Global State of Quality

At World Quality Day

In Dubai

On November 18, 2014

By Janak MehtaPresident, International Academy for Quality (IAQ)Chairman, TQM International Pvt. Ltd.

1Janak Mehta, Chairman - TQMI

Lancaster Medal by ASQ, USADeming Award by JUSE, Japan

Content

1. Historical perspective

2. Anticipated changes in socio-economic environment in mid term

3. Impact on professionals from quality field.

2Janak Mehta, Chairman - TQMI

History of Quality Movement

Abraham Harold Maslow

Frederick Irving Herzberg

Dale CarnegieFredrick W Taylor Henry Ford Kiichiro Toyoda

3Janak Mehta, Chairman - TQMI

Taichi Ohno

1910 19141910

1960’S 1930’S1943 1960’s

4Janak Mehta, Chairman - TQMI

History of Quality Movement

W.A. Shewhart1939

J. M. Juran(1955)

Deming, W. E.(1952)

K. Ishikawa (1962)

S. Mizuno(1965)

N. Kano(1993)

Creativity

Carnegie, Maslow & Herzog

1930’s

SystemsSpecialists

Taylor1910’s

QC CirclesS

DC

A P

DC

A

True Empowerment

Daily Mgmt. including 5-S

Q,C,D,S,M

Ind. Kaizen

Respect for People-Customer Focus-Self Control-Intellectual Honesty

Policy Mgmt.

SQC

My View on TQM Through Quality Journey

• Principles, concepts & tools are known around the world

West Japan World

•Driver is the competition for Survival; occasionally Vision

•Sweat We Must

JidokaContinuous Flow

Heijunka

Henry Ford

Why Must We Sweat?

Anticipated changes in socio-economic environment in mid term.

6Janak Mehta, Chairman - TQMI

Total Population of the World by Decade,1950–2050 (historical and projected)

Year

Total world population

(mid-year figures)

Ten-year growth rate (%)

1776 1,000,000,0001950 2,556,000,053 18.9%1960 3,039,451,023 22.01970 3,706,618,163 20.21980 4,453,831,714 18.51990 5,278,639,789 15.22000 6,082,966,429 12.620101 6,848,932,929 10.720201 7,584,821,144 8.720301 8,246,619,341 7.320401 8,850,045,889 5.620501 9,346,399,468 —

Source: US Census Bureau – International Data Base

Industrial revolution – Focused on manufacturing • Transfer of wealth from East to West i.e. to Europe followed by USA • Resulting in unprecedented prosperity in those regions• Prosperity in Asia & Africa declined;leading to poverty & disease.

• Massive reconstruction after the War led to economic prosperity in West• In East: Japan led the way in Improvement; Asian Tigers followed• Healthcare improvement & reduction in mortality led to rapid population growth,• Disparity in living standards increased

Total Population of the World by Decade, 1950–2050 (historical and projected)

Year

Total world population

(mid-year figures)

Ten-year growth rate (%)

1776 1,000,000,0001950 2,556,000,053 18.9%1960 3,039,451,023 22.01970 3,706,618,163 20.21980 4,453,831,714 18.51990 5,278,639,789 15.22000 6,082,966,429 12.620101 6,848,932,929 10.720201 7,584,821,144 8.720301 8,246,619,341 7.320401 8,850,045,889 5.620501 9,346,399,468 —

Source: US Census Bureau – International Data Base

Since 1990’s: Information revolution, triple convergence & globalization of trade has contributed to: • Improvement in Earning capacity and consumption in developing countriesParticularly China & India• Commodity prices (oil & gas) increased

• Realization is growing that current consumption levels are not sustainable• Earth’s resources are depleting• Damage to environment is enormous• Population is growing• Consequences could be disastrousfor everyone

Over next 12 years expected growth: In world population is 1 Billion In Middle Class is 1.8 Billion

Increase in Consumption Rate

* Considering increase in population

Estimated Increase in consumption rate over next 12 years

Population in Billions

Per capita consumption

rate

Consumption Rate *

% Increase in consumption

rate

2007 2020 2007 2020 2007 2020Developed world 1 1 32 32 32.0 32 0.0China 1.3 1.5 3 20 3.9 23.1 491.7India 1.1 1.3 2 15 2.2 17.7 705.8Others 3.1 3.8 1.5 10 4.7 12.3 163.6Total 6.5 7.6 42.8 85.1 99.0

Source: Jared Diamond, Geographer & Historian; Essay in NY Times (January 2, 2007)

Need double the resources?

Food shortage; livelihood; poverty; wars amongst four nations

Water Bodies: Lake Chad, Africa; 20% of what it used to be

Causing: Floods; silting; loss of livelihood; shortage of water; poverty

Glaciers: Gangotri Glacier, Himalayas; Melting Rapidly due to Global Warming

Global Warming; Rising Sea Levels; Accompanying land loss & human misery

Contributed by people in the form of harmful impact of human activity. Leading to:

Ecological Changes

Global warming

Disease

Degradation of forest

Pollution of water

Degradation of land

Exhaustion of non renewable resources

Deadening of the Ocean Zones

Ageing population

Current Economic / Financial System has broken leading to hardship for many

people around the world

Earth and Ecosystem is not considered part of The current economic /

business system / model

Current and Future Issues

Bulk of the growth is / will be in poor countries

Large concentration of young people; And lack of availability of working age people

If starved of basic needs:Food, Health, Housing, Energy, Education, Employment

May lead to:Violence, Civil Unrest And Extremism

Substantial increase in need for resources likeFood; Water; Energy; Minerals; Forests

Where would the 2.3 times the current resources come from?

Distribution of IAQ Academicians

4

30

3

51

12

8162

7

5

151

Region Wise

17

Until 2008

17

"A community of the world's leading executives, practitioners and academics dedicated to

promoting the cause of quality.“132 members – 97 active

From 38 countries

Founded in 1966 by:

International Academy for Quality (IAQ)

18

Distribution of IAQ Academicians

4

30

3

51

12

8162

7

1

6

6

5

6101

1

3

2

Honorary Emeritus Corresponding Total

11 14 10 35Academicians Companion Associates Total

70 6 21 97

Region Wise

Category Wise

19

Compliments to HM Gregory Watson for this initiative

Future of Quality as I see

Technological solutions will probably find the answers for sustenance.

Relevance of quality will only enhance as we struggle to reduce waste.• Quality principles will be more important to follow.• Quality concepts will change in relation to the environmental changes.• New quality techniques will be needed to address the needs of newtechnologies, products and services.

• Quality has relevance only when it touches people’s life. • From all accounts the future is expected to be ever more challenging,especially with respect to quality in health, education, environment andageing.• Quality as a profession has undergone change and likely to change further.In future there will be no such people as quality professional as we knowtoday. Everyone in every function is responsible for the quality of output.

21

Conceptual skills

Diagnostic skills

Question-asking skills Training Skills

Facilitation

skillsPeople skills

Skills of a Quality Professional

22

Abilities of a Quality Professional

BPM

LEAN

GovErNANcESuStAiNABiLity

SAfEty

ENviroNMENt

SIX SIGMA

THANK YOU FOR YOUR TIME & INTEREST

JANAK MEHTA(Chairman & Managing Director)

TQM International Pvt. Ltd.

President, International Academy for Quality

Email : janakmehta@tqmi.com23

24Janak Mehta, Chairman - TQMI