1. Management and Leadership
(18 Questions)
1
1A.1 Evolution of Quality
2
Evolution of Quality
• 1901 - Sir John Wolfe-Barry (the man who designed London's
Tower Bridge) instigated the Council of the Institution of Civil
Engineers to form a committee to consider standardizing iron
and steel sections .
• 1924 - Walter A. Shewhart developed the control charts, and
principles of statistical process control.
• 1950 :1960 – Deming, Juran, Japan
• Inspection > QC > SPC > QA > TQM > Business Excellence
3
Quality Gurus
Edwards
Deming : 14
points
Joseph Juran :
Quality Trilogy
Philip Crosby :
Four Absolutes
Walter A
Shewhart :
Control Charts
Kaoru Ishikawa
: Cause-andEffects Diagram
Genichi Taguchi
: Loss Function
4
Three
Quality Gurus
5
W. Edwards Deming
• 1928 - Ph.D. in Mathematical Physics
• 1920’s, 30’s - Western Electric.
• 1946-1993 Professor of Statistics
• 1950 – Taught Quality Control
• 1951 Deming Prize for high level of
achievement in quality practices
• 1980 NBC “If Japan Can…Why Can’t
We?” US discovers
6
W. Edwards Deming
• Deming’s Quality Chain Reaction
• 14 Principles of Management
• System of Profound Knowledge
• Seven Deadly Diseases
• Variation – Common Cause vs
Special Cause
• Red Bead Experiment
7
1. Create Constancy of
Purpose
Create constancy of purpose
toward improvement of
product and service, with the
aim to become competitive
and to stay in business and
to provide jobs.
• Long term view
• Customer focus
• Invest in innovation, training,
research
• Improve competitive position
1
Create
Constancy of
Purpose
Create
Constancy
of
Purpose
8
2. Adopt the New
Philosophy
Adopt the new philosophy.
We are in a new economic
age. Western management
must awaken to the
challenge, must learn their
responsibilities, and take
on leadership for change.
• Be prepared for changes
• Improve the customers’
satisfaction
• Train people
9
2
Create
Constancy of
Purpose
Adopt
the
New
Philosophy
3. Cease Dependence on
Mass Inspection
Cease dependence on
inspection to achieve
quality. Eliminate the need
for inspection on a mass
basis by building quality
into the product in the first
place.
• Inspection is too late
• Build quality in processes
3
Create
Constancy of
Cease
Purpose
Dependence
on
Mass
Inspection
10
4. Don’t Award Business
on the Basis of Price
End the practice of awarding
business on the basis of price
tag. Instead, minimize total
cost. Move toward a single
supplier for any one item, on
a long-term relationship of
loyalty and trust.
• Multiple suppliers lead to
increased variability
• Volume discounts, fewer
setups
• Supplier-customer bond
4
Create
Constancy of
Purpose
Don’t Award
Business
on the
Basis of Price
11
5. Improve Constantly
and Forever
Improve constantly and
forever the system of
production and service, to
improve quality and
productivity, and thus
constantly decrease costs.
• Reduce causes of variation
• Engage all employees
• PDCA approach
12
5
Create
Constancy of
Purpose
Improve
Constantly
and Forever
6. Institute Training on
the Job.
Institute training on the job.
• People want to do a good job
• They need training to know
how to do a good job
• Invest in their future
• Training should include tools
for
• Identify improvement
opportunities
• Solving quality problems
6
Create
Constancy of
Purpose
Institute
Modern
Methods of
Training
13
7. Institute Leadership
Institute leadership. The
aim of supervision should
be to help people and
machines and gadgets to
do a better job.
• Supervisors need to
understand processes.
• Good supervisors are
coaches, not policemen.
7
Create
Constancy of
Purpose
Institute
Leadership
14
8. Drive Out Fear
Drive out fear, so that
everyone may work
effectively for the
company.
• Managers and workers
must have mutual respect
• Make workers feel valued
and encourage them to
improve processes.
15
8
Create
Constancy of
Purpose
Drive
Out
Fear
9. Break Down Barriers
Break down barriers
between departments.
People in research, design,
sales, and production must
work as a team to foresee
problems of production and
use that may be encountered
with the product or service.
• Build the concept of internal
customers.
• Common vision
• Cross functional teams
9
Create
Constancy of
Purpose
Break
Down
Barriers
16
10. Eliminate Numerical
Goals, Posters and Slogan
Eliminate slogans,
exhortations, and targets for
the work force asking for
zero defects and new levels
of productivity.
