Title: Part 2: Chap 1 Overview of Quality
 1Part 2 Chap 1Overview of Quality
- Topics 
 -  Quality Concepts 
 -  TQM philosophy 
 -  Leadership 
 -  TQM implementation and tools 
 -  Model in TQM MBNQA and others 
 -  Case study KMB
 
  2What is Quality?
- Fit for purpose gt product and service does what 
it is intended to do  - Conformance gt meeting the specification 
 - Satisfy customer gt the customer perceived level 
 - Exceed customer expectation gt delight customer 
 - Qperformance / expectation gt equal 1  satisfy 
greater 1  delight  - Value for money gt superiority to competitor 
 - Consistent gt e.g. Food quality in McDonnalds 
Restaurants  - Reliable gt free from defects 
 - Good performance 
 - Fast response 
 - Need continuous improvement 
 - Without absolute standing 
 
  3Nine dimensions of quality
- Performance 
 - Primary product characteristics, such as the 
brightness of the picture  - Features 
 - Secondary characteristics, added features, such 
as remote control  - Conformance 
 - Meeting specifications or industry standards, 
workmanship  - Reliability 
 - Consistency of performance over time, average 
time for the unit to fail  - Durability 
 - Useful life, includes repair time and frequency
 
  4Nine dimensions of quality (2)
- Service 
 - Resolution of problems and complaints, ease of 
repair  - Response 
 - Human-to-human interface, such as the courtesy of 
the dealer  - Aesthetics 
 - Sensory characteristics, such as exterior finish 
 - Reputation 
 - Past performance and other intangibles, such as 
being ranked first  
  5Evolution of quality
- pre World-war II 
 - Approach make a lot and sort out the good ones 
 - Ford Motor Company developed systematic material 
handling, machine tool design, factory layout and 
final inspection. Automobile production went from 
ten thousand cars in 1909 to sixty thousand in 
1916. The price decreased from 850 to 350 per 
car.  - Dr. Walter A. Shewhart of ATT developed the 
concept of control charts. Dr. Shewhart is 
referred to as the father of statistical quality 
control.  - When the United States was involved in World War 
II. The war generated the first extensive use of 
statistical concepts. U.S. Government suppliers 
were required to use statistical quality control. 
The government sponsored many statistics and 
quality control training classes. 
  6Evolution of quality (2)
- 50-70 
 - Joseph M. Juran and W. Edwards Deming taught 
statistical methods and statistical quality 
control to the Japanese.  - Joseph M. Juran published the first edition of 
Quality Control Handbook and advocate 3 basic 
management processes for quality, which is now 
known as Juran Trilogy Quality Planning, Quality 
Control and Quality Improvement  - Quality control Based on detection, aim at 
locate any non-conformance product  - 70-80 
 - Quality control system gt Quality Assurance 
 - With the concept of Quality assurance gt 
prevention  - The emphasis include quality of design and design 
for manufacturability. Computers were used 
extensively in all aspects of quality. 
  7Evolution of quality (4)
- 4 step cycles 
 - Set standards gt Appraising conformance gt Acting 
when necessary gt Planning for improvement  - 80-00 
 - The International Organization for 
Standardization (ISO) establishes ISO 9000 Series 
Quality Management System Standards.  - Quality Concepts were extended to service 
industries. Emphasis is on total quality 
management (TQM) and customer satisfaction.  - 00-01 
 - Eight thousand U.S. companies have achieved ISO 
registration since its inception. Eight percent 
of all companies that are ISO registered are 
located in North America. 46  are located in the 
