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Quality Today [TQM] - Kamran Khan [chromeis.com]

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Significance of Quality (QMS) in an industry (not specific to particular industry)
This outlines significance of implementation of Total Quality Management

Download latest version from: http://chromeis.com/TQM

Outline:
What is Quality
Quality Dimensions & Obstacles
Cost of Quality
Productivity Enhancement
Leadership for Quality
ISO and other Models
Total Quality Management
Benchmarking vs Competitive Analysis
Statistical Process Control
Check Sheet and other tools
Six-Sigma

Published in: Business, Technology
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Quality Today [TQM] - Kamran Khan [chromeis.com]

  1. 1. Quality Today Presented by: Kamran Shaukat Ali Khan chromeis.com/TQM
  2. 2. Download latest version of this File !  This file was downloaded from: chromeis.com/TQM  Download latest version of the slides from above URL.  Feel free to distribute the file and share knowledge  The file is available as Read-Only and does not require password to open.  View in Presentation Mode – the slides animation is designed purposely to nurture audience understanding  Direct your feedback to above URL or to author at kamran.khan@chromeis.com Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute 2
  3. 3. 3 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement  Leadership for Quality  ISO and other Models  Total Quality Management  Benchmarking vs Competitive Analysis  Statistical Process Control  Check Sheet and other tools  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  4. 4. 4 ABSTRACT -- what means ‘quality’ today? -- what sneaks quality in a product -- Myths about quality -- using modern tools to establish quality discipline Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  5. 5. 5 INTRODUCTION  Originators of Quality?  Why Quality (Significance)  …  An important determinant of business profitability  Positively & significantly related to higher return on investment Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  6. 6. 6 An innovation happens to CREATE or SERVE the market NEED Invention (never existed) Imitation (copying) Technology Lead (e.g. Pentium Processors) Innovation (something new) Market Lead (e.g. Common Utensils) Why Quality…? Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  7. 7. 7 Quality Today What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement  Leadership  ISO and other Models  Total Quality Management  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  8. 8. 8 Definitions  Conformance to Specifications  Conformance to Standards  Freedom from defects  A Degree of Excellence  Fitness for intended Purpose/Use … Obsolete Definitions Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  9. 9. 9 Definitions  Customer Satisfaction  Quality is the totality of characteristics of an entity that bears on its ability to satisfy the stated or implied needs. … Today’s Definition Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  10. 10. 10 Means many things to many people - it is usually associated with cost.  Fitness for purpose – J M Duran  Conformance to requirements  Providing customers, both internal and external, with products and services that fully satisfy their negotiated requirements. – P B Crosby  The degree of excellence of a thing. – Concise Oxford Dictionary  Totality of features and characteristics of a product or service that bears upon its ability to satisfy stated or implied needs. – International Standards Organisation What is Quality? Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  11. 11. 11 What is Quality? …cont.  Quality is a predictable degree of uniformity and dependability, at low cost and suited to the market. – Dr Edwards Deming  Quality is meeting the (stated) requirements of the customer- now and in the future. – Mike Robinson  Conformance quality - conforming to specifications; having a product or service that meets predetermined standards.  Requirements quality - meeting total customer requirements; having perceived attributes of a service or product that meet or exceed customer requirements. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  12. 12. 12 What is Quality? …cont.  Quality is the total composite product and service characteristics of marketing, engineering, manufacturing and maintenance through which the product and service in use will meet the expectations by the customer – Armand Feigenbaum  Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs – ISO 8402 : 1994 Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  13. 13. 13 Definition:  Customer Delight … Tomorrow’s Definition Customer Delight Customer Satisfaction Bugs free – Fulfilling Req. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  14. 14. 14 Basic Quality & Excitement Quality are both UNSPOKEN Basic Quality Excitement Quality More About Quality  Un-stated Requirements  Stated Requirements  Additional features as pleasant surprises to delight customer Performance Quality Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  15. 15. 