Total Quality Total Quality ManagementManagement

By By

Ali Sajid, PhD Ali Sajid, PhD

An Exclusive Presentation for PECAn Exclusive Presentation for PEC

2929thth Jan, 2008 Jan, 2008

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

Masters and Ph.D. in Engg Mgment from the George Masters and Ph.D. in Engg Mgment from the George Washington University, Washington DC, USA. Washington University, Washington DC, USA.

ISO - 9000 Certified Lead Auditor from BSI, UK. ISO - 9000 Certified Lead Auditor from BSI, UK. Taught in various US Universities & worked at the Taught in various US Universities & worked at the

World Bank, multi national and multi racial corporate World Bank, multi national and multi racial corporate environment of Washington D.C. environment of Washington D.C.

Member of American Society for Quality Member of American Society for Quality Pakistan Engineering Council. Since last Sixteen Pakistan Engineering Council. Since last Sixteen

years, he been teaching at various Pakistani & US years, he been teaching at various Pakistani & US Universities. Universities.

Advisor to “Planning Commission, Govt of Pakistan” Advisor to “Planning Commission, Govt of Pakistan” on TQM & Productivity. on TQM & Productivity.

Areas of interest. Areas of interest. Increasing Industrial Competitiveness & Productivity Increasing Industrial Competitiveness & Productivity

in White/Blue Collar Environment, & in White/Blue Collar Environment, & Application of Quality Management in Industry Application of Quality Management in Industry   

National level trainer/consultant.National level trainer/consultant. Extensively involved in Executive Training of Extensively involved in Executive Training of

Managers at all level in the filed of Total Quality Managers at all level in the filed of Total Quality Management, Scientific Management, Project Management, Scientific Management, Project Management ,Competitiveness, Productivity, Management ,Competitiveness, Productivity, HRD etc related topics at all important national HRD etc related topics at all important national forum with a view to enhance organizational forum with a view to enhance organizational effectiveness of federal agencies and private effectiveness of federal agencies and private enterprises. enterprises.

Govt. of Pakistan has recently conferred him Govt. of Pakistan has recently conferred him with with

Tamiga-a-Imtiaz.Tamiga-a-Imtiaz. Founding ChairpersonFounding Chairperson Dept of Engg Mgmt at Dept of Engg Mgmt at

CASE and presently working as Director CASE and presently working as Director Strategic Affairs, CASE, Islamabad. Strategic Affairs, CASE, Islamabad.

Founding Director of Islamabad based Institute Founding Director of Islamabad based Institute of Professional Trainers, of Professional Trainers, LAMDA LAMDA (Leadership & (Leadership & Management Development Associates).Management Development Associates).

““The will to win,The will to win, the desire to succeed, the desire to succeed, the urge to reach your the urge to reach your full potentials are the full potentials are the

keys to unlock the keys to unlock the doors to the personal doors to the personal

excellence”excellence”

ConfuciusConfucius

Character cannot be developed iCharacter cannot be developed in “Ease & Quiet”. n “Ease & Quiet”.

Only through Only through

“Experience of Trial & Suffering” c“Experience of Trial & Suffering” can the soul be strengthened, an the soul be strengthened,

ambition inspired, & ambition inspired, & success achieved.success achieved.

Helen Keller (1880 - 1968)Helen Keller (1880 - 1968)

The Highest ResuThe Highest Result of Education lt of Education

is “Tolerance”.is “Tolerance”. Helen Keller (1880 - 1968)Helen Keller (1880 - 1968), ,

I have learnt “Silence” from I have learnt “Silence” from

the talkative, the talkative,

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

& “Kindness” from the unkind; yet & “Kindness” from the unkind; yet strange, I am strange, I am

ungrateful to ungrateful to

these teachers.these teachers.

Kahlil Gibran (1883 - 1931)Kahlil Gibran (1883 - 1931)

In the part of this universe thIn the part of this universe that we know there is great injat we know there is great injustice, & often the ustice, & often the

“Good Suffer”& often the “Good Suffer”& often the “Wicked Prosper”, “Wicked Prosper”,

& one hardly knows which of & one hardly knows which of those is the more annoying.those is the more annoying.

Bertrand Russell (1872 - 1970)Bertrand Russell (1872 - 1970)

Never to suffer Never to suffer would never to would never to have been blesshave been blessed.ed.

Edgar Allan Poe (1809 - 1849)Edgar Allan Poe (1809 - 1849)

So much of what we calSo much of what we call management consists l management consists in making it difficult forin making it difficult for

people to work.people to work. Peter Drucker (1909 - 2005)Peter Drucker (1909 - 2005)

The “Test of Courage” CThe “Test of Courage” Comes when we are in “Thomes when we are in “The Minority”. e Minority”. The “Test of Tolerance” cThe “Test of Tolerance” comes when we are in “Thomes when we are in “The Majority”.e Majority”.

