Introduction to Quality in Project

Special Presentation for

PEC
Dr ALI SAJID
alisajid61@yahoo.com
PhD, TI
October 9, , 2008

Leadership & Management Development Associates (LMDA)

House 302, St 14, F 10/2
051-2291794

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Total Quality

 Nobody Could make a

greater mistake
than he
who did nothing
because he could do a
little
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 When person does

good deed When he or
she didnt have to,
God looks down &
smiles & says for this
moment alone it was
worth creating world
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The trouble with

self-made men
is that they
tend to worship
their creator.
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Commencement address by Sir Winston

Churchill at a graduation ceremony:

"Never give up. Never

give up. Never, never,
never."

this was his entire speech.

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 Three step solution to depression:

- GIVING
- For GIVING
- Thanks GIVING

The growth &

development of people is
the highest calling of
leadership."
s- Harvey S. Fireston

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"Little deeds of
kindness, little words
of love, help to make
earth happy like the
heaven above."
Julia A. Fletcher Carney

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"Don't curse the

darkness -- light a
candle."
Chinese proverb.

Pleasure in the job

puts Perfection in
the work
Aristotle
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 Key to Competitiveness in
Projects
Quality
Speed
Value
Cost

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What is Quality?
A simpler, more powerful definition
came up.
Quality is meeting or exceeding
customer expectations
The totality of characteristics of an
entity that bear on its ability to satisfy
stated & implied needs.

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What is Quality
Classical Idea
Q: Degree of conformance to a standard
(As a product or service)
Product or Service

Conformanc
e

Specification
or Rule

Modern Idea
Q: Users Satisfaction or fitness
for use
Product
Give Satisfaction
or Service

Build In

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Product or Service

Total Quality

Specification
or Rule

Reflect

Quality
means
Pleasing consumers

not
just protecting them
from annoyances
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What is Quality
Customer
Expectations
Meet/exceed

Features

Freedom from
deficiency

Doing the things right

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Doing the right thing

Basic Quality Function

1. DEFECTS / REJECTS
2.

COMPLAINTS

3.

CONSISTENCY

4.

PRECISION

5.

ACCURACY

6.

VARIATION

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PRINCIPAL QUALITY
DIMENSIONS
1.
2.
3.
4.
5.
6.
7.
8.
9.

Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality
Affordability, Variety, simplicity etc

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PRINCIPAL QUALITY
DIMENSIONS
Performance: a products primary
operating characteristics.
Example: A cars acceleration,
braking distance, steering and
handling

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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

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PRINCIPAL QUALITY DIMENSIONS

Reliability: the probability of a products

surviving over a specified period of time
under stated conditions of use.
A cars ability to start on cold days and
frequency of failures are reliability factors
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
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PRINCIPAL QUALITY
DIMENSIONS
Conformance: the degree to which
physical and performance characteristics of
a product match pre-established standards.
cars fit/finish, freedom from noises can
reflect this.
Serviceability:
Speed, courtesy, competence of repair
work.
auto owner -access to spare parts.
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PRINCIPAL QUALITY DIMENSIONS

Aesthetics:
how a product looks, feels, sounds, tastes, or
smells.
cars color, instrument panel design and feel of
road
make aesthetically pleasing
Perceived Quality:
Subjective assessment of quality resulting
from image, advertising, or brand names.
car, - shaped by magazine reviewsmanufacturers brochures
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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
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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
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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)
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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
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VALUE-BASED CRITERIA
Value
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, and
A sense of assurance that the supplier will be
there when needed
Quality is the degree of excellence at an
acceptable price and control of variability at an
acceptable cost.

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VALUE-BASED CRITERIA
Purchase decision involves trading off the quality
against the price
Because many of attributes of quality are
subjective assessments, therefore most of these
definitions - subjective
Unlike manufacturing & product-based
approaches
Product
Quality
Service

Value
Price
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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

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WHAT GOOD CAN QUALITY DO ?

Provides competitive advantage

Reduces costs
Lesser returns, rework & scrap
Increases productivity & profits
Generates satisfied customers
No Quality, poor service poor
service more waste, delay in
delivery
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COMPETITIVE ADVANTAGE

Driven by customer needs & wants

Provides value to customers
-competitors do not
Makes significant contribution to success
Allows Prj to use its resources
Effectively
Durability & dependability Difficult for
others to copy
Provides basis for further improvement
Provides direction & motivation to org
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Quality Evolution in Japan

Determining the customers
needs before the customer
becomes aware of them

Fitness to Latent
Requirements

Fitness to
Cost
To build a product that
meets the needs of
customer.

Fitness to
Use

Fitness to
Standards
To build a product that meets
the specifications set by the
designer.