15 Satisfy the internal as well as external customers Emphasis on Improvement rather than Maintenance Encourage Collaboration rather than competition Recognize Team Effort Communication Improvement Establish a System Train & Coach rather than supervise …and a whole lot more!! Empower Rather than Controlling subordinates Strong Commitment to Quality Prefer Quality over Price Emphasis: Prevention is better than Detection Learn from Problems (PDSA) What to do ? Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  16. 16. 16 Quality Check Theory – Shewhart:1931 58.4 58.6 58.8 59 59.2 59.4 59.6 59.8 60 60.2 1 2 3 4 5 6 7 8 59-60 is within Quality but above trend is threatening Req. 59-60 ml of medicine to be filled in bottle. Refer to graph and observe the statistics Identify 2 possible concerns regarding Quality Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  17. 17. 17 Quality Loss Function – Taguchi: 1950  Customer Requires delivery in 4-6 Days  Actual Delivery Takes: 4 Days in routine  Actual Delivery Took: 5 Days  Customer Requirement is being met  But Quality has been compromised Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  18. 18. 18 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement  Leadership for Quality  ISO and other Models  Total Quality Management  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  19. 19. 19 Dimensions of Quality – Gravin  Performance  Features  Conformance  Reliability  Durability  Service  Response  Aesthetics  Repute : Stated Req. : Additional offering : To Standards/ISO/CMM : Consistency in performance : Life time of product/service : After sale support/behavior : Curtsey & Delivery time etc : Looks & beautifying things : brand name/advertising Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  20. 20. 20 Meaning of Quality The meaning of Quality Consumers PerspectiveProducts Perspective Quality of Conformance ………………………… Conformance to specifications + Cost Quality of design ………………………… Quality Characteristics + Price Fitness for consumer use Production Marketing Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  21. 21. 21 Obstacles to Quality Different hindrances in achieving Quality Misconception: Additional cost Adherence Poor Reading habits Resistance to Change Poor Writing habits Inertia in accepting Quality Standardization is absolute Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  22. 22. 22 Rehabilitation and Cultural Change The Clues are there!  Official Lifestyle Change (+ve)  Top Management Involvement  Instill the importance of Quality (Quality Circle)  Everyone’s responsibility  Concept of Internal & External customers  Quality at source (Reduced Inspection)  Focus on using Strength rather then weaknesses  Quality consistency (high priority rather than level of output) Trainings for fresh “Train the Trainer” Individual Development Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  23. 23. 23 Strategic Implications of QMS  Quality is key to effective strategy  Clear strategic goal, vision, mission  High quality goals  Operational plans & policies  Feedback mechanism  Strong leadership Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  24. 24. 24 Quality Today  What is Quality  Quality Dimensions & Obstacles Cost of Quality  Productivity Enhancement  Leadership for Quality  ISO and other Models  Total Quality Management  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  25. 25. 25 Cost of Quality  Cost of achieving good quality  Prevention  Appraisal  Cost of poor quality  Internal failure costs  External failure costs Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  26. 26. 26 Quality is Free – Crosby:1950 Preventing: Cost of poor quality  Prevention Cost  Appraisal Cost  Internal Failure Cost  External Failure Cost  Myths  High Cost  Overhead  Wastage of Money 0 5 10 15 20 25 30 Cost Poor Q. Cost Time/ Quality Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  27. 27. 27 Quality Index Example Quality Costs $ 2004 2005 2006 2007 Prevention $ 27,000.00 41,500.00 74,600.00 112,300.00 Appraisal $ 155,000.00 122,500.00 113,400.00 107,000.00 Internal failure $ 386,400.00 469,200.00 347,800.00 219,100.00 External failure $ 242,000.00 196,000.00 103,500.00 106,000.00 Total $ 810,400.00 829,200.00 639,300.00 544,400.00 Accounting: Sales $ 4,360,000.00 4,450,000.00 5,050,000.00 5,190,000.00 Mfg. Costs $ 1,760,000.00 1,810,000.00 1,880,000.00 1,890,000.00 Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  28. 28. 28 Quality Index Total quality Cost *100/base $810,400 *100 / 4,360,000 = 18.58 Year Sales Cost 2004 18.58 46.04 2005 18.63 45.18 2006 12.66 34.00 2007 10.49 28.80 Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  29. 29. 29 Quality Indexes  Labor Index quality cost / labor hours  Cost Index quality cost / manufacturing cost  Sales Index quality cost / sales  Production Index quality cost / units produced Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  30. 30. 30 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality Productivity Enhancement  Leadership for Quality  ISO and other Models  Total Quality Management  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  31. 31. 31 Quality and Productivity  Productivity = output / input  Fewer defects increase output  Improved Quality reduces inputs Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  32. 32. 32 Productivity Enhancement Techniques Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  33. 33. 