INTRODUCTION TO QUALITY - Pakistan Engineering Council

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Intro to Quality Management
By
Ali Sajid, PhD
([email protected])
Director
Inst of Business & Mgmt
UET Lahore
An Exclusive Presentation for PEC
October 14, 2012
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Dr Ali Sajid, PhD, TI, is a graduate mechanical engr
from UET, Lahore.
Masters and Ph.D. in Engg Mgment from the George
Washington University, Washington DC, USA.
ISO - 9000 Certified Lead Auditor from BSI, UK.
Taught in various US Universities & worked at the World
Bank, multi national and multi racial corporate
environment of Washington D.C.
Member of American Society for Quality
Pakistan Engineering Council. Since last Sixteen years, he
been teaching at various Pakistani & US Universities.
Advisor to “Planning Commission, Govt of Pakistan” on
TQM & Productivity.
Areas of interest.
Increasing Industrial Competitiveness & Productivity in
White/Blue Collar Environment, &
Application of Quality Management in Industry
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National level trainer/consultant.
Extensively involved in Executive Training of
Managers at all level in the filed of Total Quality
Management, Scientific Management, Project
Management ,Competitiveness, Productivity, HRD
etc related topics at all important national forum with
a view to enhance organizational effectiveness of
federal agencies and private enterprises.
Govt. of Pakistan has recently conferred him with
Tamiga-a-Imtiaz.
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Founding Chairperson Dept of Engg Mgmt at
CASE and presently working as Director Strategic
Affairs, CASE, Islamabad.
Founding Director of Islamabad based Institute of
Professional Trainers, LAMDA (Leadership &
Management Development Associates).
“The will to win,
the desire to succeed, the
urge to reach your full
potentials are the keys to
unlock the doors to the
personal excellence”
Confucius

Character cannot be developed in
“Ease & Quiet”.
Only through
“Experience of Trial & Suffering”
can the soul be strengthened,
ambition inspired, &
success achieved.

Helen Keller (1880 - 1968)
I have learnt “Silence” from
the talkative,
“Toleration” from the “intolerant”,
& “Kindness” from the unkind; yet
strange, I am
ungrateful to
these teachers.
Kahlil Gibran (1883 - 1931)
Never
to suffer
would never to
have been
blessed.
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Edgar Allan Poe (1809 - 1849)
So much of what we
call management
consists in making it
difficult for
people to work.
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Peter Drucker (1909 - 2005)
 The
“Test of Courage”
Comes when we are in
“The Minority”.
 The “Test of Tolerance”
comes when we are in
“The Majority”.
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Ralph W. Sockman
Nobody Could
make a greater
mistake
than he
who did nothing
because he could
do a little
 When
person does good
deed When he or she
didn’t have to,
God looks down &
smiles & says
“For This moment alone it
was worth creating
world”
Characteristics of Organization
An organization is a systematic arrangement of
people to accomplish some specific purpose.
Each organization has a distinct purpose.
This purpose is typically expressed in terms of a
goal or set of goals.
Distinct
Purpose
Systematic
Structure
People
Org Excellence
 Key
to Competitiveness
 Cost
 Quality
 Speed
 Value
Organizational Excellence
Through
Competitiveness
using
Quality
as a Tool
Quality is
a Habit
not
an Act.
Aristotle
What is Quality
Classical Idea
Q: Degree of conformance to a standard
(As a product or service)
Product or Service
Conformance
Specification
or Rule
Modern Idea
Q: User’s Satisfaction or fitness for use
Product
or Service
Build In
Give Satisfaction
Product or Service
Specification
or Rule
Reflect
What is Quality?
* “The
totality of
characteristics of an entity
that bear on its ability to
satisfy stated & implied
needs.”
What is Quality
Customer
Expectations
Meet/exceed
Features
Freedom from
deficiency
Doing the things right
Doing the right thing
History of Quality Efforts
Egyptian Pharaohs – Books of Dead – an
extensively documented ,Quality system
related to the burial of Nobility, describes how
requisite rituals should be carried out &
funerary goods to be buried with deceased.
Hummurabi’s Code – 1730 BC penalties for sub
standard stuff
Necropolis – Achievement of requirement
standard was attested to by the application by
suptd mark.