• Slogans assume quality
problems caused by people
• Deming thinks the system is
responsible for problems
• Workers demoralized when
they cannot fix defects, and
yet are held accountable
Create
Constancy of
Eliminate
Purpose
Numerical
Goals,
Posters and
Slogan
17
11. Eliminate Numeric
Quotas
a)
b)
Eliminate work standards
(quotas) on the factory floor.
Substitute leadership.
Eliminate management by
objective. Eliminate
management by numbers,
numerical goals. Substitute
leadership.
• They do not encourage
improvement
• Arbitrary goals are demoralizing
without a plan of how you can
reach those goals
18
Create
Constancy of
Purpose
Eliminate
Numeric
Quotas
12. Remove Barriers to
Pride in Workmanship
a)
b)
Remove barriers that rob
the hourly worker(s) of
their right to pride of
workmanship.
Remove barriers that rob
people in management
and in engineering of their
right to pride of
workmanship.
• Don’t make your people
compete against each other
• Abolish annual merit rating
Create
Constancy of
Purpose
Remove
Barriers to
Pride in
Workmanship
19
13 Education &
Retraining
Institute a vigorous
program of education
and self-improvement.
• Encourage workers to
learn new skills to face
future challenges.
Create
Constancy of
Purpose
Education
&
Retraining
20
14. Take Action
Put everybody in the
company to work to
accomplish the transformation. The
transformation is
everybody’s job.
• Involve everyone
• Start the cultural change
with top management
• People will be skeptical
until they start to see
change
21
Create
Constancy of
Purpose
Take
Action
Quality Gurus
Edwards
Deming : 14
points
Joseph Juran :
Quality Trilogy
Philip Crosby :
Four Absolutes
Walter A
Shewhart :
Control Charts
Kaoru Ishikawa
: Cause-andEffects Diagram
Genichi Taguchi
: Loss Function
22
Joseph Juran
• 1920s - Joined Western Electric
• 1951 – Quality Control Handbook
• Taught quality principles to
Japanese in 1950s
23
Joseph Juran
• Ten Steps of Quality Improvement
• Quality Control Handbook
• The Juran Trilogy
• Top management involvement,
• The Pareto principle
• The definition of quality as fitness for use
• The project-by-project approach to
quality improvement
24
10 Steps of Quality Improvement
1.
2.
3.
4.
5.
Build awareness of the need
and opportunity for
improvement
Set goals for improvement
Organize to reach the goals
Provide training
Carry out projects to solve
problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep score of improvements
achieved
10. Maintain momentum
25
The Juran Trilogy
• Quality Planning
• Preparing to meet quality goals
• Quality Control
• Meeting quality goals during operations
• Quality Improvement
• Breaking through to unprecedented levels
of performance
26
Quality Gurus
27
Edwards
Deming : 14
points
Joseph Juran :
Quality Trilogy
Philip Crosby :
Four Absolutes
Walter A
Shewhart :
Control Charts
Kaoru Ishikawa
: Cause-andEffects Diagram
Genichi Taguchi
: Loss Function
Philip Crosby
• 1952 - His first job in the field of quality
was that of test technician in the quality
department at Crosley Corporation
• 1979 - Crosby started the management
consulting company Philip Crosby
Associates, Inc.
• 1979 - Crosby published his first business
book, Quality Is Free
• Quality is Free – 1 million copies sold
28
Philip Crosby
• Quality as Conformity to Specification
• Four Absolutes of Quality
• “Quality is Free” and “Quality Without
Tears”
29
Four Absolutes of
Quality
1. The definition of quality is
conformance to requirements
(requirements meaning both the
product and the customer's
requirements)
2. The system of quality is
prevention
3. The performance standard is
zero defects (relative to
requirements)
4. The measurement of quality is
the price of non-conformance.
30
Create
Constancy of
Purpose
Four
Absolutes
of
Quality
1. The definition of quality is
conformance to requirements
• Quality means conformance,
not elegance or goodness
• “Do It Right the First Time
(DIRFT)”
• Management has 3 tasks
related to this:
• Clearly establish requirements
• Supply means to meet
requirements
• Spend time helping employees
meet requirements
1
Create
Constancy
The of
Purpose
definition of
quality is
conformance
to
requirements
31
2. The system of quality is
prevention
• The system for causing quality
is prevention, not appraisal.
• An error that does not exist
can’t be missed.
• Secret of prevention is to look
at process and identify
opportunities for error
2
Create
Constancy
The of
Purpose
system
of
quality
is
prevention
32
3. The performance
standard is zero defects
• Not a “motivational” program.
It is a management standard
tells people what is expected of
them.
