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Part 2: Chap 1 Overview of Quality

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Title: Part 2: Chap 1 Overview of Quality


1
Part 2 Chap 1Overview of Quality
  • Topics
  • Quality Concepts
  • TQM philosophy
  • Leadership
  • TQM implementation and tools
  • Model in TQM MBNQA and others
  • Case study KMB

2
What is Quality?
  • Fit for purpose gt product and service does what
    it is intended to do
  • Conformance gt meeting the specification
  • Satisfy customer gt the customer perceived level
  • Exceed customer expectation gt delight customer
  • Qperformance / expectation gt equal 1 satisfy
    greater 1 delight
  • Value for money gt superiority to competitor
  • Consistent gt e.g. Food quality in McDonnalds
    Restaurants
  • Reliable gt free from defects
  • Good performance
  • Fast response
  • Need continuous improvement
  • Without absolute standing

3
Nine dimensions of quality
  • Performance
  • Primary product characteristics, such as the
    brightness of the picture
  • Features
  • Secondary characteristics, added features, such
    as remote control
  • Conformance
  • Meeting specifications or industry standards,
    workmanship
  • Reliability
  • Consistency of performance over time, average
    time for the unit to fail
  • Durability
  • Useful life, includes repair time and frequency

4
Nine dimensions of quality (2)
  • Service
  • Resolution of problems and complaints, ease of
    repair
  • Response
  • Human-to-human interface, such as the courtesy of
    the dealer
  • Aesthetics
  • Sensory characteristics, such as exterior finish
  • Reputation
  • Past performance and other intangibles, such as
    being ranked first

5
Evolution of quality
  • pre World-war II
  • Approach make a lot and sort out the good ones
  • Ford Motor Company developed systematic material
    handling, machine tool design, factory layout and
    final inspection. Automobile production went from
    ten thousand cars in 1909 to sixty thousand in
    1916. The price decreased from 850 to 350 per
    car.
  • Dr. Walter A. Shewhart of ATT developed the
    concept of control charts. Dr. Shewhart is
    referred to as the father of statistical quality
    control.
  • When the United States was involved in World War
    II. The war generated the first extensive use of
    statistical concepts. U.S. Government suppliers
    were required to use statistical quality control.
    The government sponsored many statistics and
    quality control training classes.

6
Evolution of quality (2)
  • 50-70
  • Joseph M. Juran and W. Edwards Deming taught
    statistical methods and statistical quality
    control to the Japanese.
  • Joseph M. Juran published the first edition of
    Quality Control Handbook and advocate 3 basic
    management processes for quality, which is now
    known as Juran Trilogy Quality Planning, Quality
    Control and Quality Improvement
  • Quality control Based on detection, aim at
    locate any non-conformance product
  • 70-80
  • Quality control system gt Quality Assurance
  • With the concept of Quality assurance gt
    prevention
  • The emphasis include quality of design and design
    for manufacturability. Computers were used
    extensively in all aspects of quality.

7
Evolution of quality (4)
  • 4 step cycles
  • Set standards gt Appraising conformance gt Acting
    when necessary gt Planning for improvement
  • 80-00
  • The International Organization for
    Standardization (ISO) establishes ISO 9000 Series
    Quality Management System Standards.
  • Quality Concepts were extended to service
    industries. Emphasis is on total quality
    management (TQM) and customer satisfaction.
  • 00-01
  • Eight thousand U.S. companies have achieved ISO
    registration since its inception. Eight percent
    of all companies that are ISO registered are
    located in North America. 46 are located in the
    United Kingdom.
  • Quality costing, IMS, Other new approach in
    quality TMS, 6-sigma

8
Some important terms in Quality
  • Quality Management Quality management is the
    means of implementing and carrying out quality
    policy.
  • perform goal planning and manage quality control
    and quality assurance activities.
  • responsible for seeing that all quality goals and
    objectives are implemented and that corrective
    actions have been achieved.
  • review the quality system to ensure effectiveness
    and to identify and review any deficiencies.

