T Q M

Total Quality Total Quality ManagementManagement

Special Presentation forSpecial Presentation for

WAPDA STAFF COLLEGEWAPDA STAFF COLLEGE

ISLAMABAD ISLAMABAD

PAKISTANPAKISTAN

““The will to win,The will to win, the desire to succeed, the desire to succeed, the urge to reach your the urge to reach your full potentials are the full potentials are the

keys to unlock the keys to unlock the doors to the personal doors to the personal

excellence”excellence”

ConfuciusConfucius

Nobody Could make a Nobody Could make a greater mistake greater mistake

than he than he

who did nothing who did nothing

because he could do a because he could do a littlelittle

When person does When person does good deed When he or good deed When he or

she didn’t have to, she didn’t have to, God looks down & God looks down &

smiles & says “for this smiles & says “for this moment alone it was moment alone it was

worth creating world”worth creating world”

"Success is a "Success is a journey, not a journey, not a destination."destination."——

Ben SweetlandBen Sweetland

Don't become a Don't become a wandering wandering generality. Be a generality. Be a meaningful specific.meaningful specific.- Zig Ziglar- Zig Ziglar

Start viewing the Start viewing the probable as probable as

possible. You'll be possible. You'll be surprised at what surprised at what

you can accomplish.you can accomplish.

There may be nothing There may be nothing sadder than people sadder than people

who spend their lives who spend their lives talking about what talking about what might have been.might have been.

What we see What we see depends mainly on depends mainly on what we look for.what we look for.

The trouble with The trouble with self-made men self-made men

is that they is that they tend to worship tend to worship their creator.their creator.

Commencement address by Sir Commencement address by Sir Winston Churchill at a Winston Churchill at a graduation ceremony:graduation ceremony:

"Never give up. Never "Never give up. Never give up. Never, never, give up. Never, never, never." never."

- - this was his entire speech.this was his entire speech.

What you THINK about What you THINK about reveals what you ARE. reveals what you ARE.

Sometimes we need to Sometimes we need to do a check-up do a check-up

from the neck-up.from the neck-up.

Accept fate, and move Accept fate, and move on. Don't yield to the on. Don't yield to the

Negative pull ofNegative pull of self-pity. self-pity.

Acting like a victim Acting like a victim threatens your future.threatens your future.

The greatest discovery The greatest discovery of our generation is of our generation is

that that

a human being cana human being can

alter his life by alter his life by altering his attitudes.altering his attitudes.

William James William James

Of all the things Of all the things you wear, you wear,

your expression your expression is the most is the most important.important.

Three step solution Three step solution to depression:to depression:- GIVING- GIVING- For GIVING- For GIVING- Thanks GIVING- Thanks GIVING

"A handful of "A handful of patience is worth patience is worth

more than a more than a bushel of bushel of brains."brains."

Dutch Proverb Dutch Proverb

"Kind words can "Kind words can be short and easy be short and easy

to speak, but to speak, but their echoes are their echoes are truly endless."truly endless." Mother Theresa of Calcuta Mother Theresa of Calcuta

The growth & The growth & development of development of

people is the people is the highest calling highest calling of leadership."of leadership."

- Harvey S. Fireston- Harvey S. Fireston

"Little deeds of "Little deeds of kindness, little kindness, little

words of love, help words of love, help to make earth to make earth happy like the happy like the

heaven above.heaven above."" Julia A. Fletcher CarneyJulia A. Fletcher Carney

"Never mistake "Never mistake motion for motion for action."action." Ernest HemingwayErnest Hemingway

"Don't curse "Don't curse the the

darkness -- darkness -- light a light a

candle."candle." Chinese proverb.Chinese proverb.

The highest result of education is tolerance.

Helen Keller (1880 - 1968), Helen Keller (1880 - 1968),

'Optimism,''Optimism,'

http://www.quotationspage.com/quote/3223.html




There is nothing more dreadful than imagination without taste.

Johann Wolfgang von Goethe Johann Wolfgang von Goethe

(1749 - 1832)(1749 - 1832)





"True eloquence "True eloquence consists of consists of saying all that saying all that should be said, should be said, and that only."and that only."

Francois de La RochefoucaldFrancois de La Rochefoucald

““I know the price of I know the price of success: success: dedication, hard dedication, hard work, and a work, and a devotion to the devotion to the things you want to things you want to see happen." see happen." - Frank Lloyd Wright- Frank Lloyd Wright

"Some people "Some people make headlines make headlines while others while others make history." make history." - Philip Elmer-DeWitt- Philip Elmer-DeWitt

"Courage is "Courage is the power to the power to let go of the let go of the familiar."familiar."