• Employees perform to the
standards of the leaders.
• Mistakes caused by two
factors:
• Lack of knowledge. Knowledge
can be measured in deficiencies
corrected through tried-andtrue means.
• Lack of attention. Must be
corrected by the person himself
or herself. An attitude problem.
33
3
Create
Constancy
The of
Purpose
performance
standard
is
zero
defects
4. The measurement of quality is
the price of non-conformance
• Traditional quality
measurements are technical in
nature, however, they need to
be converted to numbers that
management understands.
4
Create
The of
Constancy
measurement
Purpose
• Price of Conformance. All
expenses necessary to make
things right. Quality functions,
prevention efforts, quality
education.
• Price of Non-conformance. All
expenses involved in doing
things wrong. Cost of fixing
problems, correcting orders,
correcting products,
warranties.
of quality
is the
price of
nonconformance
34
1A.2 Continuous Improvement
Tools
35
Lean
Six Sigma
Continuous
Improvement
Tools
Theory of Constraints
Statistical Process Control
Total Quality Management
36
The Machine That
Changed the World by
James P. Womack, Daniel
Roos, and Daniel T. Jones
Mass Production - Ford
• Walter Shewhart
1910
1990
History of
Lean
1950s
Toyota Production System
37
Lean Philosophy
• Value - specify what creates value from
the customer’s perspective.
• The value stream – identify all the steps
along the process chain.
• Flow - make the value process flow.
• Pull - make only what is needed by the
customer (short term response to the
customer’s rate of demand).
• Perfection - strive for perfection by
continually attempting to produce exactly
what the customer wants.
38
• Reduce Waste
• Improved Quality/Customer Satisfaction
Lean
Benefits
• Reduced Inventory
• Reduced Cycle Time
• Flexible Manufacturing
• Safe Workplace Environment
• Improved Employee Morale
39
Other Companies Adopt
Six Sigma – AlliedSignal,
GE, Dow Chemical,
Dupont, Honeywell,
Whirlpool, IBM
Control Charts
• Walter Shewhart
1924
Mid 1990
Six Sigma
History
1987
Motorola Develops Six
Sigma
• Raised Quality Standards
40
Six Sigma Philosophy
1
2
3
Know What’s
Important to the
Customer (CTQ)
Reduce Defects
(DPMO)
Centre Around
Target (Mean)
4
Reduce
Variation
(Standard
Deviation)
41
• Generated sustained success
Six Sigma
Benefits
• Project selection tied to organizational strategy
• Customer focused
• Profits
• Project outcomes / benefits tied to financial
reporting system.
• Full-time Black Belts in a rigorous, projectoriented method.
• Recognition and reward system established to
provide motivation.
42
• The theory of constraints (TOC) was
introduced by Eliyahu M. Goldratt in his 1984
book titled The Goal.
Theory of
Constraints
• Identifying the constraint (factor which limits
throughput / stands in the way of goal) and
systematically improving that. Repeating this
process to improve the next constraint.
• Constraint is the weakest link in the chain.
43
• It helps in identifying what to improve.
Theory of
Constraints
• Current constraint should always be the top
priority to make improvement.
• Improving a non-constraint process will not
improve the overall throughput.
• Constraints examples – Physical, Policy,
Paradigm, Marketplace
44
Identify
• Identify the current constraint
Exploit
• Make improvement using existing resources
Theory of
Constraints
Subordinate
• Ensure all activities support constraint
Elevate
• If constraint still exists, take further actions
Repeat
• Move to the next constraint
45
Statistical
Process
Control
• Six Sigma is based on SPC
• Quality Control tool to control processes
based on facts and data.
• Common Cause vs Special Causes
• Control Charts are used in SPC
46
Total Quality
Management
• Total Quality Management is way to achieve
customer satisfaction by every one working in
the organization to improve the product,
processes, service.
• A culture of continual improvement is
established, by involvement of management.
• Most Quality Awards are based on the
principles established for implementing TQM.
47
2022 – Changes in the BoK – 1A
 The updated BoK is effective from Oct 2022 onwards
48
2022 – Changes in the BoK – 1A
 The number of questions from Section 1 has been
changed from 18 to 17.
 Theory of Constraints has been removed from the BoK.
49
1B.1 Strategic Planning
50
• Activities to
• set priorities,
Strategic
Planning
• focus energy and resources,
• ensure that employees and other
stakeholders are working toward common
goals,
• establish agreement around intended
outcomes/ results,
• assess and adjust the organization's direction
in response to a changing environment.