Roman Empire – External Audit was instituted &
Specialists known as “Argenterii” sealers in silver
Required to keep certain records.
Bible -Gives by work of “Quality System”.
“An Ounce of prevention is worth a pound of cure”
Byzantine Empire – Every action regulated by
procedures that had to be followed.
Enforcement is done by an official inspector
(Logothate) attached with court to inspect all
workshop & Operations performed.
Merchant Guild – Their products have to be of hi
standards then others. Cloth Colchester Guild had
mark on its bales and guarantee a certain level of
quality.
Defense and Quality – a close partner
Geoffrey Chaucer- 1300s surveyor of supplies for
Royal Wardrobe
Assessor of Armors, Saddle. & other equipment to
establish “Suitability for Royal Armory”.
World War One - “Quality in Air” –
Royal Aircraft Establishment
improve “Reliability of British Engines”.
First Standard Attempt in USA MIS-Q-9858 (Q
System Specs), MIL-1 45208 (Inspection
Sys Requirements)
Still Used in Defense Contracts.
NATO formed Allied Quality Assurance
Publications (AQAP) 1,4,9
UK had its DEF. STAN (later AQAP aligned with
DEF. STAN).
UK Min of Defense, buy only from DEF.STAN
registered firms (Second Party Assessment)
AQAP -militaristic in their content & wording
1979-BS 5750
Very Subjective, large explanatory,
mandatory notes,
First version used only
in a contractual sense between buyer &
seller.
3rd Party certification register.
British situation excited throughout world
ISO in Geneva set up a committee under
Canada to produce Intl. Q-Standards.
Quality
means
pleasing consumers
not
just protecting them
from annoyances
Basic Quality Function
1. DEFECTS / REJECTS
2.
COMPLAINTS
3.
CONSISTENCY
4.
PRECISION
5.
ACCURACY
6.
VARIATION
Quality Control
 Technique
to Control &
Check Quality
What is Quality Assurance
“all planned & systematic
activities implemented within
quality system,
& demonstrated as needed, to
provide adequate confidence
that an entity will fulfill
requirements for quality”.
QUALITY ASSURANCE
THERE ARE NO FACTS ONLY INTERPRETATIONS
 Any
-FRIEDRICH NIETZSCHE
action directed towards
providing consumers with
products (goods & services) of
appropriate Quality.
Quality Management
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All activities of the overall
management
function
that
determine the quality policy,
objectives and responsibilities and
implement
planning,
quality
control, quality assurance and
quality improvement within the
quality system” (ISO 840)
DEFINING QUALITY
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Perfection
Consistency
Eliminating waste
Speed of delivery
Compliance with policies & procedures
Providing good, usable products
Doing it right the first time
Delighting or pleasing customers
Total customer service & satisfaction
PRINCIPAL QUALITY
DIMENSIONS
1.
2.
3.
4.
5.
6.
7.
8.
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality
PRINCIPAL QUALITY DIMENSIONS
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Performance:
a product’s primary operating
characteristics. Example: A car’s
acceleration, braking distance,
steering and handling
PRINCIPAL QUALITY
DIMENSIONS
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Features:
the “bells and whistles” of a product.
A car may have power options, a tape
or CD deck, antilock brakes, and
reclining seats
PRINCIPAL QUALITY DIMENSIONS
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Reliability:
the probability of a product’s surviving
over a specified period of time under
stated conditions of use. A car’s ability
to start on cold days and frequency of
failures are reliability factors
PRINCIPAL QUALITY DIMENSIONS
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Conformance:
the degree to which physical and
performance characteristics of a
product match pre-established
standards.
car’s fit/finish, freedom from noises
can reflect this.
PRINCIPAL QUALITY DIMENSIONS
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Durability:
the amount of use one gets from a
product before it physically
deteriorates or until replacement is
preferable.
For car - corrosion resistance & long
wear of upholstery fabric
PRINCIPAL QUALITY DIMENSIONS
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Serviceability:
speed, courtesy, competence of
repair work.
auto owner -access to spare parts.
