Intro to Quality Management By Ali Sajid, PhD (alisajid61@yahoo.com)DirectorInst of Business & MgmtUET LahoreAn Exclusive Presentation for PEC October 14, 2012

Dr Ali Sajid, PhD, TI, is a graduate mechanical engr from UET, Lahore. Masters and Ph.D. in Engg Mgment from the George Washington University, Washington DC, USA. ISO - 9000 Certified Lead Auditor from BSI, UK. Taught in various US Universities & worked at the World Bank, multi national and multi racial corporate environment of Washington D.C. Member of American Society for Quality Pakistan Engineering Council. Since last Sixteen years, he been teaching at various Pakistani & US Universities. Advisor to Planning Commission, Govt of Pakistan on TQM & Productivity. Areas of interest. Increasing Industrial Competitiveness & Productivity in White/Blue Collar Environment, & Application of Quality Management in Industry

National level trainer/consultant.Extensively involved in Executive Training of Managers at all level in the filed of Total Quality Management, Scientific Management, Project Management ,Competitiveness, Productivity, HRD etc related topics at all important national forum with a view to enhance organizational effectiveness of federal agencies and private enterprises. Govt. of Pakistan has recently conferred him with Tamiga-a-Imtiaz. Founding Chairperson Dept of Engg Mgmt at CASE and presently working as Director Strategic Affairs, CASE, Islamabad. Founding Director of Islamabad based Institute of Professional Trainers, LAMDA (Leadership & Management Development Associates).

The will to win, the desire to succeed, the urge to reach your full potentials are the keys to unlock the doors to the personal excellence

Confucius

Character cannot be developed in Ease & Quiet. Only through Experience of Trial & Suffering can the soul be strengthened, ambition inspired, & success achieved.

Helen Keller (1880 - 1968)

I have learnt Silence from the talkative, Toleration from the intolerant, & Kindness from the unkind; yet strange, I am ungrateful to these teachers.

Kahlil Gibran (1883 - 1931)

Never to suffer would never to have been blessed. Edgar Allan Poe (1809 - 1849)

So much of what we call management consists in making it difficult for people to work. Peter Drucker (1909 - 2005)

The Test of Courage Comes when we are in The Minority. The Test of Tolerance comes when we are in The Majority. Ralph W. Sockman

Nobody Could make a greater mistake than he who did nothing because he could do a little

When person does good deed When he or she didnt have to, God looks down & smiles & says For This moment alone it was worth creating world

Characteristics of OrganizationAn organization is a systematic arrangement of people to accomplish some specific purpose. Each organization has a distinct purpose.

This purpose is typically expressed in terms of a goal or set of goals.Systematic StructureDistinct PurposePeople

Org ExcellenceKey to Competitiveness CostQuality SpeedValue

Organizational ExcellenceThrough Competitiveness using Quality as a Tool

Quality is a Habit not an Act.

Aristotle

What is Quality

Classical IdeaQ: Degree of conformance to a standard(As a product or service)Product or ServiceSpecification or RuleProduct or ServiceProduct or ServiceSpecification or RuleBuild InReflectGive SatisfactionConformance Modern IdeaQ: Users Satisfaction or fitness for use

What is Quality?* The totality of characteristics of an entity that bear on its ability to satisfy stated & implied needs.

What is QualityCustomerExpectationsMeet/exceedFreedom from deficiencyFeatures

Doing the right thingDoing the things right

History of Quality EffortsEgyptian Pharaohs Books of Dead an extensively documented ,Quality system related to the burial of Nobility, describes how requisite rituals should be carried out & funerary goods to be buried with deceased.Hummurabis Code 1730 BC penalties for sub standard stuff

Necropolis Achievement of requirement standard was attested to by the application by suptd mark.

Roman Empire External Audit was instituted & Specialists known as Argenterii sealers in silver Required to keep certain records.

Bible -Gives by work of Quality System. An Ounce of prevention is worth a pound of cure

Byzantine Empire Every action regulated byprocedures that had to be followed.Enforcement is done by an official inspector (Logothate) attached with court to inspect all workshop & Operations performed.

Merchant Guild Their products have to be of hi standards then others. Cloth Colchester Guild had mark on its bales and guarantee a certain level of quality.

Defense and Quality a close partner

Geoffrey Chaucer- 1300s surveyor of supplies for Royal Wardrobe Assessor of Armors, Saddle. & other equipment to establish Suitability for Royal Armory.

World War One - Quality in Air Royal Aircraft Establishment improve Reliability of British Engines.