51
Strategic
Planning
ProcessVMOSA
• Vision (the dream)
• Mission (what and why)
• Objectives (how much of what)
• Strategies (how)
• Action Plans (who will do, what, by when)
52
1B.2 Deployment Techniques
53
Techniques
for QMS
Deployment
54
• Benchmarking
• Stakeholder identification and analysis
• Performance measurement tools
• Project Management
Benchmarking
• The process of comparing
• one's business processes and performance
metrics
to
• industry bests and best practices from
other companies.
55
Process benchmarking
• Example: Delivery process, Billing
process
Benchmarking
Performance benchmarking
• Features of products and services
e.g. mileage, download speed
Strategic benchmarking
• How companies compete
56
Internal Benchmarking
Internal vs
External
Benchmarking
• Easy access to sensitive information
• Less time and resources required
• Limited gain because internal
benchmark might not be the best in
class.
External Benchmarking
• Just the revise of internal
benchmarking
57
• What function to benchmark (D)
• What is the current performance level (M)
• Select the Best-in-Class (M)
Benchmarking
Process
• Compare (A)
• Agree on actions to achieve or beat the Bestin-Class and Implement (I)
• Monitor (C )
• Re-do
58
• Management support
• Alignment with the strategy
Benchmarking
Challenges
• Lack of Resources
• Right team
• A suitable and willing partner
• Willingness to change
59
Stakeholders
Owner, Managers
Suppliers, Customers
Employees, Partners
Local Community,
Associations, Media
Public
60
Interested
Parties
(ISO 9001:2015)
 4.2 Understanding the needs and
expectations of interested parties
 Due to their effect or potential effect on the
organization’s ability to consistently provide
products and services that meet customer
and applicable statutory and regulatory
requirements, the organization shall
determine:
a) the interested parties that are relevant to the
quality management system;
b) the requirements of these interested parties
that are relevant to the quality management
system.
 The organization shall monitor and review
information about these interested parties
and their relevant requirements.
61
Stakeholder Analysis
Keep Satisfied
Manage closely
LATENTS
KEY PLAYERS
INTEREST
Keep informed
Monitor
DEFENDERS
APETHETICS
POWER
62
• Metrics to measure performance
Performance
Measures
63
• Commonly used performance measures for
outsiders are financial
• Internal metrics include performance levels
• Process yield
• Defect rate
• Average time to answer a call
• Schedule
• By Robert S.Kaplan and David P. Norton
• Four perspectives
• Financial
• Customer
• Internal Business Processes
• Learning and Growth
Balanced
Scorecard
64
Balanced Scorecard
##
##
Financial
Customer
##
##
Internal Processes
Learning/Growth
65
Leading vs
Lagging
Indicators
66
• Lagging are easy to measure
• Lagging are post event (output)
• Leading are predictive measures (inputs)
• Leading indicators are not guaranteed and are
the difficult to decide, which one to select.
• Mix of both leading and lagging is good.
Project
Management
Tools
• Gantt Chart
• Critical Path Method (CPM)
• Program Evaluation and Review Techniques
(PERT)
• Resource Allocation
67
• A Gantt chart is a type of bar chart,
Gantt Chart
68
Gantt
Chart
69
• Gantt charts illustrate the start and finish
dates of the terminal elements and summary
elements of a project.
Gantt Chart
70
Activity
Network
Diagram
• To manage number of tasks in a sequence.
• List down tasks
• Time for each task
• Predecessor and successor tasks
• Identify bottlenecks
71
Activity Network Diagram
• CPM (Critical Path Method) is
commonly used with all forms of
projects
• It includes:
• A list of all activities required
to complete the project
• The time (duration) that each
activity will take to complete,
• The dependencies between
the activities and,
• Logical end points such as
milestones or deliverable
items.
72
Activity
Duration
Depends
on
A
2
B
4
A
C
1
A
D
2
B
E
7
B, C
Activity
Network
Diagram
• Float
• float or slack is the amount of time that a
task in a project network can be delayed
without causing a delay
• Critical Path
• An activity on critical path has "zero free
float"
73
Activity Network Diagram
Activity
Duration
A
2
Depends
on
B
4
A
C
1
A
D
2
B
E
7
B, C
74
Program
Evaluation
and Review
Techniques
(PERT)
• The PERT Network acknowledges that there
will be a time variance (due to uncertainty) in
the completion of each activity
• PERT Network uses a probabilistic approach
to estimating for each activity.
