A Case Study of Total Quality Management
advertisement
A Case Study of Total Quality Management in a Manufacturing and Construction Firm by Ammar Al-Saket dissertation submitted in partial fulfilment of the requirements for the degree Magister Ingeneriae in Engineering Management in the FACULTY OF ENGINEERING at the RAND AFRIKAANS UNIVERSITY SUPERVISOR: PROF. LEON PRETORIUS CO-SUPERVISOR: PROF. JHC PRETORIUS January 2003 Johannesburg TABLE OF CONTENTS CHAPTER 1 INTRODUCTION AND PROBLEM STATEMENT 1.1 Prologue … … … … … … 1.2 Total Quality Management … … … 1.3 Problem Statement and Research Objectives … 1.4 The Research Approach … … … … 1.5 The Organisation of the Dissertation… … … … … … … … … … … … … … … … … … 1 2 4 4 4 CHAPTER 2 THE CONCEPT OF TQM 2.1 History and Evolution of TQM 2.2 The Meaning of Quality … 2.3 TQM Principles … … 2.4 TQM System Approach … 2.5 Quality Standards … … 2.6 Conclusion … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … 6 10 17 21 30 33 … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … 35 40 41 45 51 59 CHAPTER 4 CASE STUDY OF PROCESS CONTROL 4.1 Introduction … … … … … … … … 4.2 ABC Steel’s Process Control Approach … … … … 4.3 Areas for Improvement in the ABC Steel’s Process Control Approach 4.4 Recommendations to Improve ABC Steel Process Control … 4.5 Conclusion … .. … … … … … … … … … … 60 61 65 71 75 CHAPTER 5 CONCLUSION AND RECOMMENDATION 5.1 Conclusion … … … … 5.2 Recommendations for Future Research … CHAPTER 3 QUALITY CONTROL 3.1 The Meaning of Quality Control … 3.2 Quality Control and Quality Assurance 3.3 Quality Control System Approach… 3.4 Process Control … … … 3.5 Quality Control Tools … … 3.6 Conclusion … … … … … … … … … … … 77 79 BIBLIOGRAPHY … … … … … … … … 80 APPENDICES … … … … … … … … 83 ABSTRACT Total Quality Management (TQM) is a managerial approach that views quality to be a result of integrating all organisational activities e.g. engineering, manufacturing, marketing and administration work. It aims broadly at maintaining and improving quality standards and to achieve customer satisfaction. TQM’s major components are quality planning, quality control and quality improvement. Quality control is responsible for transforming quality planning and quality improvement outcomes into daily routine work. However, quality control can be implemented by systematically going around the Plan, Do, Check, Act (PDCA) control cycle, with which organisation may achieve continuous small steps of improvement. An entire enterprise can be better controlled when it is regarded as a set of processes. Process is controlled by the same systematic way of implementing PDCA cycle. Some tools are suggested in this dissertation to control processes. These are statistical process control (SPC), root cause analysis (RCA) and the Feedback Loop. Beyond information gleaned from literature on quality control a case study of a steel manufacturing and construction firm is also presented. Some areas for improvement in the quality arena of this firm are identified based on the results of quality management gained from literature. ACRONYMS AQL = Acceptable Quality Level CWQC = Company-Wide Quality Control ISO = International Organisation for Standards MBNQP = Malcolm Baldridge National Quality Programme NCR = Non-Conformance Report OHSAS = Occupation Health and Safety Management Standards PDCA = Plan – Do – Check – Act PPM = Part Per Million QA = Quality Assurance QC = Quality Control RCA = Root Cause Analysis SA = Situation Appraisal SAEF = South African Excellence Foundation SPC = Statistical Process Control SQC = Statistical/Strategic Quality Control TAT = Turn-around-time TQC = Total Quality Control TQM = Total Quality Management ZD = Zero Defect LIST OF TABLES … … … … … 3 Table 2.1: Examples for Categories of Quality … … … … 11 Table 2.2: Quality Definition and Quality Factors … … … … 14 Table 1.1: The Six Steps of PDCA Cycle … … … … … … 23 … … … … … … 36 Table 3.2: Elementary Statistical Methods … … … … … 52 Table 2.3: Definitions of TQM Table 3.1: Control Cycle … LIST OF DIAGRAMS Fig. 2.1: Evolution and Development of Quality Control Fig 2.2: A Comprehensive Approach to Quality … … … … 7 … … … 17 … … 24 Fig.2.3: Road-Map for Generalised Quality Planning Process … … … … … 25 Fig. 2.5: Kaizen and Kairyo Improvements … … … … … 27 Fig. 2.6: An Integrated TQM Model … … … … … 29 Fig. 3.1: Interrelationship of the Three Major Quality Management Activities 38 Fig. 2.4: PDCA Control Cycle … … … … … 39 Fig. 3.3: Quality Control Cycles in Management Activities … … … 40 Fig. 3.2: Stages of Major Management Activities … … … … … … 41 … … … … … 43 Fig. 3.6: Repeated Application of the PDCA Control Cycle … … … 44 Fig. 3.7: Baldridge’s Steps toward a Mature Process Approach … … 47 … … … 48 Fig. 3.9: Data Collection (Check) Sheet for Measurable Quantities … … 53 Fig. 3.4: Company-wide Quality Control Fig. 3.5: Aspects to be Controlled Fig. 3.8: Process Context … … … … … Fig. 3.10: An Example of a Histogram … … … … … 53 Fig. 3.11: The Pareto Diagram … … … … … … … 54 Fig. 3.12: Cause and Effect Diagram … … … … … … 55 … … 56 Fig. 3.13: Using Histograms to Direct Quality Control Activities … … … … … … 57 Fig. 3.15: A Typical Control Chart … … … … … … 57 … … … … … 58 Fig. 4.1: Integrated Management System Flowchart … … … … 61 Fig. 4.2: QA/QC Progress Flowchart … … … … 61 Fig. 4.3: Non-Conformance / Corrective Action (NCR) Report … … 66 Fig. 4.4: Weld Reject Rates in Percentages for 2002 … … … 68 Fig. 3.14: Scatter Diagram Fig. 3.16: Feedback Loop … … … … … … Fig. 4.5: General Flowchart Depicting the Sequence of Work Instruction … … … 69 … … … 69 Fig 4.7: Monthly Rework Costs (Rands) for September and October 2002 … 70 Processes of ABC Steel … … … Fig. 4.6: Work Instruction – Inspection of Painted Steel ACKNOWLEDGEMENTS The idea of writing on the subject of Total Quality Management started from an indirect suggestion when Prof. L Pretorius proposed to a group of students a number of topics one of which is now the title of this dissertation which he encouraged me to write. Several people have made invaluable contributions towards this dissertation. Firstly, I would like to thank Prof. L Pretorius for the leadership, hints and insightful notes he has provided which have gone a long way in shaping the dissertation in the manner it is. My thanks and appreciation also goes to Prof. JH Pretorius for the invaluable comments and suggestions he offered. The quality manager for ABC Steel Engineering Company (the case study) facilitated this research to give it a practical flavour by investing his time, support and full access to the company’s literature for which I am very grateful. DECLARATION I hereby declare that all the research work, except wherever it has been appropriately acknowledged by relevant references, is my own work. DEDICATION To my wife Leenah who strove to ensure a suitable environment for me to write this research. Thank you Leenah for your prayer and support. Introduction and CHAPTER 1 Problem Statement 1.1 Prologue A t Ford Motor Company, in 1974, Paul Hartman reported that more than 80 percent of the automobiles had to go to a rework facility immediately after the assembly line (Jablonski, 1994:11). Deming (1994:22) mentions that 23 percent of the cost of running a hospital in the US goes towards administration against a comparable 5 percent in other places. These two and many other examples urge questions like: how are we doing our business? What is the right approach of doing business? And how can we achieve a quality product? Deming is well-known in his contribution to the Japanese quality movement. He reports (1994:57) that in 1950, he was invited to deliver lectures about quality management in Japan. Japan, he claims, has been turned around through his presentations to top management and engineers on ‗system of production‘. They had great knowledge but what has ignited Japan is the change in the managerial approach, which has resulted in the production of quality products. The word quality is rather an attractive term for both organisations and customers. It became like a slogan that forms new international business trends at all levels. Many organisations claim having a quality programme in some way or another. On the other hand, libraries and electronic information retrieval systems are flooded with literature on the subject. The above-mentioned observations may be due to the following reasons: 1 Today‘s business environment, which is characterised by rapid advances in technology, global competition and rising customer expectations. (Wolking, 1996:1) The term ‗quality‘ itself maybe subjective i.e. having different meanings to different people under varying circumstances (Ceronio, 1996:15), which implies having different approaches in order to achieve quality. Today‘s business environment and the nature of the term quality itself imply that the quality concept is an ever-changing one, hence, continuous attention must be paid in order to catch up with the ever-changing quality standards to control moving targets in an internationally competitive market. (Feigenbaum, 1983:7) 1.2 Total Quality Management Total Quality Management is a managerial approach aiming at achieving quality in a broad sense. Today‘s environment urges Total Quality Management (TQM) to be a managerial approach and style so as to achieve customer satisfaction and global competitiveness. TQM is based on the following principles: quality integration, quality first, customer satisfaction, continuous improvement, prevention rather than inspection, factual-based decision and workforce involvement. Quality management aims at conducting the inherent managerial elements of planning, control and improvement (Juran, 1992:14) based on the total quality principles. The expected results of TQM are better organisation performance, increased productivity, more effective and efficient processes and more competitive products. However, the ultimate results of implementing TQM are achieving customer satisfaction and global competitiveness. For these outcomes to be achieved, management is required to invest in a quality programme by training people, establishing new infrastructure, delegating managerial duties to others and the implementation of quality concepts broadly, throughout the organisation, whereas planning, process and products are included as well as suppliers, employees and customers are considered in the whole quality programme. In the current research the focus is on TQM principles in broad terms and quality control in particular. 2 Quality Control Quality control is a managerial activity of evaluating and implementing the outcomes of quality planning and quality improvement programmes. Several approaches may be followed to conduct quality control. Juran (1989:145) suggests a three-step approach to quality control namely: evaluating actual performance; comparing actual performance to goal, and taking action on the difference. To evaluate the performance, information is needed and all stakeholders should participate in getting the information. Customers too can efficiently give information regarding product/service performance. However the workforce often gives information that adequately reflects operation process quality. Management can measure the performance relevant to their level as well. Another approach to quality control is known as the Plan, Do, Check, Act Cycle. This approach considers planning for quality control as part of quality control stage. Ishikawa (1985:59) breaks down PDCA cycle into six steps presented in Table 1.1. 1 Determination of Goals and Targets 2 Determining Methods of reaching Goals 3 Engaging in Education and Training 4 Implementing Work 5 Checking the Effects of Implementation 6 Taking Appropriate Action Table 1.1: The Six Steps of PDCA Cycle (Ishikawa, 1985:59) 3 For the manufacturing field, Zairi (1991:37) advocates concepts that are mainly statisticallybased techniques for achieving, maintaining and improving on quality control of products and services. These concepts are based on typically the following stages: Measuring with manufacturing, Recording of measurement. Analysing the records, using the analysis for feedback and corrective action. In summary, the concept of control includes all activities and arrangements which empower the organisation to be able to achieve their objectives effectively and economically. 1.3 Problem Statement and Research Objectives This research aims at presenting aspects of TQM and generally how it can be integrated into the organisation. Other matters related to quality such as quality standards will be briefly presented as well. More attention will be given to quality control, its essence, where it fits in within the whole TQM framework and what its mechanisms are. A case study of ABC Steel Engineering Company (ABC Steel) is employed to present and examine practicalities of a managerial process control system. Suggestions and broadly formulated recommendations on how to improve the process control are also given. 1.4 The Research Approach The nature of the study is a descriptive one. Therefore, an exploration is done in order to describe the concepts and mechanism of TQM and quality control. More attention is given to identifying the meanings of concepts under discussion, and that, in turn, forms a well-defined basis for evaluation of other related aspects afterwards. This implies that the research work is mainly based on widely accepted pioneering TQM ideas and established quality standards. A discussion on the process control system of the case study based on ABC Steel‘s managerial approach based on the firm‘s literature is presented. A case study on process control is examined against the theoretical outcomes of quality process control. 1.5 The Organisation of the Dissertation This chapter has highlighted some concepts of TQM as well as the objectives and approach of this research. The rest of the research is organised in the following manner: Chapter 2 4 discusses TQM, its principles and system approach. In addition, it traces the historical development of the quality concept as well as quality standards. Chapter 3 expands on the concept of quality control and where it fits in the TQM framework. A more detailed discussion is presented on examination of the process as an essential part of quality control covering issues such as the nature of the process, characteristics of and how the process is controlled. Some tools used in quality control are briefly presented before concluding the chapter. Chapter 4 presents the ABC Steel‘s managerial process control case study by evaluating it using the tools and framework presented in Chapter 3. Recommendations for improving the company‘s control process are accordingly given. The research concludes in chapter five with a summary and recommendations on the work presented in chapters preceding it. 5 CHAPTER 2 The Concept of TQM 2.1 History and Evolution of TQM Q uality control as it is known today did not exist in the eighteenth and nineteenth century. However some quality control activities would be performed informally by individuals at workshop level (Garvin, 1988:3). The development and evolution of Quality Control started during and spanned the entire twentieth century (Feigenbaum, 1983:15). In 1913, JC Penney became one of the earliest people who presented the fundamentals of Total Quality Management philosophy when he suggested concepts such as ―customer satisfaction‖, ―fairness‖, ―quality‖, ―value‖, ―associate training‖, and ―rewards for performance‖ to be managerial bases for the business (Jablonski, 1994:29-30). Furthermore, Fredrick W. Taylor who is known as the ‗father of scientific management‘ presented other quality concepts in the early 1900s as well (Garvin, 1988:5). Anyone tracing the development of TQM throughout the twentieth century, may easily notice the gap between TQM development as a theory in literature as opposed to TQM development in practice and implementation particularly in the USA notwithstanding that is where it originated (Kinlaw, 1992:viii). For example, it took more than fifty years for Walter A. Shewhart‘s (a physicist with Bell Telephone Laboratories, the birth place of the American quality), teachings in the book ‗The Economic Control of Quality of Manufactured Product published in 1931 to be recognised and implemented in the USA (Kinlaw, 1992:vii). Nevertheless, the development of the approach to quality control in the USA went through 6 four broad stages: operator quality control, inspection quality control, statistical quality control and total quality control (see Fig. 2.1 adapted from Feigenbaum, (1983:16) below). Evolution and Development TQM USA Quality Assurance USA TQM Japan Statistical QC Inspection QC Operator QC 1900 1920 1940 1960 1980 Years Fig. 2.1: Evolution and Development of Quality Control [Feigenbaum, (1983:16), Adapted] 2.1.1 Operator Quality Control Up to 1900 when goods were produced in small volumes, quality control activities were performed by artisans and skilled craftsmen (Garvin, 1988:3). That period of time in the quality control movement is termed the Operator Quality Control Era (Feigenbaum, 1983:15). Some features of this era were that quality control was performed mainly in the product-manufacturing field and was not a responsibility assigned to an independent person. However, the operator performed quality control as part of his job. When one goes back, however, to the early 1800s, a breakthrough in this field may be acknowledged when a rational gauging system was put in place. Under the set up, a model of a product is kept from use as it serves as a standard for measuring the degree of conformity of subsequent output (Garvin, 1988:4). Another innovative idea in the field of quality was the 1819 proposal of introducing the inspection concept to control product quality, though not formally adopted and recognised immediately. 7 2.1.2 Inspection Quality Control Inspection quality control may be the first directly linked concept to TQM that ever was formally introduced. In the early 1900s Fredrick W Taylor gave this concept more acceptance by singling it out as a task for bosses to manage their businesses effectively (Garvin, 1988:5). Enhancing Taylor‘s idea in 1922, G.S. Radford published the book ‘The Control of Quality in Manufacturing’ in which he clearly stated the direct link between inspection activity and quality control. All these efforts have pushed inspection concept to become formally linked to quality control and to be part of management where as it is performed on an independent basis, to the extent that by 1924, for example, a department for inspection engineering was established at Western Electric (Garvin, 1988:6). However, products during this stage was not yet produced in huge volumes, therefore, 100% inspection i.e. ‗inspection for all units of production was conceivable (Feigenbaum, 1983:16). 