Ralph W. SockmanRalph W. Sockman

Nobody Could Nobody Could

make a greater make a greater mistake mistake

than he than he

who did nothing who did nothing

because he could because he could

do a littledo a little

When person does When person does good deed When he or good deed When he or

she didn’t have to, she didn’t have to,

God looks down & God looks down &

smiles & says smiles & says

““For This moment For This moment alone it was worth alone it was worth

creating worldcreating world””

Characteristics of OrganizationCharacteristics of Organization

An organization is a systematic arrangement of An organization is a systematic arrangement of people to accomplish some specific purpose. people to accomplish some specific purpose. Each organization has a distinct purpose. This Each organization has a distinct purpose. This purpose is typically expressed in terms of a goal purpose is typically expressed in terms of a goal or set of goalsor set of goals..

Systematic StructureDistinct

Purpose

People

Org ExcellenceOrg Excellence

Key to Competitiveness Key to Competitiveness CostCostQuality Quality SpeedSpeedValueValue

Organizational Organizational ExcellenceExcellence

through through

CompetitivenessCompetitiveness

using using

Quality Quality as a Toolas a Tool

QualityQuality is is

a a HabitHabit

not not

an Act.an Act.

AristotleAristotle

What is QualityWhat is Quality

Classical IdeaClassical IdeaQ: Degree of conformance to a standardQ: Degree of conformance to a standard

(As a product or service)(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?What is Quality?

* “* “The totality of The totality of characteristics of an characteristics of an

entity that bear on its entity that bear on its ability to satisfy stated ability to satisfy stated

& implied needs.”& implied needs.”

What is QualityWhat is Quality

CustomerExpectationsMeet/exceed

Freedom from

deficiencyFeatures

Doing the right thingDoing the things right

CUSTOMER-DRIVEN CUSTOMER-DRIVEN QUALITY QUALITY

A simpler, more powerful definition A simpler, more powerful definition came up….came up….

“ “ Quality is meeting or exceeding Quality is meeting or exceeding customer expectations ”customer expectations ”

History of Quality EffortsHistory of Quality EffortsEgyptian Pharaohs – Books of Dead – an Egyptian Pharaohs – Books of Dead – an

extensively documented ,Quality system extensively documented ,Quality system related to the burial of Nobility, describes related to the burial of Nobility, describes how requisite rituals should be carried how requisite rituals should be carried out & funerary goods to be buried with out & funerary goods to be buried with deceased.deceased.

Hummurabi’s Code Hummurabi’s Code – 1730 BC penalties – 1730 BC penalties for sub standard stufffor sub standard stuff

Necropolis Necropolis – Achievement of requirement – Achievement of requirement standard was attested to by the standard was attested to by the application by suptd mark. application by suptd mark.

Roman Empire – Roman Empire – External Audit was instituted External Audit was instituted & Specialists known as “Argenterii” sealers in & Specialists known as “Argenterii” sealers in silver silver

Required to keep certain records.Required to keep certain records.

BibleBible -Gives by work of -Gives by work of “Quality System”“Quality System”. .

““An Ounce of prevention is worth a pound of cure”An Ounce of prevention is worth a pound of cure”

Byzantine Empire Byzantine Empire – Every action regulated by– Every action regulated by

procedures that had to be followed.procedures that had to be followed.

Enforcement is done by an official inspector Enforcement is done by an official inspector (Logothate) attached with court to inspect all (Logothate) attached with court to inspect all workshop & Operations performed. workshop & Operations performed.

Merchant GuildMerchant Guild – Their products have to be – Their products have to be of hi standards then others. Cloth of hi standards then others. Cloth Colchester Guild had mark on its bales and Colchester Guild had mark on its bales and guarantee a certain level of quality.guarantee a certain level of quality.

Defense and Quality – a close partnerDefense and Quality – a close partner

Geoffrey ChaucerGeoffrey Chaucer- - 1300s surveyor of 1300s surveyor of supplies for Royal Wardrobe supplies for Royal Wardrobe

Assessor of ArmorsAssessor of Armors, Saddle. & other , Saddle. & other equipment to establish equipment to establish “Suitability for “Suitability for Royal Armory”Royal Armory”..

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

First Standard Attempt in USA MIS-Q-9858 First Standard Attempt in USA MIS-Q-9858 (Q System Specs), MIL-1 45208 (Q System Specs), MIL-1 45208 (Inspection Sys Requirements)(Inspection Sys Requirements)

Still Used in Defense Contracts.Still Used in Defense Contracts.

NATO formed Allied Quality Assurance NATO formed Allied Quality Assurance Publications (AQAP) 1,4,9Publications (AQAP) 1,4,9

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

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

AQAP -militaristic in their content & AQAP -militaristic in their content & wording wording

1979-BS 57501979-BS 5750

Very Subjective, large explanatory,Very Subjective, large explanatory,

mandatory notes,mandatory notes,

First version used onlyFirst version used only

in a contractual sense between buyer &in a contractual sense between buyer &

seller. seller.

33rdrd Party certification register. Party certification register.

British situation excited throughout worldBritish situation excited throughout world

ISO in Geneva set up a committee underISO in Geneva set up a committee under

Canada to produce Intl. Q-Standards.Canada to produce Intl. Q-Standards.

QualityQualitymeansmeans

pleasing consumerspleasing consumers

notnotjust protecting themjust protecting them

from annoyancesfrom annoyances

Basic Quality FunctionBasic Quality Function

1. DEFECTS / REJECTS

2. COMPLAINTS

3. CONSISTENCY

4. PRECISION

5. ACCURACY

6. VARIATION

Quality ControlQuality Control

Technique to Control Technique to Control & Check Quality & Check Quality

What is Quality What is Quality AssuranceAssurance

““all planned & systematic all planned & systematic activities implemented within activities implemented within quality system, quality system,

& demonstrated as needed, to & demonstrated as needed, to provide adequate confidence provide adequate confidence that an entity will fulfill that an entity will fulfill requirements for quality”.requirements for quality”.

