Quality Today

By:

Kamran Shaukat Ali Khan

AVP, Systems Ltd.

2

Quality Today

What is Quality

Quality Dimensions & Obstacles

Cost of Quality

Productivity Enhancement

Quality Today (TQM) by Kamran Shaukat –

CHROMEIS.COM/TQM

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INTRODUCTION

Originators of Quality?

Why Quality (Significance)

…

An important determinant of business

profitability

Positively & significantly related to higher

return on investment

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An innovation happens to CREATE or SERVE the market NEED

Invention

(never existed)

Imitation

(copying)

Technology Lead

(e.g. Facebook, BI)

Innovation

(something new)

Market Lead

(e.g. Common Utensils)

Why Quality…?

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Quality Today

What is Quality Quality Dimensions & Obstacles

Cost of Quality

Productivity Enhancement

Quality Today (TQM) by Kamran Shaukat –

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Definitions

Conformance to Specifications

Conformance to Standards

Freedom from defects

A Degree of Excellence

Fitness for intended Purpose/Use

… Obsolete DefinitionsQuality Today (TQM) by Kamran Shaukat –

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Definitions

Customer Satisfaction

Quality is the totality of characteristics of an entity

that bears on its ability to satisfy the stated or

implied needs.

… Today’s DefinitionQuality Today (TQM) by Kamran Shaukat –

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Definition:

Customer Delight

… Tomorrow’s Definition

Customer Delight

Customer Satisfaction

Bugs free – Fulfilling Req.

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Basic Quality & Excitement Quality are both UNSPOKEN

Basic Quality

Excitement Quality

More About Quality

Un-stated Requirements

Stated Requirements

Additional features as pleasant surprises to

delight customer

Performance Quality

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Satisfy the internal as well as external customers

Emphasis on Improvement rather than Maintenance

Encourage Collaboration rather than competition

Recognize Team Effort Communication Improvement Establish a System

Train & Coach rather than supervise

…and a whole lot more!!

Empower Rather than Controlling subordinates

Strong Commitment to Quality

Prefer Quality over Price

Emphasis: Prevention is better than Detection

Learn from Problems (PDSA)

What to do ?

Quality Today (TQM) by Kamran Shaukat –

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Dimensions of Quality – Gravin

Performance

Features

Conformance

Reliability

Durability

Service

Response

Aesthetics

Repute

: Stated Req.

: Additional offering

: To Standards/ISO/CMM

: Consistency in performance

: Life time of product/service

: After sale support/behavior

: Curtsey & Delivery time etc.

: Looks & beautifying things

: brand name/advertising

Quality Today (TQM) by Kamran Shaukat –

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Obstacles to Quality

Different hindrances in achieving Quality

Misconception:

Additional cost

Adherence

Poor Reading habitsResistance to Change

Poor Writing habitsInertia in

accepting

Quality

Standardization

is absolute

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Rehabilitation and Cultural Change

The Clues are there!

Official Lifestyle Change (+ve)

Top Management Involvement

Instill the importance of Quality (Quality Circle)

Everyone’s responsibility

Concept of Internal & External customers

Quality at source (Reduced Inspection)

Focus on using Strength rather then weaknesses

Quality consistency (high priority rather than level of output)

Trainings for fresh

“Train the Trainer”

Individual Development

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Strategic Implications of QMS

Quality is key to effective strategy

Clear strategic goal, vision, mission

High quality goals

Operational plans & policies

Feedback mechanism

Strong leadership

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Quality Today

What is Quality

Quality Dimensions & Obstacles

Cost of Quality Productivity Enhancement

Quality Today (TQM) by Kamran Shaukat –

CHROMEIS.COM/TQM

16

Cost of Quality

Cost of achieving good quality

Prevention

Appraisal

Cost of poor quality

Internal failure costs

External failure costs

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Quality is Free – Crosby:1950

Preventing: Cost of poor quality

Prevention Cost

Appraisal Cost

Internal Failure Cost

External Failure Cost

Myths

High Cost

Overhead

Wastage of Money

0

5

10

15

20

25

30

Cost

Poor Q. Cost

Time/Quality

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Quality Index Example

Quality Costs $ 2014 2015 2016 2017

Prevention $ 27,000.00 41,500.00 74,600.00 112,300.00

Appraisal $ 155,000.00 122,500.00 113,400.00 107,000.00

Internal failure $ 386,400.00 469,200.00 347,800.00 219,100.00

External failure $ 242,000.00 196,000.00 103,500.00 106,000.00

Total $ 810,400.00 829,200.00 639,300.00 544,400.00

Accounting:

Sales $ 4,360,000.00 4,450,000.00 5,050,000.00 5,190,000.00

Mfg. Costs $ 1,760,000.00 1,810,000.00 1,880,000.00 1,890,000.00

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Quality Today

What is Quality

Quality Dimensions & Obstacles

Cost of Quality

Productivity Enhancement

Quality Today (TQM) by Kamran Shaukat –

CHROMEIS.COM/TQM

20

Productivity Enhancement Techniques

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How Should I…?Adjusting Perceptions…

Commitment

Continuous Improvement

No Expectation of Quick Reward

Enabling Vs. Restricting

Organized

Team

Synergy

Quality Today (TQM) by Kamran Shaukat –

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Walk the talk

Persuasiveness

Positive Influence

Good Communication

Positive Role Model

Balanced Commitment

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Customer value Analysis (CVA)

Customer Value Analysis:

Determine attributes customers value most

Rate the relative importance of Attributes

Assess your organization performance against these attributes

Let customers Compare these attributes with your competitors

Repeat the process periodically

Issues in hand:

Understand your Customer

Identify customers’ needs

Continuous communication with your customer

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Where to apply QA

Design

Process

Human

Deming’s Philosophy:

“inspection with the aim of finding bad ones and throwing

them out is too late, ineffective and costly. Quality comes

not from inspection but improvement of the process”

Quality Today (TQM) by Kamran Shaukat –

CHROMEIS.COM/TQM