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

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

2. 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

3. 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).

4. “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 excellence”Confucius

5. 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)

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

7. 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)

8. 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)

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

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

11. 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

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

13. When person does good deed When he or she didn’t have to, God looks down & smiles & says “For This moment alone it was worth creating world”

14. Characteristics of Organization Systematic Structure Distinct Purpose 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. People

15. Org Excellence • Key to Competitiveness • Cost • Quality • Speed • Value

16. Organizational Excellence through Competitiveness using Quality as a Tool

17. Quality is a Habit not an Act. Aristotle

18. What is Quality Classical Idea Q: Degree of conformance to a standard (As a product or service) Product or Service Conformance Specification or Rule Modern Idea Q: User’s Satisfaction or fitness for use Product or Service Give Satisfaction Specification or Rule Product or Service Build In Reflect

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

20. What is Quality Customer Expectations Meet/exceed Freedom from deficiency Features Doing the things right Doing the right thing

21. CUSTOMER-DRIVEN QUALITY • A simpler, more powerful definition came up…. “ Quality is meeting or exceeding customer expectations ”

22. 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. Hummurabi’s Code – 1730 BC penalties for sub standard stuff Necropolis – Achievement of requirement standard was attested to by the application by suptd mark.

23. 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.

24. 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”.

25. 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

26. 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.

27. Qualitymeanspleasing consumersnotjust protecting themfrom annoyances

28. 1. DEFECTS / REJECTS Basic Quality Function 2. COMPLAINTS 3. CONSISTENCY 4. PRECISION 5. ACCURACY 6. VARIATION

29. Quality Control • Technique to Control & Check Quality

30. 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”.

31. QUALITY ASSURANCE THERE ARE NO FACTS ONLY INTERPRETATIONS -FRIEDRICH NIETZSCHE • Any action directed towards providing consumers with products (goods & services) of appropriate quality

32. 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)

33. 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

34. PRINCIPAL QUALITY DIMENSIONS • Performance • Features • Reliability • Conformance • Durability • Serviceability • Aesthetics • Perceived quality

35. PRINCIPAL QUALITY DIMENSIONS • Performance: • a product’s primary operating characteristics. Example: A car’s acceleration, braking distance, steering and handling

36. 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

37. PRINCIPAL QUALITY DIMENSIONS • Reliability: • the probability of a product’s surviving over a specified period of time under stated conditions of use. A car’s ability to start on cold days and frequency of failures are reliability factors

38. PRINCIPAL QUALITY DIMENSIONS • Conformance: • the degree to which physical and performance characteristics of a product match pre-established standards. • car’s fit/finish, freedom from noises can reflect this.

39. 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

40. PRINCIPAL QUALITY DIMENSIONS • Serviceability: • speed, courtesy, competence of repair work. • auto owner -access to spare parts.

41. PRINCIPAL QUALITY DIMENSIONS • Aesthetics: • how a product looks, feels, sounds, tastes, or smells. • car’s color, instrument panel design and “feel of road” – • make aesthetically pleasing

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

43. 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

44. 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

45. 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)

46. 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

47. VALUE-BASED CRITERIA • “Quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.”

48. 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

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

50. 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