Intro to Quality Management

By
Ali Sajid, PhD
(alisajid61@yahoo.com)

Director
Inst of Business & Mgmt
UET Lahore
An Exclusive Presentation for PEC
October 14, 2012

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

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).

The will to win,

the desire to succeed,
the urge to reach your
full potentials are the
keys to unlock the

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)

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)

Never

to
suffer would
never to have
been blessed.

Edgar Allan Poe (1809 - 1849)

So much of what we
call management
consists in making
it difficult for
people to work.

Peter Drucker (1909 - 2005)

 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

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

 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

Characteristics of
Organization
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.
Systematic
Structure
Distinct
Purpose

People

Org Excellence
Key

to Competitiveness
Cost
Quality
Speed
Value

Organizational
Excellence

Through
Competitiveness
using

Quality
as a Tool

Quality is
a

Habit

not
an Act.
Aristotle

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

Product or Service

Specification
or Rule

Reflect

What is Quality?
* The

totality of
characteristics of an
entity that bear on its
ability to satisfy stated
& implied needs.

What is Quality
Customer
Expectations
Meet/exceed

Features

Freedom from
deficiency

Doing the things right

Doing the right thing

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.
Hummurabis Code 1730 BC penalties
for sub standard stuff
Necropolis Achievement of requirement
standard was attested to by the
application by suptd mark.

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.

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.

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

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.

Quality

means
pleasing consumers

not

just protecting them

from annoyances

Basic Quality Function

1. DEFECTS / REJECTS
2.

COMPLAINTS

3.

CONSISTENCY

4.

PRECISION

5.

ACCURACY

6.

VARIATION

Quality Control
Technique

to Control
& Check Quality

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.

QUALITY ASSURANCE
THERE ARE NO FACTS ONLY INTERPRETATIONS
-FRIEDRICH NIETZSCHE

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)

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

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

Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality

PRINCIPAL QUALITY DIMENSIONS

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

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

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

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.

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

PRINCIPAL QUALITY DIMENSIONS

Serviceability:
speed, courtesy, competence of
repair work.
auto owner -access to spare
parts.

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

PRINCIPAL QUALITY DIMENSIONS

Perceived Quality:

Subjective assessment of quality

resulting from image, advertising,
or brand names.
car, - shaped by magazine
reviews-manufacturers brochures

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

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

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)

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

VALUE-BASED CRITERIA

Quality is the degree of excellence

at an acceptable price and the
control of variability at an
acceptable cost.

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

VALUE-BASED CRITERIA

Gales Model of the Purchase Decision

Product
Quality
Service

Value
Price

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

WHAT GOOD CAN QUALITY

DO ?

Provides competitive advantage

Reduces costs
Lesser returns, rework & scrap
Increases productivity & profits
Generates satisfied customers
No Quality, no sales. No sales,
no profit. No profits, no jobs.

COMPETITIVE ADVANTAGE

Denotes firms ability to achieve market

superiority
Driven by customer needs & wants
Provides value to customers that
competitors do not have
Makes significant contribution to
business success
Allows a firm to use its resources
effectively

COMPETITIVE ADVANTAGE

Durability & dependability difficult

for others to copy
Provides basis for further
improvement
Provides direction & motivation to
the organization

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.

Obtain high quality & low cost

by effective designing of both
the product & processes.

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.

TOTAL QUALITY
Total Quality describes the state of an
organization in which all the activities
of all functions are designed and carried
out in such a way that
all external customer requirements are
met
while reducing internal time and cost,
and enhancing the workplace climate.

Profile of TQM
TQM is a:

Scientific
Systematic
Company Wide

Activity in which
A company is devoted to customers
through its products and services.

Total Quality
Management

TQM a philosophy set of guiding

principals that represent
foundation of a continuously
improving organization.

TQM is application of
Quantitative methods & HR to
improve material &
Services supplied to an org, &
All processes within an org,
& Degree to which needs of the
Customer are met,
now & in future.

TQM integrates
Fundamental Mgnt Techniques,
Existing improvement efforts, &
Technical tools under a
Disciplined approach
focused on
continuous improvement.

BASES OF TOTAL
QUALITY
Techniques to
Foster Teamwork
And Create Satisfying
Work Environment

Statistical
Tools and
Techniques

Strategic
Imperatives

The
Customer

The Four Bases of Total Quality

A TQM Approach To
Management

A unique blending of :
(a) objective, practical, & quantitative aspects
of management, e.g. Focus on processes and
reliance on quantitative data and statistical
analysis for decision-making: and
(b) Soft aspects of management, (Visionary
leadership,
promoting
a
spirit
of
cooperation/teamwork,
&
practicing
participative mgt.
A fully successful effort requires balanced
attention to both.

The Essence of TQM

Involving & empowering entire

workforce to improve quality of
goods & services continuously
in order to satisfy, & even
delight customer.