QUALITY ASSURANCEQUALITY ASSURANCE

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

THERE ARE NO FACTS ONLY INTERPRETATIONS

-FRIEDRICH NIETZSCHE

Quality ManagementQuality Management

All activities of the overall All activities of the overall management function that management function that determine the quality policy, determine the quality policy, objectives and responsibilities objectives and responsibilities and implement planning, and implement planning, quality control, quality quality control, quality assurance and quality assurance and quality improvement within the quality improvement within the quality system” (ISO 840)system” (ISO 840)

DEFINING QUALITYDEFINING QUALITY

PerfectionPerfection ConsistencyConsistency Eliminating wasteEliminating waste Speed of deliverySpeed of delivery Compliance with policies & proceduresCompliance with policies & procedures Providing good, usable productsProviding good, usable products Doing it right the first timeDoing it right the first time Delighting or pleasing customersDelighting or pleasing customers Total customer service & satisfaction Total customer service & satisfaction

PRINCIPAL QUALITY PRINCIPAL QUALITY DIMENSIONSDIMENSIONS

1.1. PerformancePerformance

2.2. FeaturesFeatures

3.3. ReliabilityReliability

4.4. ConformanceConformance

5.5. DurabilityDurability

6.6. ServiceabilityServiceability

7.7. AestheticsAesthetics

8.8. Perceived qualityPerceived quality

PRINCIPAL QUALITY PRINCIPAL QUALITY

DIMENSIONSDIMENSIONS • Performance:Performance: • a product’s primary operating a product’s primary operating

characteristics. Example: A car’s characteristics. Example: A car’s acceleration, braking distance, acceleration, braking distance, steering and handlingsteering and handling

PRINCIPAL QUALITY PRINCIPAL QUALITY DIMENSIONSDIMENSIONS

• FeaturesFeatures: : • the “bells and whistles” of a the “bells and whistles” of a

product. A car may have power product. A car may have power options, a tape or CD deck, options, a tape or CD deck, antilock brakes, and reclining antilock brakes, and reclining seatsseats

PRINCIPAL QUALITY PRINCIPAL QUALITY

DIMENSIONSDIMENSIONS • Reliability:Reliability: • the probability of a product’s the probability of a product’s

surviving over a specified period surviving over a specified period of time under stated conditions of of time under stated conditions of use. A car’s ability to start on cold use. A car’s ability to start on cold days and frequency of failures days and frequency of failures are reliability factorsare reliability factors

PRINCIPAL QUALITY PRINCIPAL QUALITY

DIMENSIONSDIMENSIONS • ConformanceConformance: : • the degree to which physical and the degree to which physical and

performance characteristics of a performance characteristics of a product match pre-established product match pre-established standards. standards.

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

PRINCIPAL QUALITY PRINCIPAL QUALITY

DIMENSIONSDIMENSIONS • Durability:Durability: • the amount of use one gets from the amount of use one gets from

a product before it physically a product before it physically deteriorates or until replacement deteriorates or until replacement is preferable. is preferable.

• For car - corrosion resistance & For car - corrosion resistance & long wear of upholstery fabriclong wear of upholstery fabric

PRINCIPAL QUALITY PRINCIPAL QUALITY

DIMENSIONSDIMENSIONS • Serviceability:Serviceability:• speed, courtesy, competence of speed, courtesy, competence of

repair work. repair work. • auto owner -access to spare auto owner -access to spare

parts.parts.

PRINCIPAL QUALITY PRINCIPAL QUALITY

DIMENSIONSDIMENSIONS • Aesthetics:Aesthetics:• how a product looks, feels, how a product looks, feels,

sounds, tastes, or smells. sounds, tastes, or smells. • car’s color, instrument panel car’s color, instrument panel

design and “feel of road” –design and “feel of road” –• make aesthetically pleasingmake aesthetically pleasing

PRINCIPAL QUALITY PRINCIPAL QUALITY

DIMENSIONSDIMENSIONS

• Perceived Quality:Perceived Quality:• Subjective assessment of quality Subjective assessment of quality

resulting from image, advertising, resulting from image, advertising, or brand names. or brand names.

