(Feb 2008) Strategic Quality Assurance

Strategic Quality Assurance
Strategic
Quality Assurance
Kamran Moosa
kamranmoosa@piqc.com.pk
PIQC Institute of Quality
PAKISTAN PMI-LAHORE
www.piqc.com.pk 22.2.2008
Towards a World-Class
PAKISTAN
© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 1

piqc.com.pk
© PIQC - K. MOOSA 3
Learning Levels Synthesis

(Bloom’s Taxonomy 1956)
Level
Analysis
Level
Application
Level
Comprehension
Level
Knowledge
Level
PROFESSIONAL ETHICS
NATIONAL VALUES

Learning Quality
Competence Competence Competence

Standard Standard Standard
90%
50%
Unsatisfactory
Good
30%
POOR
Knowledge Comprehension Application
Level Level Level
Contents
1. Strategic Quality Measurement & Management

2. ISO 9000 Phenomenon & Quality Tools
3. QA Implementation and Structuring
4. Conclusion
5. Question & Answers Session

Part 1
Strategic
Quality Measurement
and Management
What is Quality Management
Sub-discipline of Management Science

TQM, TQC, CWQC, QMS, QA or simply Quality
Management
It aims to define, set, control, and improve the
effectiveness of an organization within its scope
and limitations
Introduced in Japan in 1950s, i.e. ~ 50 years old
Initially labeled as Quality Control, then
expanded into QA, QMS and then TQM

Evolution of Quality Field
TQM – Wave II
6 Sigma
TQM – Wave I Knowledge
Mgt.
HRM
QA
Change
GROUP
ISO9000 DYNAMICS Mgt
QC Teams
SPC Benchmarking
OPR MGT.
Quality
BPR
Circles
Inspection/
TPM
Testing
Metrology JIT/MRP
Product Insp. to Process to System to Business to Performance

Control (Opr Mgt ) Excellence Level
Changing Scope of “Quality”
Country’s
Quality
Organizational
Product Quality
Quality
from to

Quality is Effectiveness
Effectiveness is in fact Quality
&
The process of making an organization

effective is Quality Assurance
Why do we loose customers?

(Research Data)
1% because of death
3% because of change of place
5% because of change in behavior
9% because of wrong price strategy
14% because of insufficient product quality
68% because of insufficient service quality

Measuring Quality - Estimations
1.
1. Rate ofof
Clinical
Duration
Cycle
1. Rate Rejections/Defects
Times
Deaths
in which
Rework
Loss for
Complaints a Justice
particular job in
of Crops
upto 10-30%offices?
provided?
government
5%-20% compared to <1% WC
e.g.
1-3%
upto to
10-30%30%get
(30,000license,
comparedppm)to get
tocompared
<1% WC to
Companies
2. electricity,
Companies
around
Wrong
2. Right to get
100ppm
Diagnosis
Justice phone, to get
(0.01%)
provided?
permits,
upto to getLoss
information, to get
2. Costs:40%
2. Hatcheability
Rs 20 Lakhs - 20 Crore / year
Justice,
meaningetc.????
loss of one year after
3. every
10-15%
3. Wrong
three years
Post Rs
Country-wide operative
100 b / y care
(pvt sector)
Performance
upto 60-80% Measurement is
usually neglected at state level
What is a Product?
1. More of a physical thing, less

intangible
2. Concept of selling things
3. More contact with the good

and less (or none) with the
manufacturer. Thus behavior
of seller and its environment
don’t matter
4. Product life cycle is the
usage of the good as long as
it lasts

What is a Service ?
GOVERNMENT AIR TRAVEL

1. Less physical, more
intangible
2. Concept of hiring things, TELE BANKS
people and their expertise
3. More contact with the
organization, its people and
processes. Thus behavior of HOSPITALS
seller and its environment TRANSPORTATION
matters a lot RELIGIOUS
4. Product life cycle is the
interaction with the
organization as long as the
goal/commitment is fulfilled
EDUCATION
Goods/Service Dominations
Cloth, Hardware, books

House
Automobile, Appliances
Fast Food Restaurant
Air Travel
Hospitalization
Teaching, Govt., Religious
Manufacturing Standard Service Standard

Goods/Project based companies
• Produces products or services • Produces products or services