-- Raymond Lindquist-- Raymond Lindquist

"The best way to "The best way to break a bad break a bad habit is to drop habit is to drop it."it."

Leo AikmainLeo Aikmain

Placement of HR in Placement of HR in ProjectProject

Pleasure in the Pleasure in the job puts job puts Perfection in the Perfection in the workwork

Aristotle Aristotle

Key to Competitiveness Key to Competitiveness Quality Quality SpeedSpeedValueValueCostCost

Poverty Alleviation Poverty Alleviation through through

Competitiveness Competitiveness

using using

Quality Quality

as a toolas a tool

What is QualityWhat is Quality

Classical IdeaClassical IdeaQ: Degree of conformance to a standardQ: Degree of conformance to a standard

(As a product or service)(As a product or service)

Product or Service

Specification or Rule

Product or Service

Product or Service

Specification or Rule

Build In Reflect

Give Satisfaction

Conformance

Modern Idea

Q: User’s Satisfaction or fitness for use

CUSTOMER-DRIVEN QUALITYCUSTOMER-DRIVEN QUALITY

A simpler, more powerful definition A simpler, more powerful definition came up….came up….

“ “ Quality is meeting or exceeding Quality is meeting or exceeding customer expectations ”customer expectations ”

What is Quality?What is Quality?

* “The totality of characteristics of * “The totality of characteristics of an entity that bear on its ability to an entity that bear on its ability to satisfy stated & implied needs.”satisfy stated & implied needs.”

QualityQualitymeansmeans

Pleasing consumersPleasing consumers

notnotjust protecting themjust protecting them

from annoyancesfrom annoyances

What is QualityWhat is Quality

CustomerExpectationsMeet/exceed

Freedom from

deficiencyFeatures

Doing the right thingDoing the things right

Basic Quality FunctionBasic Quality Function

1. DEFECTS / REJECTS

2. COMPLAINTS

3. CONSISTENCY

4. PRECISION

5. ACCURACY

6. VARIATION

PRINCIPAL QUALITY PRINCIPAL QUALITY

DIMENSIONSDIMENSIONS 1.1. PerformancePerformance2.2. FeaturesFeatures3.3. ReliabilityReliability4.4. ConformanceConformance5.5. DurabilityDurability6.6. ServiceabilityServiceability7.7. AestheticsAesthetics8.8. Perceived qualityPerceived quality9.9. Affordability, Variety, simplicity etcAffordability, Variety, simplicity etc

PRINCIPAL QUALITY PRINCIPAL QUALITY DIMENSIONSDIMENSIONS

• Performance: a product’s primary Performance: a product’s primary operating characteristics. operating characteristics. Example: A car’s acceleration, Example: A car’s acceleration, braking distance, steering and braking distance, steering and handlinghandling


• Features: the “bells and whistles” Features: the “bells and whistles” of a product. A car may have of a product. A car may have power options, a tape or CD deck, power options, a tape or CD deck, antilock brakes, and reclining antilock brakes, and reclining seatsseats


DIMENSIONSDIMENSIONS • Reliability: the probability of a Reliability: the probability of a

product’s surviving over a product’s surviving over a specified period of time under specified period of time under stated conditions of use. stated conditions of use.

• A car’s ability to start on cold A car’s ability to start on cold days and frequency of failures days and frequency of failures are reliability factorsare reliability factors


DIMENSIONSDIMENSIONS • Conformance: the degree to Conformance: the degree to

which physical and performance which physical and performance characteristics of a product characteristics of a product match pre-established standards. match pre-established standards.

• car’s fit/finish, freedom from car’s fit/finish, freedom from noises can reflect this.noises can reflect this.


• Durability:Durability: the amount of use the amount of use one gets from a product before it one gets from a product before it physically deteriorates or until physically deteriorates or until replacement is preferable. replacement is preferable.

• For car - corrosion resistance & For car - corrosion resistance & long wear of upholstery fabriclong wear of upholstery fabric


• Serviceability:Serviceability:• Speed, courtesy, competence of Speed, courtesy, competence of

repair work. repair work. • auto owner -access to spare auto owner -access to spare

parts.parts.


• Aesthetics:Aesthetics:• how a product looks, feels, how a product looks, feels,

sounds, tastes, or smells. sounds, tastes, or smells. • car’s color, instrument panel car’s color, instrument panel

design and “feel of road” –design and “feel of road” –• make aesthetically pleasingmake aesthetically pleasing


• Perceived quality:Perceived quality:• Subjective assessment of quality Subjective assessment of quality

resulting from image, advertising, resulting from image, advertising, or brand names. or brand names.