• car, - shaped by magazine car, - shaped by magazine reviews-manufacturers’ reviews-manufacturers’ brochuresbrochures

MANUFACTURING BASED MANUFACTURING BASED CRITERIACRITERIA

Quality = Conformance to Quality = Conformance to specificationsspecifications

Quality is Quality is ““about manufacturing a product about manufacturing a product that people can depend on every that people can depend on every

time they reach for it”time they reach for it” Achieved at Coca-Cola through Achieved at Coca-Cola through

rigorous quality & packaging standards rigorous quality & packaging standards

JUDGEMENTAL CRITERIAJUDGEMENTAL CRITERIA

Quality = superiority or excellenceQuality = superiority or excellence ““Goodness of a product”Goodness of a product” ““You just know it when you see You just know it when you see

it”it” little practical value to managerslittle practical value to managers No means through which quality can No means through which quality can

be measured for decision making be measured for decision making

PRODUCT-BASED CRITERIAPRODUCT-BASED CRITERIA

Quality is a function of a specific, Quality is a function of a specific, measurable variablemeasurable variable

Higher amount of product Higher amount of product characteristics = higher qualitycharacteristics = higher quality

Quality is mistakenly related to priceQuality is mistakenly related to price Higher the price, higher the quality Higher the price, higher the quality

(Not necessarily true) (Not necessarily true)

USER-BASED CRITERIAUSER-BASED CRITERIA

Quality is determined by what Quality is determined by what customer wantscustomer wants

Quality = Fitness for intended Quality = Fitness for intended useuse

How well the product:How well the product: Performs its intended purposePerforms its intended purpose Meets consumers’ needsMeets consumers’ needs

VALUE-BASED CRITERIAVALUE-BASED CRITERIA

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

UNCOVERING THE REAL UNCOVERING THE REAL OPPORTUNITIES OF QUALITYOPPORTUNITIES OF QUALITY

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

But customer “gets” more than a But customer “gets” more than a physical product.physical product.

He or she gets:He or she gets: A sense of confidence in a supplier, &A sense of confidence in a supplier, & A sense of assurance that the supplier A sense of assurance that the supplier

will be there when needed will be there when needed

VALUE-BASED CRITERIAVALUE-BASED CRITERIA

Gales Model of the Purchase Decision

Value

Quality

Price

Product

Service

VALUE-BASED CRITERIAVALUE-BASED CRITERIA Offering greater satisfaction at Offering greater satisfaction at

comparable pricecomparable price Procter & Gamble brought in Procter & Gamble brought in

VALUE PRICINGVALUE PRICING Consumer brand loyaltyConsumer brand loyalty More consistent salesMore consistent sales Improvement of product Improvement of product

characteristicscharacteristics Internal efficienciesInternal efficiencies

WHAT GOOD CAN QUALITY WHAT GOOD CAN QUALITY

DODO ? ? Provides competitive advantageProvides competitive advantage Reduces costs Reduces costs Lesser returns, rework & scrapLesser returns, rework & scrap Increases productivity & profitsIncreases productivity & profits Generates satisfied customersGenerates satisfied customers “ “ No Quality, no sales. No No Quality, no sales. No

sales, no profit. No profits, no sales, no profit. No profits, no jobs.” jobs.”

COMPETITIVE ADVANTAGECOMPETITIVE ADVANTAGE

Denotes firm’s ability to achieve market Denotes firm’s ability to achieve market superioritysuperiority

Driven by customer needs & wantsDriven by customer needs & wants Provides Provides valuevalue to customers that to customers that

competitors do not havecompetitors do not have Makes significant contribution to Makes significant contribution to

business success business success Allows a firm to use its resources Allows a firm to use its resources

effectivelyeffectively

COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE

Durability & dependability – difficult Durability & dependability – difficult for others to copyfor others to copy

Provides basis for further Provides basis for further improvementimprovement

Provides direction & Provides direction & motivationmotivation to to the organizationthe organization

Quality Evolution in JapanQuality 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.

What is Total QualityWhat 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 QUALITYTOTAL QUALITY

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

in such a way that in such a way that all external customer requirements are all external customer requirements are

met met while reducing internal time and cost, while reducing internal time and cost, and enhancing the workplace climate.and enhancing the workplace climate.

Profile of TQMProfile of TQM

TQM is a:TQM is a:• ScientificScientific• SystematicSystematic• Company – WideCompany – Wide

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

Total Quality Total Quality ManagementManagement

TQM a philosophy set TQM a philosophy set of guiding principals of guiding principals

that represent that represent foundation of a foundation of a

continuously improving continuously improving organization. organization.

TQM is application of TQM is application of

““Quantitative methods & HR” to Quantitative methods & HR” to improve material & improve material &

Services supplied to an org, & Services supplied to an org, &

All processes within an org,All processes within an org,

& Degree to which needs of the & Degree to which needs of the Customer are met, Customer are met,

now & in future.now & in future.

TQM integrates TQM integrates

Fundamental Mgnt Techniques, Fundamental Mgnt Techniques, Existing improvement efforts, Existing improvement efforts,

& Technical tools under a & Technical tools under a

Disciplined approach Disciplined approach

focused on focused on

continuous improvement.continuous improvement.

BASES OF TOTAL QUALITYBASES OF TOTAL QUALITY

The Four Bases of Total Quality

The Customer

StrategicImperatives

StatisticalTools and Techniques

Techniques to Foster Teamwork

And Create SatisfyingWork Environment

A TQM Approach To A TQM Approach To ManagementManagement

A unique blending of :A unique blending of :

(a) objective, practical, & quantitative (a) objective, practical, & quantitative aspects of management, e.g. Focus on aspects of management, e.g. Focus on processes and reliance on quantitative data processes and reliance on quantitative data and statistical analysis for decision-making: and statistical analysis for decision-making: and and

(b) “Soft” aspects of management, (Visionary (b) “Soft” aspects of management, (Visionary leadership, promoting a spirit of leadership, promoting a spirit of cooperation/teamwork, & practicing cooperation/teamwork, & practicing participative mgt.participative mgt.

