Total Quality Management in the New Century

The Evolution of Quality

Q Concept 1: Fitness to Standard Q Concept 2: Fitness to Use Q Concept 3: Fitness to Cost Q Concept 4: Fitness to Latent Requirements

Quality Road Map

Product Issues
Fitness to Standard

Market Issues

Fitness to Use
Fitness to Standard Fitness to Latent Requirements

Future of Fitness or Quality

Q Concept 1: Fitness to Standard Q Concept 2: Fitness to Use Q Concept 3: Fitness to Cost Q Concept 4: Fitness to Latent Requirements Q Concept 5: Fitness to Corporate Governance Q Concept 6: Fitness to Societal or Global Environment

What is quality ?
TQM Total Quality Management
QA Quality assurance QC
Inspection QC

TQM: Total Quality Management QA: Quality Assurance

TQM
QA

QC: Quality Control Inspection

What is you measure is what you manage.

There is a very little agreement on what constitutes quality. Masaaki Imai.

Evolution of Quality Concepts and Methods

1950 1960 Fitness to standard
standardization statistical process control inspection market research cross-functional involement

QC circle 7 QC steps, 7 QC tools = Improvement methods

Fitness to use

1970
1980 1990 2000

Fitness of cost

QFD 7 management tool

Fitness to latent requirement Fitness of corporate culture Fitness for societal and global environment Customer Focus

Company Focus

Four Revolutions of Management Thinking in TQM

Focus on customers

TQM activities
Continuous improvement Total participation

Societal networking

Four levels of quality management

Level 3: Prevention Level I: Inspection
Quality through inspection

Level 4: Perfection
End customer orientation & superior service
Cultural relignment

Level 2: Quality assurance

Improvement of process stability
Start of worker involvement

Process capability Supplier integration

Little quality conciousness and know-how

Customer Quality Assurance

Customer Feedback System

Strategic Plan
Strategic Market Analysis

Business Plan

Product design & Planning

Us

Competitive analysis
Competitor

Time frame
Current

Product Price Delivery Quality Dissatisfy

Ongoing

A P CD

Process Owner

Act:
Adopt Abandon Adjust

Identify Targets & Goals

Act Plan
Review Progress:

Identify Strategies to achieve Goals Train in identified strategies

Check Do

Against the Targets & Goals

Undertake Within the improvement Activity strategy

ISO-9000, Reengineering, and TQM

Identify A Process Identify Objectives & Outputs of the Process Standardize the Process Flowchart & Document the Process Create manuals, Procedure & Training

ISO-9000 REENGINEERING
Redesign All Process

TQM
Analyses the Process & Cause Monitor the Process

Identify Key Processes

Satisfy
Yes Yes

No

Improve the Process & Prevention of Recurrence Periodic Review & Report

Fitness to STANDARD
What is standard ? How is standard set ? How is standard used ?

STANDARD
Standard

is degree of excellence. Standard serves as a basis for comparison. Standard is a minimum requirement. Standard is a model for imitation.
Standard

is a benchmark of achievement which is based on a desired level of excellence.

Oxford dictionary

STANDARD
is

an agreement established for an object, performance, capability, arrangement, state, action, sequence, method, procedure, responsibility, duty, authority, way of thinking, conception, etc. for the purpose of unification and simplification so that profit or convenience may be obtained with fairness among the people concerned.
Japan Council on Industry

Level of Standard
Level

of acceptability or minimum standard.

Degree

of excellence or desirable or optimal standard.

Donabedian. 1982

Type of Standard

Structure

standard Process standard Outcome standard

Donabedian. 1982

Focus of Standard
Good

manufacturing practice Clinical practice guideline Practice standard

How is a standard set ?

Collective

judgement; the gold

standard Value based Dynamic VS Static

How is a standard used ?

Self-Assessment Inspection

by authority bodies Accreditation

Standard or Accreditation Around the World

National
US,

accreditation program:

Canada, Australia, & UK

Government
Spain,

legislation:

China, & Latin America France & Malaysia

WHO/SHS/DHS/93.2

Inspection
Salvage

Sorting, grading, reblending

Corrective actions

Identify sources of non-conformance

Quality Control
Develop quality manual Process performance data Self-inspection Product testing Basic quality planning Use of basic statistics Paperwork control

Quality Assurance
Quality

system deployment Advanced quality planning Comprehensive quality manuals Use of quality cost Involvement of non-production operation Failure Mode and Effect Analysis Statistical process control

TQM:Total Quality Management

Policy

deployment Involve supplier & customers Involve all operation Process management Performance measurement Teamwork Employee involvement

The Road to Quality: Organizational Analysis Model

Performance measures Quality guides
Market share Customer satisfaction Customer feedback Direction Net profit Return on equity

Strategy Structure

Continuous improvement Team

Manager to worker ratio

Absenteeism Turnover Boredom Return on assets Return on people

Motivation

Employees Tools

Productivity

The Malcolm Balridge, Health Care Pilot Criteria

2.0 Information & Analysis

System Goal 7.0 Patient Satisfaction

Driver
1.0 Leadership

3.0 Strategic Planning 4.0 HRD & Management

Progress
6.0 Organaizational Results

5.0 Process Management

Examination Items
1. 2. 3. 4. 5. 6. 7. Customer satisfaction Human resource utilization Quality assurance of services Quality results Leadership Strategic quality planning Information & analysis 30% 15% 15% 15% 10% 9% 6%

(Malcolm Baldrige National Quality Award Criteria)

Beyond TQM
Increase effectiveness

Stage 4: Quality is key to customer value management (Market leader)

Customer value learning and innovative organization. Be customer/market-driven

Stage 3: Market-perceived quality and value VS competitors (Market focus)

Stage 2: Customer satisfaction (External focus) Stage 1: Conformance quality (Internal operation)

Get close to market Use customer value analysis Be market-driven

Get close to customer Understand needs & expectations Be customer-driven

Conformance to requirement Do it right at the first time Reduce reject & rework

Customer value management

TQM

Strategy Quality

Satisfy