• To estimate for an activity, the following
formula is used:
• Expected time = ( Optimistic + 4 x Most likely
+ Pessimistic ) / 6
• Standard Deviation = (Pessimistic –
Optimistic)/6
75
Program Evaluation and Review Techniques (PERT)
76
• Resource levelling
• Crashing and compressing schedule
Resource
Allocation
• Crashing involves adding resources to get the
activity done on or before time.
• Compressing (or fast tracking) involves
performing activities in parallel.
https://www.pmi.org/learning/library/performing-crash-analysis-alternative-costschedule-6750
77
1B.3 Quality Information
System
78
Quality
Information
System
(QIS)
• Information Management System related to
Quality Management to collect, stored,
analyze and report data
• Data centric approach of Quality Management
79
• Design reviews
Quality
Management
Data
• Audits
• Non conformance
• Repair, Returns
• Customer surveys
• Test reports, test certificates, performance
data
80
Quality
Information
System
(QIS) Benefits
81
• Identify priorities
• Track performance of initiatives and
investments
• Track competitor’s performance
• Breaks silos in the organization. All groups
have access to the data.
2022 – Changes in the BoK – 1B
82
2022 – Changes in the BoK – 1B
 Topics removed from the BoK
 PERT and CPM
 Resource allocation
 Topics added to the BoK
 Cost-Benefit Analysis
 RACI
83
$2,000
Cost-Benefit Analysis
Year 01
Year 02
$1,000
Year 03
$1,000
Year 04
$1,000
Year 05
$1,000
$1,000
Benefit to Cost Ratio = $5,000 / $2,000 = 2.5
This calculation ignores the present value of money.
84
$2,000
Net Present Value
Year 01
Year 02
Year 03
Year 04
Year 05
$2,500
Net Present Value (NPV) =
𝐶
1+𝑟
Net Present Value (NPV) =
2500
1 + 0.10
Cost of Capital = 10%
−𝐶
− 2000 = −447.70
85
$2,000
Cost-Benefit Analysis
Year 01
Year 02
$1,000
The current value of Benefits =
1000
1000
+
1 + 0 ⋅ 10
1 + 0 ⋅ 10
Year 03
$1,000
Year 04
$1,000
Year 05
$1,000
+
1000
1 + 0 ⋅ 10
+
1000
1 + 0 ⋅ 10
+
1000
1 + 0 ⋅ 10
The current value of Benefits = $3,790.78
Benefit to Cost Ratio = $3,790.78 / $2,000 = 1.895
86
RACI
Describes the participation by various roles in completing
tasks.
Responsible: Those who do the work to achieve the task
Accountable: The one ultimately answerable for the correct and
thorough completion of the deliverable or task
Consulted: Those whose opinions are sought, typically subject
matter experts
Informed: Those who are kept up-to-date on progress
87
$1,000
Cost of Capital = 10%
RACI
88
1C. ASQ Code of Ethics for
Professional Conduct
89
• ASQ requires its representatives to be honest
and transparent.
Fundamental
Principles
• Avoid conflicts of interest and plagiarism.
• Do not harm others.
• Treat them with respect, dignity, and fairness.
• Be professional and socially responsible.
• Advance the role and perception of the Quality
professional.
Source:
https://asq.org/about-asq/code-of-ethics
90
1
Code of
Ethics –
Expectations
of a Quality
Professional
Source:
https://asq.org/about-asq/code-of-ethics
Act with Integrity and
Honesty
•Strive to uphold and
advance the integrity,
honor, and dignity of the
Quality profession.
•Be truthful and
transparent in all
professional interactions
and activities.
•Execute professional
responsibilities and make
decisions in an objective,
factual, and fully informed
manner.
•Accurately represent and
do not mislead others
regarding professional
qualifications, including
education, titles,
affiliations, and
certifications.
•Offer services, provide
advice, and undertake
assignments only in your
areas of competence,
expertise, and training.
2
3
Demonstrate
Responsibility, Respect,
and Fairness
Safeguard Proprietary
Information and Avoid
Conflicts of Interest
•Hold paramount the
safety, health, and welfare
of individuals, the public,
and the environment.
•Avoid conduct that
unjustly harms or
threatens the reputation
of the Society, its
members, or the Quality
profession.
•Do not intentionally cause
harm to others through
words or deeds. Treat
others fairly, courteously,
with dignity, and without
prejudice or
discrimination.
•Act and conduct business
in a professional and
socially responsible
manner.
•Allow diversity in the
opinions and personal
lives of others.
•Ensure the protection and
integrity of confidential
information.
•Do not use confidential
information for personal
gain.
•Fully disclose and avoid
any real or perceived
conflicts of interest that
could reasonably impair
objectivity or
independence in the
service of clients,
customers, employers, or
the Society.