9
Some important terms in Quality (2)
  • Quality Control The term quality control
    describes a variety of activities.
  • It encompasses all techniques and activities of
    an organization that continuously monitor and
    improve the conformance of products, processes or
    services to specifications.
  • include the review of processes and
    specifications and make recommendations for their
    improvement.
  • eliminate causes of unsatisfactory performance by
    identifying and helping to eliminate or at least
    narrow the sources of variation.
  • define a system in which products meet design
    requirements and checks and feedback for
    corrective actions and process improvements.
  • selecting and rating of suppliers to ensure that
    purchased products meet quality requirements.

10
Some important terms in Quality (3)
  • Quality Assurance The term quality assurance
    describes all the planned and systematic actions
    necessary to assure that a product or service
    will satisfy the specified requirements.
  • takes the form of an independent final inspection
  • The distinction between quality control and
    quality assurance is stated in an ANSI/ASQ
    standard
  • Quality control has to do with making quality
    what it should be, and quality assurance has to
    do with making sure quality is what it should
    be.
  • The quality assurance function should represent
    the customer and be independent of the quality
    control function, which is an integral part of
    the manufacturing operation.
  • Quality system
  • Defined organization structure, responsibilities,
    procedures, processes, and resources for
    implementing and coordinating the QA and QC
    activities

11
TQM
12
Overview of TQM
  • TQM has been available for many years. It was
    originally developed in the US and the Japanese
    were the first to visualize its benefits and
    apply it successfully.
  • They found that if management and employees could
    do joint problem solving everyone was committed
    to the solution.
  • The TQM philosophy stresses an organizational-wide
    perspective involving everyone and everything
  • focus primarily on total satisfaction
  • for both internal and external customers
  • within a management environment that seek
    continuous improvement of all systems and
    processes

Quality Quality Management Total Quality
Management
13
Primary elements of TQM
  • There are many definition of TQM
  • But the philosophy of TQM can be summarized as a
    management system for a customer focused
    organisation that involves all employees in
    continuous improvement of all aspects of the
    organization to establish a customers goodwill
    and value-for-money reputation
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14
Six basic concepts of TQM
  • A committed and involved management to provide
    long-term top-to-bottom organizational support
  • An unweaving focus on the customer, both
    internally and externally
  • Effective involvement and utilization of the
    entire work force
  • Continuous improvement of the business and
    production process.
  • Treating suppliers as partners.
  • Establish performance measures for the processes.
  • compare to 8 management principles of
    ISO90002000
  • customer focus
  • total employee involvement
  • process centered
  • integration system
  • strategic and systematic approach
  • continual improvement
  • fact-based decision making
  • communications

15
Benefit Running TQM
  • Direct benefits
  • Reduce operating costs
  • Increase customer satisfaction
  • Establishing a process of continuous improvement
    and business process reengineering
  • Gain a competitive edge
  • Indirect benefits
  • enhanced market image
  • increase job security
  • increased customer loyalty and retention
  • improved and innovative processes
  • Improve company morale
  • Establishing a base for ISO registration and the
    Malcolm Baldridge award.

16
Guru in TQM and Quality Management
  • W.Edwards Deming, one of the expert of quality
    management
  • Others experts Joseph. H. Juran and Philip Crosby

Edwards Deming
Joseph. H. Juran
Philip Crosby
17
Demings approach to TQM
  • Deming suggest 14 steps to approach TQM
  • 1) Create constancy of purpose for improvement of
    product and service
  • Constancy of purpose requires innovation,
    investment in research and education, continuous
    improvement of product and service, maintenance
    of equipment, furniture and fixtures, and new
    aids to production.
  • 2) Adopt the new philosophy
  • Management must undergo a transformation and
    begin to believe in quality products and
    services.
  • 3) Cease dependence on mass inspection
  • Inspect products and services only enough to be
    able to identify ways to improve the process.