TQM tools & technical methods used to accomplish specific

tasks.

Means of implementing TQM.

Can be used by everyone to identify:
Problem Areas,
Structure Data Collection efforts,
Analyze data,
Focus Problem Solving efforts on
areas of special concern.,
Disseminate info throughout the
org.
Used
Primarily to: Collect &
Analyze Numerical Data.

TQM
Umbrella term:
Philosophy emphasizes shared
responsibilities for quality.
Quality improvement achieved
by:
a) Focusing on customer needs
&
b) Streamlining
production
process
to
eliminate
defects /waste.
x

It ultimately

Facilitates
improvement
collective
quality.

continuous
thorough a
vision
of

From acceptable Levels of

Defects to Continuous PI

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

THE EVOLUTION OF QUALITY MANAGEMENT

THE QUALITY
CHALLENGE
ORGANIZATION
WIDE
TOTAL QUALITY
MANAGEMENT
TOTAL QUALITY
CONTROL
STATISTICAL CONTROL
QUALITY ASSURANCE
INSPECTION
FOREMAN
INDIVIDUAL
CRAFTSMAN
1900

1920

1940

1960

1980

1.

2.

3.

4.

5.

Meanings of Total In
TQM
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.

TQM & Customer

Orientation
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

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

Poor
quality
product

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 the

Customer Satisfaction
Satisfaction

More Features

Results of Total Quality

Management

Delighted
Customer
Empowered Employers
High Revenue

Lower Cost

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 &

Changes in the process
quotas improve productivity. improve productivity.

Top management evaluates the

organization on financial
performance.

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 crossfunctional 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.

Reviews are necessary only

Regularly scheduled

Demings Dreadful
Diseases
1.

2.

3.

4.

Looking elsewhere for

examples, or concluding
that our problems are
different.
Creative accounting
rather than
commitment.
Purchasing to
anacceptable level of
quality.
Managements failure to
delegate responsibility.

5.

6.

7.

That employees (or

unions)cause all the
problems.
Quality can be assured
by inspection.
False starts: no
organization-wide
commitment.

Good fortune is what

happens when
opportunity meets with
planning.Thomas Alva
Edison (1847-1931)
Dr Sajid

He who fails to plan, plans to fail

When planning for a year, plant
corn. When planning for a
decade, plant trees. When
planning for life, train & educate
people.
Chinese Proverbs quotes

Action for Quality

Action may not
always bring
happiness,
but there is
no happiness
without Action
- Benjamin Disraeli

Goals in Quality Journey

Goals give Purpose.

Purpose gives Faith.
Faith gives Courage.
Courage gives Enthusiasm.
Enthusiasm gives energy.
Energy gives Life.
Life lifts you over bar
Bob Richards, Pole Vaulter

All serious daring starts from

within
- Eudora Welty

Ear of leader must ring with

voices of people
- Woodrow Wilson

Planning is bringing future into

present
so that you can do
something
about it now
- Alan Lakein

Self-pity is our worst

enemy &
if we yield to it,
we can never do anything
wise in this world
- Helen Keller

What Is Quality Sweating Theory

What makes people Sweat for
Quality?
Theory Of Driving Force For Quality

Two Approaches in
Quality Sweating
Theory

CLSQ Approach

Sense of Crisis + Leadership

VLSQ Approach

Vision + Leadership

VLSQ Approach

If a company is so good in its business and if it has

no crisis nor crisis consciousness, what then could
serve as a driving force for TQM
A forward looking grand vision would mobilize
people to sweat hard for the sake of achieving that
vision.
The vision must be the one which could really
motivate people to sweat willingly. For quality.

Vision and Leadership Encourage

People to Sweat for Quality

the vision approach for TQM promotion needs to conduct

an aggressive public relations activity so that the people
fully understand the integrity of the vision.

CLSQ Approach
Someone has to pull the people in the same
direction so that this sense of crisis will
materialize effectively as a moving force for the
entire organization.
Thus the crisis consciousness pushes and the
leadership pulls the organization to motivate
people to sweat for quality.

Crisis Consciousness &

Leadership Make People Sweat
for Quality

The vision approach for TQM promotion needs to conduct

an aggressive public relations activity so that the people
fully understand the integrity of the vision.

The lesson Learnt

The Enemy
for Quality,
that is complacent.

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.

Food For Thought

85 percent of the
opportunities for
improvement comes
from changing the
systems Reengineering work
process & modifying or
replacing equipment.
Dr. Deming

QUALITY IN
PRODUCTION SYSTEMS

Production = Converting
organizations resources into goods
& services
Production System = The
collection of activities involved in
production

THREE COMPONENTS OF
PRODUCTION SYSTEM
1.

2.

3.

