1.Prof.Dr.Ayano.pdf

“Task Achieving Out of EconomicCrisis and Sustainability”

Katsutoshi AYANO, Ph.D.

Professor

Tokai University

BIQS 2012 Key Note Address:

Greetings

It is my pleasure and honor to deliver the keynotespeech titled “Task Achieving Out of EconomicCrisis and Sustainability” in a country where TQMactivity is among the most active out of Japan.Japan, as you may know has experienced anhistorical earthquake and tsunami, and followingnuclear accident.I would like to extend my sincere thanks andgratitude to the Thai people and the people aroundthe world for extending sympathy and help toJapan as one of the Japanese citizen.I also would like to extend my sincere sympathy tothose suffered from the historical flood in Thailandin 2011.

2

Greetings Continued

We are now living in the midst of economiccrisis caused by various events, starting withLehman Shock in 2008, Natural Disaster inJapan and Thailand, and Euro monetarycrisis, Arab Spring movement, etc.

I hope my speech will give you some hints toovercome the economic crisis for thesustainable growth of the organization andthe nations around the world.

Ayano’s Background

Bachelor: University of Electro Communication, Department of Management Engineering ( Ba.Mgmt Engrg)

Master: Tsukuba University, Graduate School in Management and Policy Sciences (Ma. Econ)Doctor: Tsukuba University, Graduate School in Social EngineeringDoctor: State university of New York/ Syracuse University (Ph.D. Env. Sci.)

Main activities on promotion of TQM, QM within and outside of Japan andat higher Education.

Currently,Professor at the department of Business Administration andChief of Graduate Program in applied Economics, TokaiUniversityMember, Deming Prize CommitteeProgram Director of AOTS PQMP (former PQM -2)Chairman of the Japanese Society of Business ManagementQCC Headquarter AdvisorChairman of QCC Magazine Editorial CommitteeChief Advisor to Center for TQM of SRM University, India

Ayano’s TQM Crusade

USA

Mexico

Peru

Chile

Brazil

Argentine

Brunei

HawaiiThailandTaiwan

China

Philippines

Pakistan

India

Saudi Arabia

Tanzania

Zambia

Sudan

Egypt

FranceUK

Singapore

PuertoRico

Malaysia

Canada

Japan

BulgariaMongolia

Denmark

(C) Katsutoshi AYANO 2008 6

Participants of AOTS PQMP(PQM2) 2001-11

BPQMLAQMASEAN

PTQM

VNQC

PEQM

Deming Prizes since 2000

DemingGrand Prize(former JapanQuality Medal)

Deming Prize

Quality ControlAward

UnitedStates

List of Deming Prized Company in Thailand

2001 Thai Acrylic Fibre Co. Ltd.Thai Carbon Black Public Co. Ltd.

2002 The Siam Cement (Thung Song) Co. Ltd.2003 Siam Refractory Industry Co. Ltd.

Thai Paper Co. Ltd.2004 CCC Polyolefins Co. Ltd.

Siam Mitsui PTA Co. Ltd.Thai Ceramic Co. Ltd.

2005 Thai Acrylic Fibre Co. Ltd. (JQM)2008 The Siam White Cement Co. Ltd2011 The CPAC Roof Tile Co. Ltd.

Topics Covered

1. Introduction to TQM

2. Quality System for Sustainablegrowth

3. Role of Task Achieving forovercoming crisis

1. Introduction to TQM

1.1 Why Japanese Style TQM

1.2 Brief History of QualityManagement in Japan

1.3 What is Total QualityManagement?

1.1 Why Japanese style TQM?

Since the end of WW II, JapaneseEconomy had shown a miraculousrecovery and became SecondLargest Economy in the World.

TQM is known as the key process.

The effects can best be illustratedby the history of trade condition ofJapanese economy. (next slide)

0

100

200

300

400

500

600

What is Hinshitsu Kanri (Quality Control/Management)?

Definition of "Quality Control (Hinshitsu Kanri)" JIS Z8101 G2A system of means whereby the qualities of products or services

are produced economically

to meet the requirements of the purchaser.

"Quality Control" is sometimes called "QC" for short.

In Addition, since modern quality control adopts statistical techniques, it is sometimes especially called

tokeiteki hinshitsu kanri ("statistical quality control), and "SQC" for short).

In order to perform quality control effectively,

throughout all phases of the enterprise activities

such as

market survey, research and development, planning of product, design, production readiness,procurement and subcontract, manufacture, inspection, sales and after servicing

as well as

finance, personnel affairs and indoctrination, whole personnel

including from the executive down to the managers, foremen and workers

are required to participate and collaborate.