•Give credit where it is
due.
•Do not plagiarize. Do not
use the intellectual
property of others without
permission. Document the
permission as it is
obtained.
91
1D. Leadership Principles and
Techniques
92
Team Types
• Functional
• Cross Functional
• Virtual
• Self Managed
• Quality Circles
93
Tuckman Model of Team Life Cycle
Forming
Storming
The forming stage
occurs when team
members first
come together as
a team.
During the
storming stage,
teams discover
teamwork is
more difficult
than they
expected.
Norming
The norming stage
begins as the team
moves beyond the
storming stage
and begins to
function as a
team.
Performing
Adjourning
When a team
reaches the
performing stage
it is functioning
as a high
performance
team.
Breaking up the
team when the
required task is
complete.
94
1E. Facilitation Principles and
Techniques
95
1E.1 Roles and
Responsibilities
96
• Leader
Team Roles
• Facilitator
• Coach
• Members
97
• Provides direction to team members
• Clarity on the roles of team members
Team Roles
- Leader
• Establishes ground rules for working with
each other
• Ensures successful completion of team goal
• Preparing for and conducting team meetings
• Assigns roles to team members
98
Team Roles
- Facilitator
99
• Facilitator provides leadership to the team
without formal authority to make decisions.
• Facilitator helps team understand the
objective and support the team on how to
achieve the objective.
Team Roles
- Coach
• Coach provides one to one support after
training.
• Coach is the first person to be contacted if the
team has an issue and needs help.
• GROW Model of Coaching
GROW
G - Goal
What team wants to achieve
R - Reality
Current reality and challenges the team has
O - Obstacles
What stops team from achieving the goal.
W – Way forward
Steps needed to be taken to achieve the goal
100
• Participate in team meetings
Team Roles
- Members
• Perform the tasks assigned to them
• Actively participate in brainstorming and idea
generation
101
1E.2 Facilitation Tools
102
Brainstorming
Nominal Group Technique
Team Tools
Conflict Resolution
Force-field Analysis
103
Brainstorming
• Brainstorming is a group or individual
creativity technique by which efforts are
made to find a conclusion for a specific
problem by gathering a list of ideas
spontaneously contributed by its member.
• Defer judgment,
• Reach for quantity
104
• Four Rules:
Brainstorming
• Focus on quantity
• Withhold criticism
• Welcome unusual ideas
• Combine and improve ideas
105
Nominal Group
Technique
• The nominal group technique (NGT) is a
group process involving problem
identification, solution generation, and
decision making.
• Five Steps
• Introduction and explanation
• Silent generation of ideas
• Sharing ideas
• Group discussion
• Voting and ranking
106
• Brainstorming generates a long list of ideas
• Multi-voting technique is used to reduce
/narrow down this list with group consensus.
Multi-voting
• Out of big list of ideas each member selects 5
(or any other number of ideas).
• Each member ranks his/her choice. (5 for
most preferred and 1 for least)
107
Multivoting
108
Conflict
Resolution
• Two underlying dimensions of conflict
My interest
(concern for self,
or assertiveness)
Your interest
(concern for
others, or
empathy)
109
Conflict Resolution
Competing
maximizes concern for self and minimizes
empathy (i.e., concern for others)
C
Assertiveness
C
Collaborating
collaborators willingly invest time and resources
into finding a “win-win” solution
Compromising
A
Empathy
A
Avoiding
Accommodating
when an individual has withdrawn in dealing
characterized by a high level of concern for others
with the other party.
and a low level of concern for oneself.
110
Force Field
Analysis
• Balance between
forces driving
change and forces
resisting change.
111
Force Field
Analysis
Forces
against
the
change
Forces in
favor of
change
112
Force Field
Analysis
- Reduced over time
- Initial investment
- Fear of new
technology
- Customer looking
for less defects
- Low down time
- Increased sale
113
1F. Communication Skills
114
Team
Communication
• Create right environment of open
communication
• Encourage communication
115
Noise
Sender
Receiver
Encode
Communication
Model
Channel
Feedback
116
• Verbal
Communication
Methods
117
• Non-verbal
• Written
Decode
1G. Customer Relations
118
Customer
Relations
• Customer Relations Tools:
• Quality Function Deployment
• Customer satisfaction survey
119
 Developed by Yoji Akao in 1970s.
Quality
Function
Deployment
120
 Quality Function Deployment (QFD) is a
method to acquire and analyze the voice of
the customer and then transform it into
product requirements and quality assurance
measures throughout the design, build, test,
commercialization, and even product
retirement process.