First Standard Attempt in USA MIS-Q-9858 (Q System Specs), MIL-1 45208 (Inspection Sys Requirements)Still Used in Defense Contracts.NATO formed Allied Quality Assurance Publications (AQAP) 1,4,9UK had its DEF. STAN (later AQAP aligned with DEF. STAN).UK Min of Defense, buy only from DEF.STAN registered firms (Second Party Assessment)AQAP -militaristic in their content & wording

1979-BS 5750Very Subjective, large explanatory,mandatory notes,First version used onlyin a contractual sense between buyer &seller. 3rd Party certification register. British situation excited throughout worldISO in Geneva set up a committee underCanada to produce Intl. Q-Standards.

Qualitymeanspleasing consumersnotjust protecting themfrom annoyances

Basic Quality Function2.COMPLAINTS3.CONSISTENCY4.PRECISION5.ACCURACY6.VARIATION

Quality ControlTechnique to Control & Check Quality

What is Quality Assuranceall planned & systematic activities implemented within quality system, & demonstrated as needed, to provide adequate confidence that an entity will fulfill requirements for quality.

QUALITY ASSURANCEAny action directed towards providing consumers with products (goods & services) of appropriate Quality.THERE ARE NO FACTS ONLY INTERPRETATIONS-FRIEDRICH NIETZSCHE

Quality ManagementAll activities of the overall management function that determine the quality policy, objectives and responsibilities and implement planning, quality control, quality assurance and quality improvement within the quality system (ISO 840)

DEFINING QUALITYPerfectionConsistencyEliminating wasteSpeed of deliveryCompliance with policies & proceduresProviding good, usable productsDoing it right the first timeDelighting or pleasing customersTotal customer service & satisfaction

PRINCIPAL QUALITY DIMENSIONS PerformanceFeaturesReliabilityConformanceDurabilityServiceabilityAestheticsPerceived quality

PRINCIPAL QUALITY DIMENSIONS Performance: a products primary operating characteristics. Example: A cars acceleration, braking distance, steering and handling

PRINCIPAL QUALITY DIMENSIONS Features: the bells and whistles of a product. A car may have power options, a tape or CD deck, antilock brakes, and reclining seats

PRINCIPAL QUALITY DIMENSIONS Reliability: the probability of a products surviving over a specified period of time under stated conditions of use. A cars ability to start on cold days and frequency of failures are reliability factors

PRINCIPAL QUALITY DIMENSIONS Conformance: the degree to which physical and performance characteristics of a product match pre-established standards. cars fit/finish, freedom from noises can reflect this.

PRINCIPAL QUALITY DIMENSIONS Durability: the amount of use one gets from a product before it physically deteriorates or until replacement is preferable. For car - corrosion resistance & long wear of upholstery fabric

PRINCIPAL QUALITY DIMENSIONS Serviceability:speed, courtesy, competence of repair work. auto owner -access to spare parts.

PRINCIPAL QUALITY DIMENSIONS Aesthetics: how a product looks, feels, sounds, tastes, or smells. cars color, instrument panel design and feel of road make aesthetically pleasing

PRINCIPAL QUALITY DIMENSIONS Perceived Quality:Subjective assessment of quality resulting from image, advertising, or brand names. car, - shaped by magazine reviews-manufacturers brochures

MANUFACTURING BASED CRITERIAQuality = Conformance to specificationsQuality is about manufacturing a product that people can depend on every time they reach for itAchieved at Coca-Cola through rigorous quality & packaging standards

JUDGEMENTAL CRITERIAQuality = superiority or excellenceGoodness of a productYou just know it when you see itlittle practical value to managersNo means through which quality can be measured for decision making

PRODUCT-BASED CRITERIAQuality is a function of a specific, measurable variableHigher amount of product characteristics = higher qualityQuality is mistakenly related to priceHigher the price, higher the quality (Not necessarily true)

USER-BASED CRITERIAQuality is determined by what customer wantsQuality = Fitness for intended useHow well the product:Performs its intended purposeMeets consumers needs

VALUE-BASED CRITERIAQuality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.

UNCOVERING THE REAL OPPORTUNITIES OF QUALITYValue can be defined as, what the customer gets per what it costs the customerBut customer gets more than a physical product.He or she gets:A sense of confidence in a supplier, &A sense of assurance that the supplier will be there when needed

VALUE-BASED CRITERIA

Gales Model of the Purchase DecisionValueQualityPriceProductService

VALUE-BASED CRITERIA

Offering greater satisfaction at comparable priceProcter & Gamble brought in VALUE PRICINGConsumer brand loyaltyMore consistent salesImprovement of product characteristicsInternal efficiencies

WHAT GOOD CAN QUALITY DO ?Provides competitive advantageReduces costs Lesser returns, rework & scrapIncreases productivity & profitsGenerates satisfied customers No Quality, no sales. No sales, no profit. No profits, no jobs.