• car, - shaped by magazine car, - shaped by magazine reviews-manufacturers’ reviews-manufacturers’ brochuresbrochures

MANUFACTURING BASED MANUFACTURING BASED CRITERIACRITERIA

Quality = Conformance to Quality = Conformance to specificationsspecifications

Quality is Quality is

““about manufacturing a product about manufacturing a product that people can depend on that people can depend on

every time they reach for it”every time they reach for it” Achieved at Coca-Cola through Achieved at Coca-Cola through

rigorous quality & packaging rigorous quality & packaging standards standards

JUDGEMENTAL CRITERIAJUDGEMENTAL CRITERIA

Quality = superiority or excellenceQuality = superiority or excellence ““Goodness of a Product”Goodness of a Product” ““You just know it when you see You just know it when you see

it”it” little practical value to managerslittle practical value to managers No means through which quality can No means through which quality can

be measured for decision making be measured for decision making

PRODUCT-BASED CRITERIAPRODUCT-BASED CRITERIA

Quality is a function of a specific, Quality is a function of a specific, measurable variablemeasurable variable

Higher amount of product Higher amount of product characteristics = higher qualitycharacteristics = higher quality

Quality is mistakenly related to priceQuality is mistakenly related to price Higher the price, higher the quality Higher the price, higher the quality

(Not necessarily true) (Not necessarily true)

USER-BASED CRITERIAUSER-BASED CRITERIA

Quality is determined by what Quality is determined by what customer wantscustomer wants

Quality = Fitness for intended Quality = Fitness for intended useuse

How well the product:How well the product: Performs its intended purposePerforms its intended purpose Meets consumers’ needsMeets consumers’ needs

VALUE-BASED CRITERIAVALUE-BASED CRITERIA

““Quality is the degree of excellence Quality is the degree of excellence at an acceptable at an acceptable priceprice and control and control of variability at an acceptable of variability at an acceptable cost.”cost.”

UNCOVERING THE REAL UNCOVERING THE REAL OPPORTUNITIES OF QUALITYOPPORTUNITIES OF QUALITY

ValueValue ““what the customer gets per what it what the customer gets per what it

costs the customer”costs the customer” But customer “gets” more than a But customer “gets” more than a

physical product.physical product. He or she gets:He or she gets:

A sense of confidence in a supplier, A sense of confidence in a supplier, andand

A sense of assurance that the supplier A sense of assurance that the supplier will be there when needed will be there when needed

VALUE-BASED CRITERIAVALUE-BASED CRITERIACont….Cont….

Gales Model of the Purchase Decision

Value

Quality

Price

Product

Service

VALUE-BASED CRITERIAVALUE-BASED CRITERIA Purchase decision involves Purchase decision involves

trading off the quality against trading off the quality against the pricethe price

Because many of attributes Because many of attributes of quality are subjective of quality are subjective assessments, therefore most assessments, therefore most of these definitions - of these definitions - subjectivesubjective

Unlike manufacturing & Unlike manufacturing & product-based approachesproduct-based approaches

VALUE-BASED CRITERIAVALUE-BASED CRITERIA

Offering greater satisfaction at Offering greater satisfaction at comparable pricecomparable price

Procter & Gamble brought in Procter & Gamble brought in VALUE PRICINGVALUE PRICING

Consumer brand loyaltyConsumer brand loyalty More consistent salesMore consistent sales Improvement of product Improvement of product

characteristicscharacteristics Internal efficienciesInternal efficiencies

DEFINING QUALITYDEFINING QUALITY

PerfectionPerfection ConsistencyConsistency Eliminating wasteEliminating waste Speed of deliverySpeed of delivery Compliance with policies & proceduresCompliance with policies & procedures Providing good, usable productsProviding good, usable products Doing it right the first timeDoing it right the first time Delighting or pleasing customersDelighting or pleasing customers Total customer service & satisfaction Total customer service & satisfaction

WHAT GOOD CAN QUALITY DO ?WHAT GOOD CAN QUALITY DO ?

Provides competitive advantageProvides competitive advantage Reduces costs Reduces costs Lesser returns, rework & scrapLesser returns, rework & scrap Increases productivity & profitsIncreases productivity & profits Generates satisfied customersGenerates satisfied customers “ “ No Quality, no sales. No sales, No Quality, no sales. No sales,

no profit. No profits, no jobs.” no profit. No profits, no jobs.”