18
Demings approach to TQM (2)
  • 4) End the practice of awarding business on price
    tag alone
  • The lowest priced goods are not always the
    highest quality choose a supplier based on its
    record of improvement and then make a long-term
    commitment to it.
  • 5) Improve constantly and forever the system of
    product and service
  • Improvement is not a one-time effort management
    is responsible for leading the organization into
    the practice of continual improvement in quality
    and productivity.
  • 6) Institute training and retraining
  • Workers need to know how to do their jobs
    correctly even if they need to learn new skills.
  • 7) Institute leadership
  • Leadership is the job of management. Managers
    have the responsibility to discover the barriers
    that prevent staff from taking pride in what they
    do. The staff will know what those barriers are.

19
Demings approach to TQM (3)
  • 8) Drive out fear
  • People often fear reprisal if they "make waves"
    at work. Managers need to create an environment
    where workers can express concerns with
    confidence.
  • 9) Break down barriers between staff areas
  • Managers should promote teamwork by helping staff
    in different areas/departments work together.
    Fostering interrelationships among departments
    encourages higher quality decision-making.
  • 10) Eliminate slogans, exhortations, and targets
    for the workforce
  • Using slogans alone, without an investigation
    into the processes of the workplace, can be
    offensive to workers because they imply that a
    better job could be done. Managers need to learn
    real ways of motivating people in their
    organizations.
  • 11) Eliminate numerical quotas
  • Quotas impede quality more than any other working
    condition they leave no room for improvement.
    Workers need the flexibility to give customers
    the level of service they need.

20
Demings approach to TQM (4)
  • 12) Remove barriers to pride of workmanship
  • Give workers respect and feedback about how they
    are doing their jobs  
  • 13) Institute a vigorous program of education and
    retraining
  • With continuous improvement, job descriptions
    will change. As a result, employees need to be
    educated and retrained so they will be successful
    at new job responsibilities.
  • 14) Take action to accomplish the transformation
  • Management must work as a team to carry out the
    previous 13 steps.

21
TQM defined by Juran
  • quality becomes a part of each upper management
    agenda
  • quality goals enter the business plan
  • stretch goals are derived from benchmarking
    focus is on the customer and on meeting
    competition, and there are goals for annual
    quality improvement
  • goals are deployed to the action levels
  • training is done at all levels
  • measurement is established throughout the
    organization
  • upper managers regular review progress against
    goals
  • recognition is given for superior performance
  • reward system is revised

22
Juran Trilogy
Quality Planning
Juran Trilogy
Quality improvement
Quality Control
23
Juran Trilogy (2)
  • Quality plan
  • establish a target / project
  • identify the customer
  • discover customer needs
  • develop product/service
  • develop process (identify goals, operation
    condition)
  • develop process control (feedback loop, audit)
  • Quality control
  • activities and techniques to continuously monitor
    and improve the conformance of products,
    processes or services to specifications
  • aims to eliminate causes of unsatisfactory
    performance by identifying and helping to
    eliminate or reduce the sources of variation.
  • include the review of processes and
    specifications and make recommendations for their
    improvement
  • Quality improvement

24
TQM implementation (1)
  • TQM implementation process begins with senior
    management and, most important, the CEOs
    commitment
  • Leadership is essential during every phase and
    particularly at the start.
  • Indifference and lack of involvement by senior
    management are principal reasons for the failure
    of quality improvement efforts.
  • Senior management needs education in TQM concepts
  • Right timing of implementation is important
  • Formation of Quality Council and development of
    core values, vision statement and quality policy
    statement.