United Kingdom.  - Quality costing, IMS, Other new approach in 
quality TMS, 6-sigma 
  8Some important terms in Quality
- Quality Management Quality management is the 
means of implementing and carrying out quality 
policy.  - perform goal planning and manage quality control 
and quality assurance activities.  - responsible for seeing that all quality goals and 
objectives are implemented and that corrective 
actions have been achieved.  - review the quality system to ensure effectiveness 
and to identify and review any deficiencies. 
  9Some important terms in Quality (2)
- Quality Control The term quality control 
describes a variety of activities.  - It encompasses all techniques and activities of 
an organization that continuously monitor and 
improve the conformance of products, processes or 
services to specifications.  - include the review of processes and 
specifications and make recommendations for their 
improvement.  - eliminate causes of unsatisfactory performance by 
identifying and helping to eliminate or at least 
narrow the sources of variation.  - define a system in which products meet design 
requirements and checks and feedback for 
corrective actions and process improvements.  - selecting and rating of suppliers to ensure that 
purchased products meet quality requirements. 
  10Some important terms in Quality (3)
- Quality Assurance The term quality assurance 
describes all the planned and systematic actions 
necessary to assure that a product or service 
will satisfy the specified requirements.  - takes the form of an independent final inspection 
 - The distinction between quality control and 
quality assurance is stated in an ANSI/ASQ 
standard  - Quality control has to do with making quality 
what it should be, and quality assurance has to 
do with making sure quality is what it should 
be.  - The quality assurance function should represent 
the customer and be independent of the quality 
control function, which is an integral part of 
the manufacturing operation.  - Quality system 
 - Defined organization structure, responsibilities, 
procedures, processes, and resources for 
implementing and coordinating the QA and QC 
activities 
  11TQM 
 12Overview of TQM
- TQM has been available for many years. It was 
originally developed in the US and the Japanese 
were the first to visualize its benefits and 
apply it successfully.  - They found that if management and employees could 
do joint problem solving everyone was committed 
to the solution.  - The TQM philosophy stresses an organizational-wide
 perspective involving everyone and everything  - focus primarily on total satisfaction 
 - for both internal and external customers 
 - within a management environment that seek 
continuous improvement of all systems and 
processes 
Quality Quality Management Total Quality 
Management  
 13Primary elements of TQM
- There are many definition of TQM 
 - But the philosophy of TQM can be summarized as a 
management system for a customer focused 
organisation that involves all employees in 
continuous improvement of all aspects of the 
organization to establish a customers goodwill 
and value-for-money reputation  - ????????????,???????????????,????????,????????????
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  14Six basic concepts of TQM
- A committed and involved management to provide 
long-term top-to-bottom organizational support  - An unweaving focus on the customer, both 
internally and externally  - Effective involvement and utilization of the 
entire work force  - Continuous improvement of the business and 
production process.  - Treating suppliers as partners. 
 - Establish performance measures for the processes. 
  