2.1.3 Statistical Quality Control A statistical theory was originated over 80 years ago by Sir Ronald Fisher. (Jablonski, 1994:29). Shewhard pioneered a breakthrough of statistical quality control (SQC) through his publication in 1931 based on statistical principles (Garvin, 1988:6). He realised in a single volume that in any work process there would be natural variation such that limits should be specified to distinguish acceptable product fluctuating within these two limits (Kinlaw, 1992:vii). Then, Shewhard was working within a team at Bell Telephone Laboratories at Western Electric, where they had a programme for nationwide telephone network standardisation and uniformity, the challenge they faced was how to extract big amounts of information regarding units‘ quality from a section of inspection data. Consequently, some statistical techniques such as sampling, control charts and using prediction and probability rules were adopted and developed (Garvin, 1988:8). Another challenge that prompted the use of SQC was the mass production that was required for World War II (Feigenbaum, 1983:15) when the ordnance department of the USA Army faced a problem of getting large quantities of arms from different suppliers at an acceptable level of quality (Garvin, 1988:9). Another contributor to this field was E.W. Deming. He added to Shewhard‘s work and developed his own version of SQC. All in all, by the late 1940s, inspection that was based on statistical techniques had become the primary method of control quality (Garvin, 1988:12) 8 2.1.4 Total Quality Control The concept of TQC grew rather slowly in the USA (Kinlaw, 1992:vii) although many TQC aspects were developed in the USA in the 1950s. Quality was implemented in the American and European industries only in the 1980s (Kinlaw, 1992:viii). The reason for this according to Feigenbaum‘s opinion was that prior to that, there was no ‗willingness or the ability of business and governmental organisations to take adequate steps concerning the findings of technical and statistical work‘ (Feigenbaum, 1983:16). He continues by saying that ‗the quality problem could not be handled by existing decision making structures.‘ In other words, quality control still was seen as a duty for inspection group or statistical quality control coordinator at the shop-floor level. However, this level of the decision-making structures could not comprehend the quality problem broadly and this excluded the involvement of the management system and the administration work in the quality problem. On the other hand, Japanese quality before the 1940s was limited to inspection quality. Even the SQC approach was limited to a small group of experts (Garvin, 1988:179). However, the post-war era saw dramatic progress in the Japanese quality, and that happened over a relatively very short period of time. (Kinlaw, 1992:vii). In fact, quality control was introduced to Japanese by some American experts (Garvin, 1988:180) The most well known expert who contributed to Japanese quality is W. Edward Deming (Garvin, 1988:180). He was invited to Japan in 1950 to deliver a series of lectures on SQC (and the system of production) to the leaders of Japan industry (Deming, 1994:57). Other experts such as Joseph M. Juran followed Deming‘s footsteps in 1954 and presented seminars on the system of total quality management in organisations (Garvin, 1988:182-3). Their contributions influenced the Japanese dramatically (Deming, 1994:57). Basically, the 1950s became a watershed era in the Japanese transformation from ‗copier‘ to quality leaders. (Jablonski, 1994:29). The Japanese realised the special need for an own approach to quality. In this regard, they initiated an effort in 1956. In 1962 the Japanese had innovated the concept of quality control circle. (Ishikawa, 1984:6) By 1968 they had developed their own version of TQM, and presented it as Company Wide Quality Control (CWQC) (Ishikawa, 1985:45) and the most prime aspects of TQM were perfected in Japan between 1950-1965 (Galgano, 1994:xiii) 9 Quality control progress in the USA took a different route and initially less momentum than the Japanese one. The 1950s had seen invaluable theoretical contribution. For instance, the publication ‘Quality Control Handbook’ by J.M Juran in 1951, tackled the economics of quality (Garvin, 1988:12). In addition, during 1956 A.V Feigenbaum proposed a comprehensive approach to quality in his publication ‘Total Quality Control’ (Garvin,1988:13) On the quality concepts implementation side, in 1961-62 Martin Company took a new step by adopting a programme called ―Zero Defect‖ (ZD) rather than the concept of ―Acceptable Quality Levels‖ (AQL) that had been proposed by the war department in the 1942. The program ZD was based on quality principles such as: workers motivation and training, as well as the idea of being the ZD becoming an achievable objective. (Garvin, 1988:17) In fact, some authors termed the period of the two decades of 1950s and 1960s of quality control movement as Quality Assurance (Garvin, 1988:18). In the early 1980s, the Americans felt the gap between quality of their products and the Japanese ones (Jablonski, 1994:12). They realised that quality is a crucial factor for business success in the modern international business environment (Feigenbaum, 1983:17). Subsequently, the TQM approach begun to be adopted in the 1980s, as part of managerial strategies in the USA and European industries as well as in the service sector and government (Galgano, 1994:xiv). In the late 1980s major aspects of TQM had been integrated (Jablonski, 1994:12). A later dimension added to TQM related to emerging environmental and health issues. Today, it is noticeable that most leading companies have adopted TQM programme (Galgano, 1994:xiv). 2.2 The Meaning of Quality The dictionary gives a long list of the meanings of the word ‗quality‘ many of which are subjective. (Peach, 1997:36) However, some of the meanings of quality as applied in the field of management in general and manufacturing in particular are examined in this section. David A Garvin (1988) discusses the term quality where he dedicates three chapters of his book in an attempt to offer a comprehensive meaning for quality. He begins the third chapter of his book with a conceptualisation of the term ‗quality‘ by raising questions of whether quality can be a subjective term or an objective one; absolute or relative; and what its 10 relationship with variables such as price, cost, productivity and market share is. He then categorises most of the definitions into five principal groups namely: the transcendent, product-based, user-based, manufacturing-based and value-based. (Garvin, 1988:39-40) Table 2.1 presents some examples for each one of the mentioned categories. Group Examples of Definitions I. Transcendent II. Product-based III. User-based IV. Manufacturing-based V. Value-based "Quality is neither mind nor matter, but a third entity independent of the two ... even though Quality cannot be defined, you know what it is. " (Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance [New York: Bantam Books, 1974], pp. 185, 213) " . . . a condition of excellence implying fine quality as distinct from poor quality.... Quality is achieving or reaching for the highest standard as against being satisfied with the sloppy or fraudulent." (Barbara W. Tuchman, "The Decline of Quality," New York Times Magazine, November 2, 1980, p. 38) "Differences in quality amount to differences in the quantity of some desired ingredient or attribute." (Lawrence Abbott, Quality and Competition [New York: Columbia University Press, 1955, pp. 126-27) "Quality refers to the amounts of the unpriced attributes contained in each unit of the priced attribute." (Keith B. Leffier, "Ambiguous Changes in Product Quality," American Economic Review, December 1982, p. 956) "Quality consists of the capacity to satisfy wants . (Corwin D. Edwards, "The Meaning of Quality," Quality Progress, October 1968, p. 37) "In the final analysis of the marketplace, the quality of a product depends on how well it fits patterns of consumer preferences." (Alfred A. Kuelm and Ralph L. Day, "Strategy of Product Quality, "Harvard Business Review, November-December 1962, p. 101) "Quality is fitness for use. (J. M. Juran, ed., Quality Control Handbook, Third Edition [New York: McGraw-Hill, 1974, p. 22) "Quality [means] conformance to requirements. " (Philip B. Crosby, Quality Is Free [New York: New American Library, 1979], p. 15) "Quality is the degree to which a specific product conforms to a design or specification." (Harold L. Gilmore, "Product Conformance Cost," Quality Progress, June 1974, p. 16) "Quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost." (Robert A. Broh, Managing Quality for Higher Profits [New York. McGraw-Hill, 1982], p. 3) "Quality means best for certain customer conditions. These conditions are (a) the actual use and (b) the selling price of the product." (Armand V. Feigenbaum, Total Quality Control [New York: McGraw-Hill, 1961], p.1) Table 2.1: Examples for Categories of Quality (Garvin, 1988:40) For more convenience, out of these five approaches for defining quality, an elaboration will be made on two of them, namely: manufacturing-based and user-based definitions. 11 2.2.1 Manufacturing-Based Definitions of Quality Manufacturing-based definitions of quality look at quality from a manufacturing viewpoint, where pre-determined requirements, design activities and manufacturing practices are the bases of quality product and accordingly, the quality definition will be ‗conformance to requirement‘ (Crosby, 1990:40) Crosby argues that this definition offers practical meaning for quality. In addition, it considers that zero-defect product is the only acceptable quality level since 100 percent conformance to requirements is the only acceptable quality measure. However, it is management‘s prime responsibility to create the right requirements in order to meet customer real needs. (Crosby, 1990:40-1) On the other, hand Juran (1992:11) finds the definition of quality to be ―conformance to specifications‖ or ―conformance to standards‖. This is a problematic definition when applied at managerial levels as a product is meant to meet customer needs while a conformance to specifications is just one of many means for achieving that objective on the part of the manufacturer. Furthermore, standards and specifications are static while ‗quality is a moving target.‘ Lawton (1993:80) supports Juran‘s observation by mentioning that requirements are often specified by the producer who ‗may have only a partial relationship to customer desires.‘ Gavin (1988:45) realises this criticism when he says that the definition ‗conformance to specifications‘ considers that the product, which is of customer‘s interest and deviates from specifications is likely to be described as poor quality product, as such, this would be a serious problem in that definition of quality. All in all, as ISO 9000-1 notes that specification, in itself might not guarantee that a customer‘s requirements are met (Peach, 1997:37) 2.2.2 User-Based Definitions of Quality User-based definitions of quality view quality from the customer side. The quality of the product is determined by the user or by the customer (Feigenbaum, 1983:7). Hence, the product which is regarded as having the highest quality is the one, which best satisfies customer‘s preferences (Garvin, 1988:43). A popular definition underlying this approach is 12 the one by Juran (1989:1) where he defines quality as ‗fitness for use.‘ He then identifies two dimensions of quality namely: product features that meet customer needs and freedom from deficiencies. However, Garvin points out basic problems with the user-based approach is that it equates quality with maximum customer satisfaction: though related, they are not identical. In addition, in order to achieve satisfaction from wide range of customers, it would be practically difficult to comprehend varying individual preferences and to transform those into a ‗meaningful definition of quality at the market level.‘ Besides, by considering quality to be exclusively customer determined, the product‘s impact on the environment, health, safety and social concerns are not explicitly addressed. In the case where these concerns are considered, it would be at individual level only. 2.2.3 Comprehensive Approach for a Definition of Quality Juran (1992:9) reports that to date, there is no consensus on the adoption of a simple comprehensive phrase to describe quality. Garvin (1988:46-7) goes further in pointing out the potential conflict that exists between members of marketing, engineering and manufacturing departments within an organisation due to them holding different views of what constitutes quality. Marketers tend to see quality from the customers viewpoint; hence, their concern is what happens to the product outside the factory. Engineers in general, focus mainly on specifications and how to translate product performance into precise measurements while manufacturing departments would look at the meaning of quality from a different standpoint altogether. They would tend to prefer the practical meaning of quality i.e. ‗conformance to specifications‘ and doing things right the first time while reducing waste. These three approaches are not unified. Therefore, a serious problem in communication may exist within an organisation. However, an organisation can take advantage of these dissimilar perspectives of quality in order to enhance its position, as this would be an adoption of a comprehensive meaning of quality rather than the pursuit of satisfying a particular definition of quality. In supporting Garvin‘s findings, Galgano (1994:3) states that ‗quality becomes a comprehensive and unifying concept.‘ He goes further by relating the internal structure of the organisation to the quality concept itself. Moreover, he considers quality to be a changing concept — increasing constantly over time. 13 Most of the definitions that are based on the comprehensive approach for quality consider that there are several dimensions for quality. However, it must be customer-oriented. In addition, each definition specifies a set of factors and conditions that correlate with quality. Table 2.2 presents several selected definitions of quality that are based on the comprehensive approach. It also gives a set of quality factors correlating with each one of the definitions. Quality Definition Quality Factors The total composite product and service characteristics of marketing, engineering, manufacturing and maintenance through which the product and service in use will meet the expectations of customer (Feigenbaum, 1983:7) 1. 2. 3. According to ISO 8404 (1994), quality is “the totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs.” (Peach, 1997:36) Clause 4.5 of ISO 9000-1 looks at the following four facets: Quality due to the definition of needs for the product Quality due to product design Quality due to conformance to product design Quality due to product support (Peach, 1997:36) The effect of the product or service on society Quality characteristics which maybe unique for each product or service. (Ozeki and Asaka, 1990:4) Japanese Industrial Standard JIS Z8101 (1981) defines quality as a totality of the characteristics or performance that can be used to determine whether or not a product or service fulfils its intended applications. (Ozeki and Asaka, 1990:4) Quality becomes both a reference point and a goal for all activities undertaken within a company. Quality embraces and unifies every element contributing to excellence (Galgano, 1994:4) The eight dimensions of quality together, cover a broad range of concepts. Several of the dimensions involve measurable product attributes; others reflect individual preferences. Some are objective and timeless other shift with changing fashions. Some are inherent characteristics of goods while others are ascribed characteristics. (Garvin, 1988:60) The actual use The selling price The specification of dimensions and operating characteristics 4. The life and reliability objectives 5. The safety requirements 6. The relevant standards 7. The engineering, manufacturing, and quality costs 8. The production conditions under which the article is manufactured 9. The field installation and maintenance and service objectives 10. The energy-utilization and material conservation factors 11. The environmental and other "side" effects considerations 12. The costs of customer operation and use and product service (Feigenbaum, 1983:9) Competitiveness, delivery cost, moral, productivity, profit, product quality, or volume performance, service, safety, concern for the environment, the stockholders‘ interest. Performance, features, reliability, conformance, durability, serviceability, aesthetics, perceived quality. (Garvin, 1988:45-50) Table 2.2: Quality Definition and Quality Factors 14 By looking at quality definitions and factors in Table 2.2, it may be useful to categorise them into broader quality dimensions. 2.2.4 Quality Dimensions The comprehensive approach sets the quality concept as a base and a goal for all operational and organisational activities undertaken. (Galgano, 1994:4) Therefore, quality should be a multi-dimensional concept with keeping customer satisfaction as the focal point. Nevertheless, the main quality dimensions are briefly presented below: Operational Dimension: Operational dimension of quality deals, mainly, with engineering, manufacturing and quality of outputs such as: specifications, conformance, product features, delivery service and product quality. Reliability Dimension: Reliability dimension may include durability, serviceability, maintainability. Economical Dimension: Economical dimension of quality is concerned with balancing between quality value and quality cost for each quality characteristic (Juran, Sedar and Gryna, 1962:10). Factors such as cost, productivity, profit and competitiveness fall into this dimension. Organisational Dimension: The organisational dimension deals mainly with quality of organisational structure and performance. Social and Environmental Dimensions: Social and environmental dimensions are quality characteristics regarding these dimensions within and outside the organisation such as moral, safety, internal customers‘ interest, waste, pollution and so on. While considering the meaning of quality to be customer satisfaction-oriented, the following notes should be taken into account: Both the internal and external customers should be satisfied and the stockholders‘ interest should be recognised. When specifying customer needs, those needs may be expressly stated by customer or implied (latent) needs that a customer expects to be fulfilled (Peach, 1997:36). 15 Quality activity may constitute one of two broad efforts. Firstly, it may involve the elimination of negative features of quality such as non-conformance to requirements. This is sometimes called negative quality or reactive quality because the organisation responds to a negative situation. The aim of reactive quality is to reduce customer dissatisfaction. The other category of quality activities basically aims at increasing customer satisfaction by as an example, improving a product or service. This kind of quality is also termed positive quality (Galgano, 1994:6-7) Quality is customer-oriented. However, other quality factors are essentials to the quality concept as well. Each product might have its own array of quality factors (Ozeki and Asaka, 1990:4). What is fundamental is the right combination of factors in a balanced manner in order to achieve customer satisfaction as well as producing a quality product. (Galgano, 1994:5) All in all, quality in the management field has been broadened to cover other meanings of product quality. Basically, it embodies all aspects of excellence that ensure the production of a quality product and achieving customer satisfaction. Furthermore, quality aspects may be grouped into three broader fields (see Fig. 2.2 below) namely, quality of output, quality to satisfy customer and organisational and operational quality. Quality output looks at process output and results measured against pre-specified quality characteristics, requirements and standards. Quality to satisfy internal and external customers and, lastly, Organisational operational quality, which mainly is concerned with an organisational structure and culture as well as conducting managerial functions that achieve quality. Included under this field are engineering, manufacturing, marketing and administration activities. 