COMPETITIVE ADVANTAGECOMPETITIVE ADVANTAGE Denotes firm’s ability to Denotes firm’s ability to achieve market superiorityachieve market superiority

Driven by customer needs & wantsDriven by customer needs & wants Provides Provides valuevalue to customers that to customers that

competitors do notcompetitors do not Makes significant contribution to Makes significant contribution to

business success business success Allows a firm to use its Allows a firm to use its

resources effectivelyresources effectively

COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE

cont….cont…. Durability & dependability – difficult Durability & dependability – difficult

for others to copyfor others to copy Provides basis for further Provides basis for further

improvementimprovement Provides direction & Provides direction & motivationmotivation to to

the organizationthe organization

Quality Evolution in JapanQuality Evolution in Japan

Fitness to Use

Fitness to

Cost

Fitness to LatentRequirements

Fitness to Standards

Determining the customer’s needs before the customer

becomes aware of them

Obtain 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.

Quality ControlQuality Control

Systematic Techniques Systematic Techniques to control quality.to control quality.

What is Quality What is Quality AssuranceAssurance

““Quality assurance includes Quality assurance includes “all planned & systematic “all planned & systematic activities implemented within activities implemented within the quality system, & the quality system, & demonstrated as needed, to demonstrated as needed, to provide adequate confidence provide adequate confidence that an entity will fulfill that an entity will fulfill requirements for quality”.requirements for quality”.

QUALITY ASSURANCEQUALITY ASSURANCE

Any action directed Any action directed towards providing towards providing consumers with products consumers with products (goods & services) of (goods & services) of appropriate qualityappropriate quality

THERE ARE NO FACTS ONLY INTERPRETATIONS

-FRIEDRICH NIETZSCHE

Quality ManagementQuality Management

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

What is Total QualityWhat 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.

DEFINING TOTAL QUALITYDEFINING TOTAL QUALITY

Three Ways to Define Total Three Ways to Define Total Quality Quality The Unifying Principle Total dedication to customers so

That the customers’ needs are met And their expectations are exceeded

The Outcomes Intensely loyal customersTime is minimized so that costs go downA climate that supports teamwork And more meaningful workA general ethic of continuous improvement

DEFINITION OF TOTAL QUALITYDEFINITION OF TOTAL QUALITY

Total Quality describes the state of an Total Quality describes the state of an organization in which all the activities organization in which all the activities

of all functions are designed and of all functions are designed and carried out in such a way that carried out in such a way that

all external customer requirements are all external customer requirements are met met

while reducing internal time and cost, while reducing internal time and cost, and enhancing the workplace climate.and enhancing the workplace climate.

The Profile of TQMThe Profile of TQM

TQM is a:TQM is a:• ScientificScientific• SystematicSystematic• Company – WideCompany – Wide

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

Total Quality ManagementTotal Quality Management

TQM a philosophy set of guiding TQM a philosophy set of guiding principals that represent foundation of principals that represent foundation of a continuously improving org. a continuously improving org.

TQM is application of (a) Quantitative TQM is application of (a) Quantitative methods and (b) HR to improve methods and (b) HR to improve material & services supplied to an material & services supplied to an organization, & all processes within an organization, & all processes within an org, & degree to which needs of org, & degree to which needs of customer are met, now & in future.customer are met, now & in future.

TQM integrates fundamental TQM integrates fundamental management techniques, management techniques,

existing improvement existing improvement efforts, & technical tools efforts, & technical tools

under a disciplined under a disciplined approach focused on approach focused on

continuous improvement.continuous improvement.

A TQM Approach To A TQM Approach To ManagementManagement

A unique blending of : A unique blending of : (a) Objective, practical, & quantitative aspects of (a) Objective, practical, & quantitative aspects of

management, e.g. Focus on processes & reliance on management, e.g. Focus on processes & reliance on quantitative data & statistical analysis for decision-quantitative data & statistical analysis for decision-making: making:

(b) “soft” aspects of mgt, e.g. providing visionary (b) “soft” aspects of mgt, e.g. providing visionary leadership, promoting a spirit of cooperation leadership, promoting a spirit of cooperation teamwork, and practicing participative management. teamwork, and practicing participative management.

Many orgs when deciding to undertake a TQM effort Many orgs when deciding to undertake a TQM effort focus on one or other of these general approaches. focus on one or other of these general approaches.

A fully successful effort requires balanced attention A fully successful effort requires balanced attention to both. to both.

The Essence of TQMThe Essence of TQM

Is involving & empowering Is involving & empowering the entire workforce to the entire workforce to improve the quality of improve the quality of

goods and services goods and services continuously in order to continuously in order to satisfy, and even delight satisfy, and even delight

the customer.the customer.