25
TQM implementation (2)
  • Active involvement of middle managers and
    first-line supervisors is essential - accountable
    for achieving performance goals and objectives
  • Middle managers and first-line supervisors form
    links in the communication chain from senior
    management to the front-line workers
  • It is important to communicate TQM to the entire
    organization. Communication is a never-ending
    process to create awareness, interest, desire and
    action.
  • Customer, employee and supplier surveys are
    conducted to benchmark their attitudes
  • Everyone needs to be trained in quality awareness
    and problem soling

26
Leadership in TQM
  • Leadership requires a keen understand of human
    nature - the basic needs, wants and abilities of
    people.
  • A leader needs to know and understand the
    following
  • People, paradoxically, need security and
    independence at the same time
  • People are sensitive to external rewards and
    punishments and yet are self-motivated
  • People like to hear a kind word of praise
  • People can only process a few facts at a time
  • People trust their gut reaction more than
    statistical data
  • People distrust a leaders rhetoric if the words
    are inconsistent with the leaders action.

27
Role of senior management
  • Senior management must
  • actively participate in the implementation
    process and the Quality Council
  • practice the philosophy of management by
    wandering about - to get out of the office and
    visit customers, departments and plants within
    the organization, and suppliers and talk to
    people
  • stay informed on the topic of quality improvement
  • find time to celebrate the success of their
    organization's quality effort - award and
    recognition ceremonies
  • Actively and visibly engaged in the quality
    effort by coaching teams and teaching seminars

28
Role of senior management (2)
  • listen to internal and external customers and
    suppliers and translate this information into
    core values and process improvement projects
  • communicate to create awareness of the importance
    of TQM and provide TQM results in an ongoing
    manner, i.e., newsletters, posters, TQM bulletin
    boards, departmental information meetings, memos
    and organization-wide meetings
  • Promote external communication activities with
    customers and suppliers, the media, advertising
    in trade magazines and interaction with the
    quality community

29
Senior management quality council
  • also known as quality steering committee
  • Composed of CEO, senior managers of the
    functional areas i.e., design, marketing,
    finance, production and quality and a
    co-coordinator
  • Build quality into culture, provide overall
    direction and is the driver for the TQM engine
  • Duties of Quality Council
  • Develop the core values, vision statement and
    quality policy statement
  • Develop the strategic long-term plan with goals
    and the annual quality improvement program with
    objectives
  • Create total education/training plan
  • Determine and monitor the cost of poor quality
  • Determine the performance measures
  • Determine and approve quality improvement
    projects
  • Establish multifunctional project and
    departmental teams and monitor progress
  • Establish recognition and reward system

30
Duties of Quality coordinator
  • The coordinator builds two-way trust, proposes
    team needs to the council and shares council
    expectations with the team and briefs the council
    on team progress
  • The coordinator assists team leaders, share
    lessons learned among teams and have regular
    leaders meeting with team leaders

31
Quality Statement (1)
  • Vision Statement
  • A declaration of what an organization should look
    like five to ten years in the future
  • It is a realistic picture of what it wants to
    become and what is possible
  • Mission Statement
  • Answers the questions of who we are, who are the
    customers, what we do and how we do it
  • Provides a clear statement of purpose for
    employees, customers and suppliers
  • VTC Vision Statement
  • To be a leading provider of vocational education
    and training in the region.
  • VTC Mission Statement
  • To provide cost-effective alternative routes and
    flexible pathways for school leavers and adult
    learners to acquire skills and knowledge for
    lifelong learning and enhanced employability.

32
Quality Statement (2)
  • Quality Policy Statement
  • A guide for everyone in the organization as to
    how they should provide products and service to
    the customers.
  • Written by the CEO with feedback from the
    workforce and approved by the Quality Council
  • Some examples
  • Quality Policy Statement
  • xxx is committed to a continuous improvement
    approach to provide quality services to our
    customers, with an ultimate goal to better
    satisfy their needs and expectations. All staff
    of the xxx will strive to conform to this Quality
    Policy.
  • xxx is committed to the provision of quality
    services to our customers. The objective of xxx
    is continuous improvement in our services to
    strive for sustained quality excellence, and to
    better satisfy the needs and expectations of our
    customers.