16 Product Quality Quality Output Process Output Quality Impact on Environment or Society Quality Quality to Satisfy Customer Internal Customer External Customer Quality of Organisational Structures and Operations Work Environment Interests of all Stockholders Implicit Needs Explicit Needs Organisational Structure and Culture. Managerial Activities. Organisational Performance. Engineering, Manufacturing, Marketing and Administration. Product Quality. Delivery. Cost. Service. Fig 2.2: A Comprehensive Approach to Quality 2.3 TQM Principles Before going further in describing TQM, it is important to discuss the philosophical principles of TQM. TQM is a managerial methodology. Therefore, it is a framework of principles as well as a systems approach. It is a philosophy trying to analyse what factors influence business quality, as well as tools with which quality can be controlled and assured. There are different approaches that can be adopted to achieve quality, but all these approaches lie under one methodology. The following concepts form part of the principles of TQM and its philosophy: a) Quality Integration Organisation starts its business by identifying customer needs, passes through design to manufacturing then inspection. The last step will be marketing and selling. This is the traditional way of doing business. At the end of the day, management wishes to present a quality product and to enhance its competitive position. Questions that arise about this sequence are: how can management assure quality and where does quality fit in the sequence. 17 TQM philosophy is that quality cannot be achieved only by applying inspection at the end of the process, rather it is a quality of conducting all these processes, and integrating all interdependent components to accomplish the goal of the whole organisation. Ishikawa captures the spirit of TQM by saying: ―Quality means quality of work, quality of service, quality of information, quality of process, quality of divisions, quality of people including workers, engineers, managers and executives, quality of system, quality of company, quality of objectives, briefly speaking, it is Total Quality, or as the Japanese call it, Company-wide Quality‖ (1985:45). b) Quality First Management, continuously, wants organisations to produce good products at low cost, that is, to be competitive and to increase the market share, or at least, to survive and maintain the same level of market share. TQM aims at serving this purpose. However, management, sometimes has the tendency to rather get short-run profit than long-run holistic organisation advancement. Management that adopts ‗quality-first‘ strategy will increasingly gain customer confidence. Sales increase gradually as a result and hence profit ultimately winning on the international market in the long-run (Ishikawa, 1985:104). In fact, Deming (1982:1) puts it clear by making a statement that: ―productivity increases with improvement of quality.‖ c) Customer Orientation Customer satisfaction is the top priority for business and basic condition for success. Basically, there would be no business without the customer (Galgano, 1994:15). Therefore, quality management considers the customer as a basic value that guides an organisation‘s activities. In addition, a customer need should form an essential input for the designing and production process and influences the decision-making process to the extent that Kottler (2000:23) turns the organisation chart up-side-down by putting the customer at the top of the pyramid. So TQM directs that an organisation‘s objectives, structure and managerial process should be established in such a way that it serves the customer. 18 The customer can be outside the organisation or within the organisation. The customers outside the organisation are the clientele while those within are the employees. Since an organisation accomplishes a particular job in a network of interdependencies, an employee who receives an input, naturally, it is an output of the preceding process. In this case, the employee is a customer of the predecessor (Jablonski, 1994:44-5). Both inside and outside customers play a major role to the organisation‘s success. Therefore, Ishikawa (1985:45) proposes that manufacturers must study the requirements of consumers and to consider their opinions when they design and develop a product. d) Continuous Improvement Organisations are living in a dynamic environment. Products are designed to satisfy customer needs, which are ever increasing. Three factors that shape today‘s business environment, are rising customer expectations; continuous advances in technology and competition. These force management to adopt a ‗continuous improvement‘ strategy as a normal way of managing a business. On the other hand, with organisations confronting challenges continuously, immediately responding to action is a real need. A plan for prevention of these problems from occurring in the first place is rather important. Moreover, a programme for upgrading machines, processes and tools as well as inventing new opportunities and developing products are essentials for achieving competitiveness. Therefore, continuous improvement must be viewed as a regular part of the organisation‘s performance. (Kinlow, 1992:13-15) e) Prevention rather than Inspection The traditional way of management is to do inspection at the end of the production process. This approach, as Ishikawa (1985:77) notes, was abandoned at a relatively early period in Japan. Some of the criticisms on this approach are listed below: Inspection is costly. Ishikawa reports that the ratio of inspectors to line workers in the West is up to an average of 15%. 19 Inspection approach does not ensure product and process improvement. On the contrary, an inspection approach is an implicit suggestion of having a mistake somewhere in the process, and accordingly, the inspector must pick out defective products. The same problem will be continuously committed. By the 1980s, about a third of the work in the US economy consisted of redoing prior work because products and processes were not perfect. (Juran, 1989:199) Deming (1982:22) summarises this idea by saying ‗inspection is too late, ineffective and costly.‘ The TQM approach is to ‗do it right the first time‘ rather than to react after the problem happened. Problem prevention can be assured by controlling all processes, discovering problems, identifying their root causes then improving the process in order to avoid the problems. f) Factual-Based Decisions Management needs continuously to make decisions. In organisations not based on quality, decision-making is based on opinion or personal experience of designers, manufacturing engineers, inspectors, etc. in the absence of data (Juran, 1980:8). Then, blaming and finger pointing start to shift responsibility for any mistake. Ishikawa (1985:109) proposes the following steps for conducting factual-based decision in order to ensure that any analysis has the right basis for decision-making: Clearly recognising facts, then Expressing those facts with accurate data, and finally, Utilising statistical methods to analyse the data Facts can be properly identified by recognising everyone involved in the process, within and outside the organisation including: management, supervisors, workforce, suppliers and customers. All these individuals can contribute to a mutually benefiting solution. Of particular importance is the fact that their contribution relates to their field of concern (Jablonski, 1994:48). 20 g) Workforce Involvement Juran (1989:261) defines workforce as all employees except the managerial hierarchy and ‗professional‘ specialists. Traditional management tends to ignore workforce ability of participating in managerial activities. Galgano (1994:68) observes that workforce involvement is important when he writes ‗human beings have unlimited resources and immense capabilities.‘ Galgano goes further in putting forward a condition for organisation‘s ultimate success defined in terms of its management of human resources. TQM requires that management must provide the workforce with knowledge and training, the workforce must understand the organisation‘s objectives and processes as well as where their role fits in the organisation so that they contribute efficiently in the improvement of the organisation. Ishikawa (1985:90) explains one of the aspects of the Japanese approach to TQM as their insistence on having all divisions and employees involved in promoting quality control in addition to quality control specialist. Moreover, Juran (1989:261-2) suggests that in order to achieve a quality workforce contribution, management should: motivate the workforce to make a contribution provide them with required training to enable them to make a contribution. Juran goes on to say that the workforce can contribute in the following managerial aspects: Quality Control: This comes first because controlling is the dominant form of quality related responsibility assigned to the workforce. Quality Improvement: This comes after the contributions emanating from quality control. Quality Planning: This becomes the least the workforce can participate in. 2.4 TQM System Approach The battle of quality management to invade the business field is already over. Quality has now become an important factor for achieving economic success and organisation‘s continuity (Lawton, 1993:xi) Before proceeding in discussing the TQM system approach it may be useful to define what TQM is. 21 2.4.1 Definition of Total Quality Management (TQM) After an elaboration of the meaning of the term quality has been made, it becomes relatively easy to define total quality management. TQM is a managerial approach that achieves the broad meaning of quality. Firstly, however the meaning of the term ‗management‘ is addressed. Crosby (1979:21) defines management as the function responsible for establishing the purpose of an operation, determining measurable objectives and taking the action necessary to accomplish those objectives. Crosby mentions two specific responsibilities of management as establishing operation‘s purpose and measurable objectives as well as ranking necessary actions to accomplish those objectives. Ozeki and Asaka (1990:6) define management as ‗planning and implementing controls for organised activities in a rational and efficient manner.‘ It therefore follows from these definitions that planning and control are central to management. However, Ozeki and Asaka break ‗controlling‘ into a four-step cycle of plan-do-check-act, which is known as PDCA cycle. The postulation of Ozeki and Asaka is that repeated use of the PDCA cycle results in improvement (1990:46). In other words, management‘s responsibilities according to the view of the two include three main aspects viz. planning, controlling and improvement. In fact, Juran (1992:14) puts it clearer by mentioning that management covers three areas of process of planning, control and improvement in what he termed ‗Juran‘s Trilogy.‘ Perhaps the plausible way in proceeding to define TQM at this stage is to define the term quality management. Juran (1989:82) defines quality management as the totality of ways through which quality planning, quality control and quality improvement are achieved. For a broader understanding, other definitions for TQM are presented in Table 2.3 below: 22 1 According to ISO 8402: 1994, Quality management is ― all activities of the overall management function that determine the quality policy, objectives and responsibilities and implement them by means such as quality planning, quality control, quality assurance and quality improvement within the quality system‖. (Peach, 1997:37 ) 2 ―Japanese Industrial Standard (JIS 8101- 1981), defines Quality Control (QC) as a system of techniques for economically producing goods and services that meet the customer‘s requirements.‖ (Ozeki and Asaka, 1990:1) 3 ―Total quality control is an effective system for integrating the quality- development, quality maintenance, and quality- improvement efforts of the various groups in an organization so as to enable marketing, engineering, production and service at the most economical levels which allow for full customer satisfaction.‖ (Feigenbaum, 1983: 6) 4 ―To practice quality control is to develop, design, produce and service a quality product which is most economical, most useful and always satisfactory to the consumer.‖ (Ishikawa, 1985:44). 5 ―A cooperative form of doing business that relies on the talents and capabilities of both labor an management to continually improve quality and productivity using teams‖. (Jablonski, 1994:41) Table 2.3: Definitions of TQM It is also worthwhile to mention that quality management should not be seen in isolation from the general responsibilities of management. Rather, it should be seen as an integral part of the organisation‘s overall system. (Peach, 1997:37-8) Once management adopts TQM as a strategy, however, certain arrangements should be done. Such arrangements are the subject of strategic quality. 2.4.2 Strategic Quality Management Strategic quality management SQM is defined as a systematic approach for setting and meeting quality goals throughout the company (Juran, 1989:176). Once management decides to implement TQM, it is essential to make changes in certain arrangements within the organisation‘s structure and culture. Juran (1989:179) suggests six major changes to apply in order to adopt managing for quality approach which are listed below: The establishment of broad quality goals as part of the company‘s business plan. The adoption of cultural change that is aligned with TQM philosophy. 23 The rearrangement of priorities knowing that Quality first, customer satisfaction, employee participation and continuous improvement form part of the core of the foundation of TQM. Creating a new infrastructure to accommodate TQM requirements such as instituting a quality council and training facilities. Extensive training for the entire hierarchy. Upper-management participation in managing for quality. Strategic quality management, basically, is concerned with setting an organisation‘s quality objectives, mapping out the route and the means for reaching these objectives. It is about making necessary arrangements and TQM programme requirements and the practising of overall control. As mentioned above, the main components of quality management are quality planning, quality control and quality improvement. Those components are briefly explained in the sections that follow. 2.4.3 Quality Planning Quality planning is conducted to map out a route towards TQM. Juran‘s definition (1989:82) for quality planning is that it is ‗the activity of (a) determining customer needs, and (b) developing the product features and processes required to meet those needs‘ (see Fig. 2.3 below). Fig.2.3: Road-Map for Generalised Quality Planning Process (Juran, 1989:88) 24 Quality planning is therefore concerned with the organisation‘s goals, product features as well as processes. It has been mentioned above that all levels within the organisation should participate in quality planning. Suppliers and customers are also expected to participate somehow in the planning. For example, customers can participate effectively in identifying client needs and factors of customer satisfaction. The quality-planning route should end with simple specific tasks and directions for operating workforces to satisfy particular definite customer needs. The plan should identify the processes for transforming customer needs into product specifications. These processes should be established carefully focussing on meeting the following goals of a product: meeting customer needs meeting specifications most economical In a nutshell, the processes must assure a quality product. 2.4.4 Quality Control Quality control is a fundamental part of quality management, it is a managerial process conducted throughout the organisation to achieve organisation‘s objectives. Juran (1989:145) defines control as a managerial process during which we: Evaluate actual performance Compare actual performance to goals Take action on the difference Similarly, another methodology for conducting control is known as PDCA Control Cycle. The PDCA Control Cycle is shown in the diagram (Fig. 2.4) below. Fig. 2.4: PDCA Control Cycle (Ozeki and Asaka, 1990:7) 25 The PDCA Control Cycle as shown in the diagram (Fig.2.4), according to Ozeki and Asaka (1990:7) consists of: Plan: Determine your goals and develop a process for achieving these goals Do: Implement your plan Check: Evaluate the results of your plan and its implementation Action: Take the necessary action constituting quality control. More details on quality control are discussed in the chapter that follows. 2.4.5 Quality Improvement Quality improvement acts as wheels on which the whole organisation is driven forwards. Basically, quality improvement is a necessity for the organisation‘s management because of the following reasons: To survive in the competitive environment To catch up with rising customer satisfaction levels To keep abreast with continuously changing quality criteria To overcome the shortcomings of new technology With improvement is implied the ‗organised creation of beneficial change; the attainment of unprecedented level of performance.‘ (Juran, 1989:28) It therefore follows that quality improvement is a beneficial change in the organisation‘s objectives, structure, process and product to increase performance as well as to eliminate deficiencies. Improvement may be either small yet constant steps of progress or one drastic step taken periodically. The former is termed Kaizen (Japanese for ‗small improvements‘) and the latter Kairyo (Japanese for ‗one great improvement‘). The diagram (Fig. 2.5) depicts these two concepts, which constitute quality improvement. 