A fully successful effort requires balanced A fully successful effort requires balanced attention to both. attention to both.

The Essence of TQMThe Essence of TQM Involving & empowering entire Involving & empowering entire

workforce to improve quality of workforce to improve quality of goods & services continuously goods & services continuously in order to satisfy, & even in order to satisfy, & even delight customer.delight customer.

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

Means of implementing TQM. Means of implementing TQM. Can be used by everyone to identify: Can be used by everyone to identify:

Problem Areas, Problem Areas, Structure Data CollectionStructure Data Collection efforts, efforts, Analyze data, Analyze data, Focus Problem SolvingFocus Problem Solving efforts on efforts on

areas of special concern.,areas of special concern., ““Disseminate info”Disseminate info” throughout the throughout the

org. org. Used Primarily to: Used Primarily to: “Collect & “Collect &

Analyze Numerical Data”Analyze Numerical Data”..

TQMTQMUmbrella term:Umbrella term:Philosophy emphasizes shared Philosophy emphasizes shared

responsibilities for quality. responsibilities for quality. Quality improvement achieved Quality improvement achieved

by:by:a) Focusing on customer a) Focusing on customer

needs & needs & b) Streamlining production b) Streamlining production

process to eliminate defects process to eliminate defects /waste./waste.

xx

It ultimately It ultimately

““Facilitates continuous Facilitates continuous improvement thorough a improvement thorough a collective vision of collective vision of quality”.quality”.

From acceptable “Levels of From acceptable “Levels of Defects” to Continuous PIDefects” to Continuous PI

A Manager Who Fails To Provide A Manager Who Fails To Provide Resources And Time For Resources And Time For

Prevention Activities Is Practicing Prevention Activities Is Practicing False EconomyFalse Economy

Concentrate on Prevention, Not CorrectionConcentrate on Prevention, Not Correction

Prevention has more leverage when improving quality

Prevention

Correction

Quality

TQ & Traditional Management TQ & Traditional Management

Practices- IPractices- I TQ demands new styles of managing & an TQ demands new styles of managing & an entirely new set of skills. These new styles entirely new set of skills. These new styles include the following characteristics:include the following characteristics:

Thinking in terms of systemsThinking in terms of systems Defining customer requirementsDefining customer requirements Planning for quality improvement with each Planning for quality improvement with each

customercustomer Dealing with customer dissatisfaction Dealing with customer dissatisfaction Ensuring ongoing quality effortsEnsuring ongoing quality efforts Developing a life long learning styleDeveloping a life long learning style Team building Team building Encouraging opennessEncouraging openness

THE QUALITY THE QUALITY CHALLENGECHALLENGE

INDIVIDUALCRAFTSMAN

FOREMAN

INSPECTION

STATISTICAL CONTROLQUALITY ASSURANCE

TOTAL QUALITY CONTROL

ORGANIZATIONWIDE

TOTAL QUALITYMANAGEMENT

1900 1920 1940 1960 1980

TH

E E

VO

LU

TIO

N O

F Q

UA

LIT

Y

MA

NA

GE

ME

NT

Meanings of “Total” In Meanings of “Total” In TQMTQM

1.1. ObjectivesObjectivesNot only quality and environment but also other Not only quality and environment but also other parameters including cost, delivery, safety.parameters including cost, delivery, safety.

2.2. Every DepartmentEvery DepartmentNot only a manufacturing department but also other Not only a manufacturing department but also other departments including R&D marketing, administration, departments including R&D marketing, administration, etc.etc.

3.3. Every EchelonEvery EchelonNot only engineers but also top managers, middle Not only engineers but also top managers, middle managers, supervisors, workers, and clerks.managers, supervisors, workers, and clerks.

4.4. Group-WideGroup-WideTQM is not lonely implemented by am company but TQM is not lonely implemented by am company but also by all its group companies.also by all its group companies.

5.5. All The Industries:All The Industries:Not only in manufacturing industry but also in all the Not only in manufacturing industry but also in all the industries such as: construction, real estate, electric industries such as: construction, real estate, electric power, city gas, water supply, transportation, power, city gas, water supply, transportation, communications, servicing.communications, servicing.

TQM & Customer TQM & Customer OrientationOrientation

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

beyond a slogan.beyond a slogan.

WHO IS A CUSTOMER ?WHO IS A CUSTOMER ?

The ultimate purchaser of a The ultimate purchaser of a product or serviceproduct or service

External customers External customers purchase products or purchase products or services from other services from other companies/plantscompanies/plants

Internal customers Internal customers receive receive goods or services from within goods or services from within the companythe company

WHY IS IT IMPORTANT TO WHY IS IT IMPORTANT TO MEET CUSTOMER MEET CUSTOMER EXPECTATIONS?EXPECTATIONS?

Needs of customers have to be metNeeds of customers have to be met Understanding of one’s customers Understanding of one’s customers

leads to leads to customer satisfactioncustomer satisfaction Japanese relate quality to customer Japanese relate quality to customer

satisfactionsatisfaction

Inadequate internal facilities

Poorly designed processes

Poor quality product

Looking at your Looking at your organization from you organization from you

customers’ point of customers’ point of view and improving view and improving processes to enable processes to enable

you to meet and you to meet and exceed your customers’ exceed your customers’ expectations is the only expectations is the only way to achieve quality, way to achieve quality,

because quality is because quality is defined by the defined by the

customer.customer.

