Title: Part 2: Chap 1 Overview of Quality
1Part 2 Chap 1Overview of Quality
- Topics
- Quality Concepts
- TQM philosophy
- Leadership
- TQM implementation and tools
- Model in TQM MBNQA and others
- Case study KMB
2What 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
3Nine 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
4Nine 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
5Evolution 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.
6Evolution 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.
7Evolution 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
8Some 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.
9Some 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.
10Some 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
11TQM
12Overview 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
13Primary 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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14Six 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
15Benefit 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.
16Guru 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
17Demings 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.
18Demings 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.
19Demings 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.
20Demings 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.
21TQM 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
22Juran Trilogy
Quality Planning
Juran Trilogy
Quality improvement
Quality Control
23Juran 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
24TQM 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.
25TQM 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
26Leadership 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.
27Role 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
28Role 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
29Senior 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
30Duties 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
31Quality 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.
32Quality 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.
33Trend 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.
34Skills 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
35Histogram
- 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
36Histogram (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
37Cause 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
38Cause 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
39Cause 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
40Scatter 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.
41Run Charts
- Run charts are used to analyze processes
according to time or order. Run charts are useful
in discovering patterns that occur over time.
42Control 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
43Quality model for TQM
44MBNQA 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.
45MBNQA 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)
46MBNQA 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.
472001 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
482001 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
49Reasons 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
50Conclusions 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
51Summary
- 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
52Summary (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)
53Summary (3)
- 7 basic quality tools in TQM
- Cause and effect diagram
- Check sheet
- Control chart
- Graph
- Histogram
- Pareto diagram
- Scatter diagram
54Summary (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
55Case Study in TQM
56Background 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 -
57Seven aspect of TQM in KMB
- Leadership
- Strategic Planning
- Customer and Market Focus
- Information and Analysis
- Human Resource Focus
- Process Management
- Business Results
58Leadership 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
59Strategic 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
60Customer 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
61Information 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
62Human 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
63Process 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
64Business 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