities, collect data

analyze results, monitor progress, & solve

problems.



The Scope of Total Quality



Management

PRINCIPLES

Infrastructure Tools &

Techniques

The Scope of Total Quality



The Scope of Total QualityManagement

Principles

Practices

Infrastructure

Tools &

Techniques

Participation and Teamwork

Leadership



Leadership

“Inventories can be managed, butpeople must be led”.

Their task is to create clearquality values & high

expectations, & then build these

in to the company operations.

STRATEGIC PLANNING



STRATEGIC PLANNING

The org must first address some fundamentalstrategic 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 driverfor quality improvement throughout the org.

H R M t



Human Resource Mgt

Major Challenges:

Integration of HR practices

(selection, performance, recognition,training, and career advancement )

with

business directions and strategic changeprocesses



D Y k ??



Do You know??

Well designed processes

lead to better qualityproducts & services &less waste/ rework

Is this amazing?

a a n o gmModern Business depends on measurement

l f f



& Analysis of Performance to support a

variety of purposes: Planning, reviewingCompany profile, Improving operations, andcomparing company’s strategy with

competitors.

Statistical Reasoning with factualdata provide basis for problem

solving & CI.

D & I f i M



Data & Information Management

Many Types of data & Information are needed forquality assessment & quality improvement:

Customer needs

Product & service performance

Operations performance

Market assessments

Competitive comparisons Supplier performance

Cost & financial performance

QUALITY IS FREE !



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

UNCOVERING REAL OPPORTUNITIESof QUALITY



of QUALITY Those assurances are part of the package

customers get and for which they may bewilling to pay

Turning that “may” into a “will” has to do withthe degree of understanding of one’scustomers

And what this all “costs” customer is morethan money

This is not a panacea It will not magically provide all the right

answers It will make us far more likely to ask the right

questions, which is a major piece of progress





What makes people Sweat forQuality?

What Is Quality Sweating Theory

Theory Of Driving Force For Quality

Laws alone can not secure freedomof expression;








of expression;

in order that every man present hisviews without penalty there must be

“Spirit of Tolerance” in the entire population.

Albert Einstein (1879 - 1955)








http://www.quotationspage.com/quotes/Albert_Einstein/




















TQM Lecture by Dr Ali Sajid

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