The quality control activities conducted in such way is called

zenshateki hishitsu kanri ("company-wide quality control", and "CWQC" for short)

or

sogoteki hinshitsu kanri ("total quality control, and "TQC" for short).

Definition of Hinshitsu Kanri(Quality Control/ Management) -1

A system of means whereby thequalities of products orservices

are producedeconomically

to meet therequirements

of the purchaser.


"Quality Control" is sometimescalled "QC" for short.

In Addition, since modern qualitycontrol adopts statisticaltechniques, it is sometimesespecially called

tokeiteki hinshitsu kanri("statistical quality control), and"SQC" for short).


In order to perform quality control effectively,throughout all phases of the enterprise

activitiessuch as

market survey, research and development, planning of product,design, production readiness, procurement and subcontract,manufacture, inspection, sales and after servicing

as well as

finance, personnel affairs and indoctrination,

whole personnelincluding from the executive down to the managers, foremen

and workers

are required to participate and collaborate.


The quality control activities conductedin such way is called

zenshateki hishitsu kanri ("company-wide quality control", and "CWQC" forshort)

or

sogoteki hinshitsu kanri ("total qualitycontrol, and "TQC" for short).

1.2 A Brief History of Quality Management in Japan

History of Japanese Quality Managementcan be divided into three phases.

Phase 1. SQC Period/ Method Oriented.

Phase 2. TQC Period/ ManagementOriented.

Phase 3. TQM Period/ HarmonizingInternational Practice.

Phase 1. SQC Period/ Method Oriented

Bad Reputation: Cheap Product but Poor QualityYear Events in Japan International1945 End of World War II

*JSA ('45) *JUSE('46) *ASQC('46) *ISO('47)*Consultation by Foreign QC Specialists (Magil '46, Sarason '48)*QC Research Group(JUSE,'49)*QC Seminar Basic Course (JUSE)*Industrial Standardization Law (JIS, '49)

1950 *Journal of Quality Control (JUSE, '50)

Dr. Deming's Visit to Japan('50)-- QC Seminar to Top Managements

*QC Conference, Deming Prize('51) Juran: QCHandbook('51)

*MITI Prize for Industrial Standardization('53)

Dr. Juran's Visit to Japan('53)---QCSeminar for Top and MiddleManagements

1955 *QC education through Radio and TV('56-'60)*Export Inspection Law('58)*QC Team Delegation to U.S.A.('58)

1960 *Textbook for Foremen('60, 3,300,000 copies up to '80)

Phase 2. TQC Period/ Management OrientedYear Events in Japan International

*Q-Month(November), Q-Flag, Q-Mark('60) Feigenbaum:TQC '61

Journal of QC for Foremen('62)QC Circle Headquarters('62)QC Conference for Foremen('62)

ZD Campaign in US '62

*QC Study Team to Overseas Countries('63)*QC Conference for Top Management('63)

1965 *QC Symposium('65)*Recognition of QC Circle by Dr. Juran('66)*Fundamental Law for Consumers'Protection('68)*QC Circle Team to Overseas('68)ICQC '69 Tokyo

1970 JSQC('70)

1980NBC's "If Japan can, why can'twe?"ISO 9000 Series('87)Malcolm Baldridge Naitonal QualityAward('87)EFQM(‘89)

1990 Quality Day Declared by UN('90)Burst of Bubble Economy

10 features of Japanese TQCQuality Control Symposium June, 1987

1. President-led QC Activities all employees participating

2. Quality Top Priority

3. Policy Management and Delegation

4. QC Diagnosis and Implementation

5. QA Activity to Satisfy Users‘

6. QC Circle Activities

7. QC Education and Training

8. Development and Implementation of QC Techniques (New7 Tools)

9. Extension of Applications to Various Industries(Construction, Banking, Hospitality)

10. Nation-wide QC Activities

Total quality management (TQM)ASQ: Glossary htto://www.asq.org before 2000

A term initially coined by the Naval Air SystemsCommand to describe its Japanese stylemanagement approach to quality improvement.

Since then, TQM has taken on many meanings.Simply put, it is a management approach to long-

term success through customer satisfaction.TQM is based on the participation of all members of

an organization in improving processes, products,services and the culture in which they work.

The methods for implementing this approach arefound in the teachings of such quality leaders asPhilip B. Crosby, W Edwards Deming, Armand V.Feigenbaum, Kaoru Ishikawa and Joseph M. Juran.

Phase 3. TQM PeriodHarmonizing International Practice.