33
Trend in TQM
  • The increase acceptance and use of TQM is the
    result of three major trends
  • Reaction to increasing domestic and global
    competition
  • Pervasive need to integrate the several
    organizational functions for improvement of total
    output of organization as well as the quality of
    output within each function,
  • Acceptance of TQM in a variety of service
    industries
  • The increase acceptance of using national quality
    as a measurement of TQM
  • TQM based on national award has achieved
    substantial development worldwide
  • the establishment of the Malcolm Balridge
    National Award (MBNQA) by the US Government in
    1987.
  • there are also others national awards by other
    countries such as Canada, Australia, UK, Europe,
    New Zealand, Sweden, Brazil, Singapore, and Hong
    Kong and many other countries.

34
Skills and tools for TQM
  • group problem solving
  • measuring, data gathering and analysis
  • root cause analysis
  • brainstorming
  • continuous process improvement
  • some of the most popular tools are
  • Histogram
  • Cause and effect diagram
  • Scatter diagram
  • Run chart
  • Control chart

35
Histogram
  • vertical bar chart that depicts the distribution
    of a set of data
  • evolved to meet the need for evaluating data that
    occurs at a certain frequency
  • This is possible because the histogram allows for
    a concise portrayal of information in a bar graph
    format.

A bar graph that shows the distribution of data
36
Histogram (2)
  • Summarize large data sets graphically.
  • Data present is graphic is much easier to
    understand, we can summarize the data on a tally
    sheet and organizing it into a histogram
  • compare process results with specification limits
  • By adding the process specification limits to the
    Histogram, we can determine quickly whether the
    current process was able to produce good
    products
  • Communicate information graphically
  • we can easily see the values that occur meet
    frequently in a histogram. Histogram can
    summarize large data sets compare measurements
    to specification limits, which is powerful
    communications tool
  • Use a tool to assist in decision-making
  • By examining the shapes, sizes, and the spread of
    data of a histogram, it can help us to
    investigate problem and decision-making

37
Cause Effect Diagram
  • To provide a pictorial display of a list in which
    you identify and organize possible causes of
    problems, or factors needed to ensure success of
    some effort.
  • also known as fish-bone diagram, or Ishikawa
    diagram

man
machine
method
material
38
Cause Effect Diagram (2)
  • Write down the effect to be investigated and draw
    the backbone arrow to it. In the following
    example, CE is the incorrect deliveries
  • Identify all the broad areas of enquiry in which
    the causes of the effect being investigate may
    lie. For manufacturing process, the broad areas
    of enquiry that are most often used are man
    (human factor), Machines (machines and tools),
    materials (raw materials) and Method (methods of
    work) and environment (work environment)

incorrect deliveries
skill
communication
incorrect deliveries
procedure
transport
39
Cause Effect Diagram (3)
  • Next, write down all the detailed possible causes
    in each of the broad areas of enquiry. Each cause
    identified should be fully explored for further
    more specific causes that contribute to them
  • This step requires the greatest amount of work
    and imagination
  • Tips
  • concentrate team members attention on a specific
    problem
  • constructing a picture of the problem at hand
    without resorting to the tight discipline of a
    flowchart
  • draw the backbone from left to right
  • use in conjunction with brainstorming
  • All team members will benefit from each others
    contribution and develop a common understanding
    of the problem

40
Scatter Plots
  • Intuitive and qualitative conclusions could be
    drawn about the paired data, or variables. The
    concept of correlation was employed to decide
    whether a significant relationship existed
    between the paired data.

41
Run Charts
  • Run charts are used to analyze processes
    according to time or order. Run charts are useful
    in discovering patterns that occur over time.

42
Control Charts
  • It is a proven technique for improving
    productivity.
  • It is effective in defect prevention.
  • It prevents unnecessary process adjustments.
  • It provides diagnostic information.
  • It provides information about process capability

43
Quality model for TQM
44
MBNQA and other awards
  • TQM has achieved substantial development
    worldwide since the establishment of the Malcolm
    Balridge National Award (MBNQA) by the US
    Government in 1987.
  • Each year in USA, Quest for Excellence, the
    official conference of the Malcolm Baldrige
    National Quality Award, provides a forum for
    Baldrige Award Recipients to share their
    performance practices with worldwide leaders in
    business, education, health care, and
    not-for-profit organization. The President of the
    United States presents the Awards at a special
    ceremony in Washington, DC.