- compare to 8 management principles of 
ISO90002000  - customer focus 
 - total employee involvement 
 - process centered 
 - integration system 
 - strategic and systematic approach 
 - continual improvement 
 - fact-based decision making 
 - communications
 
  15Benefit Running TQM
- Direct benefits 
 - Reduce operating costs 
 - Increase customer satisfaction 
 - Establishing a process of continuous improvement 
and business process reengineering  - Gain a competitive edge 
 - Indirect benefits 
 - enhanced market image 
 - increase job security 
 - increased customer loyalty and retention 
 - improved and innovative processes 
 - Improve company morale 
 - Establishing a base for ISO registration and the 
Malcolm Baldridge award.  
  16Guru in TQM and Quality Management
- W.Edwards Deming, one of the expert of quality 
management  - Others experts Joseph. H. Juran and Philip Crosby
 
Edwards Deming
Joseph. H. Juran
Philip Crosby 
 17Demings approach to TQM
- Deming suggest 14 steps to approach TQM 
 - 1) Create constancy of purpose for improvement of 
product and service  - Constancy of purpose requires innovation, 
investment in research and education, continuous 
improvement of product and service, maintenance 
of equipment, furniture and fixtures, and new 
aids to production.  - 2) Adopt the new philosophy 
 - Management must undergo a transformation and 
begin to believe in quality products and 
services.  - 3) Cease dependence on mass inspection 
 - Inspect products and services only enough to be 
able to identify ways to improve the process. 
  18Demings approach to TQM (2)
- 4) End the practice of awarding business on price 
tag alone  - The lowest priced goods are not always the 
highest quality choose a supplier based on its 
record of improvement and then make a long-term 
commitment to it.  - 5) Improve constantly and forever the system of 
product and service  - Improvement is not a one-time effort management 
is responsible for leading the organization into 
the practice of continual improvement in quality 
and productivity.  - 6) Institute training and retraining 
 - Workers need to know how to do their jobs 
correctly even if they need to learn new skills.  - 7) Institute leadership 
 - Leadership is the job of management. Managers 
have the responsibility to discover the barriers 
that prevent staff from taking pride in what they 
do. The staff will know what those barriers are. 
  19Demings approach to TQM (3)
- 8) Drive out fear 
 - People often fear reprisal if they "make waves" 
at work. Managers need to create an environment 
where workers can express concerns with 
confidence.  - 9) Break down barriers between staff areas 
 - Managers should promote teamwork by helping staff 
in different areas/departments work together. 
Fostering interrelationships among departments 
encourages higher quality decision-making.  - 10) Eliminate slogans, exhortations, and targets 
for the workforce  - Using slogans alone, without an investigation 
into the processes of the workplace, can be 
offensive to workers because they imply that a 
better job could be done. Managers need to learn 
real ways of motivating people in their 
organizations.  - 11) Eliminate numerical quotas 
 - Quotas impede quality more than any other working 
condition they leave no room for improvement. 
Workers need the flexibility to give customers 
the level of service they need. 
  20Demings approach to TQM (4)
- 12) Remove barriers to pride of workmanship 
 - Give workers respect and feedback about how they 
are doing their jobs    - 13) Institute a vigorous program of education and 
retraining  - With continuous improvement, job descriptions 
will change. As a result, employees need to be 
educated and retrained so they will be successful 
at new job responsibilities.  - 14) Take action to accomplish the transformation 
 - Management must work as a team to carry out the 
previous 13 steps.  
  21TQM defined by Juran
- quality becomes a part of each upper management 
agenda  - quality goals enter the business plan 
 - stretch goals are derived from benchmarking 
focus is on the customer and on meeting 
competition, and there are goals for annual 
quality improvement  - goals are deployed to the action levels 
 - training is done at all levels 
 - measurement is established throughout the 
organization  - upper managers regular review progress against 
goals  - recognition is given for superior performance 
 - reward system is revised
 
  22Juran Trilogy
Quality Planning
Juran Trilogy
Quality improvement
Quality Control 
 23Juran Trilogy (2)
- Quality plan 
 - establish a target / project 
 - identify the customer 
 - discover customer needs 
 - develop product/service 
 - develop process (identify goals, operation 
condition)  - develop process control (feedback loop, audit) 
 - Quality control 
 - activities and techniques to continuously monitor 
and improve the conformance of products, 
processes or services to specifications  - aims to eliminate causes of unsatisfactory 
performance by identifying and helping to 
eliminate or reduce the sources of variation.  - include the review of processes and 
specifications and make recommendations for their 
improvement  - Quality improvement
 