Year Events in Japan International

1995ISO 9000 Series 1994

Revision1996 Re-Definition of QCC ISO 14000 Series 1996

1998Re-definition of TQMDeming Prize

Six Sigma Movement

2000 ISO 9000 Series 2000 Revision

Movement to makeJapanese TQM asInternational Std ISO 9001:2008 Revision

Good Reputation: Good Quality at Reasonable Price

Definition of TQM by ISO ISO8402-93

Total quality management:

A management approach of an organization,

centered on quality,

based on the participation of all its members

and aiming at long term success

through customer satisfaction,

and benefits to the members of theorganization and to society

NOTES to Definition of TQM by ISOISO8402-93

1. "All its members" designates personnel in alldepartments and all levels of the organizational structure .

2. The strong and persistent leadership of top managementand the education and training of all members of theorganization are essential for the success of thisapproach.

3. In total quality management, the concept of qualityrelates to the achievement of all managerial objectives .

4. "Benefits to society" imply the fulfillment of"requirements of society".

5. Total quality management (TQM) or parts of it aresometimes called "total quality", "CWQC" (company widequality control), "TQC" (total quality control) and so on.

Definition of TQM (Total Quality Management) by Deming PrizeCommittee (revised in June 1998)

TQM is a set of systematic activitiescarried out by the entireorganization to effectively andefficiently achieve companyobjectives so as to provideproducts and services with a levelof quality that satisfies customers,at the appropriate time and price.

ISO 9000:2000(8) : quality management system

Resourcemanagement

Customers

(and other

interested

parties)

Requirements

Continual improvement ofthe quality management system

ManagementResponsibility

Input Productrealization

Product Output Satisfaction

Measurement,analysis andimprovement

Customers

(and other

interested

parties)

Value-adding activities

Information flow

Quality management principlesin ISO 9000s:2000(8)

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 relationshipshttp://www.iso.ch/iso/en/iso9000-14000/iso9000/qmp.html

Japanese Movement for New ISO9000s

Publication of New JIS’s and TR’s for Quality Management System.

JIS Q 9023 Performance Improvement of ManagementSystem- Guideline for Management by Policy

JIS Q 9024 Performance Improvement of ManagementSystem- Guideline for Continual Improvement andTools

JIS Q 9025 Performance Improvement of ManagementSystem- Guideline for Quality Function Deployment

JIS Q 9005: 2005 Quality Management System-Guideline for Sustainable Growth

JIS Q 9006: 2005 Quality Management System-Guideline for Self Assessment

2. What is Total QualityManagement?

2.1 Setting Quality Levels by Dr. Ishikawa

2.2 House of TQM by Dr. Kano

2.3 TQM and Management of QPDS by Ayano

Setting Quality Levels by Dr. Ishikawa (1964)

Marketing/Sales

ExaggeratedQuality level

Inspection

Manufacturing

R&D

Assurance Quality Level=Quality Specification

Quality Target

Inspection Quality Level=Quality Specification

Quality Standard

Copyright, N.Kano, June,1998 32

The House of TQM by N.Kano

CS + ES +SS

(Quality)

Motivational Approach

Intrinsic Technology

Goal & Strategy

Techniques Vehicles Concepts

General Education + Political Stability

Policy mgtDaily mgtX-functional

mgtQC Circlesetc

Quality deploymentmulti-variate A.etc.

Seven toolsNew mgtseven tools

QC story

Quality concept

CS

Market inNext

ProcessesAre Our

CustomersManagement

Concept

Control by facts

Everybody’s

business

Supplier iPts/Pch

Ship/RcvPlanningSurvey

ResearchDevelopm

ent

DesignEquipmen

t

ManuftgAssy

Inspection

Ship/DistSale/Buy

Users(Customer,Society)

(1-Fi)X

=(1-Fa)X Q1

(1-F1)X

Q 2(1-F2)X

Q 3(1-F3)X

Q 4(1-F4)X

Q 5(1-F5)X

=(1-Fo)= Q

Ci(Co

i+Ci)+

<Profit

C1(Co

1+C1)+

C 2(Co

2+C2)+

C 3(Co

3+C3)+

C 4(Co

4+C4)+

C 5(Co

5+C5)+

<Profit

P

Di(Do

i+Di)+

<Inventory

D1(Do

1+D1)+

D 2(Do

2+D2)+

D 3(Do

3+D3)+

D 4(Do

4+D4)+

D 5(Do

5+D5)+

<Inventory

D

Si(0+Si)+

# S1(0+S1)+

S 2(0+S2)+

S 3(0+S3)+

S 4(0+S4)+

S 5(0+S5)

# S

Safety during Operation and Works

TQM and Management of QPDS

Qi

and management of -1Difference of recognition

between intra-organization and users

Organization Users

Quality Quality

Cost Price

Delivery Delivery

Safety Safety

and management of -1’Profit Equation

of Monopolistic Organization

Price Cost +Profit

Price policy of most monopolisticorganization

In competitive market, it should be

Profit Price Cost

Price will be decided by competition.