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Obtain high quality & low cost

by effective designing of both
the product & processes.

Inspection
(ISO8402)
Activity such as measuring, examining,
testing, or gauging one or more
characteristics of an entity and comparing the
results with specified requirements in order to
establish whether conformity is achieved for
each characteristic
Application points within the process
Third party inspection or operator self inspection
Decisions scrap, rework, modification, concession

After-the-event screening process

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Inspection
Lowest level of quality development
Key product characteristics examined

Compared to known standard

Lack of ownership
After the event
Lack of feedback to source

Inspection will not provide any basis for process

improvement
Debatable if it provides an effective screening
against defects reaching the external customer
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Quality Control
Defined as (ISO8402)
Operational techniques and activities
that are used to fulfil requirements for
quality
Developed from inspection of methods,
systems and tools & techniques
More emphasis on feedback
Main mechanism still inspection based
Physical characteristics of product
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Quality Control
QC is the systematic assessment of goods
and services to check their conformance
It will not improve quality, just highlight
when it is not present
In many cases QC does not identify the
root cause of the non-conformance

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Quality Control
The second level of quality development
Implied use of control systems
Raw materials, drawing issues, inspection reports

Development of inspection procedures

Calibration, limited quality audits
Use of basic QM tools
Defect recording and analysis
Quality costs still unknown

Limited use of operator self inspection

Still largely based on goods inwards inspection

Reliance on inspection to catch non-conforming work

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Quality Control
Systematic Techniques to control quality.

What is Quality Assurance

Quality assurance includes all

planned & systematic activities
implemented within the quality
system, & demonstrated as needed,
to provide adequate confidence
that an entity will fulfill
requirements for quality.
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QUALITY ASSURANCE

Any action directed towards providing

consumers with products (goods &
services) of appropriate quality

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)
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What is Total Quality

Total Quality means quality of work,
quality of service, quality of information,
quality process, quality of organization,
quality of people, quality of company and
quality of objectives.

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DEFINITION OF TOTAL QUALITY

Total Quality describes- State of an
org in which all the activities of all
functions are designed & carried out
in such a way that:
All external customer requirementmet
while reducing internal Time & Cost,
& Enhancing Workplace climate.

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Profile of TQM
TQM

is a:
Scientific
Systematic
Company Wide

Activity in which
A company is devoted
products and services.

to

customers

through

TQM integrates:
Fundamental mgmt techniques,
Existing improvement efforts,
& Technical tools under a disciplined approach
focused on:
Continuous improvement.

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its

Total Quality Management

TQM a philosophy set of guiding
principals that represent foundation of
a continuously improving org.
TQM is application of (a) Quantitative
methods and (b) HR to improve
material & services supplied to an
organization, & all processes within an
org, & degree to which needs of
customer are met, now & in future.

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A TQM Approach To
Management

A unique blending of :
(a) Objective, practical, & quantitative aspects of
management, e.g. Focus on processes & reliance on
quantitative data & statistical analysis for decisionmaking:
(b) soft aspects of mgt, e.g. providing visionary
leadership, promoting a spirit of cooperation
teamwork, and practicing participative management.
Many orgs when deciding to undertake a TQM effort
focus on one or other of these general approaches.
A fully successful effort requires balanced attention to
both.

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The Essence of TQM

Is involving & empowering

the entire workforce to
improve the quality of
goods and services
continuously in order to
satisfy, and even delight
the customer.
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 TQM tools & technical methods used to

accomplish specific tasks.
These are means of implementing TQM. Can be
used by everyone in org to:

identify problem areas,

structure data collection efforts,
analyze data,
focus problem solving efforts on areas of special
concern.,
disseminate info throughout org.

These tools are used primarily to

collect & analyze numerical data.
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Achieving Total Quality

techniques
philosophy

system

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Meanings of Total In TQM

1.

2.

3.

4.

5.

Objectives
Not only quality and environment but also other parameters
including cost, delivery, safety.
Every Department
Not only a manufacturing department but also other
departments including R&D marketing, administration, etc.
Every Echelon
Not only engineers but also top managers, middle
managers, supervisors, workers, and clerks.
Group-Wide
TQM is not lonely implemented by am company but also by
all its group companies.
All The Industries:
Not only in manufacturing industry but also in all the
industries such as: construction, real estate, electric power,
city gas, water supply, transportation, communications,
servicing.

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A Manager Who Fails To Provide

Resources And Time For Prevention
Activities Is Practicing False
Economy
Concentrate on Prevention, Not Correction
Prevention
Correction
Quality

Prevention has more leverage when improving quality

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Results of Total Quality

Management

Delighted
Customer
Empowered Employers
High Revenue

Lower Cost

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Food For Thought

85 percent of opportunities
for improvement in Project
comes from:
(a) changing the systems
(b) Re-engineering work
process
modifying or replacing
equipment.
Dr. Deming
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 TQM Provides a
system of methods on
how to realize the
principle of customer
orientation beyond a
slogan.

