quality in the 21 century - unionmark.co
TRANSCRIPT
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Quality in The 21st Century:A New Dawn for Businesses and A Challenge for Quality
Professionals
Professor Mohamed ZairiDirector of The European Centre for TQM
Juran Chair in TQMUniversity of Bradford
UK
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Structure of Talk• Legacies of the 20th
Century• From P to K – The New
Business Environment• Quality in an e-
Environment• ASQ’s Future Study• The New Role of Quality
Professionals
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Pursue Purpose Beyond Profit
“No enterprise, noinstitution, perhaps noindividual can reallysucceed without a senseof purpose – a purposewhich explains andguides every step.” John Browne
Group CEO, BP
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Legacies of 20th Century
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The Battle For WasteElimination
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SHEWHART AND THE CONTROL CHART
• Invented by Water Shewhart on 16th
May 1924• Two types of
variation: Common & Special causes
• To support management make decisions
Dr. Water Shewhart (1891 – 1967)
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CONTROL CHARTS• Control charts
signalled the start of Quality Control
• Helped move the mindset from DETECTION to PREVENTION
• Led to the PDCA Cycle (ShewhartCycle) later to become the Deming Cycle or PDSA
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"We have learned to live in a world of mistakes and defective products as if they were necessary to life. It is time to adopt a
new philosophy in America."
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The Pareto ManHe developed the quality trilogy – quality planning, quality control and quality improvement.
Juran believed quality is associated with customer satisfaction and dissatisfaction with the product, and emphasised the necessity for ongoing quality improvement through a succession of small improvement projects carried out throughout the organisation.
Quality Control Quality Planning
Quality Improvement
Holding the gainsHolding the gains
Pareto AnalysisPareto AnalysisBreakthroughBreakthrough
projectproject--byby--projectproject
CUSTOMERPROCESSSUPPLIER
Dr. J.M. Juran
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Kaoru Ishikawa
• Showed the Japanese how to integrate the many tools of quality, especially the simpler tools.
• Basic 7 Tools: Histograms, Pareto Charts, Cause and Effect Diagrams, Run Charts, Scatter Diagrams, Flow Charts, Control Charts
Source: Jim Wixson, CVS, CMfgE
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Westerners who followed the Japanese Westerners who followed the Japanese industrial successindustrial success
Feigenbaum is the originator of Total Quality Control. He argue that quality needs to be applied
to all stages of a process, not just the manufacturing stage, thus he emphasised the administrative
viewpoint and considered human relations as a basic issue in quality management activities.
Armand VArmand VFeigenbaumFeigenbaum
Total QualityManagement
Quality LeadershipModern quality technologyOrganisational commitment
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Quality ParadigmsQuality Paradigms
Paradigm is the result of the disciplineParadigm is the result of the discipline’’s s adaptation to environmental contingenciesadaptation to environmental contingencies
Quality evolution is a discipline, a set of principles Quality evolution is a discipline, a set of principles and assumed truths that define how the quality of and assumed truths that define how the quality of goods and services is to be assessed, managed, goods and services is to be assessed, managed, delivered and assured.delivered and assured.
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Industrial Revolution Industrial Revolution ““Quality Quality ControlControl””
The factory system that literally caused a revolution in how the discipline of quality was practiced.
Late 1800s Operator QCOne worker or at least a very One worker or at least a very small number of workers, was small number of workers, was responsible for manufacturing responsible for manufacturing the entire product.the entire product.
Early 1900s Forman QC
Individuals performing a Individuals performing a similar task were grouped similar task were grouped and directed by a foreman and directed by a foreman who is responsible for the who is responsible for the quality of their work. quality of their work.
During World War I Inspection QC
More complex More complex manufacturing manufacturing system. Large number system. Large number reporting to one foreman reporting to one foreman was impossible. was impossible. FullFull--time inspectors was the time inspectors was the solution.solution.
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1920s Statistical QC
It was an extension to inspection,It was an extension to inspection,But with new statistical thinkingBut with new statistical thinkingand methods in manufacturing. and methods in manufacturing. Tools such as sampling and Tools such as sampling and control charts began to be used.control charts began to be used.
1930s/1940 First Phase of TQC
Use of statistical thinking outsideUse of statistical thinking outsidemanufacturing.manufacturing.
1950s/1960s Systems of Improvement
Develop quality manual, product Develop quality manual, product testing, basic quality planning, testing, basic quality planning, paperwork control and process paperwork control and process performance data.performance data.