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

These are means of implementing TQM. Can These are means of implementing TQM. Can be used by everyone in org to:be used by everyone in org to: identify problem areas, identify problem areas, structure data collection efforts, structure data collection efforts, analyze data, analyze data, focus problem solving efforts on areas of special focus problem solving efforts on areas of special

concern., concern., disseminate info throughout org.disseminate info throughout org.

These tools are used primarily These tools are used primarily to collect & analyze numerical to collect & analyze numerical

data.data.

Meanings of “Total” In TQMMeanings of “Total” In TQM1.1. ObjectivesObjectives

Not only quality and environment but also other Not only quality and environment but also other parameters including cost, delivery, safety.parameters including cost, delivery, safety.

2.2. Every DepartmentEvery DepartmentNot only a manufacturing department but also other Not only a manufacturing department but also other departments including R&D marketing, departments including R&D marketing, administration, etc.administration, etc.

3.3. Every EchelonEvery EchelonNot only engineers but also top managers, middle Not only engineers but also top managers, middle managers, supervisors, workers, and clerks.managers, supervisors, workers, and clerks.

4.4. Group-WideGroup-WideTQM is not lonely implemented by am company but TQM is not lonely implemented by am company but also by all its group companies.also by all its group companies.

5.5. All The Industries:All The Industries:Not only in manufacturing industry but also in all the Not only in manufacturing industry but also in all the industries such as: construction, real estate, electric industries such as: construction, real estate, electric power, city gas, water supply, transportation, power, city gas, water supply, transportation, communications, servicing.communications, servicing.

A Manager Who Fails To Provide A Manager Who Fails To Provide Resources And Time For Resources And Time For

Prevention Activities Is Practicing Prevention Activities Is Practicing False EconomyFalse Economy

Concentrate on Prevention, Not CorrectionConcentrate on Prevention, Not Correction

Prevention has more leverage when improving quality

Prevention

Correction

Quality

Results of Total Quality Results of Total Quality ManagementManagement

Lower Cost

High Revenue

Empowered Employers

DelightedCustomer

Food For ThoughtFood For Thought85 percent of 85 percent of opportunities for opportunities for improvement comes from:improvement comes from:

(a) changing the systems (a) changing the systems (b) Re-engineering work (b) Re-engineering work

process process © modifying or replacing © modifying or replacing

equipment.equipment.Dr. DemingDr. Deming

TQM & Customer TQM & Customer OrientationOrientation

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

WHO IS A CUSTOMER ?WHO IS A CUSTOMER ?

The ultimate purchaser of a The ultimate purchaser of a product or serviceproduct or service

External customers External customers purchase products or purchase products or services from other services from other companies/plantscompanies/plants

Internal customers Internal customers receive receive goods or services from within goods or services from within the companythe company

Customer SatisfactionCustomer Satisfaction

More Features

SatisfactionSatisfaction

Looking at your Looking at your organization from you organization from you

customers’ point of view customers’ point of view and improving processes and improving processes

to enable you to meet and to enable you to meet and exceed your customers’ exceed your customers’ expectations is the only expectations is the only way to achieve quality, way to achieve quality,

because quality is defined because quality is defined by the customer.by the customer.

WHY IS IT IMPORTANT TO WHY IS IT IMPORTANT TO MEET CUSTOMER MEET CUSTOMER EXPECTATIONS?EXPECTATIONS?

Needs of customers have to be metNeeds of customers have to be met Understanding of one’s customers Understanding of one’s customers

leads to customer satisfactionleads to customer satisfaction Japanese relate quality to customer Japanese relate quality to customer

satisfactionsatisfaction

Inadequate Internal Facilities

Poorly Designed Processes

Poor Quality Product

Conventional Conventional WisdomWisdom

Quality is meeting Quality is meeting conformance standards.conformance standards.

Quality is an intangible Quality is an intangible good.good.

Quality is meeting & Quality is meeting & exceeding customer exceeding customer expectation.expectation.

Quality is defined by the Quality is defined by the customer.customer.

Finding and Fixing problems Finding and Fixing problems results in improvements, results in improvements, which may or may not be which may or may not be sustainable.sustainable.

Making changes to the Making changes to the system to prevent problems system to prevent problems results in sustainable results in sustainable improvements.improvements.

Effectiveness & efficiency Effectiveness & efficiency are achieved by meeting are achieved by meeting acceptable defect levels.acceptable defect levels.

Effectiveness & efficiency Effectiveness & efficiency are achieved by continually are achieved by continually improving.improving.

Crisis management is the Crisis management is the dominant management dominant management mode.mode.