Cost can be managed by the organization.

and management of -2

Difference of conceptsbetween Supplier and Organization

Supplier Organization

Quality

Cost Price

Delivery Delivery

Safety Safety

and management of -2’

Needs for Group-wide QC

Supplier Organization Users

Quality Quality

Cost Price/Cost Price

Delivery Delivery Delivery

Safety Safety Safety


Inter-relationship among QCDSwithin Organization

Intra-organization

Cost

Delivery

Safety


Inter-relationship among QPDSfor Users

Users

Delivery

Safety


Relationship between Sectional Performances and OrganizationalPerformance

Q1 Q2 Q3 Q4 Q5 Total Q

C1 C2 C3 C4 C5 Total C

D1 D2 D3 D4 D5 Total D

S1 S2 S3 S4 S5 Total S


Three Meanings of TQM

Management of Total Quality

Total Management of Quality

Top’s Management of Quality

TQM and Sales

nego participationrate

lost

recved sales share

receivingorder rate

information securing rate

lost

infomn(QPDS)

lostinquiry rate lost

inquiy(QPDS) demand

lostnegos

(QPDS)inquir

ies

orders

demand

receiv partic

known

edipated

Total

Demand

in

current

business

area

negosorders

New Business Area

2. Quality Systems forSustainable Growth

2.1 ISO9004:2009 Managing for the sustained success of anorganization — A quality management approach

2.2 JIS Q 9005: 2005 Quality Management System-Guidelinefor Sustainable Growth

2.1 ISO9004:2009 Managing for the sustained successof an organization — A quality management approach

ISO9004:2009 is a guidance guidance to support theachievement of sustained success in a complex,demanding, and ever-changing environment, by aquality management approach.

The sustained success of an organization is achievedby its ability to meet the needs and expectations ofits customers and other interested parties, over thelong term and in a balanced way.

Sustained success can be achieved by the effectivemanagement of the organization, through awarenessof the organization's environment, by learning, andby the appropriate application of eitherimprovements, or innovations, or both.

ISO9004:2009 Extended model of a process-based qualitymanagement system

Organization’sEnvironment

InterestedParties

Needs andExpectation

Customers

Needs andExpectation

Organization’sEnvironment

InterestedParties

Satisfaction

Customers

Continual Improvement of the quality management system leading tosustained success

Foundation: Quality management principles (ISO 9000)

ISO9001Clause 5

Managementresponsibility

ISO9004Clause 4

Managing forthe sustainedsuccess of anorganizationISO9004

Clause 5Strategy and

policy

ISO 9001

ISO 9004

ISO9001Clause 6

Resources

management

ISO9001Clause 7

ProductRealization

ISO9001 Clause 8Measurement,analysis, andimprovement

ISO9004Clause 6

Resourcesmanagement(extended)

ISO9004Clause 7Process

Management

Information flow

Value added activities

ISO9004Clause 9

Improvement,innovation and

learning

ISO9004

Clause 8Monitoring,

measurement,

analysis andreview

Product

2.2 JIS Q 9005: 2005 Quality Management System-Guideline forSustainable Growth

Issued with leadership of former chairman of the Deming Prize Committee, Dr. Y. Iizuka.

It is essential for organizations to enhance their “raison d'etre" bywinning satisfaction of customers and other interested partiesabout values of products/services that they provide in order tofulfill their mission, maintain their competitive advantage andrealize sustainable growth.

To this end, organizations need to create higher customer valueby agilely adapting themselves to changes in businessenvironment, improving their overall performance in aneffective and efficient way, and meeting needs andexpectations of customers and other interested parties

In order to continue creating higher customer value, maintain itscompetitive advantage and fulfill sustainable growth, anorganization needs to promptly detect and respond todiversification of market needs and changes in surroundingbusiness environments such as technology innovation

New Set of Quality Management Principles inJISQ9005/6

1. Creating Customer Value2. Focus on Social Value3. Visionary Leadership4. Understanding Core Competence5. Involvement of People6. Collaboration with Partners7. Total Optimization8. Process Approach9. Factual Approach10. Organization and Personal Learning11. Agility12. Autonomy

3. Role of Task Achieving toovercome crisis

3.1 Needs for Improvement (Kaizen)

3.2 QC Story and other ProblemSolving Procedures

3.3 Four types of QC Story

3.1 Needs for Improvement (Kaizen)

Every work is said to be “to Solve Problem”or “to Achieve Task.”