• Routine Production or | • Not routine production – |
Service Delivery usually one time or prototype
• Solid Infrastructure • Liquid Infrastructure
(permanent and systems) (flexible or adhocism)
• Quality is heavily dependent • Quality is more dependent on
on initial planning (no second iteration process (2nd, 3rd, 4th
time) times)
Even Manufacturers/Proj. Org’s

have more service departments
MANUFACTURING
SERVICES
Standards
Finance Security Admin
Marketing
Purchasing PRODUCTION
R&D / PROJECT MGT
After
Service/Product
Sales
Services
Mainten-
MIS Testing
ance

Quality is Effectiveness
Effectiveness is in fact Quality
&
The process of Making Effective is

Quality Assurance
Who will ensure effectiveness of org’l

output as well as dept’l output
MANUFACTURING
SERVICES
Standards
Finance Security Admin
Marketing
Purchasing PRODUCTION
R&D / PROJECT MGT
After
Service/Product
Sales
Services
Mainten-
MIS Testing
ance

Performance = Output + Outcome
OUTCOME
OUTPUT
Quality
of Output
ORG Quantity
or of goods
or service
DEPT
delivered
Examples
Quality
Objectives
POST OFFICE Number of Letters Delivery Rate

Number of Post Offices Damage Rate
Number of Transactions Transactions/day/person
UNIVERSITY Number of Students Quality Metrics
Graduate Competency Rate
Number of Teachers Job Placement 1. Rate
# of tests delayed /
Number of Programs total
Difference in Market files
Salary
Number of Branches % of Satisfied2.Graduates
Average Duration of
% of Satisfied Employers
delays / total delays
PRODUCTION Number items produced % Defectives/Rejected
DEPT. Types of products Cost of Production/item
produced Number of items/unit time
TESTING Number of tests Measurement Error %
DEPT. Types of Tests Delays of tests
Cost of unit test
HRD Number of persons hired Core Competence
Number of Trainings Duration of vacant posts
% of Poor Hiring

Examples (Cont.)
HOSPITAL Number of patients dealt Mortality Rate

Number of Emergency Morbidity Rate
treated Acquired Infection Rate
Number of medicines Re-admission Rate
given % Patients leaving without
Number of tests in lab full treatment
Lab testing Error Rate
Delays in test results
Waiting time
Prescriptions not provided on
time
Non-availability of medicines
Ethical violations/complaints
of doctors
1st Stage of Quality Control
PROJECT MGT
ADMIN
DESIGN QC PRODUCT
/ SERVICE
FINANCE
STORES Internal Mnt.

HRD
PROCUREMENT
MIS /
SEC / INFRA
STRUCTURE

2nd Stage of Quality Control
MANUFACTURING
ADMIN
PRODUCTION QC PRODUCT
/ SERVICE
FINANCE QC
STORES QC Internal Mnt.

HRD
QC
PROCUREMENTQC
MIS /
SEC /
STRUCTUREQC
3rd Stage of Quality Control
MANUFACTURING
ADMIN PRODUCT
QC / SERVICE
PRODUCTION QC
FINANCE
QC
STORES QC Internal Mnt.

HRD
QC
QC
PROCUREMENTQC
MIS /
SEC /
QC STRUCTUREQC


Monitoring Q’s for every dept/org.
Q1
PROJ. MGT Q2
Q3
Q4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Q5
LABORATORY
Q6
Q7
Q8
Q9
Cont.
Q10
MAINTENANCE
Q11
Q12
Q13
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Q14
ADMINISTRATION
Q15
Q16
Q17
Q18

Lack of Focus in organizations on

Quality at each dept. (Survey example)
1. Production Control (90%) A

2. Marketing (70%) B
3. Production Planning (60%) C
4. Finance (50%) D
5. Quality Assurance (40%) D-
6. Design (15%) F
_________________________________________
OVERALLL AVERAGE (51%) D
Example

Develop 5 years Strategic

Quality Improvement Plan

Around
80 Quality
Metrics
Make &
Use
Quarterly
QA Report

US Dept of
Treasury
Performance
Measurement
Report

US Treasury
Performance Summary FY 2003
Total Performance Measures : 208

Target Met : 132 (63%)
Targets Not Met: 49 (24)%)
Baseline Not Available : 27 (13%)
Max improved Performance : 39 (21%)
Estimated Performance : 13 (7%)
TQM/QA is Measurement
Based Change Process
Product/Service Outcomes
Exc
Good
Sat
Change
Change
Change
Poor
Change
Change
Change
V.Poor

