Intro to Quality Management

By Ali Sajid, PhD

(alisajid61@yahoo.com)

Director Inst of Business & Mgmt UET Lahore

An Exclusive Presentation for PEC October 14, 2012

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

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).

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

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)

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)

Never

to suffer would never to have been blessed.

Edgar Allan Poe (1809 - 1849)

So much of what we call management consists in making it difficult for people to work.

Peter Drucker (1909 - 2005)

Test of Courage Comes when we are in The Minority. The Test of Tolerance comes when we are in The Majority.

The

Ralph W. Sockman

Nobody Could make a greater mistake than he who did nothing because he could do a little

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

When

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 a goal or set of goals. Systematic Structure

Distinct Purpose

People

Org Excellence
Key

to Competitiveness Cost Quality Speed Value

Organizational Excellence
Through Competitiveness using

Quality
as a Tool

Quality is
a Habit not an Act.

Aristotle

What is Quality
Classical Idea Q: Degree of conformance to a standard (As a product or service) Product or Service

Conformance

Specification or Rule

Modern Idea
Q: Users Satisfaction or fitness for use Product or Service

Give Satisfaction

Specification or Rule

Build In

Product or Service

Reflect

What is Quality?
totality of characteristics of an entity that bear on its ability to satisfy stated & implied needs.
* The

What is Quality
Customer Expectations Meet/exceed

Features

Freedom from deficiency

Doing the things right

Doing the right thing

History of Quality Efforts

Egyptian 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.

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 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.

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) 1,4,9 UK 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

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.

means pleasing consumers just protecting them from annoyances

Quality

not

Basic Quality Function

1. DEFECTS / REJECTS 2. 3. 4. 5. 6. COMPLAINTS CONSISTENCY PRECISION ACCURACY VARIATION

Quality Control
Technique

to Control & Check Quality

What is Quality Assurance

all planned & systematic activities implemented within quality system, & demonstrated as needed, to provide adequate confidence that an entity will fulfill requirements for quality.

QUALITY ASSURANCE
THERE ARE NO FACTS ONLY INTERPRETATIONS

Any

action directed towards providing consumers with products (goods & services) of appropriate Quality.

-FRIEDRICH NIETZSCHE

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)

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.
2. 3.

4.
5. 6. 7. 8.

Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality

PRINCIPAL QUALITY DIMENSIONS

Performance: a products primary operating characteristics. Example: A cars acceleration, braking distance, steering and handling

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

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

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.

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

PRINCIPAL QUALITY DIMENSIONS

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. cars color, instrument panel design and feel of road make aesthetically pleasing

PRINCIPAL QUALITY DIMENSIONS

Perceived Quality:
Subjective assessment of quality resulting from image, advertising, or brand names. car, - shaped by magazine reviewsmanufacturers 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

Quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.

UNCOVERING THE REAL OPPORTUNITIES OF QUALITY

Value can be defined as, 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, & A sense of assurance that the supplier will be there when needed

VALUE-BASED CRITERIA

Gales Model of the Purchase Decision Product Quality Value Price Service

VALUE-BASED CRITERIA
Offering greater satisfaction at comparable price Procter & Gamble brought in VALUE PRICING 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, no profit. No profits, no jobs.

COMPETITIVE ADVANTAGE

Denotes firms ability to achieve market superiority Driven by customer needs & wants Provides value to customers that competitors do not have Makes significant contribution to business success Allows a firm to use its resources effectively

COMPETITIVE ADVANTAGE

Durability & dependability difficult for others to copy Provides basis for further improvement Provides direction & motivation to the organization

Quality Evolution in Japan

Determining the customers needs before the customer becomes aware of them Fitness to Cost To build a product that meets the needs of customer. Fitness to Standards To build a product that meets the specifications set by the designer. Fitness to Latent Requirements

Fitness to Use

Obtain high quality & low cost by effective designing of both the product & processes.

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 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.

