The Management Development Centre of
Hong Kong
TQM Development Group 2001
TQM Plus – History & Development
-- Experience Sharing -April 24, 2001 - 6:30 P.M. to 8:30 P.M.
Dr Stephen W. K. Ng
Managing Director
QuST Continuation Ltd
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
WHAT HAVE WE CHANGED
IN THE PAST
30 YEARS
?????
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Customers Expectation – One of the key Drivers
OLD TRADITION
NEW TREND
Good
Increase Customer
Satisfaction
Fast
Cheap
Pick Any Two!
MDC-TQM Group on TQM Plus sharing – April 24, 2001
While
reducing total cycle
times and costs
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Semiconductor Industry Drivers Over Time
1960’s
1970’s
1980’s
1990’s
2000’s
Product
Price
Quality
Service & speed
Information &
Integration
Six Sigma
MDC-TQM Group on TQM Plus sharing – April 24, 2001
10X Cycle Performance
Time
Excellence
and ??
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Internet – The Speed Challenge
Internet
TV
Radio
0
10
20
30
40
No. of years to reach 50 million users
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
e-Commerce is Huge!
Forecast of Corporate
Web-enabled Expenditures
World i-Commerce in Billions
$2.2
4000
Trillion
2500
High
potential
2000
3000
1500
2000
1000
1000
Low
potential
$479
Billion
500
0
1998
1999
2000
2001
2002
2003
0
1998
$80
$170
$390
$970 $2,000 $3,200
$55
$145
$320
$640 $1,100 $1,800
Source: Forrester Research 1999
MDC-TQM Group on TQM Plus sharing – April 24, 2001
1999
Worldwide
2000
2001
2002
2003
U.S.
Source: International Data Corp. 1999
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Value $$
Rapid Migration to e-Everything
Intelligent
e-Business
Buying & Selling,
Information Sharing
Synchronized
end-to-end business
processes, spanning
multiple enterprises
Redeploying current
business practices
Optimized business
processes
e-Business
Website
Presence
e-Commerce
Buying & selling
©1999 i2 Technologies, Inc.
MDC-TQM Group on TQM Plus sharing – April 24, 2001
Data standards
Common processes
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Organizational Improvement Continuum
6 Sigma
Process
Improvements
Incremental
Quick - Hits
Activity Improvements
New Practices
BASE
Technology Innovation
Breakthrough Strategy
Market/Product
Repositioning
MDC-TQM Group on TQM Plus sharing – April 24, 2001
Progress
Reengineering
Reorganization
Outsourcing
Rightsizing
TQM
Radical Strategic
Change
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Six Sigma Implementation Highlights
C p’ C pk’ P p’ P pk
Sigma Quality Level
Defect Rates
DPMO
Cycle Times
Metrics
RTY
COPQ
6σ
Expenditures
"30,000 Foot Level" Metrics
Program
Strategy
Driven from the top
Initiative
Selecting the Right Players
Business Strategy
Effective Project Selection
By F. Breytogle III
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Balancing the Change in Asia
( The 50/50 Rule )
Improve
Productivity
& Services
Be No.1
50 %
50 %
Lower
Total
Costs
The Leadership Practice in the 21st Century
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
From A Consulting & QuST…
The Journey to Synchronization
Stream
Synergistic
Synchronized
The SCM evolution
Connection/
Culture
Interdependent
Collaborate
Commitment
Interactive/Aligned
Integrate
Transactional
Silo
Understanding
Hostile
Investment
The effect of
* Globalization,
* e- Commerce, &
* The new economy
Communication
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Total Cost Driver for e-SCM
10%
$100
4%
I2 Technologies, Inc.
3%
3%
4%
6%
5%
Direct
Material
Indirect
Materials
Cost of
Labor
Direct
Overhead
Sales
expense
R&D
$65
Others
35% savings opportunity
Before e-SCM
MDC-TQM Group on TQM Plus sharing – April 24, 2001
After e-SCM
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
The Challenge To TQM PLUS
Redefine And
Reposition
Advantage
SIX SIGMA
Prosper
SCM
Triggers
Adopt Best
Practices
Parity
Survive
….. There comes a time in the
history of every company
where they have to change
dramatically to move to the
next level of performance.