  24TQM implementation (1)
- TQM implementation process begins with senior 
management and, most important, the CEOs 
commitment  - Leadership is essential during every phase and 
particularly at the start.  - Indifference and lack of involvement by senior 
management are principal reasons for the failure 
of quality improvement efforts.  - Senior management needs education in TQM concepts 
 - Right timing of implementation is important 
 - Formation of Quality Council and development of 
core values, vision statement and quality policy 
statement. 
  25TQM implementation (2)
- Active involvement of middle managers and 
first-line supervisors is essential - accountable 
for achieving performance goals and objectives  - Middle managers and first-line supervisors form 
links in the communication chain from senior 
management to the front-line workers  - It is important to communicate TQM to the entire 
organization. Communication is a never-ending 
process to create awareness, interest, desire and 
action.  - Customer, employee and supplier surveys are 
conducted to benchmark their attitudes  - Everyone needs to be trained in quality awareness 
and problem soling 
  26Leadership in TQM
- Leadership requires a keen understand of human 
nature - the basic needs, wants and abilities of 
people.  - A leader needs to know and understand the 
following  - People, paradoxically, need security and 
independence at the same time  - People are sensitive to external rewards and 
punishments and yet are self-motivated  - People like to hear a kind word of praise 
 - People can only process a few facts at a time 
 - People trust their gut reaction more than 
statistical data  - People distrust a leaders rhetoric if the words 
are inconsistent with the leaders action. 
  27Role of senior management
- Senior management must 
 - actively participate in the implementation 
process and the Quality Council  - practice the philosophy of management by 
wandering about - to get out of the office and 
visit customers, departments and plants within 
the organization, and suppliers and talk to 
people  - stay informed on the topic of quality improvement 
 - find time to celebrate the success of their 
organization's quality effort - award and 
recognition ceremonies  - Actively and visibly engaged in the quality 
effort by coaching teams and teaching seminars 
  28Role of senior management (2)
- listen to internal and external customers and 
suppliers and translate this information into 
core values and process improvement projects  - communicate to create awareness of the importance 
of TQM and provide TQM results in an ongoing 
manner, i.e., newsletters, posters, TQM bulletin 
boards, departmental information meetings, memos 
and organization-wide meetings  - Promote external communication activities with 
customers and suppliers, the media, advertising 
in trade magazines and interaction with the 
quality community  
  29Senior management quality council
- also known as quality steering committee 
 - Composed of CEO, senior managers of the 
functional areas i.e., design, marketing, 
finance, production and quality and a 
co-coordinator  - Build quality into culture, provide overall 
direction and is the driver for the TQM engine  - Duties of Quality Council 
 - Develop the core values, vision statement and 
quality policy statement  - Develop the strategic long-term plan with goals 
and the annual quality improvement program with 
objectives  - Create total education/training plan 
 - Determine and monitor the cost of poor quality 
 - Determine the performance measures 
 - Determine and approve quality improvement 
projects  - Establish multifunctional project and 
departmental teams and monitor progress  - Establish recognition and reward system 
 
  30Duties of Quality coordinator
- The coordinator builds two-way trust, proposes 
team needs to the council and shares council 
expectations with the team and briefs the council 
on team progress  - The coordinator assists team leaders, share 
lessons learned among teams and have regular 
leaders meeting with team leaders  
  31Quality Statement (1)
- Vision Statement 
 - A declaration of what an organization should look 
like five to ten years in the future  - It is a realistic picture of what it wants to 
become and what is possible  - Mission Statement 
 - Answers the questions of who we are, who are the 
customers, what we do and how we do it  - Provides a clear statement of purpose for 
employees, customers and suppliers 
- VTC Vision Statement 
 - To be a leading provider of vocational education 
and training in the region.  - VTC Mission Statement 
 - To provide cost-effective alternative routes and 
flexible pathways for school leavers and adult 
learners to acquire skills and knowledge for 
lifelong learning and enhanced employability.  
  32Quality Statement (2)
- Quality Policy Statement 
 - A guide for everyone in the organization as to 
how they should provide products and service to 
the customers.  - Written by the CEO with feedback from the 
workforce and approved by the Quality Council  - Some examples 
 - Quality Policy Statement 
 - xxx is committed to a continuous improvement 
approach to provide quality services to our 
customers, with an ultimate goal to better 
satisfy their needs and expectations. All staff 
of the xxx will strive to conform to this Quality 
Policy.  - xxx is committed to the provision of quality 
services to our customers. The objective of xxx 
is continuous improvement in our services to 
strive for sustained quality excellence, and to 
better satisfy the needs and expectations of our 
customers. 
  33Trend in TQM
- The increase acceptance and use of TQM is the 
result of three major trends  - Reaction to increasing domestic and global 
competition  - Pervasive need to integrate the several 
organizational functions for improvement of total 
output of organization as well as the quality of 
output within each function,  - Acceptance of TQM in a variety of service 
industries  - The increase acceptance of using national quality 
as a measurement of TQM  - TQM based on national award has achieved 
substantial development worldwide  - the establishment of the Malcolm Balridge 
National Award (MBNQA) by the US Government in 
1987.  - there are also others national awards by other 
countries such as Canada, Australia, UK, Europe, 
New Zealand, Sweden, Brazil, Singapore, and Hong 
Kong and many other countries. 
  34Skills and tools for TQM
- group problem solving 
 - measuring, data gathering and analysis 
 - root cause analysis 
 - brainstorming 
 - continuous process improvement 
 - some of the most popular tools are 
 - Histogram 
 - Cause and effect diagram 
 - Scatter diagram 
 - Run chart 
 - Control chart
 