45
MBNQA and other awards
  • In addition to MBNQA, there are also others
    national awards by other countries such as
    Canada, Australia, UK, Europe, New Zealand,
    Sweden, Brazil, Singapore, and Hong Kong and many
    other countries. Among the more renowned National
    Quality Awards are
  • Deming Prize (in Japan)
  • The European Quality Awards for Business
    Excellence
  • HKMA Quality Award (Hong Kong)

46
MBNQA and other awards
  • The criteria of the MBNQA award are the basis for
    organization self-assessment. In addition, the
    Criteria have 3 important roles in strengthen US
    competitiveness.
  • To help improve organizational performance
    practices, capabilities, and results
  • To facilitate communication and sharing of best
    practices information among US organization of
    all types
  • To serve as a working tool for understanding and
    managing performance and for guiding planning and
    opportunities for learning.

47
2001 Criteria for Performance Excellence
  • 2001 Categories/Items Point Values
  • 1 Leadership 120
  • 1.1 Organizational Leadership 80
  • 1.2 Public Responsibility and Citizenship 40
  • 2 Strategic Planning 85
  • 2.1 Strategy Development 40
  • 2.2 Strategy Deployment 45
  • 3 Customer and Market Focus 85
  • 3.1 Customer and Market Knowledge 40
  • 3.2 Customer Satisfaction and Relationships 45
  • 4 Information and Analysis 90
  • 4.1 Measurement of Organizational
    Performance 50
  • 4.2 Analysis of Organizational Performance 40

48
2001 Criteria for Performance Excellence (2)
  • 5 Human Resource Focus 85
  • 5.1 Work Systems 35
  • 5.2 Employee Education, Training, and
    Development 25
  • 5.3 Employee Well-Being and Satisfaction 25
  • 6 Process Management 85
  • 6.1 Product and Service Processes 55
  • 6.2 Support Processes 15
  • 6.3 Supplier and Partnering Processes 15
  • 7 Business Results 450
  • 7.1 Customer Focused Results 115
  • 7.2 Financial and Market Results 115
  • 7.3 Human Resource Results 80
  • 7.4 Supplier and Partner Results 25
  • 7.5 Organizational Effectiveness Results 115
  •   TOTAL POINTS 1000

49
Reasons for success and failure in TQM
  • Reasons for failures
  • Lead of leadership
  • Lack of involvement in senior management
  • Lack of clear objective
  • Product orientated rather than customer-driven
  • Inflexibility of the organization
  • Quality policy is ineffective
  • Critical success factors
  • Strong leadership and
  • Clear understanding of the importance of quality
    from every levels of the organization
  • Clear and concise objective
  • Flexible in company structure
  • Customer driven
  • Effective execution of quality policy
  • Continuous improvement

50
Conclusions in TQM
  • TQM is rather difficult to implement as no a
    specific policy and statement to follow
  • The target is too perfect and never can be
    totally achieved
  • TQM is a never ending exercise
  • Leadership is very important
  • Lack of leadership during every phase and
    particular at the start
  • Leaders lack of understand of human nature (e.g.
    rewards, punishments, praise)
  • Inconsistent with other leaders action
  • Poor Leadership
  • Only control subordinates rather then enhance the
    power
  • Only direct and supervise rather than train and
    coach
  • Do not learn from problems

51
Summary
  • Difficulties in TQM
  • Lack of management support and commitment
  • Lack of resource
  • Lack of knowledge
  • Lack of prevention-based mentality
  • Resistance to change
  • 6 principles in TQM
  • Management leadership
  • Leadership Strategy planning
  • Customer satisfaction
  • Customer / market focus
  • Continuous improvement
  • Management by fact
  • Establish performance measure business result
  • Process oriented
  • Treat supplier as Partnership
  • Total involvement of people

