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Total Quality Management in the New Century

Total Quality Management in the New Century Assoc Prof Ong - arj Viputsiri Chulalongkorn Medical School, 9 August 2004 Bureau of Health Promotion, Dept of Health, MOPH The Evolution of Quality Q Concept 1 : Fitness to Standard Q Concept 2 : Fitness to Use

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Total Quality Management in the New Century

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  1. Total Quality Management inthe New Century Assoc Prof Ong-arj Viputsiri Chulalongkorn Medical School, 9 August 2004 Bureau of Health Promotion, Dept of Health, MOPH

  2. 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

  3. Quality Road Map Product Issues Market Issues Fitness to Standard Fitness to Use Fitness to Standard Fitness to Latent Requirements

  4. 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

  5. TQM Total Quality Management QA Quality assurance TQM QC QA QC Inspection What is “quality” ? TQM: Total Quality Management QA: Quality Assurance QC: Quality Control Inspection What is you measure is what you manage. “There is a very little agreement on what constitutes quality.” Masaaki Imai.

  6. Evolution of Quality Concepts and Methods standardization statistical process control inspection mass production Fitness to standard 1950 market research cross-functional involement 1960 Fitness to use QC circle 7 QC steps, 7 QC tools = Improvement methods consumer revolution 1970 Fitness of cost QFD 7 management tool Fitness to latent requirement competition 1980 Fitness of corporate culture 1990 Fitness for societal and global environment 2000 Company Focus Customer Focus

  7. Focus on customers TQM activities Total participation Continuous improvement Societal networking Four Revolutions of Management Thinking in TQM

  8. Four levels of quality management Level 4: ‘Perfection’ Top performance in quality management • End customer • orientation & • superior service • Cultural • relignment Level 3: ‘Prevention’ Level 2: ‘Quality assurance’ • Process • capability • Supplier • integration Level I: ‘Inspection’ • Improvement of • process stability • Start of worker • involvement • Quality through • inspection • Little quality • conciousness • and know-how

  9. Product • Price • Delivery • Quality • Dissatisfy Business Plan Strategic Plan Customer Quality Assurance Strategic Market Analysis Customer Feedback System Product design & Planning Time frame Competitive analysis Us Competitor Current Ongoing A P Process Owner C D

  10. Identify Targets & Goals • Act: • Adopt • Abandon • Adjust Identify Strategies to achieve Goals Act Plan Do Train in identified strategies Check Review Progress: • Against the • Targets & Goals Undertake improvement Activity • Within the • strategy

  11. 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 Redesign All Process REENGINEERING TQM Identify Key Processes Improve the Process & Prevention of Recurrence Analyses the Process & Cause No Satisfy Yes Yes Periodic Review & Report Monitor the Process

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

  13. 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

  14. 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

  15. Level of Standard • Level of acceptability or “minimum standard”. • Degree of excellence or desirable or “optimal standard”. Donabedian. 1982

  16. Type of Standard • Structure standard • Process standard • Outcome standard Donabedian. 1982

  17. Focus of Standard • Good manufacturing practice • Clinical practice guideline • Practice standard

  18. How is a standard set ? • Collective judgement; the gold standard • Value based • Dynamic VS Static

  19. How is a standard used ? • Self-Assessment • Inspection by authority bodies • Accreditation

  20. Standard or Accreditation Around the World • National accreditation program: • US, Canada, Australia, & UK • Government legislation: • Spain, China, & Latin America • France & Malaysia WHO/SHS/DHS/93.2

  21. Inspection • Salvage • Sorting, grading, reblending • Corrective actions • Identify sources of non-conformance

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

  23. 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

  24. TQM:Total Quality Management • Policy deployment • Involve supplier & customers • Involve all operation • Process management • Performance measurement • Teamwork • Employee involvement

  25. The Road to Quality: Organizational Analysis Model Quality guides Performance measures Market share Customer feedback Customer satisfaction Direction Net profit Return on equity Continuous improvement Strategy Team Structure Manager to worker ratio Motivation Absenteeism Turnover Boredom Employees Productivity Return on assets Return on people Tools Leadership

  26. The Malcolm Balridge, Health Care Pilot Criteria System System 2.0 Information & Analysis Goal Goal 7.0 Patient 3.0 Satisfaction Driver Driver Strategic Planning 1.0 Leadership 4.0 Progress Progress HRD & Management 6.0 Organaizational Results 5.0 Process Management

  27. Examination Items 1. Customer satisfaction30% 2. Human resource utilization15% 3. Quality assurance of services15% 4. Quality results15% 5. Leadership10% 6. Strategic quality planning9% 7. Information & analysis6% (Malcolm Baldrige National Quality Award Criteria)

  28. Stage 4: Quality is key to customer value management (Market leader) Beyond TQM Stage 3: Market-perceived quality and value VS competitors (Market focus) Increase effectiveness • Customer value learning • and innovative organization. • Be customer/market-driven • Get close to market • Use customer value • analysis • Be market-driven Stage 2: Customer satisfaction (External focus) • Get close to customer • Understand needs & • expectations • Be customer-driven Stage 1: Conformance quality (Internal operation) • Conformance to requirement • Do it right at the first time • Reduce reject & rework Customer value management TQM

  29. Strategy Quality Satisfy ถูกทิศ ถูกต้อง ถูกใจ

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