Preventative management.Preventative management.

Performance standards & Performance standards & quotas improve productivity.quotas improve productivity.

Changes in the process Changes in the process improve productivity.improve productivity.

Decisions are made by Decisions are made by “superiors.”“superiors.”

Decisions are made through Decisions are made through collaboration between staff collaboration between staff & management.& management.

Deming’s Approach

Top management evaluates the Top management evaluates the organization on financial organization on financial performance.performance.

Top management focuses on Top management focuses on process performance & process performance & customer satisfaction as well as customer satisfaction as well as on financial performance.on financial performance.

Process improvement is Process improvement is expensive.expensive.

Process improvement leads to Process improvement leads to lower costs.lower costs.

Only managers are capable of Only managers are capable of identifying & making identifying & making

Workers know the process best Workers know the process best & will suggest excellent ways to & will suggest excellent ways to improve it when given a improve it when given a chance.chance.

Managers command functions Managers command functions & are concerned with directing & are concerned with directing & controlling.& controlling.

Team leaders guide cross-Team leaders guide cross-functional improvement teams functional improvement teams & are concerned with planning & are concerned with planning & prevention.& prevention.

Employees receive instruction Employees receive instruction & information from above, as & information from above, as deemed appropriate by deemed appropriate by management.management.

Management shares Management shares information with employees on information with employees on a routine basis & on request.a routine basis & on request.

Leadership for an improvement Leadership for an improvement effort can be delegated to effort can be delegated to outside expert.outside expert.

Leadership for an improvement Leadership for an improvement effort is provided by executives effort is provided by executives within the org, who are within the org, who are accountable for results. accountable for results.

Reviews are necessary only Reviews are necessary only when things go wrong.when things go wrong.

Regularly scheduled Regularly scheduled performance-improvement performance-improvement reviews are a key to improved reviews are a key to improved processes.processes.

Deming’s Dreadful Deming’s Dreadful DiseasesDiseases

1.1. Looking elsewhere for Looking elsewhere for examples, or concluding examples, or concluding that “our problems are that “our problems are different”.different”.

2.2. Creative accounting Creative accounting rather than rather than commitment.commitment.

3.3. Purchasing to Purchasing to an”acceptable level of an”acceptable level of quality”.quality”.

4.4. Management’s failure to Management’s failure to delegate responsibility.delegate responsibility.

5.5. That employees (or That employees (or unions)cause all the unions)cause all the problems.problems.

6.6. Quality can be assured Quality can be assured by inspection.by inspection.

7.7. False starts: no False starts: no organization-wide organization-wide commitment. commitment.

Infrastructure, Practices, Infrastructure, Practices, & Tools & Tools


Practices -those activities occur within a Practices -those activities occur within a mgt system to achieve hi performance mgt system to achieve hi performance objectives. objectives.

Tools include a wide variety of graphical Tools include a wide variety of graphical & statistical methods to plan work & statistical methods to plan work activities, collect data analyze results, activities, collect data analyze results, monitor progress, & solve problems. monitor progress, & solve problems.



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

The Scope of Total Quality The Scope of Total Quality Management Management

The Scope of Total Quality The Scope of Total Quality Management Management

PRINCIPLES

Infrastructure Tools & Techniques

The Scope of Total The Scope of Total Quality ManagementQuality Management

Principles

Practices

InfrastructureTools &Techniques

Participation and Teamwork

Custo

mer

focu

sContinuous im

provement

And learning

Leadership Leadership Leadership Leadership

““Inventories can be managed, but Inventories can be managed, but people must be led”. people must be led”.

Their task is to create clear Their task is to create clear quality values & high quality values & high

expectations, & then build expectations, & then build these in to the company these in to the company

operationsoperations. .

STRATEGIC PLANNING STRATEGIC PLANNING STRATEGIC PLANNING STRATEGIC PLANNING

The org must first address some fundamental The org must first address some fundamental strategic questions: strategic questions:

Who are our customers?Who are our customers? What is our mission?What is our mission? What principles do we value?What principles do we value? What are our long range & short range goals?What are our long range & short range goals? How do we accomplish these goals?How do we accomplish these goals?Strategic business planning should be the Strategic business planning should be the

driver for quality improvement throughout the driver for quality improvement throughout the org. org.

Human Resource ManagementHuman Resource Management

Major Challenges:Major Challenges:

Integration of HR practicesIntegration of HR practices

(selection, performance, recognition, (selection, performance, recognition, training, and career advancement ) training, and career advancement )

with with

business directions and strategic business directions and strategic change processeschange processes

Process ManagementProcess Management

““Involves design of processes Involves design of processes to to

develop & deliver products & develop & deliver products & servicesservices

that meet needs of customers, that meet needs of customers, daily control so that they daily control so that they

perform as required & their perform as required & their continual improvement”continual improvement”

Do You know??Do You know??