COMPETITIVE ADVANTAGEDenotes firms ability to achieve market superiorityDriven by customer needs & wantsProvides value to customers that competitors do not haveMakes significant contribution to business success Allows a firm to use its resources effectively

COMPETITIVE ADVANTAGE Durability & dependability difficult for others to copyProvides basis for further improvementProvides direction & motivation to the organization

Quality Evolution in JapanFitness to UseFitness to Cost Fitness to LatentRequirementsFitness to StandardsDetermining the customers needs before the customer becomes aware of themObtain high quality & low cost by effective designing of both the product & processes.To build a product that meets the needs of customer.To build a product that meets the specifications set by the designer.

What is Total QualityTotal Quality means quality of work, quality of service, quality of information, quality process, quality of organization, quality of people, quality of company and quality of objectives.

TOTAL QUALITY

Total Quality describes the state of an organization in which all the activities of all functions are designed and carried out in such a way that all external customer requirements are met while reducing internal time and cost, and enhancing the workplace climate.

Profile of TQMTQM is a:ScientificSystematicCompany Wide

Activity in whichA company is devoted to customers through its products and services.

Total Quality ManagementTQM a philosophy set of guiding principals that represent foundation of a continuously improving organization.

TQM is application of Quantitative methods & HR to improve material & Services supplied to an org, & All processes within an org, & Degree to which needs of the Customer are met, now & in future.

TQM integrates Fundamental Mgnt Techniques, Existing improvement efforts, & Technical tools under a Disciplined approach focused on continuous improvement.

BASES OF TOTAL QUALITY The Four Bases of Total QualityThe CustomerStrategicImperativesStatisticalTools and TechniquesTechniques to Foster TeamworkAnd Create SatisfyingWork Environment

A TQM Approach To ManagementA unique blending of : (a) objective, practical, & quantitative aspects of management, e.g. Focus on processes and reliance on quantitative data and statistical analysis for decision-making: and (b) Soft aspects of management, (Visionary leadership, promoting a spirit of cooperation/teamwork, & practicing participative mgt.A fully successful effort requires balanced attention to both.

The Essence of TQMInvolving & empowering entire workforce to improve quality of goods & services continuously in order to satisfy, & even delight customer.

TQM tools & technical methods - used to accomplish specific tasks.

Means of implementing TQM. Can be used by everyone to identify: Problem Areas, Structure Data Collection efforts, Analyze data, Focus Problem Solving efforts on areas of special concern.,Disseminate info throughout the org. Used Primarily to: Collect & Analyze Numerical Data.

TQMUmbrella term:Philosophy emphasizes shared responsibilities for quality. Quality improvement achieved by:a) Focusing on customer needs & b) Streamlining production process to eliminate defects /waste.x

It ultimately Facilitates continuous improvement thorough a collective vision of quality.From acceptable Levels of Defects to Continuous PI

A Manager Who Fails To Provide Resources And Time For Prevention Activities Is Practicing False EconomyConcentrate on Prevention, Not CorrectionPrevention has more leverage when improving qualityPreventionCorrectionQuality

THE QUALITY CHALLENGEINDIVIDUALCRAFTSMANFOREMANINSPECTIONSTATISTICAL CONTROLQUALITY ASSURANCETOTAL QUALITY CONTROLORGANIZATIONWIDETOTAL QUALITYMANAGEMENT19001920194019601980THE EVOLUTION OF QUALITY MANAGEMENT

Meanings of Total In TQMObjectivesNot only quality and environment but also other parameters including cost, delivery, safety.2.Every DepartmentNot only a manufacturing department but also other departments including R&D marketing, administration, etc.3.Every EchelonNot only engineers but also top managers, middle managers, supervisors, workers, and clerks.4.Group-WideTQM is not lonely implemented by am company but also by all its group companies.All The Industries:Not only in manufacturing industry but also in all the industries such as: construction, real estate, electric power, city gas, water supply, transportation, communications, servicing.

TQM & Customer OrientationTQM Provides a system of methods on how to realize the principle of customer orientation beyond a slogan.