52
Summary (2)
  • Success factors in TQM
  • Experience (effective use of quality tools and
    technique, understanding of the process, product
    and tools, experience and ownership)
  • Resources (money, manpower, facilities, time)
  • Management support (vitally important,
    empowerment of employee, appreciation of
    successful, open and honest communications)
  • Training (Awareness training, designed to cater
    for different background of employee, follow-up
    program and evaluation)

53
Summary (3)
  • 7 basic quality tools in TQM
  • Cause and effect diagram
  • Check sheet
  • Control chart
  • Graph
  • Histogram
  • Pareto diagram
  • Scatter diagram

54
Summary (4)
MBNQA vs TQM
  • The core of the MBNQA are in 7 categories
  • 1.        Leadership 120
  • 2.        Strategy planning 85
  • 3.        Customer / Market focus 85
  • 4.        Information analysis 90
  • 5.        Human focus 85
  • 6.        Process management 85
  • 7. Business result 450
  • TQM
  • Leadership Strategy planning
  • Customer satisfaction
  • Establish performance measure business result
  • Treat supplier as Partnership
  • Total involvement of people
  • Process oriented

55
Case Study in TQM
56
Background of KMB
  • KMB headquarters and its operations and
    maintenance depots have all obtained ISO 9001
    certification
  • Overall winner of the 2001 Hong Kong Management
    Association Quality Award

57
Seven aspect of TQM in KMB
  • Leadership
  • Strategic Planning
  • Customer and Market Focus
  • Information and Analysis
  • Human Resource Focus
  • Process Management
  • Business Results

58
Leadership in KMB
  • Leadership
  • Group departments into three divisions
  • Inter-related departments belong to same division
  • Create Depot General Managers
  • Create Strategic Planning Steering Committee
  • Comments from Examiners
  • Balance value for all stakeholders
  • The management provides direction through its
    mission and core values

59
Strategic Planning in KMB
  • Strategic Planning
  • Formulates strategic planning by utilizing the
    output of a SWOT analysis
  • The strategic planning is documented in the
    5-Year Plan and reviewed each year
  • Comments from Examiners
  • Has a clear strategy
  • The strategy deployment process is well defined
    and effectively communicated

60
Customer and Market Focus
  • Customer and Market Focus
  • Places a high priority on identifying and meeting
    its customers expectations
  • Customers can voice their opinions
  • Carry out regular surveys
  • Comments from Examiners
  • KMB has used its survey results to effectively
    drive improvements in customer relations such as
    the upgrading of skills of employees

61
Information and Analysis
  • Information and Analysis
  • Five key performance measurement by data from
    both internal and external sources
  • Developed a range of in- house Information
    Technology Systems, e.g.Bus Maintenance Info.
    System
  • Comments from Examiners
  • Using an integrated system to collects and
    analyzes five categories of key performance
    measures
  • Bus Maintenance Information System achieve less
    breakdowns

62
Human Resource Focus
  • Human Resource Focus
  • Senior management has open communications with
    staff and Labor Unions Annual training plan
  • Sponsorship available for job related training
    courses
  • Comments from Examiners
  • Teamwork and communication
  • KMBs Medical centers take care of staff health
    and Technical and Bus Captain Training Schools
    deliver in-house training

63
Process Management
  • Process Management
  • KMBs Headquarters, Traffic Department, and
    service and maintenance depots have all obtained
    ISO 9001 certification
  • Comments from Examiners
  • KMBs service design and delivery process
    includes tests on new routes and surveys of
    passengers to provide feedback for improvement

64
Business Results
  • Business Results
  • KMB rates highly among transport service
    providers
  • Growth in the number of passengers
  • Number of breakdowns has continued to fall
  • Comments from Examiners
  • KMB has expanded its bus fleet and has increased
    both the amount of kilometers and capacity
  • Since 1998 employee turnover has declined
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