by Sunil G Wijesinha Quality and Productivity Management

Transcription

1 Quality and ivity Management Into the Future KAMRAN MOOSA 1 kamranmoosa@brain.net.pk Contents 1. SWOT Analysis on Quality and ivity Issues 2. Analytical Overview of Competitiveness and Performance 3. Global Conformity Assessment Requirements 4. Changing Paradigms Changes in Future Strategies 5. Conclusion 2 1

2 Strengths ANALYSIS 1. Large base of indigenized industries 2. Strong entrepreneur spirit 3. Width of technologies 4. Width of human resources 5. Low cost of human resources 6. Industrial clusters 7. Good industrial performance by many industries 8. Survivability due to defence technologies 9. Professional culture 10.Cultural values and open environment 3 Weaknesses ANALYSIS 1. Weak enforcement of standards 2. Weak ISOs certifications 3. Quality only management driven programs 4. Supervisors/workers out from quality programs 5. ivity not addressed professionally 6. Little R&D and Innovations 7. Lack of depth in HRM 8. Error in Metrology Systems (Internal/External) 9. Stuck at ISO 9000 level 10. Low level of average Technology 11. Low volumes of ion 12. Quality & ivity Vision 4 2

3 5 Opportunities ANALYSIS 1. Further develop our strengths 2. WTO Compliance 3. Enhance Export markets 4. Enhance Credibility/business in Local Markets 5. Improve Technologies 6. Improve Management Systems 7. Conformity to International buyers 8. Conformity to national standards 9. R&D and new products 10.Corporate Culture and social environment 11.Mergers and collaborations Threats ANALYSIS 1. Severe competition in local markets. Many may close down in the next decade 2. Severe competition in export markets. May close down in the next decade 3. Technology is gradually outdated 4. Loss of polytechnic graduates 5. Brain drain 6. Lowering of living standards 6 3

4 3Cs and Group Alignment Might Is Right Collective Bond Political & Professional Roles MUSCLE International Races Religions Conflicts Technology Management Leadership Opportunities TISSUE Self-development Knowledge Skills, Attitude Creativeness, Ethics, Loyalty productivity CELL 7 Region Country Sector Organization Individual Leadership Q&P of Govt. Proactive Policies Continuity Legal Framework Education BODY ILO Report on ivity Growth Growth in productivity per person employed in the world as a whole accelerated, from 1.5 per cent during the first half of the 1990s, to 1.9 per cent in the second half. Most of this growth was concentrated in industrialized economies (the US and some EU countries), plus some in Asia (China, India, Pakistan and Thailand). In Africa and Latin American economies, available data showed declines in total economy productivity growth since

5 Two Dimensions of Competitiveness ivity High Med Low Company A Company B Company C Competitive Targets Company D Low Med High 9 Quality CSI Complaints Retention Rate Materializing Performance Establish KPIs - Balanced Scorecard Financial Objectives Measures Targets Initiatives Profitability (per person, machine, model, month,etc.) Market Share 10 Customer Objectives Measures Targets Initiatives Higher Competencies (HR) New products (R&D) Strategic Performance Learning & Growth Objectives, Measures Targets, Initiatives Processes Objectives Measures Targets Initiatives ivity (output per person, machine, etc.) Quality (compliance,rejections, defects) 5

6 Four Variables of Competition Technological Strength Marketing Strength (Opportunity Exploiting) Management Strength 11 Financial Strength Competitive Advantage for a is a > b Comparative vs Competitive MARKET ADVANTAGE Comparative Competitive Advantages Advantages (natural/historical) (self created) 12 e.g. Pakistani cotton goat skins Fertile land Cheap/Hardworking Labor e.g. Customer Satisfaction Defect Rate Employees Retention Employees Satisfaction ivity Rates Competitive Pricing 6

7 Managing Competitive Advantage Performance Management (Q+P) R&D, ion, Innovation, IT Technology Pillars Entrepreneurship Opportunity Search International Mkg. Response Rate Opportunity Competitive Advantage Management Leadership, Policies Systems, Benchmarks Resources Output 13 & Outcome Financial, Human, Information TECHNOLOGY MANAGEMENT Organizational Capabilities R&D Capability Existing Technologies ion Or Service Capability Existing Capabilities Required Technologies (Gaps) Testing Capability Required Capabilities (Gaps) Marketing Capability Technology Audit product Management Audit 14 7

8 Different Qualities, Different Barriers, Different Markets Country A Country B Country C Market Segments C B A D E 15 Technical Barriers Conformity Assessment (Fulfillment of standards and specifications) Supplier Consumer Requirements Regulator 16 8

9 Laboratories / testing departments T IN T OUT product PRODUCTION T 1 T 2 T 3 17 Like variation in production, there is variation in testing Variation in testing, called Measuring Error is an un-noticed big issue in Pakistan Lab Management System, like ISO are required Effective and Credible Accreditation is required Conformity Assessment Chain of Trust International/Regional Accr. Clubs 18 ILAC APLAC IAF PAC IATCA IRCA National Accreditation Bodies ISO G-58 ISO G-61 ISO17025 ISO17020 ISO-Guide 62, 66 ISO17022 LABS / Calibration INSPECITON AGENCIES CERTIFICATION AGENCIES Personnel/ Training Marks,CE Buyers Reqt s ISO , SA8000 Credibility, Trustworthy Professional, independent, transparent Testing Audits Process/ System Audits Qualification Professionals Criteria Institutes Consultants 9

