Trend and Business. Business and Quality Management

Transcription

1 Trend and Business Business and Quality Management Nattasit Chaisaard PH.D. Candidate (Civil Engineering) Lecturer of School of Management Science Sukhothai Thammathirat Open University

2 Quality is Buzzword? Quality was defined as Conformance to Specifications but later defined as Customer Expectations Achieving Perceived Requirements with Consistency and Regularity Fitness for purpose Quality (Primary Decision) When Things are plentiful/and Price is the same. Uniformity about correct target (Demming)

3 Concept and Objectives The Responsibility for quality belong to all resources involved in the process. The higher quality, the less it costs. Quality in the process (Added value)

4 Quality One of the aims of standardization, the quality of product is the totality of its attributes that enable it to perform a stated task or to fulfill a given need satisfaction (In the periodical time) input process output To get the right output. Have to right input on process

5 Involved Vocabulary (1) QC:Quality Control (Final inspection) Activities(Techniques) used to make sure that the products meets specification (Requirement) Inspection (Formal Examination/Review) Testing (Experimental test in Laboratory) determine work properly Calibration (Make fine adjustment/optimal Measuring)

6 Involved Vocabulary (2) Quality Assurance (QA) Evolved from technique of final inspection (1930s) Realization that the greatest influence on target base. Research and Development Planning and Design Approach to Quality Standards

7 QA Meaning Involved Business Management /Enhanced the ability to consistently provide products and services to specification, Programme and Cost

8 Introduction Under the developing and changing world conditions, businesses in the race which is excessively competitive and to be able to grab rapidly increasing market share with the developing technology have to revise their understanding of quality and decrease the margin of error in the product or service they produce in order to be able to survive, compete and reach the level they want and maintain this level. (Aysel Cetindere 2014)

9 In this context, companies began a quality race and Total Quality Management approach gained importance TQM can be described as a combination of participatory management and team work, produce defect-free products or customer satisfaction. TQM including the human and the quality-productivity relationship; compromises the process in which requires improving performance at all levels and activities of everyone in the organization

10 Today performance is used to mean a point which is reached through plans made for a certain target. In other words, performance is the result that is gained by an employee by fulfilling given mission in a certain time period (Bingöl, 2003).

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12 TQM Basic Principles of Total Quality Management by Ron Kurtus (2001) Improve Your Business with TQM. Also satisfy philosophy, doing business, customer, user, internal, external, supplier, worker, supervisor, requirements, just-in-time, variability reduction, continuous improvement,

13 TQM :Historical Perspective Developed from Application of Statistical process control to manufacturing during WWII. The Japanese adopted the concept successfully and then the US started to adopt the concept in the 80s Deming start to teaching Japanese workers for The Elementary Principles of Statistical control of Quality.

14 He is considered in industry as a "Quality Guru" who aided the Japanese recovery after WWII

15 TQM Definition A Set of Systematic activities carried out by the entire organization to effectively and efficiently achieve company objectives To provide products and services with a level of quality that satisfies customers at the suitable time and price. Lead by Strong management leadership Appropriate quality strategies and Policies

16 Business Objectives speedily and efficiently with the least management resources. Activities from producing products and services to handing them off to customers Survey Research Planning Development Design Product Preparation Purchasing Manufacturing Installation Inspection Order taking Sales and Marketing Maintenance After-Sales Services After-Usage Disposal & Recycling Activities from producing

17 TQM: Product and Services Include Manufactured Products (Finished Products and Spare parts) & Materials System, Software, Energy, Information All other benefits that are provided to customers

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19 TQM is a way of managing to improve the effectiveness, efficiency, flexibilities and competitiveness of a business as a whole. To organize the company/organization commit to quality in each department (units), each activity, person, level Quality chains Supplier s capabilities Customer s Requirement

20 Deming s Chain Reaction Improve Quality Improve Productivity Return Investment Decrease costs/price Provide Jobs Increase Market Stay in Business

21 Benefits of TQM Customer Satisfaction oriented benefits Economic improvements oriented benefits

22 Benefits of TQM (Alternatives) Make company to be leader in markets (Global Markets) Fastens the teamwork Review for Customers expectation/requirement Make Company adapt more readily to change Increase productivity Improve Quality (Product and Service) Reduced Cost Motivated Staff

23 Questions you may have include: How do you satisfy the customer? Why should you satisfy the supplier? What is continuous improvement?