Quality
Function
Deployment
121
Surveys
• Listen to your customers
• Mail, Phone, Web surveys
• Feedback
Customer
Satisfaction
Focus Groups
• A group of people are asked about their
perceptions, opinions, beliefs, and attitudes.
Interviews / Meetings
Observations
122
• What is the goal of the survey?
Survey
• Clarity of questions
• Unambiguous
• Scale of 1 to 10
• Historical relevance (to compare year to
year change)
• Open ended questions
• Review the survey
• Send the survey to target audience
• Analyze
123
Focus
Group
• A group of people are asked about their
perceptions, opinions, beliefs, and attitudes.
• Generally 6-10 people having open discussion
with skilled moderator.
124
Focus
Group
• Engagement questions
• Start discussion to make participants
comfortable with the process.
• Exploration questions
• Main questions
• Exit question
• Anything else members want to add
125
1H. Supplier Management
126
1H-1 Techniques
127
Supplier
Management
- Challenges
• Boeing
• intended to reduce the 787's development
time from six to four years and development
cost from $10 to $6 billion.
• increase outsourcing to 70 percent (from 3050% done previously)
• outsourced the engineering and construction
of the plane long before the product was
defined and the relative costs established.
• over budget
• over three years late
• https://www.forbes.com/sites/stevedenning/
2013/01/21/what-went-wrong-at-boeing/
128
• What all can go wrong with supply chain?
Supplier
Management
- Challenges
129
• At supplier end:
• Natural causes (flood, earthquake ….)
• Man made cause (strike, fire, unrest ….)
• Economic (insolvency, sub-supplier failure
…)
• In Transit – Natural or man made causes
• On receipt – defective, reputation issues
Supplier
Management
- Challenges
• There continues to be a high level of
outsourcing
• For mid to large corporations, the level of
spend on purchased products and services
averages around 50% of revenue - focus on
core competencies and outsource their noncore operations
• Managing supplier is the key factor for the
organization’s success
130
Supplier
Lifecycle
Management
• Supplier Lifecycle Management is a best
practice approach for selection, monitoring,
classification and creation a long term
partnership to:
• Mitigating risk
• Reduce costs
• Ensure compliance
• Sustainable supplier relationship
• It is end-to-end approach to managing
suppliers in a transparent and structured way.
131
Supplier Lifecycle Management
132
Supplier
Selection
Performance
Monitoring
Supplier
Classification
Supplier selection, qualification
including the identification of
sub-tier suppliers.
Expected levels of performance,
process reviews, performance
evaluations, improvement
plans, and exit strategies.
Supplier classification system,
e.g. non-approved, approved,
preferred, certified,
partnership, and disqualified
Partnerships
& Alliances
Strategies for developing
customer-supplier partnerships
and alliances.
• Identifying Potential Suppliers
• Shortlisting
• Prequalification
Supplier
Selection
• Establish bidders list
• Request bids
• Evaluate bids
• Select supplier/Award
Identify supplier
Shortlist
Prequalify
Establish list
Request bids
Evaluate bids
Select
133
• Identify Potential Suppliers
• Selection or screening would need extra
effort on part of the organization.
• New supplier might offer cost or quality
advantage
• Promoting local suppliers
Supplier
Selection
Identify supplier
Shortlist
Prequalify
Establish list
Request bids
Evaluate bids
Select
134
• Shortlisting or screening
• To avoid likelihood of late delivery, poor
quality, non-responsible suppliers
• Method used for shortlisting
• Market reputation
• Public information
Supplier
Selection
Identify supplier
135
Shortlist
Prequalify
Establish list
Request bids
Evaluate bids
Select
• Prequalification
• Financial status
• Capacity available
• Quality – ISO 9001 or other certifications
• Client approval if required
Supplier
Selection
Identify supplier
Shortlist
Prequalify
Establish list
Request bids
Evaluate bids
Select
136
• Establish Bidders List
• To avoid repeating the prequalification
process next time
Supplier
Selection
Identify supplier
Shortlist
Prequalify
Establish list
Request bids
Evaluate bids
Select
137
• Request Bids
• Request for Proposal (RFP) – when buyers
indicate the preferences and ask bidder to
provide the details, how these
requirements will be fulfilled.
• Request for Quote (RFQ) – when buyer
can develop exact specification for the
product needed
Supplier
Selection
Identify supplier
138
Shortlist
Prequalify
Establish list
Request bids
Evaluate bids
Select
• Evaluate Bids
• Based on pre-determined criteria such as
price, quality, schedule, and commercial
terms etc.