PRINCIPAL QUALITY DIMENSIONS
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Aesthetics:
how a product looks, feels, sounds,
tastes, or smells.
car’s color, instrument panel design
and “feel of road” –
make aesthetically pleasing
PRINCIPAL QUALITY DIMENSIONS
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Perceived Quality:
Subjective assessment of quality
resulting from image, advertising, or
brand names.
car, - shaped by magazine reviewsmanufacturers’ brochures
MANUFACTURING BASED
CRITERIA
Quality = Conformance to specifications
 Quality is
“about manufacturing a product that
people can depend on every time
they reach for it”
 Achieved at Coca-Cola through rigorous
quality & packaging standards
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JUDGEMENTAL CRITERIA
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Quality = superiority or excellence
“Goodness of a product”
“You just know it when you see it”
little practical value to managers
No means through which quality can be
measured for decision making
PRODUCT-BASED CRITERIA
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Quality is a function of a specific,
measurable variable
Higher amount of product characteristics
= higher quality
Quality is mistakenly related to price
Higher the price, higher the quality (Not
necessarily true)
USER-BASED CRITERIA
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Quality is determined by what customer
wants
Quality = Fitness for intended use
How well the product:
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Performs its intended purpose
Meets consumers’ needs
VALUE-BASED CRITERIA
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“Quality is the degree of excellence at
an acceptable price and the control of
variability at an acceptable cost.”
UNCOVERING THE REAL
OPPORTUNITIES OF QUALITY
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Value can be defined as, “what the customer
gets per what it costs the customer”
But customer “gets” more than a physical
product.
He or she gets:
 A sense of confidence in a supplier, &
 A sense of assurance that the supplier will
be there when needed
VALUE-BASED CRITERIA
Gales Model of the Purchase Decision
Product
Quality
Service
Value
Price
VALUE-BASED CRITERIA
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Offering greater satisfaction at
comparable price
Procter & Gamble brought in VALUE
PRICING
Consumer brand loyalty
More consistent sales
Improvement of product characteristics
Internal efficiencies
WHAT GOOD CAN QUALITY DO
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Provides competitive advantage
Reduces costs
Lesser returns, rework & scrap
Increases productivity & profits
Generates satisfied customers
“ No Quality, no sales. No sales, no
profit. No profits, no jobs.”
COMPETITIVE ADVANTAGE
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Denotes firm’s ability to achieve market
superiority
Driven by customer needs & wants
Provides value to customers that competitors
do not have
Makes significant contribution to business
success
Allows a firm to use its resources effectively
COMPETITIVE ADVANTAGE
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Durability & dependability – difficult for
others to copy
Provides basis for further improvement
Provides direction & motivation to the
organization
Quality Evolution in Japan
Determining the customer’s
needs before the customer
becomes aware of them
Fitness to Latent
Requirements
Fitness to
Cost
To build a product that
meets the needs of
customer.
Fitness to
Use
Fitness to
Standards
To build a product that meets
the specifications set by the
designer.
Obtain high quality & low cost
by effective designing of both
the product & processes.
What is Total Quality
Total Quality means quality of work,
quality of service, quality of information,
quality process, quality of organization,
quality of people, quality of company and
quality of objectives.
TOTAL QUALITY
Total Quality describes the state of an
organization in which all the activities of
all functions are designed and carried out
in such a way that
 all external customer requirements are
met
 while reducing internal time and cost,
 and enhancing the workplace climate.
Profile of TQM
TQM is a:
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Scientific
Systematic
Company – Wide
Activity in which
A company is devoted to customers through
its products and services.
Total Quality Management
TQM a philosophy set of guiding
principals that represent foundation
of a continuously improving
organization.
TQM is application of
“Quantitative methods & HR” to
improve material &
Services supplied to an org, &
All processes within an org,
& Degree to which needs of the
Customer are met,
now & in future.
TQM integrates
Fundamental Mgnt Techniques,
Existing improvement efforts, &
Technical tools under a
Disciplined approach
focused on
continuous improvement.
BASES OF TOTAL QUALITY
Techniques to
Foster Teamwork
And Create Satisfying
Work Environment
Statistical
Tools and
Techniques
Strategic
Imperatives
The
Customer
The Four Bases of Total Quality
A TQM Approach To Management
A unique blending of :
(a) objective, practical, & quantitative aspects of
management, e.g. Focus on processes and
reliance on quantitative data and statistical
analysis for decision-making: and
(b) “Soft” aspects of management, (Visionary
leadership,
promoting
a
spirit
of
cooperation/teamwork, & practicing participative
mgt.
