TOWARDS SUCCESSFUL IMPLEMENTATION OF TQM

Transcription

1 TOWARDS SUCCESSFUL IMPLEMENTATION OF TQM Dr. Kamran Moosa Advisor & Past Chairman, Quality & Productivity Society of Pakistan Contents Part 1 Overview and State of TQM in Pakistan Part 2 TQM Implementation Challenges 2 DR. KAMRAN MOOSA, 1

2 PART 1 Journey of Quality Management in Pakistan 3 Pakistan Population 180 M GDP Contribution 20 % Agriculture 26 % Industry 54 % Services % Occupation 45 % Agriculture 21 % Industry 34 % Services Labor Force 60 Million Capita Income $ 1256 (2012) (Source: Pakistan Economic Survey , GOP) 4 DR. KAMRAN MOOSA, 2

3 Cont Literacy Rate 58 % Primary Schools 155,500 ; Students 20.0 M Middle & Secondary 70,000 ; Students 9.3 M Colleges 1,558 ; Students 1.0 M Universities 135 ; Students 1.4 M Overall 227,400 ; Students 31.7 M (Source: Pakistan Economic Survey , GOP) 5 INDUSTRY Textile 8800 Manufacturing Units 5000 Garments 1220 Ginning 750 Finishing 700 Knitwear 456 Spinning 400 Towels 200 Weaving 6 DR. KAMRAN MOOSA, 3

4 Cont Leather 2360 Manufacturing Units 725 Tanneries 460 Garments 524 Footwear 348 Gloves 302 Sports/Goods 7 Cont Others Manufacturing Units 77 SUGAR PLANTS 11 FERTILIZERS PLANTS 25 CEMENT PLANTS 87 OIL MILLS 500 STEEL MILLS/RELATED 1129 CHEMICAL PLANTS 750 SOFTWARE 370 CONSTRUCTION 131 ISP s 8 DR. KAMRAN MOOSA, 4

5 Cont Made in Pakistan Automobile Made in & Pakistan Aircraft Manufacturing Units 47 MANUFACTURERS 6 CARS (1 LOCAL) 19 TRUCKS/BUSES 22 MOTORCYCLES 780 DIRECT VENDORS 3 AIRCRAFT OVERHAULING 1 LOCALLY DESIGNED (JF Thunder) 9 TQM in Education & Certifications Certification Bodies (ISO Stds) 20 Academic / Universities 135 universities Accreditation Bodies (HEC, PEC, PMDC, etc) TQM as a subject in MBA SQC in BSc Engineering MSc in QA/TQM by two institutions PGD in QA by two institutions Chambers of Commerce TQM Bureau, Lahore Chamber of Commerce & Industry 10 DR. KAMRAN MOOSA, 5

6 TQM Journey in Pakistan Inspection / Testing ISO Stds TQM / TPM 1990s 2000s 1980s 2010s Automobile, Defence, Engg. Textile Automobile, Telecom Banks, Software Big Industry Engineering, Banks, Telecom universities TQM Growth Six Sigma, SQCC Schools HEC s Self Assessment 11 TQM Journey in Pakistan Inspection / Testing ISO s 1980s Good Lab is good QC ISO 9000 as a QA Model; everyone took interest Criticism on ISO 9000; goals not met; serious concerns TQM / TPM 2000s 2010s TQM Growth Six Sigma, SQCC Schools HEC s S.A. Quality Circles in Schools; Six Sigma picked up; partial Q Award 12 DR. KAMRAN MOOSA, 6

7 Case 1: Indus Motors Karachi 20 years of outstanding TQM history Quality Circles, Kaizen, JIT, 5S, TPM, Statistical Process Control Quality Circles / year Kaizen per year 13 Case 2: TQM / Students Quality Circles in Schools Modernage School, Abbottabad 2007: Initiative of Quality Circles / TQM in Education in Northern Region of Pakistan 70 institutions involved in SQC as extra curricular activities Objective: To produce Quality minded Citizens Annual Convention where students participate 14 DR. KAMRAN MOOSA, 7