WHO IS A CUSTOMER ?The ultimate purchaser of a product or serviceExternal customers purchase products or services from other companies/plantsInternal customers receive goods or services from within the company

WHY IS IT IMPORTANT TO MEET CUSTOMER EXPECTATIONS? Needs of customers have to be metUnderstanding of ones customers leads to customer satisfactionJapanese relate quality to customer satisfactionInadequate internal facilitiesPoorly designed processesPoor quality product

Looking at your organization from you customers point of view and improving processes to enable you to meet and exceed your customers expectations is the only way to achieve quality, because quality is defined by the customer.

Customer SatisfactionMore Features

Satisfaction

Results of Total Quality ManagementLower CostHigh Revenue Empowered EmployersDelightedCustomer

Conventional WisdomDemings Approach

Quality is meeting conformance standards.Quality is an intangible good.Quality is meeting & exceeding customer expectation.Quality is defined by the customer.Finding and Fixing problems results in improvements, which may or may not be sustainable.Making changes to the system to prevent problems results in sustainable improvements.Effectiveness & efficiency are achieved by meeting acceptable defect levels.Effectiveness & efficiency are achieved by continually improving.Crisis management is the dominant management mode.Preventative management.Performance standards & quotas improve productivity.Changes in the process improve productivity.Decisions are made by superiors.Decisions are made through collaboration between staff & management.

Top management evaluates the organization on financial performance.on process performance & customer satisfaction as well as on financial performance.Process improvement is expensive.Process improvement leads to lower costs.Only managers are capable of identifying & making Workers know the process best & will suggest excellent ways to improve it when given a chance.Managers command functions & are concerned with directing & controlling.Team leaders guide cross-functional improvement teams & are concerned with planning & prevention.Employees receive instruction & information from above, as deemed appropriate by management.Management shares information with employees on a routine basis & on request.Leadership for an improvement effort can be delegated to outside expert. Leadership for an improvement effort is provided by executives within the org, who are accountable for results. Reviews are necessary only when things go wrong.Regularly scheduled performance-improvement reviews are a key to improved processes.

Demings Dreadful DiseasesLooking elsewhere for examples, or concluding that our problems are different.Creative accounting rather than commitment.Purchasing to anacceptable level of quality.Managements failure to delegate responsibility.That employees (or unions)cause all the problems.Quality can be assured by inspection.False starts: no organization-wide commitment.

Good fortune is what happens when opportunity meets with planning.Thomas Alva Edison (1847-1931)

Dr Sajid

He who fails to plan, plans to failWhen planning for a year, plant corn. When planning for a decade, plant trees. When planning for life, train & educate people. Chinese Proverbs quotes

Action for Quality

Action may not always bring happiness, but there is no happiness without Action

- Benjamin Disraeli

Goals in Quality Journey

Goals give Purpose. Purpose gives Faith. Faith gives Courage. Courage gives Enthusiasm. Enthusiasm gives energy. Energy gives Life. Life lifts you over bar

Bob Richards, Pole Vaulter

All serious daring starts from within

- Eudora Welty

Ear of leader must ring with voices of people

- Woodrow Wilson

Planning is bringing future into present so that you can do something about it now

- Alan Lakein

Self-pity is our worst enemy & if we yield to it, we can never do anything wise in this world

- Helen Keller

What makes people Sweat for Quality?What Is Quality Sweating TheoryTheory Of Driving Force For Quality

Sense of Crisis + LeadershipVision + LeadershipVLSQ ApproachTwo Approaches in Quality Sweating TheoryCLSQ Approach

VLSQ ApproachIf a company is so good in its business and if it has no crisis nor crisis consciousness, what then could serve as a driving force for TQMA forward looking grand vision would mobilize people to sweat hard for the sake of achieving that vision.The vision must be the one which could really motivate people to sweat willingly. For quality.

the vision approach for TQM promotion needs to conduct an aggressive public relations activity so that the people fully understand the integrity of the vision.Vision and Leadership Encourage People to Sweat for Quality

Someone has to pull the people in the same direction so that this sense of crisis will materialize effectively as a moving force for the entire organization.

Thus the crisis consciousness pushes and the leadership pulls the organization to motivate people to sweat for quality.Crisis Consciousness & Leadership Make People Sweat for QualityCLSQ ApproachThe vision approach for TQM promotion needs to conduct an aggressive public relations activity so that the people fully understand the integrity of the vision.

The lesson LearntThe Enemy for Quality, that is complacent.

Thats a good idea.ButOur Quality hasalreadyachieved at a certain high level.Hence, we need not do so to such a extent.We Are Complacent, Arent We?

Food For Thought85 percent of the opportunities for improvement comes from changing the systems Re-engineering work process & modifying or replacing equipment.