33 How Should I…? Adjusting Perceptions… Commitment Continuous Improvement No Expectation of Quick Reward Enabling Vs. Restricting Organized Team Synergy Leadership Outcome Empowerment Innovation Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  34. 34. 34 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement Leadership for Quality  ISO and other Models  Total Quality Management  Six-Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  35. 35. 35  “Leadership is the ability to inspire people to make a total, willing and voluntary commitment to accomplishing or exceeding organizational goals” Leadership and Quality Management  Understand Employees Needs  Understand Individuals’ Beliefs Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  36. 36. 36 Leadership Characteristics  Walk the talk  Persuasiveness  Positive Influence  Good Communication  Positive Role Model  Balanced Commitment Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  37. 37. 37 Types of Leadership  Delegating  Assigns responsibilities  Assigns authority  Provides minimal input  Verifies work  Recognizes employees for accepting responsibility  Directing  Engages in unilateral decision making  Expects employees to follow order  Give information about what to do  Gives information about how to do  Gives information about why it should be done  Recognizes employees for following instructions Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  38. 38. 38 Types of Leadership Styles  Participative  Provides guidance  Gets involved when necessary  Accepts works and decisions of employees  Helps others analyze and solve problems  Recognizes employees for seeking support  Consultative  Seeks input, advice and suggestions  Makes final decision  Recognizes employees for their contribution  … Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  39. 39. 39 Misconceptions about Leaders  Leaders Exists at the top  Leaders are born not made  Leaders are Charismatic  Leadership is rare Skill  Leaders don’t need to be learners Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  40. 40. 40 Leadership for Quality  Customer (both internal & External) Focus  Obsession with Quality  They empower rather than control Subordinates  Emphasize collaboration rather than competition  Regular & Continuous education & Training programs  Try to improve communication (continuously)  Looking for Faults in a system not specific Problem  Select suppliers on the basis of quality and not price  Teamwork  Establish organizational system to support quality effort Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  41. 41. 41Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  42. 42. 42 Habits of Highly Effective People  Proactive not reactive  There is nothing I can do ::Lets look at our alternatives  I must ::I prefer  She makes me so mad ::I control my own feelings  Begin with the End in Mind  Never compromise with honesty  Keep a sense of humor  Exercise daily (healthy body  healthy brain)  Never fear mistakes  Go through leadership articles daily (regularly read about world leaders)  Put First things First  Think Win-Win  First understand, Then be understood  Synergy  Stop blaming – take responsibility Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  43. 43. 43 Employees & Quality Improvement  Quality circles  Employees’ suggestions  Process improvement teams  Self-managed work teams Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  44. 44. 44 The Quality Circle Process Organization 8-10 members same area moderator Problem Analysis Causes & effect data collection & analysis Training Group processes Data collection Problem analysis Presentation Implementation Monitoring Solution Problem results Problem ID List alternatives Consensus Brainstorming Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  45. 45. 45 Customer Orientation Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  46. 46. 46 Customer & Quality Management Customers can be:  Internal Customers  What is needed from me?  What is use of my output?  Gaps between what is needed & what one gets  External Customers (customer defined values)  Performance  Features  Service  Warranty  Price  Reputation Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  47. 47. 47 Customer value Analysis (CVA)  Customer Value Analysis:  Determine attributes customers value most  Rate the relative importance of Attributes  Assess your organization performance against these attributes  Let customers Compare these attributes with your competitors  Repeat the process periodically  Issues in hand:  Understand your Customer  Identify customers’ needs  Continuous communication with your customer Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  48. 48. 48 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement  Leadership  ISO and other Models  Total Quality Management  Six Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  49. 49. 49 The Four Absolutes of Quality  Quality is conformance to requirements - Do what you said you would do  The system for producing quality is NOT prevention, NOR is it appraisal - Solve problems permanently  The performance standard is ZERO defects - Right first time and every time  Quality is measured by the cost of Non-Conformance - Repair / re-work is paid for out of profits Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  50. 50. 