10 India s Legal Metrology International / Regional Accr. Clubs 19 ILAC APLAC IAF PAC IATCA IRCA LABS / ISO ISO17025 Calibration National Accreditation Bodies G-58 ISO G ISO17020 ISO-Guide 62, 66 ISO To be announced 0 To be announced in 2004 INSPECITON AGENCIES CERTIFICATION AGENCIES Personnel/ Training Marks,CE Buyers Reqt s ISO , SA8000 in 2004 Credibility, Trustworthy Professional, independent, transparent 400 (289 testing +158 Calib +35 Clinical) Testing Audits Process/ System Audits Qualification Professionals Criteria Institutes Consultants Indonesia s Legal Metrology International / Regional Accr. Clubs 20 ILAC APLAC IAF PAC IATCA IRCA LABS / ISO ISO17025 Calibration National Accreditation Bodies G-58 ISO G Bodies ISO17020 ISO-Guide 62, 66 ISO17022 INSPECITON AGENCIES CERTIFICATION AGENCIES Personnel/ Training Marks,CE Buyers Reqt s ISO , SA8000 None Credibility, Trustworthy Professional, independent, transparent Testing Audits Process/ System Audits Qualification Professionals Criteria Institutes Consultants 10

11 Pakistan s Legal Metrology International / Regional Accr. Clubs 21 ILAC APLAC IAF PAC IATCA IRCA LABS / ISO ISO17025 Calibration? National Accreditation Bodies None G-58? ISO G-61 None ISO17020 ISO-Guide 62, 66 ISO Recently Started Weak INSPECITON AGENCIES CERTIFICATION AGENCIES Personnel/ Training Marks,CE Buyers Reqt s ISO , SA8000 Credibility, Trustworthy Professional, independent, transparent Testing Audits Process/ System Audits Qualification Professionals Criteria Institutes Consultants National Standards Back Check / Balance Development Promotion / Awareness Involved Bodies 1.Parliament (Laws) 2.PSQCA (Coord.) 3.Professional Bodies /Chamber 1.Enforcement Agencies (Dist. Govt / Policing) 2.Respective Ministries Examples 22 Adoption Enforcement PSQCA (MoST ) along with Associations responsible. All bodies not playing effective roles Companies to adopt Pakistan s/others national standards BSI (UK) NIST (USA) SIRIM (MALY) PSB (SING) PSQCA (PAK) BIS (INDIA) 11

12 Maturity Quality and ivity (Into the future) Conformity Assessment Bodies in Europe (Ref: TICQA) 23 ISO 9000 System Maturity After 1-2 years Excellent 15% C Good Satisfactory Acceptable 25% B A Time (months) 60% 24 12

13 25 Effectiveness of ISO 9000 QMS Poor C/A Poor SPC Insuff. Mget Rev Poor Auditors Ineef. IQA's Poor Q Objectives 60 Poor Training 40 Poor Vendor Control TQM Tools - Awareness/Implementation % ISO 9000 SPC C. Survey QCC Benchmarking Reengineering Q. Award Kaizen/5S QPD JIT New Mgt Tools 13

14 PARADIGMS Changing Scope of Quality Manager PARADIGMS Change from from Conformance to to Performance. From just just Quality/ISO Manager to to Performance Improvement Manager. Adding the the roles of of productivity and and competitiveness. Establish Performance measures and and control in in each department Revitalize ISO ISO Acquisition of of knowledge on on International markets and and their their requirements of of products, European Directives and and conformity assessment Build strong partnerships with with Finance (Cost of of Quality) and and HR HR Managers (Motivation/Change Mgt.) 28 14

15 2. Conformity Assessment PARADIGMS Create a culture of of Standards for products, processes and systems. Make it it a strategic issue Strengthen your measuring systems; measuring errors, creating transparency and credibility (may use ISO model) Strengthen your conformity assessment credibilty Create awareness to to conformity assessment. Health, Safety, Environment, and Social Accountability are also becoming critical to to international businesses. 3. Management and Structures PARADIGMS Decentralize Performance Measures, control and improvement Create an an MIS for Performance Measures Create Departmental Coordinators for Performance Management in in each department Top Management to to allocate time, effort and money for performance improvement Involve as as many people as as you can in in problem solving (do not make it it the responsibility of of selected few) Use tools like Balanced Scorecard, Time and Motion Study, Kaizen, etc. 15

16 Example of a Management Structure CHIEF CORPORATE PI COORDINATOR DIV. HEADS Type title here SUB. DIV HEAD AREA A SUB. DIV HEAD AREA B SUB DIV HEAD AREA C SUB DIV. HEAD AREA D DEPT'L HEADS coordinators PI. COORD PI. COORD PI. COORD PI. COORD PI. COORD 31 Dept l Group 4. Legal Metrology and Conformity Assessment PARADIGMS 1. Legal Metrology System and Chain is not functioning for the last many decades. Need total re-engineering, with new laws and acts. 2. Performance of government organizations must be measured and controlled with legal structures. 3. Standardization culture is not appropriate to post WTO scenario and must be further strengthened 4. Professional bodies are not playing their effective role in producing, promoting and encouraging standards. 5. Government organizations have failed to establish effective linkages/mutual Recognition Agreements with international counterparts, resulting in a crisis. This must be solved on emergency basis. 6. Better and professional manpower must lead the legal metrological systems, including accreditation, standardization,,etc

17 Conclusion Higher competitions are ahead of us. We need to adopt better strategies and faster actions to deal with new challenges. The new era is of productivity and conformity assessment. ivity needs serious considerations coupled with better quality of life. Technology and R&D must be given due considerations to improve productivity as well as quality. Legal Metrology must be re-engineered in Pakistan. 33 The End Quality Begins and Ends with actions Not with words Thank You 34 17