24 Satisfy the customer The first and major TQM principle is to satisfy the customer. [Customers want to get their money's worth from a product or service they purchase.] comprise of Users Company philosophy Internal customers Chain of customers

25 Satisfy the supplier Satisfy the supplier A second TQM principle is to satisfy the supplier, which is the person or organization from whom you are purchasing goods or services. External suppliers Internal suppliers Get better work Empower workers

26 Process Improvement Value Added Transformation Focusing on the process by measurement and analysis The process can possibly be improved by changing/adjusting inputs, methods, equipment, materials or other factors

27 SPC: Statistical Process Control In the mid-1920s, Dr. Walter A. Shewhart developed the fundamentals of Statistical Process Control. Associated tool of the Control Chart. Reasoning and approach were practical, sensible and positive. Significant mathematical attributes were assigned to Shewhart's thinking

28 SPC: Statistical Process Control [1] SPC that typically involved mathematical with the purpose, of process improvement, as opposed to mere process monitoring. To get the process into that satisfactory state which one might then be content to monitor. Adherent to Deming s principles would probably never reach that situation, following instead the philosophy and aim of continuous improvement.

29 Statistical Process Control: SPC, is a method for monitoring, controlling and, ideally, improving a process through statistical analysis. The philosophy states that all processes exhibit intrinsic variation. However, sometimes processes exhibit excessive variation that produces undesirable or unpredictable results. SPC, in a manufacturing process optimization context, is used to reduce variation to achieve the best target value.

30 Statistical Process Control: SPC

31 Statistics in SPC (Control Chart)

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33 Continuous Improvement

34 Level of Quality Commitment ISO 9000 Series

35 Quality Management Principles Eight quality management principles on which the quality management system standards of the ISO 9000 series are based. These principles can be used by senior management as a framework to guide their organizations towards improved performance. The principles are derived from the collective experience and knowledge of the international experts who participate in ISO Technical Committee ISO/TC 176,

36 Quality Management Principles [1] Quality management and quality assurance, which is responsible for developing and maintaining the ISO 9000 standards. 8 quality management principles are defined in ISO 9000:2005, Quality management systems Fundamentals and vocabulary, and in ISO 9004:2009, Managing for the sustained success of an organization A quality management approach.

37 The standardized descriptions of the principles as they appear in ISO 9000:2005 and ISO 9004:2009. In addition, it provides examples of the benefits derived from their use and of actions that managers typically take in applying the principles to improve their organizations performance.

38 Quality Management Principles [2] Eight quality management principles on which the quality management system standards of the ISO 9000 series are based. As a framework to guide their organizations towards improved performance.

39 Quality Management Principles (cont.) Principle 1 Customer focus Principle 2 Leadership Principle 3 Involvement of people Principle 4 Process approach Principle 5 System approach to management Principle 6 Continual improvement Principle 7 Factual approach to decision making Principle 8 Mutually beneficial supplier relationships

40 Key Benefits: Increased revenue and market share obtained through flexible and fast responses to market opportunities Increased effectiveness in the use of the organization s resources to enhance customer satisfaction Improved customer loyalty leading to repeat business.

41 Typically Lead to Researching and understanding customer needs and expectations Ensuring that the objectives of the organization are linked to customer needs and expectations Communicating customer needs and expectations throughout the organization Measuring customer satisfaction and acting on the results Systematically managing customer relationships Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole)

42 Key Benefits: People will understand and be motivated towards the organization s goals and objectives Activities are evaluated, aligned and implemented in a unified way Miscommunication between levels of an organization will be minimized.

43 Typically Lead to Considering the needs of all interested parties including customers, owners, employees, suppliers, financiers, local communities and society as a whole Establishing a clear vision of the organization s future Setting challenging goals and targets Creating and sustaining shared values, fairness and ethical role models at all levels of the organization Establishing trust and eliminating fear Providing people with the required resources, training and freedom to act with responsibility and accountability Inspiring, encouraging and recognizing people s contributions.

44 Key Benefits: Motivated, committed and involved people within the organization Innovation and creativity in furthering the organization s objectives People being accountable for their own performance. People eager to participate in and contribute to continual improvement.

45 People understanding the importance of their contribution and role in the organization. People identifying constraints to their performance. People accepting ownership of problems and their responsibility for solving them. People evaluating their performance against their personal goals and objectives. People actively seeking opportunities to enhance their competence, knowledge and experience. People freely sharing knowledge and experience. People openly discussing problems and issues.

46 Key Benefits: Lower costs and shorter cycle times through effective use of resources Improved, consistent and predictable results Focused and prioritized improvement opportunities.

47 Systematically defining the activities necessary to obtain a desired result Establishing clear responsibility and accountability for managing key activities Analysing and measuring of the capability of key activities. Identifying the interfaces of key activities within and between the functions of the organization Focusing on the factors such as resources, methods, and materials that will improve key activities of the organization Evaluating risks, consequences and impacts of activities on customers, suppliers and other interested parties.