Output of Quality Management
ORGANIZATION
Quality Conformance
&
Assurance/Mgt Improvement
QA is an Improvement Intervention
CULTURE
ORGANIZATION B
Social Intervention
QA
Technical Intervention
Performance
Outcome1 Outcome 2
CULTURE
Sustainable Improvement = From A to B A


Quality Control vs Inspection
MIXED
PRODUCT
ADMIN,
TESTING Product
MARKETING
PRODUCTION
FINANCE
PROCESS Performance
QA
LABS
MAINT.
Checking
OK
PRODUCT/ Cycle A
Not
SERVICE
FIXING
OK
Process and/or Cycle B

Systems
Fixing
C/A
Actions data
PROCESS Quality
Assurance
Performance
Customers
(Int/Ext)
DESIGN PROCESSES PRODUCT OK
Performance
Product Not
Fixing OK
Product, Process or
Actions Systems Fixing &
data
Improvement
Product , Process or data

Systems Fixing
FIELD
Actions & Improvement Performance

Basic Concept of
Quality Management
Customers/Users
Every Dept. of firm 1 3
Outcome
Outputs
Section 1 Section 2 Section 3 Measure
Root Data
Problem
Change Cause Collection
Solving Analysis & Reports
For Example
MAINTENANCE SERVICES
PRODUCT: MAINTENANCE
QUALITY OBJ: Reliability (e.g. MTBF, MTR), Conformity, Safety, Security,
Durability, Accessibility, Responsiveness
CUSTOMER(S): Production
SUPPLIER(S): Purchasing
Q.C.: Checking, Fixing/Correcting, Inspecting/Testing, Collecting and
Analyzing Testing Data, Collecting Root-Cause Analysis, Analyzing Root
Causes, Providing suggestions to improve the product and usage, fixing
systems/procedures/processes
Q.A.: e.g. process audits and reviews, Process Measures, Measure of CSI,
Training on shortcomings, counseling of persons, preventive actions

For Example
AIRPORT SERVICES
SERVICE: CHECK Ins

QUALITY OBJ: Time, Comfort, Courtesy, Empathy, Reliability, Queue
Safety, Security, Informed, Caring, right tagging
STANDARD: say, time=10 min, comfort=8/10, Empathy=7/10, R=95%
Queue=3 min, Safety=no injury/mishap, Informed/Care=8/10
CUSTOMER(S): Passengers
INT. CUSTOMER: Flight Services and Flight Operations
CUSTOMER REQUIREMENTS: say time=5 min, comfort=8/10, E=9,
Reliability=100%, Queue=1 min, Safety=100% safe, Inf/Care=8/10
SUPPLIER(S): Marketing
PARTNERS: Civil Aviation (parking, security, shops, etc.)
Q.C.: Supervisors checking, complaint handling, quality measure, root-cause
analysis (monthly), fixing systems/procedures/processes
Q.A.: e.g. bi-monthly audits and reviews, Process Measures, Measure of CSI,
Training on shortcomings, counseling of persons, preventive actions
Leadership for Quality
Corporate
& Dept’l
Quality Objectives
% %
Poor Good

Monitoring of Q’s is a tool to

Control Quality
0
1
Q1 Q2 Q3 Q4 Q5
When an outcome is in trouble, we need to

analyze and improve processes and systems
Level 2 Analysis Level 1 Analysis
Factors/Reasons Incidences 0
1
STOP
2
3 2 1 3
4
Process/Systems
PROCESS
Not followed
CONTROL
PROCESS 5
Process IMPROVEMENT
Not effective WITH PROBLEM
SOLVING
Process PROCESS
Not suitable CHANGE

Part 2
ISO 9000 & Quality Tools
System Maturity
After 1 -2 years
Excellent 15% C
Good
Maturity
Satisfactory
25%
Acceptable B
3 6 9 12 18
Time (months) 60%

ISO 9000 Lessons Learnt

+ -
1. A tangible QA 1. More commercial than professional.
Framework 2. Extrinsic effort of Quality
2. Can be used as a 3. Used more as a marketing tool rather than
strong tool for performance improvement tool
performance 4. Threatened producers to lose markets,
improvement especially in EU
3. Wide support 5. Highly variable third party
Certification/Consulting. Competence of
4. Generic QA Model Auditors and integrity of independence is not
- Possible for fully controlled despite claims of accreditation
every organization 6. Weak International accreditation
5. Third Party 7. Weak in non-contractual environment
Certification 8. Little impacts on consumers
6. World-wide
accepted
Without using other