Well designed processes Well designed processes lead to better quality lead to better quality products & services & products & services & less waste/ reworkless waste/ rework

Is this amazing?Is this amazing?

Data & Info MgmtData & Info MgmtModern Business depends on Modern Business depends on measurement & Analysis of measurement & Analysis of

Performance to support a variety of Performance to support a variety of purposes: Planning, reviewing purposes: Planning, reviewing Company profile, Improving Company profile, Improving

operations, and comparing company’s operations, and comparing company’s strategy with competitors.strategy with competitors.

Statistical Reasoning with Statistical Reasoning with factual data provide basis for factual data provide basis for

problem solving & CI. problem solving & CI.

Data & Information Data & Information Management Management

Data & Information Data & Information Management Management

Many Types of data & Information are needed Many Types of data & Information are needed for quality assessment & quality improvement:for quality assessment & quality improvement:

Customer needsCustomer needs Product & service performance Product & service performance Operations performanceOperations performance Market assessmentsMarket assessments Competitive comparisonsCompetitive comparisons Supplier performanceSupplier performance Cost & financial performanceCost & financial performance

Many Types of data & Information are needed Many Types of data & Information are needed for quality assessment & quality improvement:for quality assessment & quality improvement:

Customer needsCustomer needs Product & service performance Product & service performance Operations performanceOperations performance Market assessmentsMarket assessments Competitive comparisonsCompetitive comparisons Supplier performanceSupplier performance Cost & financial performanceCost & financial performance

TQ & Traditional Management TQ & Traditional Management

Practices- IPractices- I TQ demands new styles of managing & an TQ demands new styles of managing & an entirely new set of skills. These new styles entirely new set of skills. These new styles include the following characteristics:include the following characteristics:

Thinking in terms of systemsThinking in terms of systems Defining customer requirementsDefining customer requirements Planning for quality improvement with each Planning for quality improvement with each

customercustomer Dealing with customer dissatisfaction Dealing with customer dissatisfaction Ensuring ongoing quality effortsEnsuring ongoing quality efforts Developing a life long learning styleDeveloping a life long learning style Team building Team building Encouraging opennessEncouraging openness

TQ & Traditional Management TQ & Traditional Management

Practices-IIPractices-II TQ & Traditional Management TQ & Traditional Management

Practices-IIPractices-II Encouraging opennessEncouraging openness Creating climates of trust & eliminating fear Creating climates of trust & eliminating fear Listening & providing feedback Listening & providing feedback Leading & participating in group meetings Leading & participating in group meetings Solving problems with dataSolving problems with data Clarifying goals & resolving conflicts Clarifying goals & resolving conflicts Delegating & coaching Delegating & coaching Implementing changeImplementing change Making continuous improvement a way of life. Making continuous improvement a way of life.

Change of Change of The Name of Quality The Name of Quality

ActivitiesActivities QCQC :: Quality ControlQuality Control

At the beginning of 1910-20sAt the beginning of 1910-20s SQC SQC :: Statistical Quality ControlStatistical Quality Control

At the beginning of 1950sAt the beginning of 1950s TQCTQC :: Total Quality ControlTotal Quality Control

At the beginning of 1960sAt the beginning of 1960s TQMTQM :: Total Quality ManagementTotal Quality Management

In the middle of In the middle of 1960s in 1960s in JapanJapan

1980s in NA1980s in NA1990s in Pakistan1990s in Pakistan

THE QUALITY THE QUALITY CHALLENGECHALLENGE

INDIVIDUALCRAFTSMAN

FOREMAN

INSPECTION

STATISTICAL CONTROLQUALITY ASSURANCE

TOTAL QUALITY CONTROL

ORGANIZATIONWIDE

TOTAL QUALITYMANAGEMENT

1900 1920 1940 1960 1980

TH

E E

VO

LU

TIO

N O

F Q

UA

LIT

Y

MA

NA

GE

ME

NT

QUALITY IS FREE !QUALITY IS FREE !