Improving work continually enhances thevalue of the products and services providedto customers.

Then, the continual development of theorganization becomes possible.

Continual improvement is essential forexistence of company and organization.

51

3.2 QC Story and other Problem SolvingProcedures

Step QC Story (1960’s) Six Sigma(1980’s)

8 Disciplines(late 1980’s)

JISQ9024:2003

0 Introduction/ Outline ofProcess

Plan/ Use a Team

1 Theme Selection Define Define and describe theProblem

Subject Selection

2 Current Status Measure Assessment of CurrentStatus

3 Making Activity Plan Develop InterimContainment Plan

Establishment ofObjectives/Planning

4 Analysis Analysis Determine, Identify, andVerify Root Causes and

Escape Points

Analysis of cause

5 Countermeasures Improvement Choose and VerifyPermanent Corrections

Review and Implementationof Measures

6 Confirmation of Effects Implement and Validate

Corrective Actions/

Verification of Effect

7 Standardization/ Fixing Control Take Preventive Measures Standardization andEstablishment ofmanagement

8 Reflection and FutureTasks

Congratulate Your Team Evaluation of Efficacy andEfficiency of process aftercorrective measures have

been completed 52

JISQ9024: 2003 Performance Improvement of management systems – Guidelinesfor procedures and methodology for continual improvement(ISO9004-4:1994 Quality management and quality system elements --Part 4:Guidelines for quality improvement, reissued in Japan)

0 Introduction

1 Scope

2 Normative reference

3 Definitions

4 Fundamental concepts

5 Management of continual improvement

6 Procedures of continual improvement

7 Techniques for continual improvement

53

3.3 Four types of QC StoryProblem SolvingQC Story

Task AchievingQC Story

Preventive QCStory

MeasuresImplementingQC Story

1. Theme Selection 1. Theme Selection 1. Theme Selection 1. Theme Selection

2. Grasping Current

Situation andEstablishing Target

2. Clarification of

Attack Points andSetting Target

2. Grasping Current

Situation and SettingTarget

2. Grasping Current

Situation and aims ofmeasures

3. Making Activity Plan 3. Planning ofMeasures

3. Establishing Target

4. Analyzing Factors 4. Pursuing SuccessScenario

3. FindingOpportunities forImprovement

5. Examination andImplementation ofMeasures

5. Implementation ofSuccess Scenario

4. Sharingcountermeasures andHorizontal Deployment

4. Examination andImplementation ofMeasures

6. Confirmation of

Effects

6. Confirmation of

Effects

5. Confirmation of

Effect

5. Confirmation of

Effects

7. Standardization andFixing of Control




54

The Reason why other QC Stories have been Proposed.

Late 1980s Recognition of the Problems thatcannot be solved only by Problem SolvingQC Story => Task Achieving QC Story.

Late 1990s Recognition of those Problems thatalready have solutions => MeasuresImplementing QC Story .

Late 2000s Recognition of Needs to cope withPrevention of Human Errors => PreventiveQC Story.

55

Improvement procedures selection method.

56

The Objectof the

Theme?

Purpose?

ExperiencedProblem?

TaskAchieving

TaskAchieving

Never Experienced Work Experienced Work

PreventiveMeasures

ImplementingProblemSolving

Preventionof Failures Measures

Known?

Known Unknown

ExperiencedProblems

NewProblems

Current Needs for Task Achieving

Recognition that there are those problems thatcannot be solved by Problem Solving QC Story

Expectation that even the improvement activities atshop floors to cope with the changes in managementenvironment.

Expectation to contribute to management and toeffectively conduct task achieving.

Expectation to cope with the un-experienced scale ofchanges in management.

E.g. Economic Changes brought about Lehman Shock,Natural Disasters, Euro Money Crisis, etc.

57

Tools Useful to Task Achievingwas published in 2010 and translated to English in 2011

58

Utilize Tools for Successful Task Achieving

The reason why we published the book:

1. There are many cases where if toolsare utilized.

2. Even tools are used, they are notutilized appropriately.

Let’s study tools useful to task achievingand overcome current crisis forsustained growth.

Thank youfor your attention!

Katsutoshi AYANO, Ph.D.

Fin

Documents

1.Prof.Dr.Ayano.pdf