26 Fig. 2.5: Kaizen and Kairyo Improvements (Galgano, 1994:123) Kaizen improvement is a systematic approach directed at organisation‘s routine processes and could be conducted by everyone. On the other hand, Kairyo is conducted mainly by adopting improvements on a project-by-project basis and usually, it is undertaken by a specific group of people expected to produce a breakthrough result (Galgano, 1994:123-4) Both these kinds of improvements can take the form of a specific improvement strategy. Kinlaw (1992:15) suggests five different improvement strategies. They are listed hereunder: Responding to an immediate problem. Preventing the occurrence or recurrence of a problem Upgrading machines, methods and techniques Experimenting to improve an operation or work process Creating a new opportunity to anticipate the developing needs of a customer 27 An organisation, may basically adopt one or more improvement strategies. However, several approaches are suggested in order to carry out an improvement programme. These are usually step-by-step approaches. Five stages are common to a number of quality improvement approaches. These stages are: Adoption of a programme for improvement Setting standards for improvement Preparation for programme implementation such as the establishment of a quality council Remove obstacles and delays which may prevent implementation Conduct improvement and check results Quality improvement should be a continuous activity in the organisation. Improvement should be the organisation‘s culture and the basis for rewarding and recognition system. So far the main features of the TQM framework have been presented. However, the matter of how this whole framework works requires much more discussion. It is to this that the focus of this research turns. 2.4.6 TQM Mechanism TQM is a managerial approach that deals with the dynamic business environment which consists of complex interdependencies of relationships aimed at producing quality output. The TQM mechanism relies on the premises of considering TQM as an integral part of the business plan and quality is a function of all the managerial aspects throughout the organisation. In order to achieve quality, all activities of engineering, manufacturing, marketing and administration should be considered within the quality system. Therefore, achieving quality, implies integrating all factors that affect it. The author of this research suggests the following TQM model presented in Fig. 2.6 where it is believed that the model explains the mechanism and the framework of TQM within the organisation. 28 Fig. 2.6: An Integrated TQM Model The following points are explanatory comments on the TQM Model as presented in Fig. 2.6 Quality standards and customer (internal and external) satisfaction are the two top priorities and they must guide and influence the organisation‘s objectives and business process. The main inputs that form quality standards are: - Customer satisfaction requirement - Business environmental factors such as technology, environmental issues, health concerns, social aspects, legal issues, market issues and competitiveness - Feedback loop of supplier-customer chain outputs All these aspects interact with quality standards which themselves go through a process of adjustment and change over time (see diagram Fig. 2.6). 29 The whole supplier-customer chain basically affects quality. Therefore, supplier, business process as well as business process output must be directly influenced by requirements of quality standard and customer satisfaction. Management uses a process approach to accomplish business objectives. These processes are managed by the implementation of PDCA management cycle. At the practical level, management should be participatory and committed to the quality programme consequences. In addition, management needs to use TQM techniques and tools such as Statistical Quality Control (SQC), adopting team approach, providing quality leadership, conducting training programmes and establishing a quality council. However, business process (macro- and micro-process) must continuously ―go around the PDCA‖ cycle. 2.5 Quality Standards The term ‗standards‘ as it is used in this context implies ―documented agreements containing technical specifications or other precise criteria to be used consistently as rules, guidelines or definitions of characteristics, to ensure that materials, products, processes and services are fit for their purpose‖ (ISO, 2002). From the 1950s, many organisations developed quality standards that suit their own businesses since their activities were restricted, mainly, to the local economy. By the 1970s, the expansion of an organisation‘s activities at national level, resulted in replacing many firm-specific standards by national standards. However, in the 1990s, international competition and the globalised marketplace made it imperative for international standards to play a role to facilitate international trade and to unify the international quality language particularly for the international contractual agreements (Peach, 1997:10-11) In this section, an overview of four quality standards is presented. 30 2.5.1 ISO 9000 The International Organisation for Standards (ISO) is a worldwide federation of one national standard body from each one of the more than 140 member countries. ISO 9000 is one of a series of the ISO standards. ISO 9000 series of standards was first issued in 1987 and it qualifies organisations‘ quality management system and it comprises of two basic kinds of standards (Peach, 1997:11), which are: Product standards (quality assurance) Quality system (management system) However, ISO 9000: 2000 family consists of four primary standards (ISO, 2002), namely: ISO 9000: Quality management system; fundamentals and vocabulary ISO 9001: Quality management system requirements that demonstrate its capability to meet customer requirements and enhance customer satisfaction ISO 9004: Quality management systems; guidance for performance improvement to enhance satisfaction for interested parties ISO 19011: Guidelines on quality and/or environmental management systems auditing. Details of the ISO 9000 family are listed in Appendix A. 2.5.2 The Malcolm Baldridge National Quality Programme (MBNQP) The Malcolm Baldridge National Quality Programme is an award/recognition system. It was established in 1988 to recognise American organisations that excel in the quality management field (Arcaro, 1995:1). The criteria are designed to help organisations use an integrated managerial approach to improve organisational management performance system which results in: Delivery of ever-improving value to customer, contributing to market success. Improvement of overall organisational effectiveness and capabilities. Organisational and personal learning (NIST, 2001). The award is given in categories of manufacturing, service and small business in addition to education and health care fields which were a latter inclusion in 1999 (NIST, 2002). 31 The applicant‘s quality management is reviewed based on a seven point criteria namely: leadership. Strategic planning, customer and market focus, information and analysis, human resource focus, process management and business results. However, each one of these criteria are broken down into several clusters. Appendix B presents the areas considered for performance excellence. 2.5.3 Deming Prize The Deming Prize is another award/recognition system. It was established in 1951 by the Union of Japanese Scientists and Engineers (JUSE) in honour of W.E. Deming who has introduced basic concepts of TQM to the Japanese in the 1950s and thereafter. Deming Prize concentrates mainly on effective planning of organisational and operational aspects. (Su, 2003). The Prize is an annual award given to individuals and groups that demonstrate successful ―company wide quality control.‖ Assessment is made in ten categories viz.: policies, organisation, information, standardisation, human resources, quality assurance, maintenance, improvement, effects and future plans. Appendix C shows details of categories of the Deming Prize. 2.5.4 The South African Excellence Foundation The South African Excellence Foundation (SAEF) is a not-for-gain company established by a grouping of South African organisations in 1997 to support other organisations, large and small, private and public, service and manufacturing throughout South Africa in order to enhance their management systems through: Promoting awareness and the importance of quality Recognising organisations which achieve excellence Increasing the understanding of the requirements for performance excellence (SAEF, 2002) 32 SAEF‘s quality model is based on the American and European quality foundations with different emphasis in a way that it suits South African national priorities. The South Africa Excellence Model (SAEM) provides organisations with an ―integrated, result-oriented framework for implementing and assessing process for managing all operations.‖ The model criteria addresses the following areas: leadership; policy and strategy; customer and market focus; people management; resources and information management; process; impact on society; customer satisfaction; people satisfaction; supplier and partnership programme and business results (SAEF, 2002). Appendix D shows areas considered for excellence under the SAEM. 2.6 Conclusion During the eighteenth and nineteenth century there was no quality control as it is known today. However, in the twentieth century, quality control development has gone through three broad stages, each stage took about 20 years, the stages are: Inspection quality control Statistical quality control Total quality control In the early 1990s all total quality control concepts have emerged as an integrated managerial approach, and most of the leading companies adopt Total Quality Management (TQM) programme. While in Japan TQM had been perfected more than 20 years before that. The meaning of quality in the manufacturing field has been broadened to contain several dimensions of engineering, manufacturing and marketing activities. In addition, product reliability aspects are part of quality concept as well, Moreover, economical issues and organizational arrangements as well as production impact on society and environment are essential components that are contained in the quality concept. All these quality factors that comprise quality should be composed in a balanced way while keeping customer satisfaction as the focal point. 33 TQM is a managerial methodology, therefore it is a principles and system approach. Some of TQM principles are: quality integration; quality first; customer orientation; continuous improvement strategy; prevention rather than inspection and factual-based decisions and work force involvement. TQM can be defined as: ―the totality of ways through which we achieve quality planning, quality control, and quality improvement‖ (Juran, 1989:82). Planning, control and improvement comprises the main components of organisation quality system. Quality planning aims, basically, at determining customer needs, translate those needs into products features then develop process required to meet those needs. Quality control is a managerial activity with which an organisation achieves its objectives, and it can be carried out by ―going around Plan-Do-Check-Act‖ control cycle. Finally, quality improvement is a necessity for today‘s organisations, mainly directed at raising the quality level or eliminate deficiencies. Improvement programme can be carried out on a project-by-project basis. Improvement can also be within routine work on a continuous basis. However overall organisational quality objectives, organisational structure, culture as well as quality programme requirements are the bases for the whole TQM system and strategic quality management. The TQM mechanism is based on the premises quality standards and customer satisfaction being the top priorities. In addition, the whole supplier-customer chain affects quality. Therefore, the TQM approach is to maintain and improve customer satisfaction as well as quality standards by integrating and interacting all factors that form the business environment. Quality control is an essential component of the TQM system. More detail on quality control is presented in chapter 3. 34 CHAPTER 3 Quality Control 3.1 The Meaning of Quality Control D ictionary meanings of the word ‗control‘ are many but some of them are: ―to exercise directing, restraining or governing influence over‖ ―to regulate, verify as an experiment by comparison with a parallel experiment or other relevant standard.‖ ―To check.‖ (Webster, 1992:284) Three ideas of the word ‗control‘ are implied by the above-listed meanings. These are: to direct; to regulate, and to check results against relevant standards. All these definitions are relevant to how the word ‗control‘ is used in the field of management. Quality control (QC) is the practice of control activities in order to achieve quality goals. Therefore, quality control in the manufacturing field can be defined as to direct (regulate and check) work activities in order to achieve manufacturing quality objectives. However, several writers suggest more detailed definitions for quality control. In fact, they deal with this term as a system that consists of interrelated components so as to fulfil a particular objective(s). Most of these control components, basically, revolve around the components of Plan- DoCheck-Act (PDCA) management cycle. 35 Ozeki and Asaka (1990:45) define the term quality control as ―defining the objective of the job, developing and carrying out a plan to meet that objective, and checking to determine if the anticipated results are achieved. If the anticipated results are not achieved, modifications are made in the work procedure to fulfil the plan.‖ Feigenbaum‘s (1983:10) definition is not far from Ozeki and Asaka‘s. He reasons that quality control is the procedure for meeting the quality goal. He then specifies, almost the same PDCA cycle components to be used as steps in such a control. The point of departure for Feigenbaum is the concept of planning for improvement. For Ishikawa (1985:59), the emphasis is on the economical dimension. He postulates that quality control has to be economical. He further points out that satisfaction of the customer is the reason why a firm has to be engaged in quality control (1985:55). Ishikawa‘s PDCA cycle is a redefined one presented with six steps as shown in Table 3.1: 1 Determination of Goals and Targets 2 Determining Methods of reaching Goals 3 Engaging in Education and Training 4 Implementing Work 5 Checking the Effects of Implementation 6 Taking Appropriate Action Table 3.1: Control Cycle (Ishikawa, 1985:59) As shown in Table 3.1, Ishikawa breaks down the ‗plan‘ step in PDCA cycle into two, namely, ‗Determination of Goals and Targets‘ and ‗Determination of Methods of Reaching those Goals.‘ In addition, Ishikawa considers engaging in education and training as part of the implementation step of the control cycle. More dimensions of the quality control concept are given by Galgano (1994:108). He sees quality control to be a revolution in attitude that influences the whole organisation movement 36 as well as a means of empowering the organisation‘s constitution. According to Galgano‘s view, quality control is ‗basically prevention‘, whereby, work continuity and performance level are maintained. In addition, QC is carried out by applying the PDCA cycle repeatedly basing it on statistical methods. He asserts that the ultimate objective of QC is customer satisfaction. All in all, the above-mentioned definitions view QC as a continuous procedure aimed at planning and implementing all activities throughout the organisation, appraising conformance and checking results against the planned and then taking corrective action accordingly. QC is basically prevention. Its objective is to achieve the organisation‘s goals. However, the ultimate objective is to fulfil customer needs. By looking at the definition of quality control, it is obvious that quality control is a basic condition for successful management, since it improves the organisation‘s performance and eliminates product deficiencies (Feigenbaum, 1983:10). A noteworthy remark of particular importance at this stage is one made by Feigenbaum (1983:11) and Galgano (1994:107) that although QC may be discussed in separation from other management activities such as quality planning and quality improvement, in practice, it does not have a specific stage, hence, cannot be isolated in the whole organisation‘s operations. It starts from identification of customer needs and ends only when customer needs have been satisfactorily met (Feigenbaum, 1983:11). It is evident that ISO 9000:2000 (ISO:2001) adopts a ‗process approach‘ to establish a quality management system and the PDCA cycle, is deployed throughout the entire quality management system process. Consequently, a legitimate question that arises is that what is the difference between quality control on one hand and quality planning as well as quality improvement on the other. Where does quality control fit in, in the whole quality management framework? In an attempt to answer all such questions, Peach (1997:23) considers that the four of quality management activities namely: quality planning, quality control, quality assurance and quality improvement are correlated to the classic PDCA management cycle, where, each activity is managed by the application of the whole PDCA cycle. However, quality planning focuses on the ‗Plan Step‘; quality control focuses on the ‗Do Step‘; quality assurance focuses on the ‗Check Step,‘ and quality improvement focuses on the ‗Act Step.‘ Therefore, quality control is basically, an essential part of both management activities of quality planning and quality improvement. In other words, there is an inherent step of control, which in turn implements 37 the plans and checks the results against the planned. The diagram (Fig. 3.1) depicts the interrelationship of the three major quality management activities of planning, control and improvement. Fig. 3.1: Interrelationship of the Three Major Quality Management Activities The diagram (Fig. 3.1) shows Juran‘s Road Map of the planning process in the quality planning section, column (B), (Juran, 1989:88). Column (C) shows Crosby‘s 14 steps for continuous improvement. The quality control column (B) includes the PDCA Control Cycle of daily routine work as well as overlapping on the control aspects of both quality planning and quality improvement. Apart from Peach‘s approach presented above, Juran (1992:16-17) presents another view for the relationships of the three major management activities. He sees that management activities pass through four distinct stages. See diagram Fig. 3.2: 38 Fig. 3.2: Stages of Major Management Activities (Juran, 1992:17) The first stage is quality planning whereby customer needs are determined, in effect, product features specified, then, the development process that fulfils the requirements of product features that meet customer needs. The next stage starts when the plan is given to the operating forces to produce the product. Operations are expected to experience problems of not achieving hundred per cent good work. In this instance, quality control constitutes evaluating the actual performance by comparing it with quality goals then acting on the deficiencies. Two kinds of deficiencies are expected to occur namely, ‗sporadic‘ problems, which result from special causes such as a specific machine, specific material or a particular employee, and ‗chronic‘ problems which originate from the plan itself, so, basically, ‗it was planned that way.‘ Quality control activities can overcome sporadic problems and ‗prevent things from getting worse.‘ In addition, it is expected that small steps of improvement will result from the implementation of quality control. The third stage of a dramatic quality improvement is needed to overcome the ‗chronic‘ problems. In the fourth stage, quality control is carried out again with less deficiencies and variations in products and process. Nevertheless, there seems no clash of the views of the relationship of management activities. To the contrary, while accepting the three distinct stages of planning, control and improvement, there is still control step within both quality planning and quality development. 