According to Crosby:According to Crosby:

Quality is not only free, it is profit Quality is not only free, it is profit maker maker

Increase of 5% -10% in profitability Increase of 5% -10% in profitability by concentrating on quality by concentrating on quality

Quality provides a lot of money for Quality provides a lot of money for free free

““Quality is never an Quality is never an accident, it is accident, it is

always the result of always the result of an intelligent an intelligent

effort”effort”John RuskinJohn Ruskin

UNCOVERING REAL UNCOVERING REAL OPPORTUNITIES of QUALITYOPPORTUNITIES of QUALITY

Those assurances are part of the package Those assurances are part of the package customers get and for which they may be customers get and for which they may be willing to paywilling to pay

Turning that “may” into a “will” has to Turning that “may” into a “will” has to do with the degree of understanding of do with the degree of understanding of one’s customersone’s customers

And what this all “costs” customer is And what this all “costs” customer is more than moneymore than money

This is not a panacea This is not a panacea It will not magically provide all the right It will not magically provide all the right

answersanswers It will make us far more likely to ask the It will make us far more likely to ask the

right questions, which is a major piece of right questions, which is a major piece of progress progress

““Quality is never an Quality is never an accident, it is accident, it is

always the result of always the result of an intelligent an intelligent

effort”effort”John RuskinJohn Ruskin

THREE LEVELS OF QUALITYTHREE LEVELS OF QUALITY

Quality must be examined at three Quality must be examined at three levels…levels…

1.1. The organizational levelThe organizational level

2.2. The process levelThe process level

3.3. The performer / job levelThe performer / job level

AT THE ORGANIZATIONAL AT THE ORGANIZATIONAL LEVELLEVEL

Meeting requirements of external Meeting requirements of external customerscustomers

Organization must seek regular customer Organization must seek regular customer input input

Use Use customer-driven performance customer-driven performance standards standards for:for: Setting goalsSetting goals Solving problemsSolving problems Allocating resourcesAllocating resources

AT PROCESS LEVELAT PROCESS LEVELMust Identify:Must Identify:

Products or services the Products or services the customers desirecustomers desire

Key processes Key processes Core inputsCore inputs Organization’s customer-Organization’s customer-

driven performance standardsdriven performance standards Needs of internal customersNeeds of internal customers

AT THE PERFORMER LEVELAT THE PERFORMER LEVEL

Standards of output must be determinedStandards of output must be determined AccuracyAccuracy CompletenessCompleteness InnovationInnovation TimelinessTimeliness CostCost Determine how requirements will be Determine how requirements will be

measured measured

What makes people Sweat for What makes people Sweat for Quality?Quality?

What Is Quality Sweating Theory

Theory Of Driving Force For Quality

Five Questions of Your QualityFive Questions of Your Quality

1.1. What is your major product/service?What is your major product/service?2.2. Who are its major users/customers?Who are its major users/customers?3.3. What are its quality requirements What are its quality requirements

which the major users/customer which the major users/customer demand?demand?

4.4. What is its most competitive What is its most competitive product/service which is provided product/service which is provided by your competitor?by your competitor?

5.5. What kind of comparative study do What kind of comparative study do you have between you you have between you product/service and you product/service and you competitor’s for the quality competitor’s for the quality requirements from the major requirements from the major users/customers?users/customers?

Sense of Crisis + LeadershipSense of Crisis + Leadership

Vision + LeadershipVision + Leadership

VLSQ Approach

Two Approaches in Quality Sweating

Theory

CLSQ Approach

VLSQ ApproachVLSQ Approach If a company is so good in its business and if it If a company is so good in its business and if it

has no crisis nor crisis consciousness, what then has no crisis nor crisis consciousness, what then could serve as a driving force for TQMcould serve as a driving force for TQM

A forward looking grand vision would mobilize A forward looking grand vision would mobilize people to sweat hard for sake of achieving that people to sweat hard for sake of achieving that vision.vision.

vision must be one which could really motivate vision must be one which could really motivate people to sweat willingly for quality.people to sweat willingly for quality.

• 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 & Leadership Encourage People to Sweat for Quality

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

Crisis consciousness pushes leadership Crisis consciousness pushes leadership pulls organization to motivate people to pulls organization to motivate people to sweat for qualitysweat for quality..

““CCrisis Consciousness & risis Consciousness & LLeadership Make People eadership Make People SSweat weat

for for QQualityuality

CLSQ Approach

vision approach for TQM promotion needs to conduct an aggressive public relations activity so that people fully understand integrity of the vision.

The lesson LearntThe lesson LearntThe Enemy The Enemy for Quality,for Quality,

that is complacent. that is complacent.

That’s a good idea.That’s a good idea.ButBut

Our Quality hasOur Quality hasalreadyalready

achieved at a certain high level.achieved at a certain high level.Hence, we need not do so Hence, we need not do so

to such a extent.to such a extent.

We Are Complacent, Aren’t We?

Date post:	08-May-2015
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