50 Traditional Way of Quality Control  Takes place  During  And at the end of the process  Three Main points where inspection is done  When raw material is purchased  When production is going on  When product ready to be dispatched  Disadvantages:  Does not add value  Is not timely  Done by Quality Control Inspection Team Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  51. 51. 51 ISO 9000 Categories  ISO 9001 – Suppliers and Designers  ISO 9002 – Production  ISO 9003 – Inspection and Test  ISO 9004 – Quality Management  ISO 14000 – Environmental Hazards  ISO 27001 – Security Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  52. 52. 52 Implications of ISO 9000  Adopted by U.S. Navy, DuPont, 3M, AT&T & others  Certification required by many foreign firms  U.S. firms export > $100 billion/yr Europe  Truly international in scope  ISO Accreditation  European registration  3rd party registrar assesses quality program  European Conformity (CE) mark authorized  United States 3rd party registrars  American National Standards Institute (ANSI)  American Society of Quality Control (ASQC)  Registrar Accreditation Board (RAB) Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  53. 53. 53 International Organization for Standardization  International standardization began in the electro- technical field  ISO’s Principal activity is to develop technical Standards  Network of the national standards institutes of 156 countries  ISO is a non-governmental organization Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  54. 54. 54 Members of ISO  Member Bodies  Full members  Each have one vote  Correspondent Members  Pay reduced membership fees  Do not yet have a fully developed national standards activity  Are entitled to participate in any policy or technical body as observers  No voting rights  Subscriber Members  Are institutes from countries with very small economies Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  55. 55. 55 The hallmarks of the ISO brand  Equal footing  Each participating member in ISO has one vote  Voluntary  As a non-governmental organization, ISO has no legal authority to enforce their implementation  Market-driven  ISO develops only those standards for which there is a market requirement  Consensus  ISO incorporate any changes after consent of members  Worldwide  Worldwide operations – worldwide members  Global Industries  Having members from various industries worldwide to make is generic model Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  56. 56. 56 ISO 9000 & ISO 14000  Generic Management System Standards  Generic means that the same standards can be applied  to any organization, large or small  whatever its product - including whether its "product" is actually a service  in any sector of activity  whether it is a business enterprise, a public administration, or a government department  Management system refers to what the organization does to manage its processes, or activities  ISO 9000 is concerned with “Quality Management”  concerns with: customer's quality requirements  applicable regulatory requirements  aims to: enhance customer satisfaction  achieving continual improvement of its performance in pursuit of these objectives  ISO 14000 is Primarily concerned with “Environment Management” Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  57. 57. 57 Quality Management Principles  Customer Focus  Leadership  Involvement of People  Process approach  System approach  Continual improvement  Factual approach to decision making  Mutual beneficial supplier relationship Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  58. 58. 58 Quality Today  What is Quality  Quality Dimensions & Obstacles  Cost of Quality  Productivity Enhancement  ISO and other Models  Total Quality Management  Six Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  59. 59. 59 To Accompany Ritzman & Krajewski, Foundations of Operations Management © 2003 Prentice-Hall, Inc. All rights reserved.  Product Design  Process Design  (Purchasing)  Benchmarking  Problem Solving Tools TQM Wheel Customer satisfaction Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  60. 60. 60 TQM Principles 1. Top management leadership (Long term) 2. Customer Focus 3. Quality as a strategic issue 4. Statistical Quality Control 5. Shared problem solving 6. Continuous Improvement (business and production Process) 7. Training & education for all employees 8. All employees responsible for quality Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  61. 61. 61 TQM: Deming Philosophy PlanPlan DoDo CheckCheck ActAct DemingDeming WheelWheel Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  62. 62. 62 Deming’s 14 Points 1. Create and communicate to all employees a statement of the aims and purposes of the company. 2. Adapt to the new philosophy of the day; industries and economics are always changing. 3. Build quality into a product throughout production. 4. End the practice of awarding business on the basis of price tag alone; instead, try a long-term relationship based on established loyalty and trust. 5. Work to constantly improve quality and productivity. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  63. 63. 63 Deming’s 14 Points 6. Institute on-the-job training. 7. Teach and institute leadership to improve all job functions. 8. Drive out fear; create trust. 9. Strive to reduce intradepartmental conflicts. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  64. 64. 