Miss that moment ….. and they
begin to decline.
A. Consulting
MDC-TQM Group on TQM Plus sharing – April 24, 2001
Do
Nothing
Decay
RIP
Fail
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Six Sigma Data Quality
In the 80’s, inadequate process quality led
to our Six Sigma initiative.
In the decade ahead, data and information
quality must make the Six Sigma journey.
The Challenge of Six Sigma Quality in everything we do
in the 21th Century
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Performance Excellence
Stephen’s Process Development Model
6 Sigma & beyond
Quality
Performance
Class
A
B
A
C
B
C
as was
MDC-TQM Group on TQM Plus sharing – April 24, 2001
Old standard
D
Speed of
Execution
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
YOUR ROLE IN TQM PLUS MANAGEMENT is..
Leader
Mentor
Model
Facilitator
Motivator
Adviser
Supporter
Obstacle Remover
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Three Kinds of Corporations Need To Change
In The Concept of Reengineering
1.
Companies in deep trouble. They have no choice.
2.
Companies not yet in trouble but have the foresight
to see trouble coming.
3.
Companies that are in peak condition. No
discernable difficulties. Seek to raise the
competitive bar even higher.
MDC-TQM Group on TQM Plus sharing – April 24, 2001
What is you company’s
position
???
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
What do you think ……
ASIA COMPANIES BELONG
To
1
MDC-TQM Group on TQM Plus sharing – April 24, 2001
2
3
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
VOICE OF CUSTOMERS …… BEFORE YEAR 2001
Expectations from Suppliers in Total Supply Chains
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World-class total supply chain leadership
Time compression - continued reduction in total cycle time
Perfect supplier in Quality, OTD & Responsiveness
Fourth party logistics management
World-class flex model of Compaq
DJIT to HUB concept
Consignment inventory, bill to use
One system, two companies
Customerized performance metrics - TQRD of HP
Schedule sharing & inventory management
Third party JIT service
Single unit procurement
4-week lead time support
Kitting service
Value-added services
Consignment warehouse of Motorola
Shared inventory
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Motorola’s TQM Plus Process
Quality
Control
(QC)
50‘
Quality
Assurance
(QA)
Total Quality
Control
(TQC)
60‘
70‘
Total Quality
Service
(TQS)
1987
Service Quality
Excellence
Motorola Total
Customer
Satisfaction Drive
Customer
Advocacy
1997
80‘
Six Sigma
Challenge
90‘
Total Service
Quality
Management
(TSQM)
Total Quality
Management
(TQM)
2000
Performance
Excellence
Challenge To
You and Your
Plan NOW
By Dr. S.W.K.Ng, QuST
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
What It Will Take To Win – example of a global
corporation
Continuous Improvement
in Factory & Planning
Automation
Automation
10 - 30%
Race to
Best-In-Class
Next
Generation
Tool Set
Integration
20 - 40%
Logistics
Simplification
Compete
Lead Time /
Responsiveness
Simplification &
Standardization
50 - 70%
OF Release 1 Baseline
Factory Execution
CRITICAL 4:
1)
2)
3)
4)
Materials Requirements Planning
Output Scheduling
Factory On Time Delivery
Rough Cut Capacity Planning
Survive
Step Number 1: Build a solid foundation
• Consistent business practices
• Predictable, repeatable processes
MDC-TQM Group on TQM Plus sharing – April 24, 2001
• Metric consistent with service focus
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
The TQM Plus strategy…….starts with Service Quality Mindset
TOTAL SERVICE QUALITY MANAGEMENT (TSQM ) MODEL
TM
Service Vision,
Strategy & Action
TCS
TQM Plus
People Training,
Development and
Culture
Communication
Systems, Tools,
Metrics, Processes and
Rules
By Dr. Stephen W.K. Ng
TCS – Total Customer Satisfaction
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
A STRONG ORGANIZATIONAL CULTURE IS NEEDED TO SUPPORT TQM PLUS
Quality & Speed
COMBINING  THE  BEST  OF  EAST  &  WEST
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
TM
THE QUST EVOLUTION IN MOTOROLA- a 6 sigma culture example
QuST Timeline
Management
Doma
Domain6 System
Domain2
Recognition
Measurement
Education Communication
Domain5