8 Case 3: TQM in School: SPS School & College, Swat Adopted Bloom s Taxonomy as a Basic Learning Quality; i.e. 6 Levels Level 1: Remembering Level 2: Understanding Level 3: Applying Level 4: Analyzing Level 5: Evaluating Level 6: Creating Adopted TQM/SQC in curriculum, Exams, and Teaching Methods Personality Development New Initiative Industrial Kid ; industry liaison at school level 15 QA/TQM Challenges at the national levels 1. QM / QA deals with improving process based approach to organizational performance improvement & standardization, still at growth level at the national level 2. Used in Pakistani industries and organizations as voluntary programs since 1990 s; 20 years of experience in Pakistan (e.g. ISO Stds). 3. Only 10-30% success rate is commonly reported in internal QA programs (and even in external QA programs) 4. Too many companies start these initiatives for 1-2 years and then abandon; very few cross the 3 rd year. Weak Sustainability 5. Effective implementation of internal QA was found in 15% firms, satisfactory in 25%; poor in 60%. Ref: Moosa (2000) 6. Role of ISO Certifications is weak, need some upgradation 7. National Quality Award called Prime Minister Quality Award mobilized in Not yet awarded. 16 DR. KAMRAN MOOSA, 8

9 Quality and Productivity Society of Pakistan Building a World-Class Pakistan QPSP Website 18 DR. KAMRAN MOOSA, 9

10 QPSP memberships 19 Activities Forums (monthly Quality Forum) Magazine (Quest for Excellence) Biannual Exams (Certified Quality Manager 2 times/year) Collaborations on Conferences (ICQI, with PIQC) Students Quality Circles (Modernage) Prime Minister Quality Award (NPO) 20 DR. KAMRAN MOOSA, 10

11 Annual Magazines 21 Conference 22 DR. KAMRAN MOOSA, 11

12 PART 2 Towards Successful Implementation of TQM Dimensions of TQM program Quality Function Deployment Failure Mode & Effect Analysis Statistical Process Control Benchmarking Cost of Quality Business Process Reengineering Six Sigma GR&R Design of Experiments Total Productive Maintenance ISO Certifications Quality Awards Business Excellence Models Accreditation Models TQM Tools & Methods TQM Models & Frameworks TQM Cultural Values TQM Implementation Project Mgt Customer Focus Leadership (for Quality) Vendors Relations Process Approach Systems Approach Data based Analysis Problem solving Continual Improvement Ethics & Social Norms Creativity McKinsey/s 4 Levels UMIST s 5 Levels Crosby s 5 Stages Ghobadian s Model Oakland s Model Technical Cultural 24 DR. KAMRAN MOOSA, 12

13 TQM Culture the ultimate goal Successful TQM Deployment Leadership & Cultural Processes TQM Values/Culture TQM Project Management TQM Frameworks TQM Tools Project Mgt Processes Learning Processes 25 TQM Development, Deployment & Sustainability Development Deployment TQM Sustainability (Continuity) 26 DR. KAMRAN MOOSA, 13

14 Studies on TQM Implementation Success and Failure of TQM in Global scenario Most studies confirm improvement in performance due to TQM but very little on its sustainability; Singhal s study (2001) is most prominent Ollila (1995), Terziovsk (1999), 10-30% success reported in many studies ; Oakland (2007), Yui (1995), Beer (2003), Hackman (1995), Caudron (1993), Harari (1993), Korukonda (1999) Success and Failure of TQM in Pakistan Effective implementation was found in 15% firms, satisfactory in 25%; poor in 60%. Moosa (2000) 100 Conference papers on TQM practices from 1995 to 2010; most reported problems in implementation and integration with existing organizational culture. (Jamshed Khan 2000, lever Brother 2000, Habib Rafiqe (2000), Gillete (2000), saphire Textile (1998), Packages (2000), PTC (2000) 27 Challenge: TQM Failure 75% Success 25% Failure 75% 28 DR. KAMRAN MOOSA, 14