64 Deming’s 14 Points 10. Eliminate exhortations for the work force; instead, focus on the system and morale. 11. a- Eliminate work standard quotas for production. Substitute leadership methods for improvement. b- Eliminate MBO. Avoid numerical goals. Alternatively, learn the capabilities of processes, and how to improve them. 12. Remove barriers that rob people of pride of workmanship 13. Educate with self-improvement programs. 14. Include everyone in the company to accomplish the transformation. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  65. 65. 65 Benchmarking  Standard or point of reference  “Benchmarking is a systemic method by which organization can measure themselves against the best industry Practices”  “Benchmarking is the process of comparing and measuring an organization’s operations or its internal processes against those of a best-in-class performer from inside or outside its industry” Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  66. 66. 66 Benchmarking  Continuous, systematic process that measures products, services and practices against those of industry leaders. Basic Steps  Planning  Analysis  Integration  Action Planning  Determine what to Benchmark  Form a benchmark team  Identify benchmarking partners  Determine the measures of performance  Collect the data Analysis  Determine the gap between your firm’s current performance and that of the benchmark firms  Identify the causes of significant gaps Integration  Establish goals  Obtain the support of managers who must provide resources for accomplishing the goals Action  Develop action plans and team assignments  Implement the plans  Monitor progress and recalibrate the benchmarks as improvement is made Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  67. 67. 67 Types of Benchmarking  Process benchmarking - identifying and observing the best practices from one or more benchmark firms.  Financial benchmarking - performing a financial analysis and comparing the results in an effort to assess overall competitiveness and productivity.  Performance benchmarking - allows the initiator firm to assess their competitive position by comparing products and services with target firms.  Product benchmarking - the process of designing new products or upgrades to current ones. This process can sometimes involve reverse engineering which is taking apart competitors products to find strengths and weaknesses.  Strategic benchmarking - involves observing how others compete. This type is usually not industry specific, meaning it is best to look at other industries.  Operational benchmarking - embraces everything from staffing and productivity to office flow and analysis of procedures performed.  Functional benchmarking - focus single function in order to improve the operation of that particular function. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  68. 68. 68 What is our Performance level? How do we do it? What are others Performance level? How did they get there? Creative adaptation Breakthrough Performance Key Points:  It is a mean of identifying processes that require major change  Done between consenting companies (which may or may not be competitors)  Compares your process or practice with target company to find “secrets of success”  Equally beneficial for large and small companies Benchmarking Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  69. 69. 69 Benchmarking vs. Competitive analysis  Competitive analysis involves comparing competitor’s product against yours.  While Benchmarking involves comparing how product is engineered, manufactured, distributed and supported. Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  70. 70. 70 Benchmarking Process  Obtain management commitment  Understand Current Performance  Identify your strong and weak processes and document them (Baseline your own processes)  Decide what to benchmark (Find out high impact areas i.e. Critical success factors)  Form benchmarking teams  Research the best-in-class  Collect data  Analyze the data and establish the gap  Plan action to close the gap/surpass  Implement change  Monitor Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  71. 71. 71  Will and Commitment  Vision/Objective link  Goal to become the best (& simply not to improve)  Openness to new ideas  Process Documented  Understanding of existing Processes, Products, Services and customer needs  Process Analysis skills  Research, Communication and Team building skills Prerequisites to Benchmarking Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  72. 72. 72  Internal Focus  Unrealistic timetable  Poor team composition  Settling for ordinary-in-class  Insensitivity to Partners  Limited Top Management Support Obstacles to Benchmarking Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  73. 73. 73 Statistical Process Control  Take periodic samples from process  Plot sample points on control chart  Determine if process is within limits  Prevent quality problems Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  74. 74. 74 Statistical Process Control  Monitors standards, makes measurements and take corrective actions as the product or service is being produced.  Stats  Collection  Tabulation  Analysis  Presenting  For Decision making  Population and Sample  It is a technical tool  Controls the process  Has the capability to improve it Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  75. 