Dr. Deming

QUALITY IN PRODUCTION SYSTEMSProduction = Converting organizations resources into goods & servicesProduction System = The collection of activities involved in production

THREE COMPONENTS OF PRODUCTION SYSTEMInputs (Physical facilities, materials, capital, equipment, people & energy)Processes (Machining, mixing, assembly etc.) Outputs (The product or services produced)

THREE LEVELS OF QUALITYQuality must be examined at three levels

The organizational levelThe process levelThe performer / job level

AT THE ORGANIZATIONAL LEVELMeeting requirements of external customersOrganization must seek regular customer input Use customer-driven performance standards for:Setting goalsSolving problemsAllocating resources

AT THE PERFORMER LEVELStandards of output must be determinedAccuracyCompletenessInnovationTimelinessCostDetermine how requirements will be measured

AT PROCESS LEVELMust Identify:

Products or services the customers desireKey processes Core inputsOrganizations customer-driven performance standardsNeeds of internal customers

A PROCESS FOCUSED APPROACHFOCUSWASTEBased on Need: Refine Redesign ReengineerIf Process is notNeeded, Can itBe eliminated?HighThe Need For theProcessLowHighThe Performanceof the Process

AT PERFORMER LEVELStandards of output must be determinedAccuracyCompletenessInnovationTimelinessCostDetermine how requirements will be measured

Five Questions of Your QualityWhat is your major product/service?Who are its major users/customers?What are its quality requirements which the major users/customer demand?What is its most competitive product/service which is provided by your competitor?What kind of comparative study do you have between you product/service and you competitors for the quality requirements from the major users/customers?

QUALITY IS FREE !According to Crosby:

Quality is not only free, it is profit maker Increase of 5% -10% in profitability by concentrating on quality Quality provides a lot of money for free

Quality is never an accident, it is always the result of an intelligent effortJohn Ruskin

TQMTools, Techniques and Infrastructure of Quality

Infrastructure, Practices, & Tools Practices -those activities occur within a mgt system to achieve hi performance objectives. Tools - wide variety of graphical & statistical methods to plan work activities, collect data analyze results, monitor progress, & solve problems.

Infrastructure, Practices, & Tools Infrastructure -basic mgmt systems necessary to function as a hi performing org. Infra structure that Support TQM Principles are: Leadership Strategic planningHRMProcess mgt Data & info mgmt

The Scope of Total Quality Management Infrastructure Tools & Techniques

The Scope of Total Quality ManagementPrinciplesPracticesInfrastructureTools &TechniquesParticipation and TeamworkCustomer focusContinuous improvementAnd learning

Leadership Inventories can be managed, but people must be led. Their task is to create clear quality values & high expectations, & then build these in to the company operations.

STRATEGIC PLANNING The org must first address some fundamental strategic questions: Who are our customers?What is our mission?What principles do we value?What are our long range & short range goals?How do we accomplish these goals?Strategic business planning should be the driver for quality improvement throughout the org.

Human Resource MgtMajor Challenges:Integration of HR practices (selection, performance, recognition, training, and career advancement ) with business directions and strategic change processes

Process ManagementInvolves design of processes to develop & deliver products & services that meet needs of customers, daily control so that they perform as required & their continual improvement

Do You know??Well designed processes lead to better quality products & services & less waste/ reworkIs this amazing?

Data & Info MgmtModern Business depends on measurement & Analysis of Performance to support a variety of purposes: Planning, reviewing Company profile, Improving operations, and comparing companys strategy with competitors.

Statistical Reasoning with factual data provide basis for problem solving & CI.

Data & Information Management Many Types of data & Information are needed for quality assessment & quality improvement:Customer needsProduct & service performance Operations performanceMarket assessmentsCompetitive comparisonsSupplier performanceCost & financial performance

QUALITY IS FREE !According to Crosby:

Quality is not only free, it is profit maker Increase of 5% -10% in profitability by concentrating on quality Quality provides a lot of money for free

UNCOVERING REAL OPPORTUNITIES of QUALITY

Those assurances are part of the package customers get and for which they may be willing to payTurning that may into a will has to do with the degree of understanding of ones customersAnd what this all costs customer is more than moneyThis is not a panacea It will not magically provide all the right answersIt will make us far more likely to ask the right questions, which is a major piece of progress

Quality is never an accident, it is always the result of an intelligent effortJohn Ruskin

What makes people Sweat for Quality?What Is Quality Sweating TheoryTheory Of Driving Force For Quality

Laws alone can not secure freedom of expression;

in order that every man present his views without penalty there must be Spirit of Tolerance in the entire population.

Albert Einstein (1879 - 1955)

**