A fully successful effort requires balanced attention
to both.
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The Essence of TQM
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Involving
workforce
goods &
order to
customer.
& empowering entire
to improve quality of
services continuously in
satisfy, & even delight
TQM tools & technical methods used to accomplish specific tasks.
Means of implementing TQM.
 Can be used by everyone to identify:
Problem Areas,
 Structure Data Collection efforts,
 Analyze data,
 Focus Problem Solving efforts on areas
of special concern.,
 “Disseminate info” throughout the org.
 Used Primarily to: “Collect & Analyze
Numerical Data”.
TQM
Umbrella term:
Philosophy emphasizes shared
responsibilities for quality.
Quality improvement achieved
by:
a) Focusing on customer needs &
b) Streamlining
production
process to eliminate defects
/waste.
x
It ultimately
“Facilitates
continuous
improvement
thorough
a
collective vision of quality”.
From acceptable “Levels
Defects” to Continuous PI
of
A Manager Who Fails To Provide
Resources And Time For Prevention
Activities Is Practicing False Economy
Concentrate on Prevention, Not Correction
Prevention
Correction
Quality
Prevention has more leverage when improving quality
THE EVOLUTION OF QUALITY MANAGEMENT
THE QUALITY CHALLENGE
ORGANIZATION
WIDE
TOTAL QUALITY
MANAGEMENT
TOTAL QUALITY
CONTROL
STATISTICAL CONTROL
QUALITY ASSURANCE
INSPECTION
FOREMAN
INDIVIDUAL
CRAFTSMAN
1900
1920
1940
1960
1980
Meanings of “Total” In TQM
1.
2.
3.
4.
5.
Objectives
Not only quality and environment but also other parameters
including cost, delivery, safety.
Every Department
Not only a manufacturing department but also other departments
including R&D marketing, administration, etc.
Every Echelon
Not only engineers but also top managers, middle managers,
supervisors, workers, and clerks.
Group-Wide
TQM is not lonely implemented by am company but also by all its
group companies.
All The Industries:
Not only in manufacturing industry but also in all the industries such
as: construction, real estate, electric power, city gas, water supply,
transportation, communications, servicing.
TQM & Customer Orientation
 TQM
Provides a system of
methods on how to realize the
principle
of
customer
orientation beyond a slogan.
WHO IS A CUSTOMER ?
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The ultimate purchaser of a
product or service
External customers purchase
products or services from other
companies/plants
Internal customers receive
goods or services from within the
company
WHY IS IT IMPORTANT TO MEET
CUSTOMER EXPECTATIONS?
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Needs of customers have to be met
Understanding of one’s customers leads to
customer satisfaction
Japanese relate quality to customer
satisfaction
Inadequate internal facilities
Poorly designed processes
Poor
quality
product
Looking at your
organization from you
customers’ point of view
and improving processes
to enable you to meet and
exceed your customers’
expectations is the only
way to achieve quality,
because quality is defined
by the customer.
Customer Satisfaction
Satisfaction
More Features
Results of Total Quality
Management
Delighted
Customer
Empowered Employers
High Revenue
Lower Cost
Conventional Wisdom
Deming’s Approach
Quality is meeting conformance
standards.
Quality is an intangible good.
Quality is meeting & exceeding
customer expectation.
Quality is defined by the
customer.
Finding and Fixing problems
results in improvements, which
may or may not be sustainable.
Making changes to the system
to prevent problems results in
sustainable improvements.
Effectiveness & efficiency are
achieved by meeting acceptable
defect levels.
Effectiveness & efficiency are
achieved by continually
improving.
Crisis management is the
dominant management mode.
Preventative management.
Performance standards & quotas Changes in the process improve
improve productivity.
productivity.
Decisions are made by
“superiors.”
Decisions are made through
collaboration between staff &
management.
Top management evaluates the
organization on financial
performance.
on process performance & customer
satisfaction as well as on financial
performance.
Process improvement is expensive.
Process improvement leads to lower
costs.
Only managers are capable of
identifying & making
Workers know the process best &
will suggest excellent ways to
improve it when given a chance.
Managers command functions & are
concerned with directing &
controlling.
Team leaders guide cross-functional
improvement teams & are
concerned with planning &
prevention.
Employees receive instruction &
Management shares information
information from above, as deemed with employees on a routine basis &
appropriate by management.
on request.