75. 75 SPC: Variation  Common Causes  Variation inherent in a process  Can be eliminated only through improvements in the system  Special Causes  Variation due to identifiable factors  Can be modified through operator or management action  Types of Data Collected:  Attribute data  Product characteristic evaluated with a discrete choice Good/bad, yes/no  Variable data  Product characteristic that can be measured Length, size, weight, height, time, velocity Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  76. 76. 76 Development of Control Chart  Based on in-control data  If random causes present discard data  Correct control chart limits  Scale [brackets]  USL & LSL  Defects or variance Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  77. 77. 77 Check Sheets  A Process is in Control if:  No sample points outside limits  Most points near process average  About equal number of points above & below centerline  Points appear randomly distributed  Remember:  Ensures that data is collected carefully and accurately  Creativity is important in designing of Check sheet  … Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  78. 78. 78 Tools to Measure Quality  Check Sheets  Scatter Diagram  Cause & Effect Diagram  Pareto Chart  Flow Charts  Histograms  Process Flow Diagram PopulationandSample Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  79. 79. 79 Cause and effect Diagram  Also called  Ishikawa diagram after Dr. Kaoru Ishikawa  Fishbone diagram (because of its shape)  C & E are used to find out either the bad effect or good effect  Team participation Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  80. 80. 80 People Material Work Methods Govt. Reg.EquipmentEnvironment Quality Causes Effects C&E Diagram: Construction Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  81. 81. 81 House Paint Peeling Material Work Method EnvironmentEquipment brush dirty bad bristles humidity Air pollution Temperature Acid Rain C&E Diagram: House Paint Peeling Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  82. 82. 82 C&E Diagram: Procedure  Identify the Effect or Quality Problem  Place it on the right side of a piece of paper  Identify the major causes  Participation by every member  Quantity of ideas rather than quality of ideas  Criticism of idea not allowed  Create a solution oriented atmosphere  Let the ideas incubate for a period of time Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  83. 83. 83 Pareto Diagram: Procedure  Determine the method of classifying the data by problem, cause, non-conformity etc.  Decide if Rupees, Frequency or both are to be used to rank the characteristics  Collect data for appropriate time interval or use historical data  Summarize the data and rank order categories from largest to smallest  Construct the diagram and construct the vital few Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  84. 84. 84 Pareto Diagram  First used for economic theory by Alfredo Pareto  “Vital few” and “useful many”  Examples  Few customers account for majority of sale  Few suppliers account for majority of rejected parts  Few items account for majority of inventory cost Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  85. 85. 85 NonconformityFrequency Painting Welding Molding Packing 49% 31% 14% 6 % Pareto Diagram: Constructing Packing Painting Welding Molding 21% 53% NonconformityRupees Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  86. 86. 86 Process Flow Diagram  Shows flow of product or service as it moves through various processes  It becomes easy to visualize the entire system  Identifies potential trouble spots  Measure of Dispersion  Range  R= X (highest) - X (lowest)  Standard Deviation  Measure of Central Tendency  Average  Mean  Median  Mode Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  87. 87. 87 Production exec Telephone Fax Letter Log In Notify Customer -delivery date Schedule Production Inventory Hold Contract Review Credit Check PFD – Order Entry Activity Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  88. 88. 88 Defining Quality Quantifying…  “Degree to which a set of inherent characteristics fulfills requirements”  Q = P/E  Where Q is quality  P is Performance  E is Expectations Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  89. 89. 89 Where to apply QA  Design  Process  Human  Deming’s Philosophy:  “inspection with the aim of finding bad ones and throwing them out is too late, ineffective and costly. Quality comes not from inspection but improvement of the process” Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  90. 90. 90 Quality Eras Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  91. 91. 91 Early 1900’s: Tailorism  The philosophy of job decomposing which separated the tasks of the craftsman into deskilled isolated operations  The links between Customer/ Design/ Manufacture/ Inspection were broken craftsman inspection product product inspection Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  92. 92. 92 History (cont..)  1920’s: Bell Telephone Labs  A group was formed to develop new theories and methods of inspection to improve and maintain quality  This is where the term Quality Assurance was first used  Developed  Control Charts  Sampling Techniques  Economics of Quality  1930’s: First book on Quality Control  WW-2: US military adopts a system of statistical sampling and the imposition of strict standards to be met by suppliers. - time Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  93. 