48 Key Benefits: Integration and alignment of the processes that will best achieve the desired results Ability to focus effort on the key processes Providing confidence to interested parties as to the consistency, effectiveness and efficiency of the organization.

49 Structuring a system to achieve the organization s objectives in the most effective and efficient way. Understanding the interdependencies between the processes of the system. Structured approaches that harmonize and integrate processes Providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriers Understanding organizational capabilities and establishing resource constraints prior to action Targeting and defining how specific activities within a system should operate Continually improving the system through measurement and evaluation.

50 Key Benefits: Performance advantage through improved organizational capabilities Alignment of improvement activities at all levels to an organization s strategic intent Flexibility to react quickly to opportunities.

51 Continual improvement Employing a consistent organization-wide approach to continual improvement of the organization s performance Providing people with training in the methods and tools of continual improvement Making continual improvement of products, processes and systems an objective for every individual in the organization Establishing goals to guide, and measures to track, continual improvement Recognizing and acknowledging improvements.

52 Key Benefits: Informed decisions An increased ability to demonstrate the effectiveness of past decisions through reference to factual records Increased ability to review, challenge and change opinions and decisions.

53 Factual approach to decision making Ensuring that data and information are sufficiently accurate and reliable Making data accessible to those who need it Analysing data and information using valid methods Making decisions and taking action based on factual analysis, balanced with experience and intuition.

54 Key Benefits: Increased ability to create value for both parties Flexibility and speed of joint responses to changing market or customer needs and expectations Optimization of costs and resources.

55 Mutually Beneficial Supplier Relationships Establishing relationships that balance short-term gains with long-term considerations Pooling of expertise and resources with partners Identifying and selecting key suppliers Clear and open communication Sharing information and future plans Establishing joint development and improvement activities Inspiring, encouraging and recognizing improvements and achievements by suppliers

56 Conclusion General perspective on the quality management principles underlying the ISO 9000 series. Giving an overview of these principles and shows how, collectively, they can form a basis for performance improvement and organizational excellence.

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59 Review ISO Quality management The ISO 9000 family addresses various aspects of quality management and contains some of ISO s best known standards. The standards provide guidance and tools for companies and organizations who want to ensure that their products and services consistently meet customer s requirements, and that quality is consistently improved. [

60 Review ISO Quality management [ Standards in the ISO 9000 family include: ISO 9001: sets out the requirements of a quality management system ISO 9000: covers the basic concepts and language ISO 9004: focuses on how to make a quality management system more efficient and effective

61 ISO 9001:2008 sets out the criteria for a quality management system and is the only standard in the family that can be certified to (although this is not a requirement). It can be used by any organization, large or small, regardless of its field of activity. In fact ISO 9001:2008 is implemented by over one million companies and organizations in over 170 countries. [

62 QMS Review Q System

63 The standard is based on a number of quality management principles including a strong customer focus, the motivation and implication of top management, the process approach and continual improvement. Using ISO 9001:2008 helps ensure that customers get consistent, good quality products and services, which in turn brings many business benefits.

64 For an organization to function effectively, it has to determine and manage numerous linked activities. An activity or set of activities using resources, and managed in order to enable the transformation of inputs into outputs, can be considered as a process. The application of a system of processes within an organization, together with the identification and interactions of these processes, and their management to produce the desired outcome, can be referred to as the process approach. the linkage between the individual processes within the system of processes, as well as over their combination and interaction.

65 When used within a quality management system, such an approach emphasizes the importance of a) understanding and meeting requirements, b) the need to consider processes in terms of added value, c) obtaining results of process performance and effectiveness, and d) continual improvement of processes based on objective measurement.

66 Deming's PDCA cycle

67 Deming's PDCA cycle

68 Referred to Deming Cycle The methodology known as Plan-Do-Check-Act (PDCA) can be applied to all processes. PDCA can be briefly described as follows. Plan: establish the objectives and processes necessary to deliver results in accordance with customer requirements and the organization's policies. Do: implement the processes. Check: monitor and measure processes and product against policies, objectives and requirements for the product and report the results. Act: take actions to continually improve process performance.

69 Compatibility with other management systems During the development of this International Standard, due consideration was given to the provisions of ISO 14001:2004 to enhance the compatibility of the two standards for the benefit of the user community. Sets out the criteria for an environmental management system and can be certified to. mapping out a framework that a company or organization can follow to set up an effective environmental management system.

70 This International Standard, Environmental management, occupational health and safety management. However, this International Standard enables an organization to align or integrate its own quality management system with related management system requirements.

71 QMS in Business Point of view

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73 Quality is remembered long after price is forgotten Aldo Gucci