Total Quality Management

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• Total Quality Management
• By
• Ali Sajid, PhD
• An Exclusive Presentation for PEC
• 29th Jan, 2008

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• 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  

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• 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).

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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
excellenceConfucius
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• 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)

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• The Highest Result of Education
• is Tolerance.
• Helen Keller (1880 - 1968),

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• 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)

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• In the part of this universe that we know there
  is great injustice, often the
• Good Suffer often the
• Wicked Prosper,
• one hardly knows which of those is the more
  annoying.
• Bertrand Russell (1872 - 1970)

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

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

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• 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

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

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• 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

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Characteristics of Organization

• An 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 Structure
Distinct Purpose
People
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Org Excellence

• Key to Competitiveness
• Cost
• Quality
• Speed
• Value

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Organizational Excellence

• through
• Competitiveness
• using
• Quality
• as a Tool

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• Quality is
• a Habit
• not
• an Act.
• Aristotle

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What is Quality

• Classical Idea
• Q Degree of conformance to a standard
• (As a product or service)

Product or Service
Specification or Rule
Conformance
Modern Idea Q Users Satisfaction or fitness
for use
Product or Service
Specification or Rule
Give Satisfaction
Product or Service
Build In
Reflect
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What is Quality?

• The totality of characteristics of an entity
  that bear on its ability to satisfy stated
  implied needs.

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What is Quality
Customer Expectations Meet/exceed
Freedom from deficiency
Features
Doing the right thing
Doing the things right
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CUSTOMER-DRIVEN QUALITY

• A simpler, more powerful definition came up.
• Quality is meeting or exceeding customer
  expectations

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History of Quality Efforts

• Egyptian 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.
  

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• 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 by
• procedures that had to be followed.
• Enforcement is done by an official inspector
  (Logothate) attached with court to inspect all
  workshop Operations performed.

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• 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.

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• 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) 1,4,9
• UK 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

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

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Qualitymeanspleasing consumersnotjust
protecting themfrom annoyances
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Basic Quality Function
2. COMPLAINTS
3. CONSISTENCY
4. PRECISION
5. ACCURACY
6. VARIATION
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Quality Control

• Technique to Control Check Quality

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What is Quality Assurance

• all planned systematic activities implemented
  within quality system,
• demonstrated as needed, to provide adequate
  confidence that an entity will fulfill
  requirements for quality.

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QUALITY ASSURANCE
THERE ARE NO FACTS ONLY INTERPRETATIONS
-FRIEDRICH NIETZSCHE

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

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Quality Management

• All 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)

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DEFINING QUALITY

• Perfection
• Consistency
• Eliminating waste
• Speed of delivery
• Compliance with policies procedures
• Providing good, usable products
• Doing it right the first time
• Delighting or pleasing customers
• Total customer service satisfaction

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PRINCIPAL QUALITY DIMENSIONS

• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived quality

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PRINCIPAL QUALITY DIMENSIONS

• Performance
• a products primary operating characteristics.
  Example A cars acceleration, braking distance,
  steering and handling

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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

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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

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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.

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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

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PRINCIPAL QUALITY DIMENSIONS

• Serviceability
• speed, courtesy, competence of repair work.
• auto owner -access to spare parts.

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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

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PRINCIPAL QUALITY DIMENSIONS

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

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MANUFACTURING BASED CRITERIA

• Quality Conformance to specifications
• Quality is
• about manufacturing a product that people can
  depend on every time they reach for it
• Achieved at Coca-Cola through rigorous quality
  packaging standards

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JUDGEMENTAL CRITERIA

• Quality superiority or excellence
• Goodness of a product
• You just know it when you see it
• little practical value to managers
• No means through which quality can be measured
  for decision making

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PRODUCT-BASED CRITERIA

• Quality is a function of a specific, measurable
  variable
• Higher amount of product characteristics higher
  quality
• Quality is mistakenly related to price
• Higher the price, higher the quality (Not
  necessarily true)

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USER-BASED CRITERIA

• Quality is determined by what customer wants
• Quality Fitness for intended use
• How well the product
• Performs its intended purpose
• Meets consumers needs

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VALUE-BASED CRITERIA

• Quality is the degree of excellence at an
  acceptable price and the control of variability
  at an acceptable cost.