Leadership for an improvement
effort can be delegated to outside
expert.
Leadership for an improvement
effort is provided by executives
within the org, who are accountable
for results.
Reviews are necessary only when
things go wrong.
Regularly scheduled performanceimprovement reviews are a key to
improved processes.
Deming’s Dreadful Diseases
1.
2.
3.
4.
Looking elsewhere for
examples, or concluding
that “our problems are
different”.
Creative accounting
rather than commitment.
Purchasing to
an”acceptable level of
quality”.
Management’s failure to
delegate responsibility.
5.
6.
7.
That employees (or
unions)cause all the
problems.
Quality can be assured by
inspection.
False starts: no
organization-wide
commitment.
“Good fortune is what
happens when opportunity
meets with
planning.” Thomas Alva
Edison (1847-1931)
Dr Sajid
“He who fails to plan, plans to fail”
 When planning for a year, plant corn.
When planning for a decade, plant
trees. When planning for life, train &
educate people.”
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Chinese Proverbs quotes
Action for Quality
“Action may not
always bring
happiness,
but there is
no happiness
without Action”
- Benjamin Disraeli
Goals in Quality Journey
“Goals give Purpose.
Purpose gives Faith.
Faith gives Courage.
Courage gives Enthusiasm.
Enthusiasm gives energy.
Energy gives Life.
Life lifts you over bar”
Bob Richards, Pole Vaulter
“All serious daring starts from within”
- Eudora Welty
“Ear of leader must ring with
voices of people”
- Woodrow Wilson
“Planning is bringing future into
present
so that you can do
something
about it now”
- Alan Lakein
“Self-pity is our worst
enemy &
if we yield to it,
we can never do anything
wise in this world”
- Helen Keller
What Is Quality Sweating Theory
What makes people Sweat for
Quality?
Theory Of Driving Force For Quality
Two Approaches in
Quality Sweating
Theory
CLSQ Approach
Sense of Crisis + Leadership
VLSQ Approach
Vision + Leadership
VLSQ Approach
If a company is so good in its business and if it has
no crisis nor crisis consciousness, what then could
serve as a driving force for TQM
A forward looking grand vision would mobilize people
to sweat hard for the sake of achieving that vision.
The vision must be the one which could really
motivate people to sweat willingly. For quality.
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Vision and Leadership Encourage
People to Sweat for Quality
•
the vision approach for TQM promotion needs to conduct
an aggressive public relations activity so that the people
fully understand the integrity of the vision.
CLSQ Approach
Someone has to “pull” the people in the same direction
so that this sense of crisis will materialize effectively as
a moving force for the entire organization.
Thus the crisis consciousness pushes and the leadership
pulls the organization to motivate people to sweat for
quality.
“Crisis Consciousness & Leadership
Make People Sweat for Quality
The vision approach for TQM promotion needs to conduct
an aggressive public relations activity so that the people
fully understand the integrity of the vision.
The lesson Learnt
The Enemy
for Quality,
that is complacent.
We Are Complacent, Aren’t We?
That’s a good idea.
But
Our Quality has
already
achieved at a certain high level.
Hence, we need not do so
to such a extent.
Food For Thought
85 percent of the
opportunities for
improvement comes
from changing the
systems Re-engineering
work process &
modifying or replacing
equipment.
Dr. Deming
QUALITY IN PRODUCTION
SYSTEMS
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Production = Converting
organization’s resources into goods &
services
Production System = The collection
of activities involved in production
THREE COMPONENTS OF
PRODUCTION SYSTEM
1.
2.
3.
Inputs (Physical facilities, materials,
capital, equipment, people & energy)
Processes (Machining, mixing,
assembly etc.)
Outputs (The product or services
produced)
THREE LEVELS OF QUALITY
Quality must be examined at three levels…
1.
2.
3.
The organizational level
The process level
The performer / job level
AT THE ORGANIZATIONAL
LEVEL
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Meeting requirements of external customers
Organization must seek regular customer input
Use customer-driven performance
standards for:
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Setting goals
Solving problems
Allocating resources
AT THE PERFORMER LEVEL
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Standards of output must be determined
Accuracy
Completeness
Innovation
Timeliness
Cost
Determine how requirements will be
measured
AT PROCESS LEVEL
Must Identify:
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Products or services the customers
desire
Key processes
Core inputs
Organization’s customer-driven
performance standards
Needs of internal customers
A PROCESS FOCUSED APPROACH
High
The Need
For the
Process
Based on Need:
• Refine
• Redesign
• Reengineer
FOCUS
WASTE
If Process is not
Needed, Can it
Be eliminated?