  35Histogram
- vertical bar chart that depicts the distribution 
of a set of data  - evolved to meet the need for evaluating data that 
occurs at a certain frequency  - This is possible because the histogram allows for 
a concise portrayal of information in a bar graph 
format.  
A bar graph that shows the distribution of data 
 36Histogram (2)
- Summarize large data sets graphically. 
 - Data present is graphic is much easier to 
understand, we can summarize the data on a tally 
sheet and organizing it into a histogram  - compare process results with specification limits 
 - By adding the process specification limits to the 
Histogram, we can determine quickly whether the 
current process was able to produce good 
products  - Communicate information graphically 
 - we can easily see the values that occur meet 
frequently in a histogram. Histogram can 
summarize large data sets compare measurements 
to specification limits, which is powerful 
communications tool  - Use a tool to assist in decision-making 
 - By examining the shapes, sizes, and the spread of 
data of a histogram, it can help us to 
investigate problem and decision-making 
  37Cause  Effect Diagram
- To provide a pictorial display of a list in which 
you identify and organize possible causes of 
problems, or factors needed to ensure success of 
some effort.  - also known as fish-bone diagram, or Ishikawa 
diagram 
man
machine
method
material 
 38Cause  Effect Diagram (2)
- Write down the effect to be investigated and draw 
the backbone arrow to it. In the following 
example, CE is the incorrect deliveries  - Identify all the broad areas of enquiry in which 
the causes of the effect being investigate may 
lie. For manufacturing process, the broad areas 
of enquiry that are most often used are man 
(human factor), Machines (machines and tools), 
materials (raw materials) and Method (methods of 
work) and environment (work environment)  
incorrect deliveries
skill
communication
incorrect deliveries
procedure
transport 
 39Cause  Effect Diagram (3)
- Next, write down all the detailed possible causes 
in each of the broad areas of enquiry. Each cause 
identified should be fully explored for further 
more specific causes that contribute to them  - This step requires the greatest amount of work 
and imagination  - Tips 
 - concentrate team members attention on a specific 
problem  - constructing a picture of the problem at hand 
without resorting to the tight discipline of a 
flowchart  - draw the backbone from left to right 
 - use in conjunction with brainstorming 
 - All team members will benefit from each others 
contribution and develop a common understanding 
of the problem 
  40Scatter Plots
- Intuitive and qualitative conclusions could be 
drawn about the paired data, or variables. The 
concept of correlation was employed to decide 
whether a significant relationship existed 
between the paired data.  
  41Run Charts
- Run charts are used to analyze processes 
according to time or order. Run charts are useful 
in discovering patterns that occur over time.  
  42Control Charts
- It is a proven technique for improving 
productivity.  - It is effective in defect prevention. 
 - It prevents unnecessary process adjustments. 
 - It provides diagnostic information. 
 - It provides information about process capability 
 