Who is a customer
The ultimate purchaser of a product
or service
External customers purchase
products or services from other
companies/plants
Internal customers receive goods
or services from within the company
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Customer Satisfaction
Satisfaction

More Features
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Looking at your
organization from you
customers point of view
and improving processes
to enable you to meet and
exceed your customers
expectations is the only
way to achieve quality,
because quality is defined
by
customer.
February 26,
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WHY IS IT IMPORTANT TO
MEET CUSTOMER
EXPECTATIONS?
Needs of customers have to be met
Understanding of ones customers
leads to customer satisfaction
Japanese relate quality to customer
satisfaction

Inadequate Internal Facilities

Poorly Designed Processes
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Poor
Quality
Product

Conventional
Wisdom

Demings Approach

Quality is meeting
conformance standards.
Quality is an intangible good.

Quality is meeting & exceeding

customer expectation.
Quality is defined by the customer.

Finding and Fixing problems

results in improvements,
which may or may not be
sustainable.

Making changes to the system to

prevent problems results in
sustainable improvements.

Effectiveness & efficiency are

achieved by meeting
acceptable defect levels.

Effectiveness & efficiency are

achieved by continually improving.

Crisis management is the

dominant management mode.

Preventative management.

Performance standards &

quotas improve productivity.

Changes in the process improve

productivity.

Decisions are made by

superiors.
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Decisions are made through

collaboration between staff &
Quality

Top management evaluates the

organization on financial
performance.

Top management focuses on process

performance & customer
satisfaction as well as on financial
performance.

Process improvement is expensive.

Process improvement leads to lower

costs.

Only managers are capable of

identifying & making

Workers know the process best &

will suggest excellent ways to
improve it when given a chance.

Managers command functions & are

concerned with directing &
controlling.

Team leaders guide cross-functional

improvement teams & are
concerned with planning &
prevention.

Employees receive instruction &

information from above, as deemed
appropriate by management.

Management shares information

with employees on a routine basis &
on request.

Leadership for an improvement

effort can be delegated to outside
expert.

Leadership for an improvement

effort is provided by executives
within the org, who are accountable
for results.

February
26, 2 onlyTotal
Reviews
are necessary
whenQuality
Regularly scheduled performance-

TQ & Traditional Management

Practices- I
TQ demands new styles of managing
An entirely new set of skills.
These new styles include:
Thinking in terms of systems
Defining customer requirements
Planning for quality improvement with each
customer
Dealing with customer dissatisfaction
Ensuring ongoing quality efforts
Developing a life long learning style
Team building
Encouraging openness
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TQ & Traditional Management

Practices
Encouraging openness
Creating climates of trust & eliminating fear
Listening & providing feedback
Leading & participating in group meetings
Solving problems with data
Clarifying goals & resolving conflicts
Delegating & coaching
Implementing change
Making continuous improvement a way of
life.
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QUALITY IS FREE !
According to Crosby:
Quality is not only free, it is profit
maker
Increase of 5% -10% in profitability
by concentrating on quality
Quality provides a lot of money for
free
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Quality is never an
accident, it is
always the result of
an intelligent
effort
John Ruskin
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THREE LEVELS OF QUALITY

Quality must be examined at three
levels

1. The organizational level

2. The process level
3. The performer / job level
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AT THE ORGANIZATIONAL LEVEL

Meeting requirements of external

customers
Organization must seek regular customer
input
Use customer-driven performance
standards for:
Setting goals
Solving problems
Allocating resources
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AT PROCESS LEVEL
Must Identify:
Products or services the
customers desire
Key processes
Core inputs
Organizations customerdriven performance standards
Needs of internal customers
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AT THE PERFORMER LEVEL

Standards of output must be
determined
Accuracy
Completeness
Innovation
Timeliness
Cost
Determine how requirements will
be measured
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Five Questions of Your Quality in

Projectrs
1. What is your major product/service?
2. Who are its major users/customers?
3. What are its quality requirements
which the major users/customer
demand?
4. What is
its most competitive
product/service which is provided by
your competitor?
5. What kind of comparative study do
you
have
between
you
product/service
and
you
competitors
for
the
quality
requirements
from
the
major
February
26, 2
users/customers?
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The lesson
Learnt
The Enemy
for Quality,
that is
complacent.
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We Are Complacent, Arent We?

Thats a good idea.
But
Our Quality has
already
achieved at a certain high
level.
Hence, we need not do so
to such a extent.
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Q&A
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