39 The author presents the diagram (in Fig. 3.3) which embodies the role of quality control in the whole TQM framework which shows that: There are three major quality management activities namely: quality planning, quality control and quality improvement. These three components interact and functionally integrated. Each management activity is controlled by carrying out the PDCA control cycle. Quality control activity is responsible for implementing and translating quality planning and quality improvement outcomes into daily routine work, which in turn, is controlled by carrying out the PDCA cycle continuously. Fig. 3.3: Quality Control Cycles in Management Activities 3.2 Quality Control and Quality Assurance Quality assurance is based on the principle of quality first, and it is part of the broad concept of quality control. Fig. 3.4 shows that quality assurance is within and at the core of the quality control area. Quality assurance is concerned mainly with product quality and customer satisfaction. At the end of the day, the customer needs a quality product and not, for instance, quality documentation. 40 Fig. 3.4: Company-wide Quality Control (Ishikawa, 1985:93) Ishikawa (1985) presents the diagram shown in Fig. 3.4 illustrates the assurance of quality in a product so that a customer can buy with confidence and use it for a relatively long period of time with confidence and satisfaction. Not far from this view, ISO 8402 defines quality assurance as ―all the planned and systematic activities implemented within the quality system and demonstrated as needed to provide adequate confidence that an entity will fulfil requirements for quality‖ (Peach, 1997:39). Moreover, the Japanese Industrial Standard JIS Z8101 of 1981 defines quality assurance as an activity ―undertaken by manufacturers‖ and the definition mentions the same objective of carrying out assurance activities that are to satisfy the requirements of the customer (Ozeki and Asaka, 1990:23-4). 3.3 Quality Control System Approach 3.3.1 Quality Control System Objective While keeping the broad meaning of quality in mind, a quality control system is the work structure that contains, organises and directs all quality control activities so as to achieve quality product and customer satisfaction. Control, in this context, refers to ―the broad administrative and technical area of developing, maintaining and improving product and service quality‖ (Feigenbaum, 1983:64). In fact, the scope of a quality control system must be widened like that because quality cannot be expected or inspected into the product. But quality must be designed and built into it throughout the organisation‘s activities including market research, inspection of incoming materials, administrative work and the training system (Feigenbaum, 1983:77). On the other hand, the objectives of a quality control system within the organisation are: 41 Carrying out plans and improvement programme Developing plans of daily routine work Comparing results against quality objectives Acting on the difference between actual performance and quality objectives Two broad objectives of quality control system are: All organisational activities can be grouped into processes; the output of each process forms part of inputs of the next process and the person(s) who receive process output is a customer for the preceding process. In this case, quality control system ensures that all arrangements achieve a quality output that is most satisfactory for its intended customer. Cost control for activities and process 3.3.2 Quality Control System Organisation The objective of the system mentioned previously is quite broad, since the quality control system forms the heart of the organisation, ensuring its survival and progress. Therefore, a well-integrated system should be set up with developing clear performance measurements and establishing infrastructure. The quality control system covers all management and workforce levels, since quality is the job of everyone in the organisation and ―each person is responsible for the quality of his or her own work‖ (Galgano, 1994:23) This entails providing top management, supervisors as well as workforce with training to enable them to carry out control activities and use control tools. In fact, the quality control system is an integral part of business management, and not separate from it. However, some structures such as a quality council at top management level and a ‗quality circle‘ at workforce level may be established to pay particular attention to the quality programme. A quality supervisor maybe needed to coordinate quality activities throughout the organisation and outside. In addition, more responsibility is given to management and engineering to provide the organisation with leadership in order to assure quality and quality cost (Feigenbaum, 1983:160). The important factor in quality control organisation is to consider that quality is a mandate of each and every person. As such, authority relevant to each person‘s position and responsibility should be given. Naturally, this implies providing individuals with adequate training and establishing a motivational and recognition system. 42 3.3.3 Aspects to be Controlled Quality control is a fairly broad concept. It basically comprises all that affects the wide meaning of the quality concept. Therefore, any attempt to gather and group all aspects that should be controlled may end up with excluding some important aspects. However, the following categories of aspects to be controlled are believed to be fairly comprehensive. These categories are: activities, management of organisation as a whole (Galgano, 1994:1137), and technology (Feigenbaum, 1983:43), and are briefly discussed below: a) Activities Activities that can be controlled are divided into two groups. See diagram (Fig. 3.5): Activities directly connected with a product in different fields such as activities of marketing and market research, engineering, manufacturing, purchasing, supervision, installation and resource utilisation. Activities not directly connected with a product such as the information system and documentation, budgeting, investment planning, marketing planning and planning for resource utilisation. However, all plans are developed, in this category, starting with potential problems involved, where the root cause of those problems are identified and eliminated. Subsequently, a new plan is developed and implemented. Fig. 3.5: Aspects to be Controlled 43 b) The Management of the Organisation as a Whole It is management‘s responsibility to provide the organisation with strategy and policies to provide people with leadership so as to make optimal use of human capabilities. Nevertheless, management should look at two broad organisational problems— problems of today that prevent organisations from maintaining quality levels, and problems of the future which affect organisation‘s continuity and competitive position (Deming, 1982:8). Therefore, management activities concerning quality control at organisational level are: maintenance and improvement. Maintenance: To maintain the level of performance achieved in daily routine work. Galgano (1994:116-17) suggests three fundamental conditions to maintain the level of performance: - Maintaining minimal variations within process parameters - Doing things right the first time. - Delegating managerial activities and increasing employee involvement. Improvement: Improvement, mainly, is a management responsibility. Two approaches can be adopted in order to carry out the improvement activity: - Small-step improvements by going around the PDCA cycle repeatedly. See diagram (Fig. 3.6). - One big-step periodic improvement. It may sometimes be called innovation or breakthrough. Fig. 3.6: Repeated Application of the PDCA Control Cycle (Ozeki and Asaka, 1990:46) 44 c) Technology Technology has an increasing impact on business trends and, in part, also on the quality control system. Technology in this context comprises material and energy, machinery and processes (Feigenbaum, 1983:43). Material characteristics determine how it should be manufactured and controlled. On the other hand, machines and tools are of direct impact on quality production as well as level of accuracy and inspection. Computers and software have a major impact on documentation systems and facilitate implementation of statistical quality control. Lastly, the whole business work may be broken down into processes in order to accomplish the organisation‘s final goal. However, developing effective and efficient processes is crucial for quality control system‘s success. More elaboration will be provided on how to control process in the section that follows. While developing a quality control system, management should realise two things that are of extreme importance: Management members alone cannot implement quality control system, therefore, management should involve all individuals and delegate control activities to each person within the organisation as well as suppliers. Control should be directed towards results as well as the cause in order to influence the result, and since there are many causal factors that can affect quality, it is management‘s role to identify the most important one(s), which considerably influence results. Management should then standardise how causal factors can be easily controlled (Ishikawa, 1985:61-65). 3.4 Process Control Tanya Vinos (2002) reports in an article entitled ―Process is King‖ the success story of Honeywell‘s (an electromechanical firm) plant in Warren where it once had row-upon-row of hand assembly tables with 200 production employees. Today, the plant has only 80 production employees operating seven automated interchangeable lines. The growth in output per employee from 1997 to 2001 has been 69 percent. This has been coupled by a marked reduction of customer rejection rate range from 250-500 ppm per year to 3 ppm per year in 45 2001 and currently down to 0 ppm. Cynthia M Knautz, a manufacturing engineer with Honeywell at Warren, according to Vinos, attributes this achievement to the implementation of quality process control techniques. So, what is process and how can process control be implemented? 3.4.1 Defining a Process A Process is a series of activities connected to each other functionally, in order to accomplish particular objective(s). Clause 3.4.1 of ISO 9000-2000 defines ‗process‘ as a ―set of interrelated or interacting activities which transform inputs into outputs: Note 1: Inputs to a process are generally outputs of other processes. Note 2: Processes in an organisation are generally planned and carried out under controlled conditions in order to add value‖ (ISO:2001). A process is basically a set of activities that could be manufacturing work, engineering or administrative activities. In fact, the new trend of management tends to accomplish the whole organisation work by means of a process. ISO 9000:2000 (ISO:2001), for instance, as mentioned above, adopts process as an approach to quality management system. Moreover, Lawton (1993:80) considers that managing business, as a process to achieve quality ―is one of the significant changes now sweeping American business.‖ The rationale of grouping the whole business activities into series of processes is that: It is difficult to control a relatively large number of activities throughout the organisation in different fields and functions yet the task is much easier when grouping activities into a limited number of processes, especially, when identifying the most influential factor(s) affecting quality of process output. It is difficult to integrate all scattered activities so as to achieve specific quality goals (See diagram Fig. 3.7 below). However, in process approach case, all processes which comprise of the entire organisation‘s work can be designed and linked to each other in such a way that to achieve specific quality goal(s), which in turn can be deployed down to form the target objective of each process output (Galgano, 1994:99) 46 Fig. 3.7: Baldridge’s Steps toward a Mature Process Approach (NIST, 2000:49) The last and maybe the most important reason is that processes form the steps of achieving a product. In order to control an operation, its process must be controlled but not its product. However, only the product of an operation can be inspected. Similarly, the quality process should be controlled so as to achieve a quality product. Therefore, management‘s focus should be diverted towards processes and causes in addition to the focus on outputs and effects (Galgano, 1994:92). Before discussing process control, process context as well as quality process requirements need be clearly stated. These two concepts are briefly presented hereunder: 3.4.2. Process Context Process context includes the following aspects (See diagram Fig. 3.8): Input: which includes the output of the preceding process Resources: In the case of manufacturing, process resources may consist of materials, machines, employees, and information. Information specifies the way how the process is carried out. Process: Sometimes called cause(s), is a mechanism for transforming inputs into outputs using assigned resources. Output: Also called effect or product, (Juran, 1992:5), is the result of process. 47 Fig. 3.8: Process Context (Adapted from Jablonski, 1994:52) 3.4.3 Quality Process Requirements A process is designed in a way so as to achieve particular product(s). It is normally the case that process and product features are correlated. Hence, the need of having quality product must be reflected in the process features. Nevertheless, the following are requirements for achieving quality process. Effectiveness: the effectiveness of a process implies its ability to achieve desired results (ISO:2000), with respect to the process‘s effectiveness level based on the extent to which the process is satisfactory as an input for the process that follows it (Galgano, 1994:99). Efficiency: efficiency itself will be evaluated according to what has been achieved compared to resources used. (ISO:2000) A prevention orientation: process is set up in such a way that it prevents occurrence and reoccurrence of mistakes and eliminates the need for rework (Baldrige: 42-43). Ishikawa‘s suggestion for achieving that goal is to identify the root cause of a problem that affects product quality sharply, then standardise the elimination of the cause (1985:61-65). Moreover, Juran postulates a prevention-oriented process which designs the process in such a way that it reduces the possibility of human error (1992:231). Reliable: achieved when the percentage of obtaining desired results (via this process) is consistent and relatively high over time. 48 Stable: Process factors are the aspects within the process, which influence the process output quality. Process quality is basically the quality characteristics of the product. Now, stability is attributable to process if it produces quality characteristics that are predictable, consistent and within the control limits. Clear, easy, and smooth: the relationship between a process and the preceding one and the one that follows should be clear. There should be no gaps between processes and between activities in a process. Otherwise, a potential mistake will occur. Process must be understandable for those people who are responsible for it, since they are the ones who should control it in the first place (Ozeki, Asaka, 1990:51). Predictable: process input and resources comprise ―production condition‖ or ―causes‖ which, intern, interact with each other to produce, on the other side, the output or ―results‖. So, the way and degree how ―causes‖ influence ―results‖ should be known in order to be able to control process. Controllable: this issue needs to be the first one, nevertheless, the process has factor(s) that affect its product quality, each factor affects quality to a certain degree; consequently, the design of the process should allow the person(s) that controls it to measure the effect of each factor, separately, on product quality. The Feedback Loop: the process must have a ―feedback loop‖ which allows controller to compare measurement against quality standards and customer requirements and then, in turn, to adjust and improve the process accordingly (Juran, 1992:275-278) 3.4.4 Quality Process Control Process as an organisational unit is to be controlled. Control activities throughout the organisation are carried out by the systematic approach of going around the Plan, Do, Check, Act (PDCA) control cycle. Similarly, process, in essence, is controlled in that systematic way. However, the process needs to be further analysed to know exactly how the PDCA cycle can be applied. Process, operationally, comprises three basic concepts, they are: essential variables, sources of disturbance, and the regulator (Galgano, 1994:93). Essential variables are those aspects that are attributable to quality requirements and, in part, related to either process it self or related to the output. Essential variables related to the process are typically, effectiveness, reliability, accuracy, turn-aroundtime (TAT) and resource utilisation. On the other hand, essential variables related to output are, basically, the product features such as: dimensions, strength, appearance. 49 Sources of disturbance are those aspects that cause undesirable variations in the essential variables such as: tools accuracy, waste, lack of (skills, information), undesirable environmental conditions. The regulator contains those elements that keep the process running properly. Thus management sets up a process regulator for the consideration of quality process requirements in order to keep essential variables within quality requirement limits. However, to fully control the process, the three process basic concepts should be controlled keeping in mind that the process regulator plays the essential role of controlling process (Galgano, 1994:95). Essential variables are the logical results of regulator, but still essential variables should be separately controlled. Juran (1992:280) suggests controlling variables by the means of: Inspection and test Evaluating control methods which were set up by regulator Data analysis and interpretation, this area of control is called Statistical Process Control (SPC) Regarding sources of disturbance, the strategy of quality control is to investigate the cause of problem upstream and to prevent occurrence right there. Investigating the cause of the problem is known as Root Cause Analysis (RCA). For this purpose, Ishikawa (1985: 63) suggests the use of a cause-and-affect diagram (see section 3.5 quality control tools). Generally, risk management and past experience are commonly useful means in order to discover and avoid potential source of disturbance. Controlling the regulators, essential variables and source of disturbance is conducted through the implementation of the PDCA cycle. However, the PDCA cycle may be used as a problem-preventing tool as well as a problem-solving tool. Galgano (1994:189-90) breaks down the PDCA cycle in terms of its use as a problem-solving tool into seven stages, namely: Identifying the problem [problem] Understanding the characteristics of the problem [observation] Searching for its cause [analysis] Eliminating the cause [action] Validating the effectiveness of the action [checking] Making the elimination of the cause permanent [standardisation] Reviewing the activities and plan for future work [conclusion] 50 The practical application of these problem-solving stages is done in the case study of this dissertation in Chapter 4. Two more points are essential while carrying out the process control activity they are: The implementation of PDCA control cycle is continuous and essentially similar, to the use of the feedback loop. (See section 3.5 quality control tools) The relationship between process variables and product features should be known, However, one variable, often, is more important than the others that variable which is called ―the dominant variable‖ must receive top priority to be controlled (Juran: 1992:285). 