1970s/late 80s Quality Assurance
Quality systems development, Quality systems development, advanced quality planning, advanced quality planning, comprehensive quality manuals, comprehensive quality manuals, The fourteen points approaches, The fourteen points approaches, use of quality costs, involvement use of quality costs, involvement of nonof non--production operation, production operation, failure mode and effect analysis failure mode and effect analysis and SPC.and SPC.
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The Battle For Quality Management
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Post Post Industrial Industrial ““Total Quality Total Quality ManagementManagement””
Shift from Control to ImprovementShift from Control to Improvement
1990s TQM
Policy deployment, involve Policy deployment, involve suppliers & customers, involve suppliers & customers, involve all operations, process all operations, process management, performance management, performance measurement, teamwork and measurement, teamwork and employee involvement.employee involvement.
Millennium More advanced management More advanced management concepts, systems and concepts, systems and technologies.technologies.
ITQMIntelligent Era
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INSPIRATION
IMPLEMENTATION
INTEGRATIO
N
IMPROVEM
ENT
INNOVA
TION
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TQM IMPLEMENTATION PROCESS
• INSPIRATION• INITIATION• IMPROVEMENT• INTEGRATION• INNOVATION
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LEADERSHIP SYSTEMLEADERSHIP SYSTEM
COMMITTO
INNOVATIONREWARD AND
RECOGNIZE PEOPLE
DEVELOP PEOPLE
COMMIT TO CONTINUOUSIMPROVEMENT
DEVELOP CLEAR AND VISIBLE VALUES
CREATE CUSTOMER ORIENTATION
SET DIRECTION
INSPIRATION
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IMPROVEMENTIMPROVEMENT
SUSTA-AINABLE
PERFORMANCEREWARD ANDRECOGNITION
BREAKTHROUGH PER-FORMANCE ASSESSMENT
PERFORMANCE APPRAISALAND MANAGEMENT
PROCESS CONTROL AND MEASUREMENT
PROCESS ANALYSIS AND IMPROVEMENT
STRATEGIC DEVELOPMENT AND GOAL DEVEPLOYMENT
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INITIATIONINITIATION
SUPPLIER INVOLVEMENT
EMPLOYEE PARTICIPATION
CONTINUOUS IMPROVEMENT
MANAGEMETN BY PROCESS
MANAGEMENT BY FACT
FOCUS ON CUSTOMERS
MANAGEMENT LEADERSHIP FOR TQM
RESPECT FOR PEOPLE
TEAM WORK
CONTI-NUOUS
LEARNING
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TQM INTEGRATIONTQM INTEGRATION
INTE-GRATION
WITH STRATEGICPLANNING
& REVIEW CYCLEEXTERNAL
BENCHMARKINGACTIVITY
SHARING & TRANSFERINGOF BEST PRACTICES
A CONSISTENT TOTAL QAULITYGUIDE
CORPORATE TOTAL ALIGNMENT TO QUALITY IMPROVEMENT
ORGANISATION-WIDE ASSESSMENT OF EXCELLENCE
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INNOVATION & LEARNINGINNOVATION & LEARNING
KNOWLEDGEMANAGEMENT
PROCESSBEST PRACTICE
CAPTURE & DISSEMINATIONCAPABILITY DEVELOPMENT
PROCESS
LEADERSHIP FOR CHANGE
CORRECTIVE ACTION CULTURE
PROCESS IMPROVEMENT CULTURE
SUSTA-INABLE
LEARNING& INNOVATION
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HOW WELL ARE WE DOING?
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The Battle For Excellence
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Total Score 1 - 199 200 - 399 400 - 599 600 - 799 800 - 1000
The whole pointof the exerciseis improvement.
You have plentyof scope to
impressstakeholders.
This is often thestarting point fororganisations.
You may haveto share yourstrategy morewidely, to gainbuy-in to the
concept.
Ownership isbeing gained asyou are in front
of most.
You shouldhave a clearplan for the
improvementsthat are
necessary.
You arebecoming best
in class.
Don't becomplacent -
there's more todo; your rivalswon't give up!
World Class.
Recognitionshould beuniversal.
20 - 50% 15 - 40% 10 - 30% 5% - 20% up to 15%
% improvement required towards excellence
ImprovementTarget
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Is it the end of TQM?