Customer SatisfactionCustomer Satisfaction

More Features

SatisfactionSatisfaction

Results of Total Quality Results of Total Quality ManagementManagement

Lower Cost

High Revenue

Empowered Employers

DelightedCustomer

Conventional Conventional WisdomWisdom

Quality is meeting Quality is meeting conformance standards.conformance standards.

Quality is an intangible Quality is an intangible good.good.

Quality is meeting & Quality is meeting & exceeding customer exceeding customer expectation.expectation.

Quality is defined by the Quality is defined by the customer.customer.

Finding and Fixing problems Finding and Fixing problems results in improvements, results in improvements, which may or may not be which may or may not be sustainable.sustainable.

Making changes to the Making changes to the system to prevent problems system to prevent problems results in sustainable results in sustainable improvements.improvements.

Effectiveness & efficiency Effectiveness & efficiency are achieved by meeting are achieved by meeting acceptable defect levels.acceptable defect levels.

Effectiveness & efficiency Effectiveness & efficiency are achieved by continually are achieved by continually improving.improving.

Crisis management is the Crisis management is the dominant management dominant management mode.mode.

Preventative management.Preventative management.

Performance standards & Performance standards & quotas improve productivity.quotas improve productivity.

Changes in the process Changes in the process improve productivity.improve productivity.

Decisions are made by Decisions are made by “superiors.”“superiors.”

Decisions are made through Decisions are made through collaboration between staff collaboration between staff & management.& management.

Deming’s Approach

Top management evaluates the Top management evaluates the organization on financial organization on financial performance.performance.

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

on financial performance.on financial performance.

Process improvement is Process improvement is expensive.expensive.

Process improvement leads to Process improvement leads to lower costs.lower costs.

Only managers are capable of Only managers are capable of identifying & making identifying & making

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

Managers command functions Managers command functions & are concerned with directing & are concerned with directing & controlling.& controlling.

Team leaders guide cross-Team leaders guide cross-functional improvement teams functional improvement teams & are concerned with planning & are concerned with planning & prevention.& prevention.

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

Management shares Management shares information with employees on information with employees on a routine basis & on request.a routine basis & on request.

Leadership for an improvement Leadership for an improvement effort can be delegated to effort can be delegated to outside expert.outside expert.

Leadership for an improvement Leadership for an improvement effort is provided by executives effort is provided by executives within the org, who are within the org, who are accountable for results. accountable for results.

Reviews are necessary only Reviews are necessary only when things go wrong.when things go wrong.

Regularly scheduled Regularly scheduled performance-improvement performance-improvement reviews are a key to improved reviews are a key to improved processes.processes.

Deming’s Dreadful Deming’s Dreadful DiseasesDiseases

1.1. Looking elsewhere for Looking elsewhere for examples, or concluding examples, or concluding that “our problems are that “our problems are different”.different”.

2.2. Creative accounting Creative accounting rather than commitment.rather than commitment.

3.3. Purchasing to Purchasing to an”acceptable level of an”acceptable level of quality”.quality”.

4.4. Management’s failure to Management’s failure to delegate responsibility.delegate responsibility.

5.5. That employees (or That employees (or unions)cause all the unions)cause all the problems.problems.

6.6. Quality can be assured Quality can be assured by inspection.by inspection.

7.7. False starts: no False starts: no organization-wide organization-wide commitment. commitment.

What makes people Sweat for What makes people Sweat for Quality?Quality?

What Is Quality Sweating Theory

Theory Of Driving Force For Quality

Sense of Crisis + LeadershipSense of Crisis + Leadership

Vision + LeadershipVision + Leadership

VLSQ Approach

Two Approaches in Quality Sweating

Theory

CLSQ Approach

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

no crisis nor crisis consciousness, what then could no crisis nor crisis consciousness, what then could serve as a driving force for TQMserve as a driving force for TQM

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

The vision must be the one which could really The vision must be the one which could really motivate people to sweat willingly. For quality.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

Someone has to “pull” the people in the same Someone has to “pull” the people in the same direction so that this sense of crisis will direction so that this sense of crisis will

materialize effectively as a moving force for the materialize effectively as a moving force for the entire organization.entire organization.

Thus the crisis consciousness pushes and the Thus the crisis consciousness pushes and the leadership pulls the organization to motivate leadership pulls the organization to motivate

people to sweat for quality.people to sweat for quality.

““CCrisis Consciousness & risis Consciousness & LLeadership Make People eadership Make People SSweat weat

for for QQualityuality

CLSQ Approach

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 lesson LearntThe Enemy The Enemy for Quality,for Quality,

that is complacent. that is complacent.

That’s a good idea.That’s a good idea.ButBut

Our Quality hasOur Quality hasalreadyalready

achieved at a certain high achieved at a certain high level.level.

Hence, we need not do so Hence, we need not do so to such a extent.to such a extent.

We Are Complacent, Aren’t We?

Food For ThoughtFood For Thought

85 percent of the 85 percent of the opportunities for opportunities for

improvement comes improvement comes from changing the from changing the

systems Re-systems Re-engineering work engineering work

process & modifying or process & modifying or replacing equipment.replacing equipment.

