Total Quality Management in the New Century

The Evolution of QualityQ Concept 1: Fitness to Standard Q Concept 2: Fitness to Use Q Concept 3: Fitness to Cost Q Concept 4: Fitness to Latent Requirements

Quality Road MapProduct IssuesFitness to Standard

Market Issues

Fitness to UseFitness to Standard Fitness to Latent Requirements

Future of Fitness or QualityQ Concept 1: Fitness to Standard Q Concept 2: Fitness to Use Q Concept 3: Fitness to Cost Q Concept 4: Fitness to Latent Requirements Q Concept 5: Fitness to Corporate Governance Q Concept 6: Fitness to Societal or Global Environment

What is quality ?TQM Total Quality ManagementQA Quality assurance QCInspection QC

TQM: Total Quality Management QA: Quality Assurance

TQMQA

QC: Quality Control Inspection

What is you measure is what you manage.There is a very little agreement on what constitutes quality. Masaaki Imai.

Evolution of Quality Concepts and Methods1950 1960 Fitness to standardstandardization statistical process control inspection market research cross-functional involement

QC circle 7 QC steps, 7 QC tools = Improvement methods

Fitness to use

19701980 1990 2000

Fitness of cost

QFD 7 management tool

Fitness to latent requirement Fitness of corporate culture Fitness for societal and global environment Customer Focus

Company Focus

Four Revolutions of Management Thinking in TQM

Focus on customers

TQM activitiesContinuous improvement Total participation

Societal networking

Four levels of quality managementLevel 3: Prevention Level I: InspectionQuality through inspection

Level 4: PerfectionEnd customer orientation & superior serviceCultural relignment

Level 2: Quality assuranceImprovement of process stabilityStart of worker involvement

Process capability Supplier integration

Little quality conciousness and know-how

Customer Quality AssuranceCustomer Feedback System

Strategic PlanStrategic Market Analysis

Business Plan

Product design & PlanningUs

Competitive analysisCompetitor

Time frameCurrent

Product Price Delivery Quality Dissatisfy

Ongoing

A P CD

Process Owner

Act:Adopt Abandon Adjust

Identify Targets & Goals

Act PlanReview Progress:

Identify Strategies to achieve Goals Train in identified strategies

Check Do

Against the Targets & Goals

Undertake Within the improvement Activity strategy

ISO-9000, Reengineering, and TQMIdentify A Process Identify Objectives & Outputs of the Process Standardize the Process Flowchart & Document the Process Create manuals, Procedure & Training

ISO-9000 REENGINEERINGRedesign All Process

TQMAnalyses the Process & Cause Monitor the Process

Identify Key Processes

SatisfyYes Yes

No

Improve the Process & Prevention of Recurrence Periodic Review & Report

Fitness to STANDARDWhat is standard ? How is standard set ? How is standard used ?

STANDARD Standard

is degree of excellence. Standard serves as a basis for comparison. Standard is a minimum requirement. Standard is a model for imitation. Standard

is a benchmark of achievement which is based on a desired level of excellence.Oxford dictionary

STANDARD is

an agreement established for an object, performance, capability, arrangement, state, action, sequence, method, procedure, responsibility, duty, authority, way of thinking, conception, etc. for the purpose of unification and simplification so that profit or convenience may be obtained with fairness among the people concerned.Japan Council on Industry

Level of Standard Level

of acceptability or minimum standard.

Degree

of excellence or desirable or optimal standard.Donabedian. 1982

Type of Standard

Structure

standard Process standard Outcome standardDonabedian. 1982

Focus of StandardGood

manufacturing practice Clinical practice guideline Practice standard

How is a standard set ? Collective

judgement; the gold

standard Value based Dynamic VS Static

How is a standard used ?Self-Assessment Inspection

by authority bodies Accreditation

Standard or Accreditation Around the World National US,

accreditation program:

Canada, Australia, & UK

Government Spain,

legislation:

China, & Latin America France & MalaysiaWHO/SHS/DHS/93.2

Inspection Salvage

Sorting, grading, reblending Corrective actions

Identify sources of non-conformance

Quality Control Develop quality manual Process performance data Self-inspection Product testing Basic quality planning Use of basic statistics Paperwork control

Quality Assurance Quality

system deployment Advanced quality planning Comprehensive quality manuals Use of quality cost Involvement of non-production operation Failure Mode and Effect Analysis Statistical process control

TQM:Total Quality Management Policy

deployment Involve supplier & customers Involve all operation Process management Performance measurement Teamwork Employee involvement

The Road to Quality: Organizational Analysis ModelPerformance measures Quality guidesMarket share Customer satisfaction Customer feedback Direction Net profit Return on equity

Strategy Structure

Continuous improvement Team

Manager to worker ratioAbsenteeism Turnover Boredom Return on assets Return on people

Motivation

Employees Tools

Productivity

The Malcolm Balridge, Health Care Pilot Criteria2.0 Information & Analysis

System Goal 7.0 Patient Satisfaction

Driver1.0 Leadership

3.0 Strategic Planning 4.0 HRD & Management

Progress6.0 Organaizational Results

5.0 Process Management

Examination Items1. 2. 3. 4. 5. 6. 7. Customer satisfaction Human resource utilization Quality assurance of services Quality results Leadership Strategic quality planning Information & analysis 30% 15% 15% 15% 10% 9% 6%

(Malcolm Baldrige National Quality Award Criteria)

Beyond TQMIncrease effectiveness

Stage 4: Quality is key to customer value management (Market leader)Customer value learning and innovative organization. Be customer/market-driven

Stage 3: Market-perceived quality and value VS competitors (Market focus)

Stage 2: Customer satisfaction (External focus) Stage 1: Conformance quality (Internal operation)

Get close to market Use customer value analysis Be market-driven

Get close to customer Understand needs & expectations Be customer-driven

Conformance to requirement Do it right at the first time Reduce reject & rework

Customer value management

TQM

Strategy Quality

Satisfy