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The end of an Era …20th Century TQM will become ONLY the License to Practice
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The end of an Era …20th Century TQM will become ONLY the License to Practice
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The Battle For Knowledge-Based Competitiveness
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From P to K – The New Business Environment
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Product Product
DevelopmentDevelopment
Supplier Supplier
Management Management Transport Transport
Warehouse & Warehouse & Inventory Inventory
Management Management
Category Category
Management Management Store Management Store Management
Customer Customer Relationship Relationship
Management Management
B-to-B B-to-C
Product Development
ManagementE-procurement
Software
Supply Chain
Management Category
Management
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Value Adding Value Adding through Manual through Manual
MeansMeans
Value Adding Value Adding
through capital through capital
Value Adding Value Adding through skills & through skills & competenciescompetencies
Value Adding Value Adding through K through K
(Intellectual (Intellectual
Capital) Capital)
Virtual Value Chain
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The start of
Customer PLC
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Quality in an e-Environment
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How to Measure Customer How to Measure Customer Attachment and Emotional Attachment and Emotional
Quality?Quality?
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Measuring Customer Attachment Through
Emotional ExperiencesGallup Measurement
Instrument (CE¹¹):
L3 + A8 = CE11:11 Indicators that
tackle Customer Attachment and Loyalty
Source: Gallup Organization
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L3 Questions
• Overall, how satisfied are you with [brand]?
• How likely are you to continue to choose/repurchase [brand]?
• How likely are you to recommend [brand] to a friend/associate? Source: Gallup Organization
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A8 (Attachment) QuestionsCONFIDENCE
• [Brand] is a name I can always trust.
• [Brand] always delivers on what they promise. INTEGRITY
• [Brand] always treats me fairly. • If a problem arises, I can always
count on [brand] to reach a fair and satisfactory resolution. PRIDE
• I feel proud to be a [brand] customer.
• [Brand] always treats me with respect. PASSION
• [Brand] is the perfect company for people like me.
• I can't imagine a world without [brand].
Source: Gallup Organization
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Source: Gallup Organization
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Source: Gallup Organization
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RRitual (Behaviour)
RRealness (Experience)
RReaction (Emotion)
RRflection (Expression)
RResolution (Attachment)
Customer CentricCustomer CentricValue Driven Innovation ModelValue Driven Innovation Model
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DESIGN
DEVEL
OP
DETERMINECustomer
satisfactionDIAGNOSE
CustomerCustomerReactionReaction
DELIV
ER
OrganisationalOrganisationalBenefitsBenefits
DECID
E
NewNewRelationshipRelationship
Enhancing SolutionsEnhancing Solutions
DISSEMINATE Value Information
DEVELOP Customer Centric Capability
Fitness Fitness for Purposefor Purpose ConsistentConsistent
QualityQuality
DEPLO
Y
ValueValueOrientationOrientation
DRIVE
InnovationInnovationCycle Once Cycle Once
MoreMore
R
R
R
R
R
Customer CentricCustomer CentricValue Driven Innovation ModelValue Driven Innovation Model
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How Does Emotional Quality Manifest itself?
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Differentiation in Physical Attributes
Differentiation through change in Physical Attributes
Emotional emphasis – Self expression
For me Only – Self Identity
Relationship
Reference
Personality
Icon
Company
Sacred
Self –ActualisationPolicy
Customer PLC
Intensity ofEmotional Attachment
Transactions and In
teractions
Experience
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ASQ’s Future Study
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ASQ’s 2005 Future’s Study
The Forces of Change
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#1(#2 too)
Globalization• A significant threat to the U.S.• An emergent massive market.• Shaped by the fluidity of the internet.• Unencumbered by legacy infrastructures.• Trading politics will shift.• Demands new kinds of collaboration.• Global vs. multi-national companies.• An unknown competitive intensity.• Driver’s preoccupation with the bottom-line.
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#2Innovation/Creativity/
Change• Quality’s contribution to the Top-Line needs to
be exploited.• Knowledge is “king” and becomes a currency.• Nanotechnology, biotechnology, mass
customization, personal manufacturing will dramatically change the nature of production.
• Natural response to increased rate of change, shorter life-cycles, consumer sophistication (unnatural response of people and organizations).
• Increased demand for “sensing systems.”• Implications to the traditions of quality. How will
“control” and “continuous improvement” co-exist to evolve in response to these demands on organizations?