Dr. DemingDr. Deming

QUALITY IN QUALITY IN PRODUCTION SYSTEMSPRODUCTION SYSTEMS

Production = CProduction = Converting onverting organization’s resources into goods organization’s resources into goods & services& services

Production System Production System = The = The collection of activities involved in collection of activities involved in productionproduction

THREE COMPONENTS OF THREE COMPONENTS OF PRODUCTION SYSTEMPRODUCTION SYSTEM

1.1. InputsInputs (Physical facilities, (Physical facilities, materials, capital, equipment, materials, capital, equipment, people & energy)people & energy)

2.2. ProcessesProcesses (Machining, mixing, (Machining, mixing, assembly etc.) assembly etc.)

3.3. OutputsOutputs (The product or services (The product or services produced) produced)

THREE LEVELS OF QUALITYTHREE LEVELS OF QUALITY

Quality must be examined at three Quality must be examined at three levels…levels…

1.1. The organizational levelThe organizational level

2.2. The process levelThe process level

3.3. The performer / job levelThe performer / job level

AT THE ORGANIZATIONAL AT THE ORGANIZATIONAL LEVELLEVEL

Meeting requirements of external Meeting requirements of external customerscustomers

Organization must seek regular Organization must seek regular customer input customer input

Use Use customer-driven performance customer-driven performance standards standards for:for: Setting goalsSetting goals Solving problemsSolving problems Allocating resourcesAllocating resources

AT PROCESS LEVELAT PROCESS LEVEL

Must identify:Must identify: Products or services the customers Products or services the customers

desiredesire Key processes Key processes Core inputsCore inputs Organization’s customer-driven Organization’s customer-driven

performance standardsperformance standards Needs of internal customersNeeds of internal customers

A PROCESS FOCUSED APPROACHA PROCESS FOCUSED APPROACH

FOCUS

WASTE

Based on Need:• Refine• Redesign• Reengineer

If Process is notNeeded, Can itBe eliminated?

High

The Need For theProcess

Low HighThe Performanceof the Process

AT PERFORMER LEVELAT PERFORMER LEVEL Standards of output must be Standards of output must be

determineddetermined AccuracyAccuracy CompletenessCompleteness InnovationInnovation TimelinessTimeliness CostCost Determine how requirements will Determine how requirements will

be measured be measured

QUALITY IS FREE !QUALITY IS FREE !

According to Crosby:According to Crosby:

Quality is not only free, it is profit Quality is not only free, it is profit maker maker

Increase of 5% -10% in profitability Increase of 5% -10% in profitability by concentrating on quality by concentrating on quality

Quality provides a lot of money for Quality provides a lot of money for free free

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

efforteffort””

John RuskinJohn Ruskin

Part ThreePart Three

Tools, Techniques Tools, Techniques and and

Infrastructure of Infrastructure of QualityQuality

Infrastructure, Practices, & Infrastructure, Practices, & ToolsTools

Infrastructure, Practices, & Infrastructure, Practices, & ToolsTools

PracticesPractices -those activities occur within -those activities occur within a mgt system to achieve hi a mgt system to achieve hi performance objectives. performance objectives.

ToolsTools - wide variety of graphical & - wide variety of graphical & statistical methods to plan work statistical methods to plan work activities, collect data analyze results, activities, collect data analyze results, monitor progress, & solve problems. monitor progress, & solve problems.

Infrastructure, Practices, & Infrastructure, Practices, & ToolsTools

Infrastructure, Practices, & Infrastructure, Practices, & ToolsTools

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

The Scope of Total Quality The Scope of Total Quality Management Management

The Scope of Total Quality The Scope of Total Quality Management Management

PRINCIPLES

Infrastructure Tools & Techniques

The Scope of Total The Scope of Total Quality ManagementQuality Management

Principles

Practices

InfrastructureTools &Techniques

Participation and Teamwork

Custo

mer

focu

sContinuous im

provement

And learning

Leadership Leadership Leadership Leadership

““Inventories can be managed, but Inventories can be managed, but people must be led”. people must be led”.

Their task is to create clear Their task is to create clear quality values & high quality values & high

expectations, & then build expectations, & then build these in to the company these in to the company

operationsoperations. .

STRATEGIC PLANNING STRATEGIC PLANNING STRATEGIC PLANNING STRATEGIC PLANNING

The org must first address some fundamental The org must first address some fundamental strategic questions: strategic questions:

Who are our customers?Who are our customers? What is our mission?What is our mission? What principles do we value?What principles do we value? What are our long range & short range goals?What are our long range & short range goals? How do we accomplish these goals?How do we accomplish these goals?Strategic business planning should be the Strategic business planning should be the

driver for quality improvement throughout the driver for quality improvement throughout the org. org.

Human Resource ManagementHuman Resource Management

Major Challenges:Major Challenges:

Integration of HR practicesIntegration of HR practices

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

with with

business directions and strategic business directions and strategic change processeschange processes

Process ManagementProcess Management

““Involves design of processes Involves design of processes to to

develop & deliver products & develop & deliver products & servicesservices

that meet needs of customers, that meet needs of customers, daily control so that they daily control so that they

perform as required & their perform as required & their continual improvement”continual improvement”

Do You know??Do You know??