Low
The Performance
of the Process
High
AT PERFORMER LEVEL
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Standards of output must be
determined
Accuracy
Completeness
Innovation
Timeliness
Cost
Determine how requirements will be
measured
Five Questions of Your Quality
1.
2.
3.
4.
5.
What is your major product/service?
Who are its major users/customers?
What are its quality requirements
which the
major users/customer
demand?
What is
its most competitive
product/service which is provided by
your competitor?
What kind of comparative study do you
have between you product/service and
you competitor’s for the quality
requirements
from
the
major
users/customers?
QUALITY IS FREE !
According to Crosby:
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Quality is not only free, it is profit
maker
Increase of 5% -10% in profitability by
concentrating on quality
Quality provides a lot of money for free
“Quality is never an
accident, it is always
the result of an
intelligent effort”
John Ruskin
TQM
Tools,
Techniques
and Infrastructure
of Quality
Infrastructure, Practices, & Tools
Practices -those activities occur within a mgt
system to achieve hi performance objectives.
Tools - wide variety of graphical & statistical
methods to plan work activities, collect data
analyze results, monitor progress, & solve
problems.
Infrastructure, Practices, &
Tools
Infrastructure -basic mgmt systems necessary to
function as a hi performing org. Infra structure that
Support TQM Principles are:
Leadership
Strategic
planning
HRM
Process
Data
mgt
& info mgmt
The Scope of Total Quality
Management
PRINCIPLES
Infrastructure
Tools &
Techniques
The Scope of Total Quality
Management
Practices
Principles
Participation and Teamwork
Infrastructure
Tools &
Techniques
Leadership
“Inventories can be managed, but
people must be led”.
Their task is to create clear
quality values & high
expectations, & then build these
in to the company operations.
STRATEGIC PLANNING
The org must first address some fundamental
strategic questions:
 Who are our customers?
 What is our mission?
 What principles do we value?
 What are our long range & short range goals?
 How do we accomplish these goals?
Strategic business planning should be the driver
for quality improvement throughout the org.
Human Resource Mgt
Major Challenges:
Integration of HR practices
(selection, performance, recognition,
training, and career advancement )
with
business directions and strategic change
processes
Process Management
“Involves design of processes to
develop & deliver products &
services
that meet needs of customers, daily
control so that they perform as
required & their continual
improvement”
Do You know??
Well
designed processes
lead to better quality
products & services &
less waste/ rework
Is this amazing?
Data & Info Mgmt
Modern Business depends on measurement
& Analysis of Performance to support a
variety of purposes: Planning, reviewing
Company profile, Improving operations, and
comparing company’s strategy with
competitors.
Statistical Reasoning with factual
data provide basis for problem
solving & CI.
Data & Information Management
Many Types of data & Information are needed for
quality assessment & quality improvement:







Customer needs
Product & service performance
Operations performance
Market assessments
Competitive comparisons
Supplier performance
Cost & financial performance
QUALITY IS FREE !
According to Crosby:



Quality is not only free, it is profit
maker
Increase of 5% -10% in profitability by
concentrating on quality
Quality provides a lot of money for free
UNCOVERING REAL OPPORTUNITIES
of QUALITY



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Those assurances are part of the package
customers get and for which they may be
willing to pay
Turning that “may” into a “will” has to do with
the degree of understanding of one’s
customers
And what this all “costs” customer is more
than money
This is not a panacea
It will not magically provide all the right
answers
It will make us far more likely to ask the right
questions, which is a major piece of progress
“Quality is never an
accident, it is always
the result of an
intelligent effort”
John Ruskin
What Is Quality Sweating Theory
What makes people Sweat for
Quality?
Theory Of Driving Force For Quality

Laws alone can not secure freedom
of expression;
in order that every man present his
views without penalty there must be
“Spirit of Tolerance”
in the entire population.


Albert Einstein (1879 - 1955)
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