• Other criteria includes: Finance,
production capability, communication,
responsiveness to queries, Health, Safety ,
Environment, Society responsibility etc.
Supplier
Selection
Identify supplier
Shortlist
Prequalify
Establish list
Request bids
Evaluate bids
Select
139
• Award
• Place the Purchase Order to the selected
supplier.
Supplier
Selection
Identify supplier
Shortlist
Prequalify
Establish list
Request bids
140
1H-2 Improvement
141
Evaluate bids
Select
Supplier Lifecycle Management
Supplier
Selection
Performance
Monitoring
Supplier selection, qualification
including the identification of
sub-tier suppliers.
Expected levels of performance,
process reviews, performance
evaluations, improvement
plans, and exit strategies.
Supplier
Classification
Supplier classification system,
e.g. non-approved, approved,
preferred, certified,
partnership, and disqualified
Partnerships
& Alliances
Strategies for developing
customer-supplier partnerships
and alliances.
142
Supplier
Performance
Monitoring
• The level of monitoring will depend upon the
risk level.
• Establish criteria for evaluating and
monitoring supplier performance against the
contractual obligations
143
Supplier
Performance
Monitoring
144
• The level of monitoring will depend upon the
risk level.
• High value, high risk good and services will
require higher level of monitoring
Supplier
Performance
Monitoring
• Typical Performance Parameters:
• Cost
• Under/over budget, cost savings
• Quality
• Defect rate, returns, failures, damages
• Schedule
• On time delivery, shortages
• Responsiveness
• Willingness to change the order details
(quantity, design etc.)
145
1H-3 Risk
146
Risk Definition
147
• Effect of uncertainties on objectives (ISO 31000:2009)
• NOTE 1 An effect is a deviation from the expected —
positive and/or negative.
• NOTE 2 Objectives can have different aspects (such as
financial, health and safety, and environmental goals) and
can apply at different levels (such as strategic, organizationwide, project, product and process).
• NOTE 3 Risk is often characterized by reference to
potential events and consequences, or a combination of
these.
• NOTE 4 Risk is often expressed in terms of a combination
of the consequences of an event (including changes in
circumstances) and the associated likelihood of occurrence.
• NOTE 5 Uncertainty is the state, even partial, of
deficiency of information related to, understanding or
knowledge of an event, its consequences or likelihood.
Risk Management
Coordinated activities to direct and control an organization with regard to risk.
148
Risk Definition
• Positive risks is called opportunities.
• You would like to take maximum
advantage of these positive risks.
• Risk is associated with future event, which has
not happened yet.
• A risk which has already occurred is
considered as an “issue”.
149
Risk Management - Benefits
Better decision-making through a good
understanding of risks and their likely impact.
Fewer
surprises
150
Effective use
of resources
Reassuring
stakeholders
Risk Management
Identify Risks
Prioritize
Risks
Mitigation
Control
Mitigation
Effectiveness
151
Risk
Strategies
• Focus on suppliers at risk
• All suppliers are not equally risky. Keep
focus on risky suppliers.
• Specific organization or even specific
country can represent higher risk
• Allocate your limited resources to higher
risk suppliers
• Hope for the best, prepare for the worst
• Business Continuity Plan
• Contingency Plan
• Resiliency
Business
Continuity
Plan (BCP)
• Process of creating systems of prevention
and recovery to deal with potential
threats to a company.
• Potential threats and recovery steps are
included in the BCP.
• Common treats include – Fire, flood,
strike, earth quack, war, outages, cyber
attack, terrorist attack etc.
152
153
Contingency
Planning
• A contingency plan is a plan devised for
an outcome other than in the usual
(expected) plan.
• Events covered in the contingency plan
are not as extreme as the Business
Continuity Plan.
• Examples: Supplier going out of business,
bankruptcy, price/currency fluctuations
154
Resiliency
• The capacity to recover quickly from
difficulties; toughness.
• The ability of business operations to
rapidly adapt and respond to internal or
external dynamic changes
155
• Resilient infrastructure: Improving your
business resilience – IBM White Paper
Resiliency
• Six Blocks:
• Recovery
• Hardening
• Redundancy
• Accessibility
• Diversification
• Autonomic Computing
Reference: https://www-935.ibm.com/services/us/its/pdf/resilientinfra.pdf
156
1I. Barriers to Quality
Improvement
157
• Confusion over the definition of quality
Barriers to
Quality
Improvement
158
• Lack of leadership
• Long term commitment
• Lack of data (e.g. benefits, magnitude of
the problem etc.)
• Right qualified people to make the change
(e.g. CQE)