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UNCOVERING THE REAL OPPORTUNITIES OF QUALITY

• Value can be defined as, what the customer gets
  per what it costs the customer
• But 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

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VALUE-BASED CRITERIA
Gales Model of the Purchase Decision
Product
Quality
Service
Value
Price
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VALUE-BASED CRITERIA

• Offering greater satisfaction at comparable price
• Procter Gamble brought in VALUE PRICING
• Consumer brand loyalty
• More consistent sales
• Improvement of product characteristics
• Internal efficiencies

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WHAT GOOD CAN QUALITY DO ?

• Provides competitive advantage
• Reduces costs
• Lesser returns, rework scrap
• Increases productivity profits
• Generates satisfied customers
• No Quality, no sales. No sales, no profit. No
  profits, no jobs.

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COMPETITIVE ADVANTAGE

• Denotes firms ability to achieve market
  superiority
• Driven by customer needs wants
• Provides value to customers that competitors do
  not have
• Makes significant contribution to business
  success
• Allows a firm to use its resources effectively

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COMPETITIVE ADVANTAGE

• Durability dependability difficult for others
  to copy
• Provides basis for further improvement
• Provides direction motivation to the
  organization

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Quality Evolution in Japan
Determining the customers needs before the
customer becomes aware of them
Fitness to Latent Requirements
Fitness to Cost
Obtain high quality low cost by effective
designing of both the product processes.
Fitness to Use
To build a product that meets the needs of
customer.
Fitness to Standards
To build a product that meets the specifications
set by the designer.
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What is Total Quality
Total 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.
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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.

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Profile of TQM

• TQM is a
• Scientific
• Systematic
• Company Wide
• Activity in which
• A company is devoted to customers through its
  products and services.

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Total Quality Management

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

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• 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.

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

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BASES OF TOTAL QUALITY
Techniques to Foster Teamwork And Create
Satisfying Work Environment
Statistical Tools and Techniques
Strategic Imperatives
The Customer
The Four Bases of Total Quality
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A TQM Approach To Management

• A 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.

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The Essence of TQM

• Involving 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.

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• 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.

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TQM

• Umbrella 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

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

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A Manager Who Fails To Provide Resources And Time
For Prevention Activities Is Practicing False
Economy

• Concentrate on Prevention, Not Correction

Prevention
Correction
Quality
Prevention has more leverage when improving
quality
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TQ Traditional Management Practices- I

• TQ demands new styles of managing an entirely
  new set of skills. These new styles include the
  following characteristics
• Thinking in terms of systems
• Defining customer requirements
• Planning for quality improvement with each
  customer
• Dealing with customer dissatisfaction
• Ensuring ongoing quality efforts
• Developing a life long learning style
• Team building
• Encouraging openness

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THE QUALITY CHALLENGE
THE EVOLUTION OF QUALITY MANAGEMENT
ORGANIZATION WIDE TOTAL QUALITY MANAGEMENT
TOTAL QUALITY CONTROL
STATISTICAL CONTROL QUALITY ASSURANCE
INSPECTION
FOREMAN
INDIVIDUAL CRAFTSMAN
1900
1920
1940
1960
1980
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Meanings of Total In TQM

• Objectives
• Not only quality and environment but also other
  parameters including cost, delivery, safety.
• 2. Every Department
• Not only a manufacturing department but also
  other departments including RD marketing,
  administration, etc.
• 3. Every Echelon
• Not only engineers but also top managers, middle
  managers, supervisors, workers, and clerks.
• 4. Group-Wide
• TQM 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.

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TQM Customer Orientation

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

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WHO IS A CUSTOMER ?

• The ultimate purchaser of a product or service
• External customers purchase products or services
  from other companies/plants
• Internal customers receive goods or services from
  within the company

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WHY IS IT IMPORTANT TO MEET CUSTOMER
EXPECTATIONS?

• Needs of customers have to be met
• Understanding of ones customers leads to
  customer satisfaction
• Japanese relate quality to customer satisfaction

Poor quality product
Inadequate internal facilities Poorly designed
processes
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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.
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Customer Satisfaction

• Satisfaction

More Features
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Results of Total Quality Management
Delighted Customer
Empowered Employers
High Revenue
Lower Cost
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Conventional Wisdom
Demings Approach
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Demings Dreadful Diseases

• Looking 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.

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What makes people Sweat for Quality?
What Is Quality Sweating Theory
Theory Of Driving Force For Quality
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Sense of Crisis Leadership
Two Approaches in Quality Sweating Theory
CLSQ Approach
VLSQ Approach

• Vision Leadership

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VLSQ Approach

• If 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 TQM
• A 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.

Vision and Leadership Encourage People to Sweat
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.