3.5 Quality Control Tools Quality control activities are carried out by conducting the systematic approach of the PDCA cycle. The planning step begins with either an existence of a problem involved or preventing a problem from happening in the first place. Consequently, quality control activities start with the evaluation of actual performance. Therefore, accurate information is needed to establish factual-based decisions. Zairi (1991:37) suggests the following steps for gathering such information: Measuring with manufacturing Recording of measurement Analysing the record and Using the analysis for feedback and corrective action However, in practise, tools are needed to implement the above-mentioned steps. For this purpose, Ishikawa (1985:198) suggests the ―seven quality control tools‖ which according to Montgomery (1991:101) are also called the ―magnificent seven‖ to be used by everyone in the organisation. These tools are listed in the table hereunder. 51 Elementary Statistical Methods (the so-called Seven Tools) 1 Check sheet 2 Histogram 3 Pareto chart: The principle of vital few, trivial many 4 Stratification 5 Scatter diagram (Analysis of correlation through the determination of median; in some instances, use of binomial probability paper) 6 Graph and control chart (Shewhart control chart) 7 Cause and effect diagram (This is not precisely a statistical technique) Table 3.2: Elementary Statistical Methods (Ishikawa, 1985:198) The table (3.2) above shows ‗Seven Tools‘ for elementary statistical methods advocated by Ishikawa. The seven control tools are mainly statistical and the first step when using the tools is data collection. Data are collected to assist in understanding the actual situation. Subsequently, some statistical tools can be used to organise, clearly display and analyse data collected. In effect, a corrective action should be taken accordingly. Action may be taken to adjust process as well as to evaluate product quality (Ishikawa, 1983:12). On the other hand, the purpose of collecting data must be clear. More over, the data itself should be relevant to the identified purpose (Ozeki Asaka, 1990:115-6). Otherwise, having huge amount of data might disturb control process. Nevertheless, an overview on the seven quality control tools are presented here below: Check Sheet: A check sheet is a form prepared to facilitate the recording of data in an organised and easy manner. A check sheet would state the occurrence frequency of event (quality factor) by only putting down a check mark on the form (Ozeki, Asaka, 1990:159). The diagram below (Fig 3.9) shows one type of check sheet where the horizontal line forms a quality factor and the vertical line forms frequency. 52 Fig. 3.9: Data Collection (Check) Sheet for Measurable Quantities (Galgano, 1994:179) Histogram: Usually, there is variation between units produced by a manufacturing process. Normally, the variation pattern is difficult to be realised from mere data (Montgomery, 1991:23). Therefore, histograms display the distribution of data comparing it to specification limits. Histogram may be constructed (see Fig. 3.10 below) by dividing data range into equal relevant intervals, these intervals are written down along horizontal axis, and a bar on each intervals is made where its height represents the frequency of data within that particular interval (Ozeki, Asaka, 1990:171-179). Fig. 3.10: An Example of a Histogram (Galgano, 1994:180) 53 Pareto Chart Pareto chart is basically a histogram that shows the relative frequency of quality factors. Quality factors are arranged in descending order, starting by a factor, which has high frequency down to the lowest (Ozeki, Asaka, 1990:139). Fig. 3.11: The Pareto Diagram (Galgano, 1994:183) Pareto Chart as in diagram (Fig. 3.11) above mainly, identifies types of defects that frequently occur (Montgomery, 1991:120). An improvement plan will therefore start with a focus on that (Ishikawa, 1983:45). Cause and Effect Diagram Once types of defects have been identified, the root cause of problem should be investigated (Montgomery, 1991:121). For this purpose cause and effect diagram (also called ―fishbone diagram‖ or ―Ishikawa diagram‖) can be used. 54 Fig. 3.12: Cause and Effect Diagram (Ishikawa, 1985:63) The diagram (Fig. 3.12) above, has two sides, the right-hand-side forms the effect or quality characteristics. And the left-hand-side is the cause or factors that affect quality characteristics (Ishikawa, 1983:1). This diagram (Fig. 3.12) shows that there are many factors that influence an effect, therefore, management should investigate and control the root causes in order to influence the effect (Ishikawa, 1985:61-65). Stratification When gathering data to be used in further analysis, it is useful to stratify data by the type of material, type of machine, time, operator, or other types to better understanding the real situation. This facilitates easy isolation of causes and problem sources (Ozeki, Asaka, 1990:179). Furthermore, stratified data can be used in other quality control tools i.e. (check sheet, histogram, control chart). The diagram (Fig 3.13a) below shows the distribution of data arranged in a histogram for a combined two-shift department. However, diagrams Fig. 3.13b and Fig. 3.13c show the data distribution for each shift separately. That, as a result, gives more information about the real situation and in turn, directs quality control activities (Galgano, 1994:184). 55 Fig. 3.13a: Histograms of Department Defects Fig. 3.13b: Histograms of Fist Shift Defects Fig. 3.13c: Histograms of Second Shift Defects Fig. 3.13: Using Histograms to Direct Quality Control Activities (Galgano, 1994:185) Scatter Diagram Scatter diagram is a step further beyond the cause and effect diagram. In fact, cause and effect diagram gives information regarding the set of causes and factors that can influence effect. However, it does not describe the relationship between cause and effect individually (Ishikawa, 1983:87). In addition, it does not expose the weight of each factor. Having a scatter diagram, explains the correlation between pairs of 56 factors or between cause and effect (Ozeki, Asaka, 1990:237). This diagram is of importance in facilitating the identification of the most influential factors affecting quality characteristics towards which direct control efforts should be concentrated. Fig. 3.14: Scatter Diagram (Galgano, 1994:186) The diagram above, (Fig 3.14) shows a scatter diagram that depicts the moderate positive relationship between temperature and defects. Control Chart A control chart is mainly used to evaluate process stability (Ozeki, Asaka, 1990:205). It is a two-dimensional graph, (See Fig. 3.15 below). The horizontal one forms measurements over time, and the vertical dimension forms the values of quality characteristics. Fig. 3.15: A Typical Control Chart (Montgomery, 1991:103) 57 The chart contains three parallel lines, the centre line lies on the average value of quality characteristics, and the other two ones are the upper control limit (UCL) and the lower control limit (LCL). Measures are taken over time. If values of quality characteristics lie within the two limits, generally, it is to be said that the process is stable. Otherwise, if some values lie beyond control limits, that would be an indication for an underlying potential problem. Consequently, an investigation is required to identify the source of the problem, then to eliminate the root cause so as to prevent reoccurrence (Montgomery, 1991:103). These seven quality control tools are ―extremely powerful‖ and, as Ishikawa states, are able to resolve the ―great majority‖ of problems in companies (Galgano, 1994:187). However the outcomes of these tools are basically information that needs to be taken into account while improving process. When having such information, the tool that maybe used to consider these outcomes is a systematic approach called the feedback loop. Juran (1989:146) established the feedback loop, (see Fig. 3.16 below) which consist of the following basic elements: Fig. 3.16: Feedback Loop (Juran, 1989:146) The sensor: which follows and evaluates process outcomes. An umpire: who receives information about performances from sensor then compares it against standards and goals, the result of the comparison is the identification of differences between performance and goals. Actuator: making the changes needed on performance to conform to goals. It is worthwhile to mention here that going through the feedback loop while conducting control activities is essential. 58 3.6 Conclusion Quality control is a system that contains, mainly, the components of Plan-Do-Check-Act (PDCA) cycle. Quality control is basically prevention and its objectives are to carry out organisations plans and to check result against quality objectives. If variations are found, corrective action has to be taken accordingly, and that implies developing new plans for improvement. Ultimately, quality control objective is achieved when customer is fully satisfied. Quality control is conducted throughout the organisation and it forms an essential part of both managerial activities of quality planning and quality improvement. In fact quality control system is an integral part of business plan. In effect, quality control system organisation may not have a separate structure. However, some structures such as quality assurance department and quality council may be established to pay particular attention to critical quality activities. It remains, however, the responsibility of every person within the organisation to ensure quality in his/her function on the job. Activities are better controlled when grouped into sets of processes. While realising that, quality product is just a result of quality process. Therefore, process should possess specific requirements in order to be able to deliver its intended product. Nevertheless, the first step in the control process is to design it in such a way that it is capable. In addition, the relevant quality factors (process variables) as well as, causes that might disturb process flow should be controlled. Quality control starts with a step of planning which in turn is based on data. The ―seven quality control tools‖ are powerful tools in order to organise, clearly display, and analyse data. This facilitates the controller‘s role of evaluating the actual performance. Information resulting from the use of the seven control tools goes through the feedback loop, which in turn, forms the bases to take relevant corrective action. So far, an elaboration has been made on quality control, in general, and quality process control, in particular. The chapter that follows presents a case study of a manufacturing and construction firm on quality process control. 59 CHAPTER 4 Case Study of Process Control 4.1 Introduction A BC Steel Engineering Company (ABC Steel) is a steel manufacturing and construction company. The real name of the company has been changed here for confidentiality. The company is structured into four major divisions. They are: Structural steel Special projects Heavy fabrication Machining (ABC Steel, 2002:SM/5) The company‘s mission is ―to be the dominant name and multi-disciplinary company in construction and engineering in Africa.‖ (ABC Steel, 2002:SM/6) The company bases the management system on world-class business philosophy, whereby the company integrates ISO 9001-2000 (Quality Management) with ISO 14001 (Environment Management), OHSAS 18001 (Occupation Health and Safety Management), as well as risk management principles into a ―Total Business Management System‖ (ABC Steel, 2002: SM/4-5). See diagram (Fig. 4.1) below. This implies the management‘s commitment to ―constantly satisfying changing customer need‖ as well as requirements of the specified quality standards. 60 Fig. 4.1: Integrated Management System Flowchart (ABC Steel, 2002:SM/6) All above-mentioned objectives and policies are embodied and assured through the development of structures, procedures and processes that are subject to regular reviews and feedback to the executive committee of the company in order to constantly improve the quality of their products and services (ABC Steel, 2002:SM/7). The total business management system is compiled in the company‘s Business System Manual (BSM). 4.2 ABC Steel’s Process Control Approach The ABC Steel demonstrates a high level of management involvement in the quality programme, since the company executive committee is committed to meet the business management system requirements and the managing director chairs the meetings that ensures its continued effectiveness (ABC Steel, 2002:MR/1-3). The managing director designates responsibility and authority to the quality assurance manager to ensure that the business management system is established, implemented and maintained (ABC Steel, 2002:MR/2). In effect, quality assurance department carries out activities pertaining to management system quality as well as product quality. The diagram (Fig. 4.2) below states the activities in a flowchart format, which are conducted by the quality assurance department. 61 KEY: QCPs = Qaulity Control Plans WPs = Welding Procedures NCRs = Non-Conformance Reports CARs = Corrective Action Reports PQRs = Pre-Qualification Reports NDT = Non-Destructive Test WPS = Welding Procedure Specification Fig 4.2: QA/QC Progress Flowchart (ABC Steel, 2002:PC No. 11) 62 Management uses a process approach in carrying out business activities, where ABC Steel (2001) mentions in section SP No. 1:1 that ―the organisation structure is defined within the process flowcharts, which show the interaction between each process of the business.‖ Consequently, the BSM contains over eighty process flowcharts that explain business activities and work instructions throughout the organisation. Broadly, the ABC Steel process control approach may be summarised in the following procedures: Processes commence with planning activity which in turn identifies the following aspects: - setting objectives which are measurable and consistent with the business policies. - ensuring compatibility of processes - identification and acquisition of any controls, documentation and equipment - identification and preparation of records - meeting the eight quality management principles (ABC Steel, 2002: SPNo.1/5) Conducting regular meetings to communicate to all personnel on the following matters: - customer requirements - system performance - company performance (ABC Steel, 2002: SP No.1/8) Controlling all documents related to the Business Management System whether hard copies or electronic information in order to specify the system control requirements (ABC Steel, 2002: SP No. 2/P,O) Generating records in order to examine the effectiveness and conformity of the Business Management System to quality requirements (ABC Steel, 2002: SP No. 3/P,O) 63 ―The identification, documentation, evaluation, segregation, disposition and notification of a non-conforming product/processes.‖ (ABC Steel, 2002: SP No. 5/O) Set up an effective corrective and preventive action system to detect and eliminate potential causes of non-conformances (ABC Steel, 2002: SP No. 6/P). For instance, some types of non-conformances are product non-conformities and deficiency within a process (ABC Steel, 2002: SP No. 6/3). Conducting internal audits periodically, by using a checklist that contains all activities of the Business Management System. The objective of this procedure is to examine the effectiveness and the efficiency of the system. The audit findings for a particular department were followed up with that department‘s manager and were available for management review meeting (ABC Steel, 2002: SP4:1-2) Conducting management review meetings every six month, chaired by the managing director, some of issues discussed in the meetings are: - System audit findings - Outstanding non-conformances - Customer feedback - Process performance and product conformity - Status of preventive and corrective actions - Recommendation for improvements In conclusion of the management review meetings, the managing director assigns responsibilities and dates for completion of actions to be taken. (ABC Steel, 2002: SP1/9) By looking at the ABC Steel‘s process control approach, one can realise that it is consistent with the PDCA control cycle, referred to in section 2.4.4. Where, the first and second procedures form the ‗Plan‘ step. The next two steps may be considered the ‗Do‘ step whereas the fifth procedure may be considered forming the ‗Check step and the sixth one may be considered as the ‗Act‘ step. However, on a broad organisational level, the seventh and eight procedures may be considered the Check and Act steps respectively. 64 Some of the above-mentioned control procedures are not exclusively for process control. However, process, obviously, is an essential part of the Business Management System. The next section is an exploration on some aspects and areas for improvement in the ABC Steel process control approach. 4.3 Areas for Improvement in the ABC Steel Process Control Approach Placing the Business System policies and objectives against process and work instructions, one may realise that some of these policies and objectives are not always adequately deployed down to the process. Nevertheless, three major areas can be identified for improvement namely: Investigating the root cause of a problem The use of feedback (closed) loop The use of statistical process control (SPC) techniques These areas are discussed in turn below: 4.3.1 Investigating the Root Cause of Problems When detecting a non-conforming product/process; control procedures afterwards depend mainly on the information mentioned in the non-conformance report (NCR – QD0030) to take corrective action. However, NCR does not include information about the root cause of the problem detected (see Fig. 4.3 below) and there is no other way of recording reports of problems when detecting non-conformance. 65 Fig 4.3: Non-Conformance / Corrective Action (NCR) Report (ABC Steel, 2002) 66 The following are some major procedures that refer to the use of the NCR when detecting non-conformity: When conducting internal system audits It is mentioned in ABC Steel (2001:ISA/6) that ―if during the audit, a deviation is found, a non-conformance report will be raised, identifying the non-conformance.‖ ―Once the NCR is raised, acknowledgement is made by the relevant department manager on the NCR and a plan of action is recommended to close-out the corrective action and the recommended dispensation as indicated on the form QD0030.