93. 93  1950’s: Deming and Juran’s introduction to Japan of Statistical Quality Control Techniques  juran.com/drjuran.html History (cont..) Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  94. 94. 94 History (cont..)  Industrial Revolution:  applied to the manufacture of rifles for the US Army  Made high demands on the manufacturing process  Quality Assurance imperative (especially for large buyers) Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  95. 95. 95  1960’s and 70’s : Increasing Japanese domination of large sectors of world trade in manufacturing  1972 Institute of Quality Assurance (IQA) established History (cont..)  Early 90’s: Japan still increasing its domination of manufacturing sectors and services; with one of the fastest growing economies  The West in recession and focusing heavily on quality systems Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  96. 96. 96 Quality is free - the optimum is zero Philip Crosby defects. W. Edwards Deming Deming’s 14 points. How to use statistics. Armand Feigenbaum Total quality control. Joseph Juran Quality as fitness for use, rather than conformance to specification. Genichi Taguchi Loss function. Minimize variation. Kaoru Ishikawa Quality circles and cause and effect diagrams. More Quality Gurus Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  97. 97. 97 Problem Solving… Different Approaches…  Juran’s Trilogy  Planning  Control  Improvement  PDSA (Shewhart’s and Deming)  Kaizen (Japanese approach)  Reengineering  Six Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  98. 98. 98 Juran’s Trilogy  Plan  Identify customers (internal/external)  Discover the Needs  Develop Product/Service features  Develop Process able to produce product/service features  Control  Determine what to be controlled and their unit of measure  Set goals for the control  Measure actual performance  Compare actual performance to goals  Act on difference  Improvement  Attain levels of performance that are higher than current levels  Establish Quality Council  Adopt Problem Solving Methods Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  99. 99. 99 Act Plan DoStudy Identify the opportunity Analyze the Process Develop the Optimal Solution Implement Study the results Standardize The solution Plan for future PDCA / PDSA Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  100. 100. 100 PDCA / PDSA  Identify the Opportunities  Identify the problems  Prioritize the Problems  Form a team  Define the Scope (sphere of problem observed)  Give clear authority, objective, scope, composition and direction and control to the team  Analyze the Current Process  Establish Process Flow Diagram  Define Target Performance Measures  Analyze the available data  If needed, change data collection tools/techniques  Determine root cause, using different techniques Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  101. 101. 101 PDCA / PDSA  Develop the Optimal Solution  Creativity and Brainstorming needed  One of the following may be adopted  Creating new process  Combine different processes  Modify the existing process  Implement Changes  Preparing the implementation plan  5Ws and How  Obtain Approval  From the Quality Council  From the departments where change will be implemented  Implementing the Process Improvements Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  102. 102. 102 PDCA / PDSA  Study the Results  Monitor the change  Evaluate the Change  Study the effectiveness of the improvement Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  103. 103. 103 Kaizen 5 S…  Seiri : Proper Arrangement  Seiton : Put things in order  Seiso : Clean up  Shiketsu : Personal Cleanliness  Shitsuke : Discipline  Kai: “change”  Zen: “good” Kaizen Check List…  Personnel  Work techniques  Work Methods  Procedures  Time  Facilities  Equipment  Tools  Material  Plant layout  Paradigms (mind sets) Kaizen involves:  People  Processes  Products Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  104. 104. 104 Quality Today  What is Quality  Quality Dimensions& Obstacles  Cost of Quality  ISO and other Models  Total Quality Management  Six Sigma Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  105. 105. 105 Quality Improvement The Pursuit of QUALITY is a JOURNEY not a DESTINATION! Where are you; on your STARTING blocks? QUALITY starts here and NOW! Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute
  106. 106. 106 Six-Sigma – What is it?  Six Sigma is a business management strategy, originally developed by Motorola, that today enjoys wide-spread products in diversified sectors of industry.  Six Sigma seeks to identify and remove the causes of defects and errors in manufacturing and business processes.  It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts" etc.) who are experts in these methods.  Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase)  Innovation Algorithm DMAIC (Define-Measure-Analyze-Improve-Control) Design for Six Sigma Algorithm DMADV (Define-Measure-Analyze-Design-Verify)  (DFFS) Makes Integrative Use of: Various strategies and tools from Statistics, QMS, Business, Engineering etc Quality Today (TQM) - Kamran Khan – ChromeIS.com/institute

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