TQM Tools, ISO 9000 is not effective
SIX
SIGMA
DOE SPC
Bench-
QFD JIT/MRP
marking
SUPPLIER
FMEA
QA
Customer QUALITY
TPM
Survey CIRCLES
7 QC
5S
Tools
Kaizen

Application of QM Tools in ISO 9000

Certified Firms (local survey, 1998)
100 95
90 85
80
80
70
60
% 50
40
30
30 25 25 25
20
20 15
10
10 5
0
SPC
QCC
Benchmarking
JIT
C. Survey
Reengineering
Kaizen/5S
QPD
New Mgt
Q. Award
ISO 9000
Tools
Effectiveness of ISO 9000 QMS
100
90
80
70
60
50
95
40 85 80 75 70 70
30 60
20 40
10
0
Poor SPC
Ineef. IQA's
Poor Vendor
Auditors
Objectives
Insuff. Mget
Training
Poor C/A
Poor
Poor
Poor Q
Control
Rev

Sigma Value and Process Rating
1 Sigma
4 Sigma
2 Sigma 5 Sigma
6 Sigma
3 Sigma
(LSL) (USL)
-6σ -5σ -4σ -3σ -2σ -1σ +1σ +2σ +3σ +4σ +5σ +6σ
(LSL) (USL)
-6σ -5 -4 -3 -2 -1 +1 +2 +3 +4+5+6σ

Increasing # of Parts or Processes

reduces quality level
Part 1 Part 2 Final Product Final Product

Defect Rate Defect Rate Defect Rate OK Rate (Yield)
50% 50% 75% 25%
40 40 64 36%
30 30 51 49%
20 20 36 64%
10 10 19 81%
5 5 10 90%
Defect Rates
Yield Def Rate 2 5 10 100 Parts 1000

% % parts Parts Parts Parts
80% 2.4σ 20% 64 33 11 0 0
85 2.6σ 15 72 44 20 0 0
90 2.8σ 10 81 59 35 0 0
95 3.2σ 5 90 77 60 1.8 0 0
96 3.3σ 4 92 82 66 17 0
97 3.4σ 3 94 86 74 5 0
98 3.6σ 2 96 90 82 13 0
99 3.9σ 1 98 95 90 2.8 37 1.2 0
99.9 4.6 0.1 99.8 99.5 99.0 90 2.8 37 1.2
99.99 5.2 0.001 99.9 99.9 99.9 99 4.6 90 2.8
99.9997 6 0.0004 99.9 99.9 99.9 99.9 99.6 4.2

Vendors AQL% effect

on final quality
Vendors (Def %)
1 5%
2
3
5%
5%
?
5%
4
5%
5 Assembly
5%
6
5%
7
5%
8
9 5% Yield: 60%
5% 40% Def
10
Or if you have 10 processes
ASSEMBLY
?
Final
P1P2 P3 P4P5 P6 P7 P8 P9 10
Yield
Yield: 60%
40% Def
σ =3.1 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% σ =1.7
Yield (RTY) = (.95x.95x.95x.95x.95x.95x.95x.95x.95x.95 = 0.6)

Six Sigma Programs
Six Elimination of Defects from

SS Sigma Existing Products and processes
Lean Elimination of Wastes from

LSS Six Sigma Existing Products and processes
Design for Elimination of Defects from

DFSS Six Sigma New Products and processes
SS Roles and qualificaitons

Quality Council/Steering Committee
SS Project
Managers Sponsors
Process Owner
Team Leaders
Team Members Champions Coach
Trainers
Master
Black Belt
Black Belt Black Belt
Green Belt Green Belt Green Belt Green Belt

Six Sigma Methodologies
SIX SIGMA & LEAN SIX SIGMA
DESIGN FOR SIX SIGMA

DMAIC DMADV
Define Define
Measure Measure
Analysis Analysis
Improvement Design
Control Verify
Six Sigma Frameworks
Program Six Sigma Lean Six Sigma DFSS