‖ When controlling non-conforming product/process According to ABC Steel, (2001:SP No.5:1-2) Any person within ABC Steel who detects a non-conformance relating to a product, material, component or process must immediately notify their departmental head and together they have to investigate the problem. If justified, they must raise an NCR–Form QD0030 presented in diagram (Fig. 4.3). However, the investigation carried out in this procedure, obviously is concerning the problem, whether it is justified or not, but not concerning the root cause of the problem. Then, the procedure mentions, ―the management representative together with the departmental head shall evaluate the NCR for the correctness of corrective action.‖ ―The NCR shall then be completed/registered on Form QD0031.‖ Finally, a review and analysis on all NCRs are carried out to identify trends of problems, nevertheless, NCRs review and analysis, as stated in the procedure, deal only with the non-conformities and problems. In addition, even when identifying trends of problems and non-conformance categories there is not enough information in order to decide on a corrective action. When carrying out corrective and preventive action Although, the policy of carrying out corrective and preventive action is to ―detect and eliminate potential cause of non-conformances‖ (ABC Steel, 2002: CPA/1), this control procedure does not specify tools and techniques to implement the policy. The procedure mentions only some types of non-conformances such a product nonconformance, customer complaints, and deficiency within a process. It then notes that 67 ―when a potential non-conformance has been identified, the person identifying the non-conformance must raise an NCR Form QD0030 and then process this for submission to a management representative who if in agreement, has to approve the corrective action to be taken‖ (ABC Steel, 2002: CPA/4). The same previous note mentioned that NCR does not include any information about the cause of the problem and therefore, the decision on the corrective action to be taken, is based on the knowledge on the problem itself but not on the root cause of the problem. Consequently, the same problem is expected to happen over and over and not at a decreasing rate. The diagram (Fig. 4.4) on the weld reject rate below for 2002, for instance, shows that the weld reject rates started at a specific rate at the beginning 20.30% 25% 23.50% of the year, then got higher as the year progressed. S/S Jun Jul Aug Sep 3.94% 7% 2.60% 1.05% May 0% Apr 2.70% Mar 0% Feb 0.60% 0.02% Jan 0% 0.60% 0.50% 5% 0.80% 4.50% 4.75% 10% 7.80% 8.50% 12.50% 15.40% 20% 15% Heavy Bay Oct Fig. 4.4: Weld Reject Rates in Percentages for 2002 (ABC Steel, 2002) 4.3.2 The Use of the Feedback Loop The feedback loop, discussed in section 3.5, is a tool that uses the information revealed from investigating the root cause of problems in order to continuously improve plans and processes. Nevertheless, the sequence of work instruction process at ABC Steel, in general, can be depicted in the following flowchart. 68 Plan Do the Work (Work Process) Compare to Specifications Inspect No Yes Rework Passed to Next Operation Fig 4.5: General Flowchart Depicting the Sequence of Work Instruction Processes of ABC Steel In fact, many work instruction flowcharts of ABC Steel match broadly the general sequence of work instruction presented in the diagram Fig. 4.5. The diagram below (Fig. 4.6) typically shows this observation. Fig. 4.6: Work Instruction – Inspection of Painted Steel (ABC Steel, 2002:WI/25) 69 The shortcoming of such work process is that there is no feedback for the faults committed during the plan and/or the work phase. Consequently, it is difficult to improve the process, and, therefore, rework quantities are expected to remain the same. It may be remarkable to see in diagram (Fig. 4.7) on rework costs for September and October 2002 for instance, that the rework cost in October 2002 is more than that of the previous month. This trend is also reflected in Fig. 4.4 over a longer period of one year. October 1240 0 310 0 1731 261 0 0 0 0 174 1085 2175 4262.5 4960 0 0 0 2000 September 6742.5 6122.5 542.5 4000 3952.5 6000 4998.75 8000 3487.5 7478.75 10000 8562 12000 10440 9958.75 Monthly Rew ork Costs for Septem ber and October 2002 th er O M -S ho p Q ua li t y B H B H Pr ep B H As sy W el d Lo ft W el dSS Pa in tB ay Pr ep S S Ba y PL T- BBa y C -B ay ABa y 0 Fig. 4.7: Monthly Rework Costs (Rands) for September and October 2002 (ABC Steel, 2002:WI/25) 4.3.3 The Use of Statistical Process Control (SPC) The subject of the use of statistical tools has been dealt with in section 3.5 where SPC has been recommended. The diagram (Fig. 4.5) depicts part of the ABC Steel work instruction quality control methodology. It reveals that the firm heavily depends on inspection activity to assure quality. This methodology is well exemplified in the diagrams in the appendices. The use of statistical process control techniques to control quality in the company is very limited. In fact, the statistical tools, which are currently used are basically charts that state mainly the number and cost of different kinds of non-conformities over a period of time. It also, gives information about 70 non-conformities in each department. However, such information does not yet provide knowledge on process capability. Furthermore, it does not expose the most influential quality factors that affect quality. 4.4 Recommendations to Improve ABC Steel Process Control Zairi (1991:37) points out the importance of ―measuring with manufacturing‖ as the first step of the manufacturing quality control activities. The measuring step according to Zairi‘s approach is followed by recording of measurement, then analysing the records and finally, using the analysis for feedback and corrective action. In fact, this approach may provide the management with fairly accurate information about the real condition, since, measurements are taken directly and at the shop floor level. The ABC Steel‘s top management review for the non-conformance reports, generally, does not help in solving problems if they do not have measurements and information gathered during manufacturing. Moreover, the measurements and information analysis form the basis for the feedback and corrective action and that is how management can develop factually-based decisions. Quality control aims at maintaining the level of performance and making improvement happen. Improvement, as mentioned previously may be either by increasing performance or reducing variations. Quality control, is mainly concerned with reduction in variations, deficiencies and solving existing problems. Finlow-Bates et al. (2000) argues that ―the successful total quality management is dependent on first class problem-solving.‖ There are several approaches to problem solving. In general, the ones that deal with the manufacturing field contain the use of statistical process control (SPC) techniques and conducting root cause analysis (RCA). SPC is used to monitor, control, analyse and improve process performance. Thus, however, cannot be achieved by carrying out inspection only, because inspection does not provide information about why an error has happened and what corrective action must be taken (Mason and Antony: 2002). 71 Mason and Antony (2002) mention many benefits that can be gained from the implementation of SPC, some of which are: Process improvement, greater output. Variation reduction Reducing need for checking/inspection/testing efforts Reducing quality costs More efficient management and better understanding of process Reduction in time spent in ‗fire-fighting‘ quality problems SPC charts help distinguish special from common causes of variations. On the other hand, conducting RCA is crucial while carrying out process control activities, since, problems cannot be solved unless its cause is known (Ho:1996). In fact, Ho (1996) reports that the most common mistake made by managers is that the decision-making of corrective action is made straight after the acknowledgement of the problem. Nevertheless, the recommendations to improve the ABC Steel‘s process control approach are an integral part of the existing approach not to replace it. The recommendations are mainly based, on the process control approach proposed by Galgano (1994:189-92) as earlier on presented in chapter 3 of this research. Consideration of other approaches is made as well. ABC Steel may enhance their process control approach through the implementation of the following steps of problem solving methodology: 1. Identifying the Problem Process control begins with a Situation Appraisal (SA) (Finlow Bates et al: 2000). All processes should be subjected to this step. The objective of the problem identification step is to tell the controller whether there is a problem within the process or not. For this purpose, a control chart can be used (See section 3.5). Its main use is to detect the occurrence of variations and to tell the controller whether the process is under control or out of control (Montgomery, 1991:102-3). Two kinds of causes of variation are expected: common and special causes. Common causes are those, which are common to all units of production, all 72 employees or all locations. Some examples of common causes are low rate of production, poor supervision and incoming materials not suited to the requirements (Deming, 1982:115,123). If a common cause appears, it is said to be incapable process and it is management‘s responsibility to investigate the cause and to adjust the system or the process (Finlow Bates et al: 2000). On the other hand, special causes are those causes related to a specific machine, specific employee or specific location. If special causes appear, it is said to be out of control process. Consequently, the special cause should be investigated and eliminated (Finlow Bates et al: 2000), with the realisation that the discovery of special causes of variation is usually the responsibility of the people who are directly connected with the operation (Deming, 1982:116) However, the way to analyse the control chart to distinguish between common causes and special causes is beyond the scope of this research. 2. Understand the Characteristics of the Problems Process output in the manufacturing field, generally, is a result of interaction of several complex interdependencies of ‗man, machine, material and method‘. Most of the time, the naked eye is not the best guide for solving problems found in a process. Some other techniques are needed in order to understand the characteristics of a problem within a process. The objective of this step is to discover the causes of the problem. To come closer to the problem, one may look at it from different angles such as: time, place, type and symptoms (Galgano, 1994:190). In fact, as discussed in section 3.5, stratifying the data according to time, location, person or group involved, supplier, raw material and type of problem, helps to understand and demarcate specific boundaries of the problem. Furthermore, a controller should examine how the problem varies in relation to these items (Galgano, 1994:190). Histograms as presented in section 3.5 can be used to display and to compare the data generated. 3. Search for the Root Causes Having identified and demarcated the problem(s) within defined boundaries, management chooses the most relevant ones to be tackled. Dorsch, Yasin and Czuchry, (1997) present a six-step framework for the implementation of the root cause analysis (RCA). The importance 73 of this step is that it points the way towards the solution (Dorsch, Yasin and Czuchry, 1997). The cause and effect diagram introduced in section 3.5 is also a simple technique that can be used to search for the root cause of a problem. The outcome of this step is the identification of the root cause (also called the quality factor) that affects quality characteristics. It is of extreme importance, at this stage, to specify the most influential factor(s) that affect quality characteristics sharply and to identify the correlation between quality factors and quality characteristics. For the first objective, a Pareto Chart may be useful and for the second one, a controller may use a Scatter Diagram. These tools have been explained in section 3.5. 4. Eliminate the Causes An action is taken to eliminate the root cause taking into account any possible side effect the action may cause. 5. Validate the Effectiveness of the Action This step is basically a checking step to examine the effectiveness of the action taken to prevent recurrence of the problem 6. Make Elimination of Causes Permanent Causes are eliminated permanently by standardising the corrective action and/or adjusting the process. By the implementation of this step, the control feedback loop will be closed, as noted in section 3.5, and this will be the starting point for tackling another identified problem. The process control steps presented above are obviously, heavily dependent on SPC techniques. Therefore, all employees within the organisation including the top executives and frontline workers should be trained how to use these techniques (Galgano, 1994:192). Mason and Antony (2002) mention of some success stories of companies that implemented SPC techniques. However, reasons for failure have also been reported and some of these are: Lack of education and training Not understanding fully the potential benefits of SPC Failure to interpret control charts and take any necessary action Lack of knowledge of which product/process characteristics to monitor and measure Management commitment to provide necessary human and economic resources for SPC 74 Finally, management should remember that employee involvement including the operators in managing quality control is the key factor for the success of a quality control plan. 4.5 Conclusion ABC Steel is a steel manufacturing and construction company. They integrate ISO 2000, ISO 14001, OHSAS 18001 and risk management principles into a ―Total Business Management System‖ which has been compiled in the company‘s Business System Manual (ABC Steel, 2002). Their management uses a process approach in carrying out business activities. The company process control approach is consistent with the PDCA control cycle referred to in section 2.4.4 whereby management sets objectives, policies and processes to meet quality requirements. As the work flows, records are generated to examine the effectiveness and conformity of the Business Management System to quality requirements. In addition, there is a system in place for detecting non-conformities and deficiencies within the product/process. Subsequently, corrective and preventive action is made to detect and eliminate potential causes of non-conformance. When analysing the ABC Steel process control approach, one may realise that the management system policies and objectives are not always adequately deployed to the process level. Consequently, three major areas can be identified for improving ABC Steel process control approach. These are: Investigating the root cause of the problem The use of feedback (closed) loop The use of statistical process control (SPC) techniques Quality control is conducted mainly to reduce variations and to solve existing problems. Root Cause Analysis (RCA) and the use of statistical process control (SPC) techniques are commonly used as a problem-solving methodology in manufacturing. A more structured approach to control process and problem solving as proposed by Galgano (1994:189-192) is recommended. 75 The approach comprises six steps, which are: Identifying the Problem Understand the Characteristics of the Problems Search for the Root Causes Eliminate the Causes Validate the Effectiveness of the Action Make Elimination of Causes Permanent These steps depend heavily on the use of SPC techniques, therefore, management needs to invest in this programme by the involvement in training and education. In addition, management should involve all employees in managing the quality control programme. Thus far, the case study on process quality control has been presented and recommendations have been made to enhance the case study approach. The next chapter concludes the current research. 76 CHAPTER 5 Conclusions and Recommendations 5.1 Conclusion T he evolution and development of quality control started and spanned the entire twentieth century. The early 1990s saw all the control concepts that had emerged becoming an integral part of managerial approach under the name Total Quality Management (TQM). The word quality in the term TQM in the manufacturing field has been broadened to include all aspects that affect quality as an output, quality to satisfy customer, and quality as an organisational structure and performance. Hence, all activities encompassing engineering, manufacturing and marketing are implied in the term quality. In addition, quality and reliability of the product itself as well as the impact on the environment and society is part of the broad meaning of quality. Moreover, the quality of an organisational structure and performance is an essential component of quality as well. Finally, quality as an output must be continuously satisfying to the customer. As such, TQM is all the managerial arrangement and activities necessary to achieve the broad meaning of quality. TQM is a system. This implies that having the system components, mechanisms and system objectives. TQM‘s objective is to maintain and improve quality standards and customer satisfaction. That, according to the TQM philosophy, leads to achieving business success and improve an organisation‘s competitive position. On the other hand, TQM system components are the inherent managerial elements of quality planning, quality control and quality improvement. 77 TQM is an integral part of the entire organisation‘s system with which an organisation may achieve and improve its business objectives. However, management should make certain arrangements to accommodate TQM requirements some of which are: changing the organisation‘s structure and culture, establishing new infrastructure and conducting an extensive training for the entire hierarchy. Thereupon, TQM may assure a quality product by integrating quality of all aspects within the business environment, which includes quality of marketing, engineering, manufacturing and administration throughout the entire supplycustomer chain. Therefore, management adopting the TQM approach should know that a quality product can be achieved by the implementation of the comprehensive meaning of quality, broadly, throughout the organisation. Training is of utmost importance in the entire hierarchy of the organisation. In addition, all employees should participate in managing quality, hence, authority should be given accordingly. Furthermore, it is of necessity for management adopting a TQM programme to embrace continuous improvement as a normal way of doing business. Finally, quality and customer satisfaction are the top priorities and focal points when carrying out all business processes. Quality control is the implementation of the whole PDCA control cycle where the planning step starts with the existence of a problem involved or to prevent a potential problem from occurring. The outcomes of this step are the determination of an objective(s) of conducting the quality control, and to design a process that accomplishes that objective(s). The ‗Do‘ step is for carrying out the control plan. However, it also involves all preparations necessary to conduct the control plan such as: engaging in education and training and to provide facilities needed for that purpose. The ‗check‘ step is accomplished by evaluating the actual performance and comparing actual performance to quality control objectives. If a deviation is found, either eliminating the root cause of the problem or adjusting the work process constitutes corrective action. Practically, quality control is responsible for transforming quality planning and quality improvement outcomes into daily routine work, which is controlled by carrying out the PDCA, cycle continuously. This in turn may result in achieving the organisation‘s continuous small steps of improvement. 