Inputs (Physical facilities, materials,

capital, equipment, people &
energy)
Processes (Machining, mixing,
assembly etc.)
Outputs (The product or services
produced)

THREE LEVELS OF QUALITY

Quality must be examined at three
levels

1.
2.
3.

The
The
The

organizational level
process level
performer / job level

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

AT THE PERFORMER LEVEL

Standards of output must be determined

Accuracy
Completeness
Innovation
Timeliness
Cost
Determine how requirements will be
measured

AT PROCESS LEVEL
Must Identify:

Products or services the

customers desire
Key processes
Core inputs
Organizations customerdriven performance standards
Needs of internal customers

A PROCESS FOCUSED APPROACH

High

The Need
For the
Process

Based on Need:
Refine
Redesign
Reengineer

FOCUS

WASTE
Low

The Performance
of the Process

High

If Process is not
Needed, Can it
Be eliminated?

AT PERFORMER LEVEL

Standards of output must be

determined
Accuracy
Completeness
Innovation
Timeliness
Cost
Determine how requirements will
be measured

Five Questions of Your Quality

1.
2.
3.

4.

5.

What is your major product/service?

Who are its major users/customers?
What are its quality requirements
which the major users/customer
demand?
What is
its most competitive
product/service which is provided by
your competitor?
What kind of comparative study do
you
have
between
you
product/service
and
you
competitors
for
the
quality
requirements
from
the
major
users/customers?

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

Quality is never
an accident, it is
always the result of
an intelligent
effort
John Ruskin

TQM
Tools,

Techniques
and
Infrastructure of
Quality

Infrastructure,
Infrastructure, Practices,
Practices, &
& Tools
Tools
Practices -those activities occur within
a
mgt
system
to
achieve
hi
performance objectives.
Tools - wide variety of graphical &
statistical methods to plan work
activities, collect data analyze results,
monitor progress, & solve problems.

Infrastructure,
Infrastructure, Practices,
Practices, &
&
Tools
Tools
Infrastructure -basic mgmt systems necessary
to function as a hi performing org.
Infra
structure that Support TQM Principles are:
Leadership
Strategic

planning

HRM
Process
Data

mgt

& info mgmt

The Scope
Scope of
of Total
Total Quality
Quality
The
Management
Management

PRINCIPLES

Infrastructure

Tools &
Techniques

The Scope of Total Quality

Management

foc
Cu
sto
me
r

t
en
em
rov
mp g
s i nin
ou ar
nu d le
nti An
Co

us

Practices

Principles

Participation and Teamwork

Infrastructure

Tools &
Techniques

Leadership
Leadership
Inventories can be managed, but
people must be led.

Their task is to create clear

quality values & high
expectations, & then build these
in to the company operations.

STRATEGIC
STRATEGIC PLANNING
PLANNING
The org must first address some fundamental
strategic questions:
Who are our customers?
What is our mission?
What principles do we value?
What are our long range & short range goals?
How do we accomplish these goals?
Strategic business planning should be the
driver for quality improvement throughout the
org.

Human Resource Mgt

Major Challenges:
Integration of HR practices
(selection, performance, recognition,
training, and career advancement )
with
business directions and strategic
change processes

Process Management
Involves design of processes
to
develop & deliver products &
services
that meet needs of customers,
daily control so that they
perform as required & their
continual improvement

Do You know??
Well

designed processes
lead to better quality
products & services &
less waste/ rework
Is this amazing?

Data & Info Mgmt

Modern Business depends on
measurement & Analysis of
Performance to support a variety of
purposes: Planning, reviewing
Company profile, Improving
operations, and comparing companys
strategy with competitors.

Statistical Reasoning with

factual data provide basis for
problem solving & CI.

Data
Data &
& Information
Information
Management
Management
Many Types
Types of
of data
data &
& Information
Information are
are needed
needed
Many
for quality
quality assessment
assessment &
& quality
quality improvement:
improvement:
for

Customer needs
needs
Customer
Product &
& service
service performance
performance
Product
Operations performance
performance
Operations
Market assessments
assessments
Market
Competitive comparisons
comparisons
Competitive
Supplier performance
performance
Supplier
Cost &
& financial
financial performance
performance
Cost

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

UNCOVERING REAL
OPPORTUNITIES of QUALITY

Those assurances are part of the package

customers get and for which they may be
willing to pay
Turning that may into a will has to do
with the degree of understanding of
ones customers
And what this all costs customer is
more than money
This is not a panacea
It will not magically provide all the right
answers
It will make us far more likely to ask the
right questions, which is a major piece of
progress

Quality is never
an accident, it is
always the result
of an intelligent
effort

John Ruskin

What Is Quality Sweating Theory

What makes people Sweat for
Quality?
Theory Of Driving Force For Quality

Laws alone can not secure

freedom of expression;

in order that every man present

his views without penalty there
must be Spirit of Tolerance
in the entire population.

Albert Einstein (1879 - 1955)