Aim at delivering more
values to customers
Domain3
Participation
Domain4
Generic QuST
MCTG
CPSTG
MMTG
Executive QuST
LATG
8 Domains
Strategic QuST
4 QuST
1987
Work Improvement
Team (WIT) approach
1995
QuST
integrated into
Quality Department
1998-2002:
• Customer
Loyalty
1995-1996:
• Quarterly
1993
Quality
QuST renewed to include
&Speed
Teamwork & Technology
Excellence
as enabler
1991
Sharing
‘Total Quality Now’
1992-1994:
• Year round
Workshop
• Quarterly Quality &Speed activities
Formed Quality and
Speed Teams (QuST)
Excellence Sharing
• Yearly ‘Quality Week’
1992:
• Established ‘Small Win’
Recognition System
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
“MOST WELL RUN AND WELL
MANAGED COMPANIES STILL ONLY
USE 50% OF THEIR AVAILABLE
RESOURCES”
Alexander Proudfoot
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
“EIGHTY PERCENT OF THE
ABILITY TO GET RESULTS IS
BELIEVING THAT THEY ARE THERE
TO GET”
Alexander Proudfoot
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
PREPARING FOR THE 21ST CENTURY And
Beyond
“If a process
doesn’t work
over a period of
time, don’t keep
trying to fix it.
CHANGE it!”
J. Anklesaria
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Effects of Service Programs on Customer Delivery
On Time Delivery to PDD Performance
On Time Delivery to CRD Performance
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
1/99
3/99
5/99
7/99
9/99
11/99
1/00
3/00
Total Service Programs OTD to PDD
Sector Average OTD to PDD
MDC-TQM Group on TQM Plus sharing – April 24, 2001
5/00
1/99
3/99
5/99
7/99
9/99
11/99
1/00
3/00
5/00
Total Service Programs OTD to CRD
Sector Average OTD to CRD
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
PKKI Balanced Scorecard 2002
Vision
Mission
Provide enjoyable
environment for high quality
knowledge transfer between
academia and business world
Financial
•Healthy with surplus
•Reliability of performance
•Donation continuation
•Repayment of debt
•Reward & incentive
Customer
•Be a Premier Institute of Management focusing
on consultancy, executive learning and action
research
•Equip employees and professionals with
competencies to achieve higher quality and
speed performance
Internal
Learning & growth
•Value for money
•Exceed customer
expectations
•Continuous
improvement
•Customer loyalty
•Effective SCM
•Service innovation
•Corporate account
•System management
•New programs
•SQ excellence
•Superior project
management
•Empowered
professionals
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
SERVICE QUALITY INDEX - INTERNAL CUSTOMERS
Warehouse Customer Picking and Inventory Accuracy Performance:
Warehouse Customer Picking Performance
Inventory Accuracy Performance
Accuracy (in %)
No. of errors per month
16
14
100
14
99.99%
.
. . . .
100% 100% 100%100%
12
99.75
10
8
6
4
2
7
. 99.61%
99.25
4
2
0
98.75
0
0
0
1991 1992 1993 1994 1995 1996 1997
98.25
. 98.30%
Time
1991 1992 1993 1994 1995 1996 1997
Source of Information: Inventory Audit
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
You and me now
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
Elements of transformational leadership
• Has a vision & be able to articulate it in concrete
terms
• Perceived as a change agent
• Able to develop rapport with his followers
• Able to energize his followers to action to achieve
challenging goals
• Provides supports to, and act as a coach & teacher
to his followers
• Exhibits distinctive and consistent behavior (that
is consistent with his vision)
• Sensitive to & knowledgeable about the
‘environment’ (internal & external)
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
THE TRANSFORMATIONAL LEADERS
CONSIDER…..
* Incremental change isn’t enough for many
companies today. They don’t need to change
what is; they need to create what isn’t
* Some people see things as they are and ask
why, transformational leaders see things as they
never were and ask why not…….
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
A “Wake Up Call” to Business Leaders
It’s Time to kill
your organization before
it kills your business and
you !!!
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001
MDC-TQM Group on TQM Plus sharing – April 24, 2001
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001