78 Ultimately, quality control aims at achieving a quality product and customer satisfaction. Knowing that quality is a function of all activities throughout the organisation, quality control as such is concerned with all activities throughout the organisation as well. Therefore, quality control is a managerial activity that starts with the identification of customer needs and ends only when the customer is fully satisfied. Business activities are better controlled when conducted in the form of processes. The process is controlled by the systematic way of going around the PDCA cycle. However, tools and techniques are needed to conduct such control. Examples of which are the use of Statistical Process Control (SPC), Root Cause Analysis (RCA) and the Feedback Loop. When the management of an organisation embarks on a quality control programme, it should realise that quality control is a comprehensive system where inspection is only part of it and there is a control step in all major quality management activities. In addition, the process itself as well as the process output should be controlled. Moreover, SPC techniques are a powerful means that may provide management with facts which in turn form the right basis for conducting an effective quality control. 5.2 Recommendations for Future Research It was attempted via this research to present fundamental aspects of TQM, the meaning of quality and the essence and mechanism of quality control. However, the research does not discuss in detail how that may influence the organisational structure and what are the organisational structure‘s requirements that would effectively accommodate the consequences a of quality management system. In particular the present research has pointed out that: Quality control starts with identifying customer needs, and ends only when customer is fully satisfied. Quality control is concerned with all activities throughout the organisation, and Quality control is a job of everyone within the organisation. So, the question of how all these may influence the organisational structure is one which requires more detailed research and may form the agenda of further studies beyond the present one. 79 Bibliography ABC Steel. 2002. Business System Manual. ABC Steel: Johannesburg (Unpublished inhouse publication) Arcaro, J.S. 1995. The Baldrige Award for Education: How to Measure and Document Quality Improvement, St. Lucie Press: Delray Beach, Florida. 1st Ed. Berg, D.J. 2000. The Implementation of Quality Standards in Development Organisation (Unpublished dissertation). RAU: Johannesburg. Ceronio, S.F. 1996. Achieving Total Quality Management in a South African Manufacturing Environment. (Unpublished PhD thesis) Johannesburg: RAU. Crosby, P.H. 1979. Quality is Free: The Art of Making Quality Certain. New York: New American Library Crosby, P.H. 1984. Quality without Tears: The Art of Hassle-Free Management, McGrawHill: New York. 1st ed. Crosby, P.H. 1988. The Eternally Successful Organisation: The Art of Corporate Wellness. McGraw-Hill: New York. 1st ed. Crosby, P.H. 1990. Leading: The Art of Becoming an Executive. McGraw-Hill: New York. 1st ed. Deming, W.E. 1982. Quality Production and Competitive Position, Massachusetts Institute of Technology, Center for Advanced Engineering Study, USA. Deming, W.E. 1994. The New Economics for Industry, Government and Education: Prentice-Hall Europe. Dorsch, J.J., M.Y. Yasin and A.J. Czuchry. 1997. „Application of root cause analysis in a service delivery operational environment: A framework for implementation‟ in International Journal of Service Industry Management. Vol. 8 No. 4 pp. 268-289. Feigenbaum, A.V. 1983. Total Quality Control. McGraw-Hill Book Company. New York. 3rd ed. Finlow-Bates, T., B Visser and C. Finlow-Bates. 2000. „An Integrated approach to problem-solving: linking K-T, TQM and RCA to TPM in The TQM Magazine. Vol. 12 No. 4 pp. 284-289. Galgano, A. 1994. Company Wide Quality Management. Productivity Press: Portland. 1st ed. Garvin, D.A. 1988. Managing Quality: The Strategic and Competitive Edge. The Free Press: New York. 1st Ed. 80 Ho, K. 1996. „Deming‟s system of profound knowledge and the World Cup‟ in Managing Service Quality. Vol.6 No. 3 pp. 43-47. MCB University Press. Hornby, A.S. 2000. Oxford Advanced Learner‟s Dictionary of Current English. 6th Ed. Oxford: Oxford University Press. Ishikawa, K. 1982. Guide to Quality Control, Asian Productivity Organisation: Tokyo, 2nd ed. Ishikawa, K. 1984. Quality Control Circles at Work: Cases from Japan‟s Manufacturing and Service Sectors. Asian Productivity Organisation: Tokyo Ishikawa, K. 1985. What is Total Quality Control?: The Japanese Way. Englewood Cliffs: Prentice Hall. ISO. 2001. The ISO 9000 Family. <http://www.iso.ch/iso/en/iso9000-14000/index.html> accessed on 10 October, 2002. Jablonski, J.R. 1994. Implementing TQM. Competing the Nineties through Total Quality Management. Albuquerque: 1994. Juran, J.M. 1989. Leadership for Quality: An Executive Handbook. New York: The Free Press. Juran, J.M. 1992. Juran on Quality by Design the New Steps for Planning Quality into Goods and Services. The Free Press: New York. 1st ed. Juran, J.M. and F.M. Gryna. 1980. Quality Planning and Analysis. New York: MacGrawHill. Juran, J.M., L.A. Sedar and F.M. Gryna. 1962. Quality Control Handbook. New York: MacGraw-Hill. Kinlaw, D.C. 1992. Continuous Improvement and Measurement For Total Quality: A TeamBased Approach Pfeiffer and Company: San Diego. 1st ed. Kotler, P. 2000. Marketing Management. New Jersey: Prentice-Hall International Inc. Lawler, E.E., S.A. Mohrman and G.E. Ledford. 1995. Creating High Performance Organisations: Practices and Results of Employee Involvement in Fortune 1000 Companies. San Francisco: Jossey-Bass Publishers. Lawton, R.L. 1993. Creating a Customer-Centered Culture: Leadership in Quality, Innovation and Speed. ASQC Quality Press: Milwaukee. 1st ed. Marckwardt, A.H., F.G. Cassidy, J.B. MacMillan. 1992. Webster Comprehensive Dictionary. International Ed. New York: J.G Ferguson Publishing Company. 81 Mason, B. and J Antony. 2002. „Statistical process control: an essential ingredient for improving service and manufacturing quality‟ in Measuring Business Excellence. <www.emeraldinsight.com> accessed on 12 September 2002. Montgomery, D.C. 1991. Introduction to Statistical Quality Control, John Wiley and sons: New York. 2nd Ed. NIST. 2002. Baldridge National Quality Program. <www.nist.gov> accessed on 17 October 2002 Ozeki, K. and T Asaka. 1990. Handbook of Quality Tools The Japanese Approach. Productivity Press: Cambridge. 1st ed. Parkany, M. 1995. Quality Assurance and TQM for Analytical Laboratories. The Royal Society of Chemistry: Cambridge. 1st ed. Parrish, D.J. 1990. Flexible Manufacturing. Butterworth-Heinemann: Oxford 1st ed. Peach, R.W. 1997. The ISO 9000 Handbook. McGraw-Hill: New York. 3rd ed. SAEF. 2002. <http://www.saef.co.za/awardf.html> Su, Y.Q.E. 2002. “The Deming Prize.” <http://www.freequality.org/beta%20freequal/fq%20web%20site/training/DemingPrize.ppt> Taguchi, G., E.A. Elsayed and T.C. Hsiang. 1989. Quality Engineering in Production Systems. McGraw-Hill:New York. 1st ed. Teifel, H.H. 1995. Corporate Culture a Potential Hurdle to Total Quality Management (Unpublished Dissertation). RAU: Johannesburg. Vinos, T. 2002. “Process is King” in Industry Week. October. W Edward Deming Institute. 2002. The Deming Prize. <www.Deming.org> Webster. 1992. Comprehensive Dictionary. International Ed. Chicago: JG Ferguson Publishing Company Winchell, W. 1996. Inspection and Measurement in Manufacturing: Keys to Process Planning and Improvement. Society Manufacturing Engineers: Dearborn 1st ed. Wolkins, D.O. 1996. Total Quality: A Framework for Leadership. Portland: Productivity Press. Zairi, M. 1991. Total Quality Management for Engineers. Cambridge: Woodhead. Zairi, M. 1998. Effective Management of Benchmarking Projects Practical Guidelines and Examples of Best Practice, Butterworth-Heinemann: Oxford. 1st ed. 82 Appendix A The ISO 9000 Family STANDARDS AND GUIDELINES AND THEIR PURPOSE Standards and Guidelines Purpose ISO 9000:2000, Quality management systems Fundamentals and vocabulary ISO 9001:2000, Quality management systems Requirements Establishes a starting point for understanding the standards and defines the fundamental terms and definitions used in the ISO 9000 family which you need to avoid misunderstandings in their use. This is the requirement standard you use to assess your ability to meet customer and applicable regulatory requirements and thereby address customer satisfaction. It is now the only standard in the ISO 9000 family against which third-party certification can be carried. ISO 9004:2000, Quality management systems Guidelines for performance improvements ISO 19011, Guidelines on Quality and/or Environmental Management Systems Auditing (currently under development) ISO 10005:1995, Quality management Guidelines for quality plans ISO 10006:1997, Quality management Guidelines to quality in project management ISO 10007:1995, Quality management Guidelines for configuration management ISO/DIS 10012, Quality assurance requirements for measuring equipment - Part 1: Metrological confirmation system for measuring equipment ISO 10012-2:1997, Quality assurance for measuring equipment - Part 2: Guidelines for control of measurement of processes ISO 10013:1995, Guidelines for developing quality manuals ISO/TR 10014:1998, Guidelines for managing the economics of quality ISO 10015:1999, Quality management Guidelines for training ISO/TS 16949:1999, Quality systems Automotive suppliers - Particular requirements for the application of ISO 9001:1994 This guideline standard provides guidance for continual improvement of your quality management system to benefit all parties through sustained customer satisfaction. Provides you with guidelines for verifying the system's ability to achieve defined quality objectives. You can use this standard internally or for auditing your suppliers. Provides guidelines to assist in the preparation, review, acceptance and revision of quality plans. Guidelines to help you ensure the quality of both the project processes and the project products. Gives you guidelines to ensure that a complex product continues to function when components are changed individually. Give you guidelines on the main features of a calibration system to ensure that measurements are made with the intended accuracy. Provides supplementary guidance on the application of statistical process control when this is appropriate for achieving the objectives of Part 1. Provides guidelines for the development, and maintenance of quality manuals, tailored to your specific needs. Provides guidance on how to achieve economic benefits from the application of quality management. Provides guidance on the development, implementation, maintenance and improvement of strategies and systems for training that affects the quality of products. Sector specific guidance to the application of ISO 9001 in the automotive industry. 83 Appendix B The Malcolm Baldridge National Quality Programme CRITERIA FOR PERFORMANCE EXCELLENCE 2002 Categories/Items 1.0 Leadership 1.1 Organizational Leadership 1.2 Public Responsibility and Citizenship 2.0 Strategic Planning 2.1 Strategy Development 2.2 Strategy Deployment 3.0 Customer and Market Focus 3.1 Customer and Market Knowledge 3.2 Customer Relationships and Satisfaction 4.0 Information and Analysis 4.1 Measurement and Analysis of Organizational Performance 4.2 Information Management 5.0 Human Resource Focus 5.1 Work Systems 5.2 Employee Education, Training, and Development 5.3 Employee Well-Being and Satisfaction 6.0 Process Management 6.1 Product and Service Processes 6.2 Business Processes 6.3 Support Processes 7.0. Business Results 7.1 Customer-Focused Results 7.2 Financial and Market Results 7.3 Human Resource Results 7.4 Organisational Effectiveness Results TOAL POINTS Source: (NIST, 2002) 84 Appendix C The Deming Application Prize Checklist 1. Policies (Hoshin) (1) Quality and quality control policies and their place in overall business management. (2) Clarity of policies (targets and priority measures) (3) Methods and processes for establishing policies (4) Relationship of policies to long - and short - term plans (5) Communication (deployment) of policies, and grasp and management of achieving policies (6) Executives and managers leadership 2. Organization (l) Appropriateness of the organizational structure for quality control and status of employee involvement (2) Clarity of authority and responsibility (3) Status of interdepartmental coordination (4) Status of committee and project team activities (5) Status of staff activities (6) Relationships with associated companies (group companies, vendors, contractors, sales companies, etc.) 3. Information (1) Appropriateness of collecting and communicating external information (2) Appropriateness of collecting and communicating internal information (3) Status of applying statistical techniques to data analysis (4) Appropriateness of information retention (5) Status of utilizing information (6) Status of utilizing computers for data processing 4. Standardization (1) Appropriateness of the system of standards (2) Procedures for establishing, revising and abolishing standards (3) Actual performance in establishing, revising and abolishing standards (4) Contents of standards (5) Status of utilizing and adhering to standards (6) Status of systematically developing, accumulating, handing down and utilizing technologies 5. Human Resources (1) Education and training plans and their development and results utilization (2) Status of quality consciousness, consciousness of managing jobs, and understanding of quality control (3) Status of supporting and motivating self-development and self-realization (4) Status of understanding and utilizing statistical concepts and methods (5) Status of QC circle development and improvement suggestions (6) Status of supporting the development of human resources in associated companies 6. Quality Assurance (1) Status of managing the quality assurance activities system (2) Status of quality control diagnosis (3) Status of new product and technology development (including quality analysis, quality deployment and design review activities) (4) Status of process control (5) Status of process analysis and process improvement (including process capability studies) 85 (6) (7) (8) (9) (10) (11) (12) Status of inspection, quality evaluation and quality audit Status of managing production equipment, measuring instruments and vendors Status of packaging, storage, transportation, sales and service activities Grasping and responding to product usage, disposal, recovery and recycling Status of quality assurance Grasping of the status of customer satisfaction Status of assuring reliability, safety, product liability and environmental protection 7. Maintenance (1) Rotation of management (PDCA) cycle control activities (2) Methods for determining control items and their levels (3) In-control situations (status of utilizing control charts and other tools) (4) Status of taking temporary and permanent measures (5) Status of operating management systems for cost, quantity, delivery, etc. (6) Relationship of quality assurance system to other operating management systems 8. Improvement (1) Methods of selecting themes (important activities problems and priority issues) (2) Linkage of analytical methods and intrinsic technology (3) Status of utilizing statistical methods for analysis (4) Utilization of analysis results (5) Status of confirming improvement results and transferring them to maintenance/control activities (6) Contribution of QC circle activities 9. Effects (1) Tangible effects (such as quality, delivery, cost, profit, safety and environment) (2) Intangible effects (3) Methods for measuring and grasping effects (4) Customer satisfaction and employee satisfaction (5) Influence on associated companies (6) Influence on local and international communities 10. Future Plans (1) Status of grasping current situations (2) Future plans for improving problems (3) Projection of changes in social environment and customer requirements and future plans based on these projected changes (4) Relationships among management philosophy, vision and long-term plans (5) Continuity of quality control activities (6) Concreteness of future plans (Excerpted from "1996 The Deming Prize Guide for Overseas Companies") 86 APPENDIX D South African Excellence Model: Criteria For Performance Excellence Criteria Description 1. Leadership How the behaviour and actions of the executive team and all other leaders inspire, support and promote a culture of Excellence. 2. Policy and Strategy How the organisation formulates, deploys, reviews and turns policy and strategy into plans and actions. 3. Customer and Market Focus How the organisation determines the needs, requirements and expectations; enhances relationships and determines satisfaction of customers and markets. 4. People Management How the organisation develops and releases the full potential of its people. 5. Resources and Information How the organisation manages and uses resources Management and information effectively and efficiently. 6. Processes How the organisation identifies, manages, reviews and improves its processes. 7. Impact on Society What the organisation is achieving in satisfying the needs and expectations of the local, national and international community at large. 8. Customer Satisfaction What the organisation is achieving in relation to the satisfaction of its external customers. 9. People Satisfaction What the organisation is achieving in relation to the satisfaction of its people. 10. Supplier and Partnership What the organisation is achieving in relation to Performance the management of supplier and partnering processes. 11. Business Results What the organisation is achieving in relation to its planned business objectives and in satisfying the needs and expectations of everyone with a financial interest or other stake in the organisation. http://www.saef.co.za/awardf.html 87 Appendix E Work Instruction: Receipt Inspection (ABC Steel, 2002: WI/20) 88 Appendix F Work Instruction: Request for Fabrication Inspection & Structural Steel Inspection (ABC Steel, 2002: WI/21) 89 Appendix G Work Instruction: Request for Fabrication Inspection –Heavy Bay (ABC Steel, 2002: WI/22) 90 Contact Details: Ammar Al‐Saket can be reached at the following email address: ammar.alsaket@gmail.com