Profile of TQM
TQM is a:

Scientific Systematic Company Wide

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

Total Quality Management

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

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.

TQM integrates Fundamental Mgnt Techniques, Existing improvement efforts, & Technical tools under a Disciplined approach focused on continuous improvement.

BASES OF TOTAL QUALITY

Techniques to Foster Teamwork And Create Satisfying Work Environment

Strategic Imperatives

Statistical Tools and Techniques

The Customer

The Four Bases of Total Quality

A TQM Approach To Management

A 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.

The Essence of TQM

Involving workforce goods & order to customer.

& empowering entire to improve quality of services continuously in satisfy, & even delight

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 areas of special concern., Disseminate info throughout the org. Used Primarily to: Collect & Analyze Numerical Data.

Umbrella 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

TQM

It ultimately

Facilitates continuous improvement thorough a collective vision of quality.

From acceptable Levels Defects to Continuous PI of

A Manager Who Fails To Provide Resources And Time For Prevention Activities Is Practicing False Economy
Concentrate on Prevention, Not Correction Prevention Correction Quality

Prevention has more leverage when improving quality

THE QUALITY CHALLENGE

ORGANIZATION WIDE TOTAL QUALITY MANAGEMENT
TOTAL QUALITY CONTROL STATISTICAL CONTROL QUALITY ASSURANCE INSPECTION FOREMAN INDIVIDUAL CRAFTSMAN 1900 1920 1940 1960 1980

THE EVOLUTION OF QUALITY MANAGEMENT

Meanings of Total In TQM

1.

2.

3.

4.

5.

Objectives Not only quality and environment but also other parameters including cost, delivery, safety. Every Department Not only a manufacturing department but also other departments including R&D marketing, administration, etc. Every Echelon Not only engineers but also top managers, middle managers, supervisors, workers, and clerks. Group-Wide TQM 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.

TQM & Customer Orientation

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

WHY IS IT IMPORTANT TO MEET CUSTOMER EXPECTATIONS?

Needs of customers have to be met Understanding of ones customers leads to customer satisfaction Japanese relate quality to customer satisfaction
Poor quality product

Inadequate internal facilities Poorly designed processes

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.

Customer Satisfaction

Satisfaction

More Features

Results of Total Quality Management

Delighted Customer

Empowered Employers
High Revenue

Lower Cost

Conventional Wisdom
Quality is meeting conformance standards. Quality is an intangible good. Finding and Fixing problems results in improvements, which may or may not be sustainable.

Demings Approach
Quality is meeting & exceeding customer expectation. Quality is defined by the customer. Making changes to the system to prevent problems results in sustainable improvements.

Effectiveness & efficiency are achieved by meeting acceptable defect levels.

Crisis management is the dominant management mode.

Effectiveness & efficiency are achieved by continually improving.

Preventative management.

Performance standards & quotas Changes in the process improve improve productivity. productivity. Decisions are made by superiors. Decisions are made through collaboration between staff & management.

Top management evaluates the organization on financial performance.

Process improvement is expensive. Only managers are capable of identifying & making Managers command functions & are concerned with directing & controlling.

on process performance & customer satisfaction as well as on financial performance.

Process improvement leads to lower costs. Workers know the process best & will suggest excellent ways to improve it when given a chance. Team leaders guide cross-functional improvement teams & are concerned with planning & prevention.

Employees receive instruction & Management shares information information from above, as deemed with employees on a routine basis & appropriate by management. on request. Leadership for an improvement effort can be delegated to outside expert. Reviews are necessary only when things go wrong. Leadership for an improvement effort is provided by executives within the org, who are accountable for results. Regularly scheduled performanceimprovement reviews are a key to improved processes.

Demings Dreadful Diseases

1.

2. 3.

4.

Looking 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.

5.

6.

7.

That employees (or unions)cause all the problems. Quality can be assured by inspection. False starts: no organization-wide commitment.