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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.
CLSQ Approach

• Crisis Consciousness Leadership Make People
  Sweat 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.
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The lesson LearntThe Enemy for Quality, that
is complacent.
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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?
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Food For Thought

• 85 percent of the opportunities for improvement
  comes from changing the systems Re-engineering
  work process modifying or replacing equipment.
• Dr. Deming

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QUALITY IN PRODUCTION SYSTEMS

• Production Converting organizations resources
  into goods services
• Production System The collection of activities
  involved in production

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THREE COMPONENTS OF PRODUCTION SYSTEM

• Inputs (Physical facilities, materials, capital,
  equipment, people energy)
• Processes (Machining, mixing, assembly etc.)
• Outputs (The product or services produced)

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THREE LEVELS OF QUALITY

• Quality must be examined at three levels
• The organizational level
• The process level
• The performer / job level

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AT THE ORGANIZATIONAL LEVEL

• Meeting requirements of external customers
• Organization must seek regular customer input
• Use customer-driven performance standards for
• Setting goals
• Solving problems
• Allocating resources

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AT PROCESS LEVEL

• Must identify
• Products or services the customers desire
• Key processes
• Core inputs
• Organizations customer-driven performance
  standards
• Needs of internal customers

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A PROCESS FOCUSED APPROACH
High

• Based on Need
• Refine
• Redesign
• Reengineer

FOCUS
The Need For the Process
If Process is not Needed, Can it Be eliminated?
WASTE
The Performance
Low
High
of the Process
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AT PERFORMER LEVEL

• Standards of output must be determined
• Accuracy
• Completeness
• Innovation
• Timeliness
• Cost
• Determine how requirements will be measured

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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

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

• John Ruskin

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THANK U!
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Part Three

• Tools, Techniques and Infrastructure of Quality

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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.

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Infrastructure, Practices, Tools

• Infrastructure -basic mgmt systems necessary to
  function as a hi performing org. Infra structure
  that Support TQM Principles are
• Leadership
• Strategic planning
• HRM
• Process mgt
• Data info mgmt

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The Scope of Total Quality Management
Infrastructure
Tools Techniques
101
The Scope of Total Quality Management
Practices
Continuous improvement And learning
Customer focus
Principles
Participation and Teamwork
Tools Techniques
Infrastructure
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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.

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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.

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Human Resource Management

• Major Challenges
• Integration of HR practices
• (selection, performance, recognition, training,
  and career advancement )
• with
• business directions and strategic change processes

105
Process Management

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

106
Do You know??

• Well designed processes lead to better quality
  products services less waste/ rework
• Is this amazing?

107
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.
108
Data Information Management

• Many Types of data Information are needed for
  quality assessment quality improvement
• Customer needs
• Product service performance
• Operations performance
• Market assessments
• Competitive comparisons
• Supplier performance
• Cost financial performance

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TQ Traditional Management Practices-II

• Encouraging openness
• Creating climates of trust eliminating fear
• Listening providing feedback
• Leading participating in group meetings
• Solving problems with data
• Clarifying goals resolving conflicts
• Delegating coaching
• Implementing change
• Making continuous improvement a way of life.

110
THE QUALITY CHALLENGE
THE EVOLUTION OF QUALITY MANAGEMENT
ORGANIZATION WIDE TOTAL QUALITY MANAGEMENT
TOTAL QUALITY CONTROL
STATISTICAL CONTROL QUALITY ASSURANCE
INSPECTION
FOREMAN
INDIVIDUAL CRAFTSMAN
1900
1920
1940
1960
1980
111
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

112
UNCOVERING REAL OPPORTUNITIES of QUALITY

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

113
THREE LEVELS OF QUALITY

• Quality must be examined at three levels
• The organizational level
• The process level
• The performer / job level

114
AT THE ORGANIZATIONAL LEVEL

• Meeting requirements of external customers
• Organization must seek regular customer input
• Use customer-driven performance standards for
• Setting goals
• Solving problems
• Allocating resources

115
AT PROCESS LEVEL

• Must Identify
• Products or services the customers desire
• Key processes
• Core inputs
• Organizations customer-driven performance
  standards
• Needs of internal customers

116
AT THE PERFORMER LEVEL

• Standards of output must be determined
• Accuracy
• Completeness
• Innovation
• Timeliness
• Cost
• Determine how requirements will be measured

117
What makes people Sweat for Quality?
What Is Quality Sweating Theory
Theory Of Driving Force For Quality
118
Five Questions of Your Quality

• What 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?

119

• 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)