15 EFFECTIVENESS 2013 MEQA CONFERENCE TQM Maturity over years 10-20% Starter Amateur Mature 80-90% 1 ST Year 2 nd Year 3 rd Year Development Phase Starts Deployment Phase Starts Sustainability Phase Starts 29 How can you standardize an SOP? HANDWASHING 30 DR. KAMRAN MOOSA, 15

16 Sustainability = Quality x Time Suppliers Organization Products & Services IT Mnt Software Part time faculty Compliance to Processes 31 Examples Quality Objectives POST OFFICE UNIVERSITY PRODUCTION DEPT. TESTING DEPT. HRD Number of Letters Number of Post Offices Number of Transactions Number of Students Number of Teachers Number of Programs Number of Branches Number items produced Types of products produced Number of tests Types of Tests Number of persons hired Number of Trainings Delivery Rate Damage Rate Transactions/day/person Graduate Competency Rate Job Placement Rate % of Satisfied Graduates % of Satisfied Employers % Defectives/Rejected Cost of Production/item Number of items/unit time Error Rate Delays Cost of unit test Competency Rate Duration of vacant posts % of Poor Hiring 32 DR. KAMRAN MOOSA, 16

17 TQM dashboard (Example) 33 Quality, QA and Org l Culture Due to Poor Culture of Creativity & Involvement Culture of Standardization Needs improvement Quality Outcomes KPIs Due to Poor Culture of Standardization Culture of Creativity & Involvement Needs improvement 34 DR. KAMRAN MOOSA, 17

18 TQM Key Objectives STANDARDIZATION To Strengthen SYSEMS Effective Development, Training, Enforcement Auditing of SOPs TQM IMPROVEMENT To Improve PERFORMANCE Effective Development, Training, Enforcement Auditing of KPIs 70-80% 20-30% 35 What TQM does 70/20/10 Analysis Incidences STOP (Processes Not followed) Process Not effective PROCESS CONTROL PROCESS IMPROVEMENT WITH PROBLEM SOLVING 4 5 Process Not suitable PROCESS CHANGE 36 DR. KAMRAN MOOSA, 18

19 ISO 9000 Survey Excellent 15% A Good Satisfactory Acceptable 25% B C Time (months) 60% 37 ISO 9000 Survey (Cont.) Quality Practices in Departments % Production Sales Prod. Planning Finance QA Marketing Design 38 DR. KAMRAN MOOSA, 19

20 ISO 9000 Survey (Cont.) Application of TQM Tools % ISO 9000 SPC C. Survey QCC Benchmarking Reengineering Q. Award Kaizen/5S QPD JIT New Mgt Tools 39 TQM Aspects vs Intermediate & Final Impacts (Final) (Intermediate) 40 DR. KAMRAN MOOSA, 20

21 TQM survey 2010 Responses of Items with p<0.05 TQM survey 2010 Responses of Items with p< DR. KAMRAN MOOSA, 21

22 TQM survey 2010 Responses of Items with p< TQM survey DR. KAMRAN MOOSA, 22

23 TQM survey Categorization of Contextual Factors A Category Most Influencing Leadership of TQM Program Size of Organization B Category Medium Influencing C Category Little influencing D Category Least influencing Effectiveness of ISO 9000 Formally Adoption of QA System in firm Job Positions Export orientation Location of Firms Sectors Type of Firms Experiences of Employees Background of Employees Age of Employees 46 DR. KAMRAN MOOSA, 23

24 Making TQM Programs Sustainable Strategy Structure Development Cultural Accountability of HODs on outcomes KPIs for every dept Systems approach Cultural focus Competent TQM Mgr TQM Steering Committee Dept l Coord Quality Imp Teams Training Plans HODs Coord s Empl s Types of Trg KPIs SOPs Quality Reviews Quality Reports Process Imp Teams Rewards & Awards Thorough Audits & Ass t s 47 Conclusion TQM is only effective, if behind it are: The Right Strategy The Right Structure The Right Training and is being sustained on long term basis 48 DR. KAMRAN MOOSA, 24

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