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#3 Outsourcing(#1’s 1st Cousin)
• Global in scope.• Work increasingly independent of place
and space.• Era of virtual companies (core of business
marketing and management).
• Quality shaped by people-induced variability.
• QMS in global supplier networks.• Some predict a swinging pendulum.
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#4Consumer Sophistication
• Rising expectations of product quality, seamless delivery, and fresh features.
• Quality necessary but not sufficient.• Enabled by instant internet knowledge.• National loyalty traded for cost/benefit.• Consumer-controlled markets.• Ever shorter life-cycles.• Challenge, but silver-lining, for quality.• Anticipatory skills grow in value.
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#5 Value Creation• Requires clarity and definition from
stakeholder’s viewpoint.• Management systems must be adapted
to this intent.• Includes sustainability, the triple bottom
line, and waste elimination.• Quality to create value in everything
that is done.
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#6 Changes in Quality
• Redefined to fit the needs of 21st
organizations.• A systems, not process, approach.• Used to move business conceptions
(strategies) into actions through people. • Premiums on anticipation, first to
market, initial yield, agility, supplier network management.
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2005 Force of Change
1. Globalization.2. Innovation/Creativity/Change.3. Outsourcing.4. Consumer Sophistication.5. Value Creation.6. Changes in Quality.
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“On the Screen”• Mass Customization.• Social Responsibility.• Quality and the “Top
Line.”• Virtual Society.• Waste Elimination.• Learning.• People Management.
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The New Role of Quality Professionals
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Q in e&
eQ
eStandardization Q
in KMCustomer
Loyalty
Mgt
Q-BasedCompetitiv
eness(Innovation-Driven)
Q-B
ased
Ef
fect
iven
ess
(Impr
ovem
ent-
Driv
en)
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Q in e and eQ• To manage the change
towards a virtual business environment where the customer is in the driving seat.
• To ensure that new attributes based on ‘click and do business’are Q-based
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eStandardization
To manage and implement new standards that deal with internet-based business environment for core and support activities alike.
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Q in Knowledge Management
To manage the acquisition, transfer, utilisation and impact of K-based transactions and to evaluate the growth of K-Based Assets
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Customer Loyalty Management (CLM)
Integrating emotional Quality (eQ) to Q in e by continuously evaluating Customer Emotional Quality and their subsequent loyalty
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Q-Based Competitiveness (Innovation-Driven)
To develop and sustain Innovative Capability where the core value contribution is Q-based and customer oriented (i.e. making Kano’s 3rd dimension a ‘foundation’dimension)
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Q-Based Effectiveness (Improvement-Driven)
To ensure Six Sigma standards across all the ‘basic elements; of the Business Value Chain
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From TQM to Total eQM
A Useful Roadmap
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CUSTOMERRELATIONSHIPMANAGEMENT
TOTAL BRANDMANAGEMENT
CUSTOMERCENTRIC STRATEGY
EMOTIONALAND EXPERIENCE
DESIGN
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EMOTIONAL & EXPERIENCE DESIGN
Use Emotion Driven methods and tools for design purposesUse both generative and evaluative toolsUse for instance Customer Journey Mapping (CJM) to visualise and manage the rational and emotional customer experienceMake the design experience as REAL as possibleFocus on 5 common senses, interactivity, customer value, personal meaning and all in an emotional context
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CUSTOMER CENTRIC STRATEGY
Develop Organisational ability for the creation of individual experiences through customising mass customizationDrive CEM through a clearly defined and implemented Customer Life Cycle ApproachDevelop measurement in all points of contactUse the 3D approach (Designing the right propositions, Delivering Value to the customer, Developing capabilities to repeat the experiences)
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Total eQuality Management (7Ss(7Ss’’))
Shared Values – What we believe inStyle – How we relate to our market and keystakeholdersStrategy – What are focus is and what must we accomplishStandards – How we manage our value chainService – What we do and provideSensations – The Expressions we hope we can createStaunchness – Loyalty and attachment of our customers
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Customer Relationship Management
CRM is not something that can be boughtTechnology is only an enablerCRM is a business strategy by itselfCRM means generating customer satisfaction on a sustainable basisSustainable PerformanceCRM means striving to achieve high levels of customer loyalty and retention
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Impression and Expression
Creating an IMPRESSION in the eyes and mind of the customer through EXCELLENCE at all points of contact
Generating an EXPRESSION of delight and emotional response
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THANK YOU