Good fortune is what happens when opportunity meets with planning. Thomas Alva Edison (1847-1931)
Dr Sajid

He who fails to plan, plans to fail When planning for a year, plant corn. When planning for a decade, plant trees. When planning for life, train & educate people. Chinese Proverbs quotes

Action for Quality

Action may not always bring happiness, but there is no happiness without Action
- Benjamin Disraeli

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

All serious daring starts from within - Eudora Welty

Ear of leader must ring with voices of people

- Woodrow Wilson

Planning is bringing future into present so that you can do something about it now

- Alan Lakein

Self-pity is our worst enemy & if we yield to it, we can never do anything wise in this world
- Helen Keller

What Is Quality Sweating Theory

What makes people Sweat for Quality?
Theory Of Driving Force For Quality

Two Approaches in Quality Sweating Theory

CLSQ Approach

Sense of Crisis + Leadership

VLSQ Approach

Vision + Leadership

VLSQ Approach

If 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 TQM A 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.

Vision and Leadership Encourage People to 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.

CLSQ Approach
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 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 Learnt The Enemy for Quality, that is complacent.

We Are Complacent, Arent We?

Thats a good idea. But Our Quality has already achieved at a certain high level. Hence, we need not do so to such a extent.

Food For Thought

85 percent of the opportunities for improvement comes from changing the systems Re-engineering work process & modifying or replacing equipment. Dr. Deming

QUALITY IN PRODUCTION SYSTEMS

Production = Converting organizations resources into goods & services Production System = The collection of activities involved in production

THREE COMPONENTS OF PRODUCTION SYSTEM

1.

Inputs (Physical facilities, materials,

2.

3.

capital, equipment, people & energy) Processes (Machining, mixing, assembly etc.) Outputs (The product or services produced)

THREE LEVELS OF QUALITY

Quality must be examined at three levels

1. 2.

3.

The organizational level The process level 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 THE PERFORMER LEVEL

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

AT PROCESS LEVEL
Must Identify:

Products or services the customers desire Key processes Core inputs Organizations customer-driven performance standards Needs of internal customers

A PROCESS FOCUSED APPROACH

High FOCUS
Based on Need: Refine Redesign Reengineer If Process is not Needed, Can it Be eliminated?

The Need For the Process

WASTE
Low
The Performance of the Process

High

AT PERFORMER LEVEL

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

Five Questions of Your Quality

1. 2.

3.

4.

5.

What 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?

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

TQM
Tools,

Techniques and Infrastructure of Quality

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.

Infrastructure, Practices, & Tools

Infrastructure -basic mgmt systems necessary to function as a hi performing org. Infra structure that Support TQM Principles are:
Leadership Strategic HRM Process Data

planning

mgt

& info mgmt

The Scope of Total Quality Management

PRINCIPLES

Infrastructure

Tools & Techniques

The Scope of Total Quality Management

Practices

Principles
Participation and Teamwork Infrastructure Tools & Techniques

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.

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.

Human Resource Mgt

Major Challenges:

Integration of HR practices (selection, performance, recognition, training, and career advancement ) with business directions and strategic change processes

Process Management
Involves design of processes to develop & deliver products & services that meet needs of customers, daily control so that they perform as required & their continual improvement

Do You know??
Well

designed processes lead to better quality products & services & less waste/ rework Is this amazing?

Data & Info Mgmt Modern 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.

Data & Information Management

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

Customer needs Product & service performance Operations performance Market assessments Competitive comparisons Supplier performance Cost & financial performance

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 OPPORTUNITIES of QUALITY

Those assurances are part of the package customers get and for which they may be willing to pay Turning that may into a will has to do with the degree of understanding of ones customers And what this all costs customer is more than 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

Quality is never an accident, it is always the result of an intelligent effort

John Ruskin

What Is Quality Sweating Theory

What makes people Sweat for Quality?
Theory Of Driving Force For Quality

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)