Well designed processes Well designed processes lead to better quality lead to better quality products & services & products & services &

less waste/ reworkless waste/ rework Is this amazing?Is this amazing?

Data & Info MgmtData & Info MgmtModern Business depends on Modern Business depends on measurement & Analysis of measurement & Analysis of

Performance to support a variety of Performance to support a variety of purposes: Planning, reviewing purposes: Planning, reviewing Company profile, Improving Company profile, Improving

operations, and comparing company’s operations, and comparing company’s strategy with competitors.strategy with competitors.

Statistical Reasoning with Statistical Reasoning with factual data provide basis for factual data provide basis for

problem solving & CI. problem solving & CI.

Data & Information Data & Information Management Management

Data & Information Data & Information Management Management

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

Customer needsCustomer needs Product & service performance Product & service performance Operations performanceOperations performance Market assessmentsMarket assessments Competitive comparisonsCompetitive comparisons Supplier performanceSupplier performance Cost & financial performanceCost & financial performance

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

Customer needsCustomer needs Product & service performance Product & service performance Operations performanceOperations performance Market assessmentsMarket assessments Competitive comparisonsCompetitive comparisons Supplier performanceSupplier performance Cost & financial performanceCost & financial performance

TQ & Traditional Management TQ & Traditional Management

Practices-IIPractices-II TQ & Traditional Management TQ & Traditional Management

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

THE QUALITY THE QUALITY CHALLENGECHALLENGE

INDIVIDUALCRAFTSMAN

FOREMAN

INSPECTION

STATISTICAL CONTROLQUALITY ASSURANCE

TOTAL QUALITY CONTROL

ORGANIZATIONWIDE

TOTAL QUALITYMANAGEMENT

1900 1920 1940 1960 1980

TH

E E

VO

LU

TIO

N O

F Q

UA

LIT

Y

MA

NA

GE

ME

NT

QUALITY IS FREE !QUALITY IS FREE !

According to Crosby:According to Crosby:

Quality is not only free, it is profit Quality is not only free, it is profit maker maker

Increase of 5% -10% in profitability Increase of 5% -10% in profitability by concentrating on quality by concentrating on quality

Quality provides a lot of money for Quality provides a lot of money for free free

UNCOVERING REAL UNCOVERING REAL OPPORTUNITIES of QUALITYOPPORTUNITIES of QUALITY

Those assurances are part of the package Those assurances are part of the package customers get and for which they may be customers get and for which they may be willing to paywilling to pay

Turning that “may” into a “will” has to Turning that “may” into a “will” has to do with the degree of understanding of do with the degree of understanding of one’s customersone’s customers

And what this all “costs” customer is And what this all “costs” customer is more than moneymore than money

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

answersanswers It will make us far more likely to ask the It will make us far more likely to ask the

right questions, which is a major piece of right questions, which is a major piece of progress progress

THREE LEVELS OF QUALITYTHREE LEVELS OF QUALITY

Quality must be examined at three Quality must be examined at three levels…levels…

1.1. The organizational levelThe organizational level

2.2. The process levelThe process level

3.3. The performer / job levelThe performer / job level

AT THE ORGANIZATIONAL AT THE ORGANIZATIONAL LEVELLEVEL

Meeting requirements of external Meeting requirements of external customerscustomers

Organization must seek regular customer Organization must seek regular customer input input

Use Use customer-driven performance customer-driven performance standards standards for:for: Setting goalsSetting goals Solving problemsSolving problems Allocating resourcesAllocating resources

AT PROCESS LEVELAT PROCESS LEVELMust Identify:Must Identify:

Products or services the Products or services the customers desirecustomers desire

Key processes Key processes Core inputsCore inputs Organization’s customer-Organization’s customer-

driven performance standardsdriven performance standards Needs of internal customersNeeds of internal customers

AT THE PERFORMER LEVELAT THE PERFORMER LEVEL

Standards of output must be determinedStandards of output must be determined AccuracyAccuracy CompletenessCompleteness InnovationInnovation TimelinessTimeliness CostCost Determine how requirements will be Determine how requirements will be

measured measured

What makes people Sweat for What makes people Sweat for Quality?Quality?

What Is Quality Sweating Theory

Theory Of Driving Force For Quality

Five Questions of Your QualityFive Questions of Your Quality

1.1. What is your major product/service?What is your major product/service?2.2. Who are its major users/customers?Who are its major users/customers?3.3. What are its quality requirements What are its quality requirements

which the major users/customer which the major users/customer demand?demand?

4.4. What is its most competitive What is its most competitive product/service which is provided product/service which is provided by your competitor?by your competitor?

5.5. What kind of comparative study do What kind of comparative study do you have between you you have between you product/service and you product/service and you competitor’s for the quality competitor’s for the quality requirements from the major requirements from the major users/customers?users/customers?

Laws alone can not secure freedom oLaws alone can not secure freedom of expression; f expression;

in order that every man present his vin order that every man present his views without penalty there must be “iews without penalty there must be “Spirit of Tolerance”Spirit of Tolerance”

in the entire population. in the entire population.

Albert EinsteinAlbert Einstein (1879 - 1955) (1879 - 1955)