VARIATION WASTE/SPEED RELIABILITY
Focus/Theme Defects Cycle time, Delivery & ROBUSTNESS
Cost of Poor Quality Cost of operation Design Features
Methodology DMAIC DMAIC DMADV

SIPOC, CTQ, 5S VOC,QFD,
Tools SPC, FMEA, Value Mapping FMEA, CTQ
DOE, QFD, Time Study Gage R&R,
CoQ, ANOVA, TPM TRIZ, Pugh
Hypothesis, Cellular Prod. Matrix, DOE,
Regression, Supply Chain Reliability
MSA (R&R), Takt time Analysis, SPC
QFD Poke Yoke Systems
Engineering

QA or QM Tools
Probability Distribution
QFD Sampling
FMEA Confidence Intervals
SPC Hypothesis Testing
QC Tools Control Charts
New Mgt Tools Capability Analysis
Benchmarking Quality Statistical Correlations Analysis
BPR
COQ
Tools Tools Regression Analysis
Design of Experiments
ISO 9000 Analysis of Variance
MSA
Project Management
Management Organization Behavior
Tools Human Resource Management
Knowledge Management
SWOT
MBO
3 Components of
Effective QA Structure
CHIEF
CORPORATE QA
COORDINATOR
DIV. HEADS
Type title here
SUB. DIV HEAD SUB. DIV HEAD SUB DIV HEAD SUB DIV. HEAD DEPT'L HEADS
AREA A AREA B AREA C AREA D
Q. COORD Q. COORD Q. COORD Q. COORD Q. COORD
QA PROJECT GROUP

QA / QM Structure
CEO
SIX SIGMA TEAMS
HODs
Mgrs
Sup
Two important things not available as

a standard with respect to QA/TQM
Depended on
many factors
e.g.
Company
Culture and history QA/TQM
competence Approaches
Mood
Resource
Location
Priorities

Most TQM/Six Sigma

don’t reach Phase III
PHASE II
PHASE I PHASE III
DEPLOY
DESIGN REGULAR IMPLEMENTATION
MENT
EVENT REPEATED EVENTS (CULTURE)
Schein’s 3 Levels of Culture
Basic Assumptions
(Core Values)
Espoused Values
Artifacts
Ex: parking place

Watch-out for slow changes;

they may be fatal
Slow changes are not felt

in organizations which may
be fatal in long run
Conclusion
Good Quality is an outcome of

Good Quality Assurance Process
Therefore create it, build it, improve it and live with it

Organization
QA
QM
The End
Lets Work towards a

WORLD-CLASS
PAKISTAN
Thank You

(Feb 2008) Strategic Quality Assurance

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Strategic Quality Assurance

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 1

Learning Levels Synthesis

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 2

Competence Competence Competence

1. Strategic Quality Measurement & Management

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 3

What is Quality Management

 Sub-discipline of Management Science

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 4

Evolution of Quality Field

Product Insp. to Process to System to Business to Performance

Changing Scope of “Quality”

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 5

Effectiveness is in fact Quality

The process of making an organization

Why do we loose customers?

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 6

Measuring Quality - Estimations

1. More of a physical thing, less

3. More contact with the good

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 7

GOVERNMENT AIR TRAVEL

Cloth, Hardware, books

Manufacturing Standard Service Standard

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 8

Goods/Project based companies

• Produces products or services • Produces products or services

Even Manufacturers/Proj. Org’s

Finance Security Admin

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 9

Effectiveness is in fact Quality

The process of Making Effective is

Who will ensure effectiveness of org’l

Finance Security Admin

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 10

Performance = Output + Outcome

POST OFFICE Number of Letters Delivery Rate

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 11

HOSPITAL Number of patients dealt Mortality Rate

1st Stage of Quality Control

STORES Internal Mnt.

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 12

2nd Stage of Quality Control

STORES QC Internal Mnt.

3rd Stage of Quality Control

STORES QC Internal Mnt.

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 13

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 14

Monitoring Q’s for every dept/org.

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 15

Lack of Focus in organizations on

1. Production Control (90%) A

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 16

Develop 5 years Strategic

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 17

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 18

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 19

 Total Performance Measures : 208

© PIQC INSTITUTE OF QUALITY FEB 22, 2008 LAHORE 20

Output of Quality Management

Sustainable Improvement = From A to B A

Sub-discipline of Management Science

Total Performance Measures : 208