  43Quality model for TQM 
 44MBNQA and other awards
- TQM has achieved substantial development 
worldwide since the establishment of the Malcolm 
Balridge National Award (MBNQA) by the US 
Government in 1987.  - Each year in USA, Quest for Excellence, the 
official conference of the Malcolm Baldrige 
National Quality Award, provides a forum for 
Baldrige Award Recipients to share their 
performance practices with worldwide leaders in 
business, education, health care, and 
not-for-profit organization. The President of the 
United States presents the Awards at a special 
ceremony in Washington, DC. 
  45MBNQA and other awards
- In addition to MBNQA, there are also others 
national awards by other countries such as 
Canada, Australia, UK, Europe, New Zealand, 
Sweden, Brazil, Singapore, and Hong Kong and many 
other countries. Among the more renowned National 
Quality Awards are  - Deming Prize (in Japan) 
 - The European Quality Awards for Business 
Excellence  - HKMA Quality Award (Hong Kong)
 
  46MBNQA and other awards
- The criteria of the MBNQA award are the basis for 
organization self-assessment. In addition, the 
Criteria have 3 important roles in strengthen US 
competitiveness.  - To help improve organizational performance 
practices, capabilities, and results  - To facilitate communication and sharing of best 
practices information among US organization of 
all types  - To serve as a working tool for understanding and 
managing performance and for guiding planning and 
opportunities for learning. 
  472001 Criteria for Performance Excellence
- 2001 Categories/Items Point Values 
 - 1 Leadership 120 
 -  1.1 Organizational Leadership 80 
 -  1.2 Public Responsibility and Citizenship 40 
 - 2 Strategic Planning 85 
 -  2.1 Strategy Development 40 
 -  2.2 Strategy Deployment 45 
 - 3 Customer and Market Focus 85 
 -  3.1 Customer and Market Knowledge 40 
 -  3.2 Customer Satisfaction and Relationships 45 
 - 4 Information and Analysis 90 
 -  4.1 Measurement of Organizational 
Performance 50  -  4.2 Analysis of Organizational Performance 40
 
  482001 Criteria for Performance Excellence (2)
- 5 Human Resource Focus 85 
 -  5.1 Work Systems 35 
 -  5.2 Employee Education, Training, and 
Development 25  -  5.3 Employee Well-Being and Satisfaction 25 
 - 6 Process Management 85 
 -  6.1 Product and Service Processes 55 
 -  6.2 Support Processes 15 
 -  6.3 Supplier and Partnering Processes 15 
 - 7 Business Results 450 
 -  7.1 Customer Focused Results 115 
 -  7.2 Financial and Market Results 115 
 -  7.3 Human Resource Results 80 
 -  7.4 Supplier and Partner Results 25 
 -  7.5 Organizational Effectiveness Results 115 
 -   TOTAL POINTS 1000 
 
  49Reasons for success and failure in TQM
- Reasons for failures 
 - Lead of leadership 
 - Lack of involvement in senior management 
 - Lack of clear objective 
 - Product orientated rather than customer-driven 
 - Inflexibility of the organization 
 - Quality policy is ineffective
 
- Critical success factors 
 - Strong leadership and 
 - Clear understanding of the importance of quality 
from every levels of the organization  - Clear and concise objective 
 - Flexible in company structure 
 - Customer driven 
 - Effective execution of quality policy 
 - Continuous improvement 
 
  50Conclusions in TQM
- TQM is rather difficult to implement as no a 
specific policy and statement to follow  - The target is too perfect and never can be 
totally achieved  - TQM is a never ending exercise 
 - Leadership is very important 
 - Lack of leadership during every phase and 
particular at the start  - Leaders lack of understand of human nature (e.g. 
rewards, punishments, praise)  - Inconsistent with other leaders action 
 - Poor Leadership 
 - Only control subordinates rather then enhance the 
power  - Only direct and supervise rather than train and 
coach  - Do not learn from problems
 
  51Summary
- Difficulties in TQM 
 - Lack of management support and commitment 
 - Lack of resource 
 - Lack of knowledge 
 - Lack of prevention-based mentality 
 - Resistance to change 
 
- 6 principles in TQM 
 - Management leadership 
 - Leadership Strategy planning 
 - Customer satisfaction 
 - Customer / market focus 
 - Continuous improvement 
 - Management by fact 
 - Establish performance measure business result 
 - Process oriented 
 - Treat supplier as Partnership 
 - Total involvement of people 
 
  52Summary (2)
- Success factors in TQM 
 - Experience (effective use of quality tools and 
technique, understanding of the process, product 
and tools, experience and ownership)  - Resources (money, manpower, facilities, time) 
 - Management support (vitally important, 
empowerment of employee, appreciation of 
successful, open and honest communications)  - Training (Awareness training, designed to cater 
for different background of employee, follow-up 
program and evaluation)  
  53Summary (3)
- 7 basic quality tools in TQM 
 - Cause and effect diagram 
 - Check sheet 
 - Control chart 
 - Graph 
 - Histogram 
 - Pareto diagram 
 - Scatter diagram 
 
  54Summary (4)
MBNQA vs TQM
- The core of the MBNQA are in 7 categories 
 - 1.        Leadership 120 
 - 2.        Strategy planning 85 
 - 3.        Customer / Market focus 85 
 - 4.        Information analysis 90 
 - 5.        Human focus 85 
 - 6.        Process management 85 
 - 7. Business result 450 
 
- TQM 
 - Leadership Strategy planning 
 - Customer satisfaction 
 - Establish performance measure business result 
 - Treat supplier as Partnership 
 - Total involvement of people 
 - Process oriented
 
  55Case Study in TQM 
 56Background of KMB
- KMB headquarters and its operations and 
maintenance depots have all obtained ISO 9001 
certification  - Overall winner of the 2001 Hong Kong Management 
Association Quality Award  -  
 
  57Seven aspect of TQM in KMB
- Leadership 
 - Strategic Planning 
 - Customer and Market Focus 
 - Information and Analysis 
 - Human Resource Focus 
 - Process Management 
 - Business Results 
 
  58Leadership in KMB
- Leadership 
 - Group departments into three divisions 
 - Inter-related departments belong to same division 
 - Create Depot General Managers 
 - Create Strategic Planning Steering Committee 
 - Comments from Examiners 
 - Balance value for all stakeholders 
 - The management provides direction through its 
mission and core values  
  59Strategic Planning in KMB
- Strategic Planning 
 - Formulates strategic planning by utilizing the 
output of a SWOT analysis  - The strategic planning is documented in the 
5-Year Plan and reviewed each year  - Comments from Examiners 
 - Has a clear strategy 
 - The strategy deployment process is well defined 
and effectively communicated  
  60Customer and Market Focus
- Customer and Market Focus 
 - Places a high priority on identifying and meeting 
its customers expectations  - Customers can voice their opinions 
 - Carry out regular surveys 
 - Comments from Examiners 
 - KMB has used its survey results to effectively 
drive improvements in customer relations such as 
the upgrading of skills of employees  
  61Information and Analysis
- Information and Analysis 
 - Five key performance measurement by data from 
both internal and external sources  - Developed a range of in- house Information 
Technology Systems, e.g.Bus Maintenance Info. 
System  - Comments from Examiners 
 - Using an integrated system to collects and 
analyzes five categories of key performance 
measures  - Bus Maintenance Information System achieve less 
breakdowns  
  62Human Resource Focus
- Human Resource Focus 
 - Senior management has open communications with 
staff and Labor Unions Annual training plan  - Sponsorship available for job related training 
courses  - Comments from Examiners 
 - Teamwork and communication 
 - KMBs Medical centers take care of staff health 
and Technical and Bus Captain Training Schools 
deliver in-house training  
  63Process Management
- Process Management 
 - KMBs Headquarters, Traffic Department, and 
service and maintenance depots have all obtained 
ISO 9001 certification  - Comments from Examiners 
 - KMBs service design and delivery process 
includes tests on new routes and surveys of 
passengers to provide feedback for improvement 
  64Business Results
- Business Results 
 - KMB rates highly among transport service 
providers  - Growth in the number of passengers 
 - Number of breakdowns has continued to fall 
 - Comments from Examiners 
 - KMB has expanded its bus fleet and has increased 
both the amount of kilometers and capacity  - Since 1998 employee turnover has declined