Total Quality Management in the New Century

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Total Quality Management inthe New Century

• Assoc Prof Ong-arj Viputsiri
• Chulalongkorn Medical School,
• 9 August 2004
• Bureau of Health Promotion,
• Dept of Health, MOPH

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The Evolution of Quality

• Q Concept 1 Fitness to Standard
• Q Concept 2 Fitness to Use
• Q Concept 3 Fitness to Cost
• Q Concept 4 Fitness to
  Latent Requirements

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Quality Road Map
Product Issues
Market Issues
Fitness to Standard
Fitness to Use
Fitness to Standard
Fitness to Latent Requirements
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Future of Fitness or Quality
Q Concept 1 Fitness to Standard Q Concept 2
Fitness to Use Q Concept 3 Fitness to Cost Q
Concept 4 Fitness to Latent Requirements Q
Concept 5 Fitness to Corporate Governance Q
Concept 6 Fitness to Societal or Global
Environment
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What is quality ?
TQM Total Quality Management QA Quality
Assurance QC Quality Control Inspection
What is you measure is what you manage.
There is a very little agreement on what
constitutes quality. Masaaki Imai.
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Evolution of Quality Concepts and Methods
standardization statistical
process control inspection
mass production
Fitness to standard
1950
market research cross-functional involement
1960
Fitness to use
QC circle
7 QC steps, 7 QC tools Improvement methods
consumer revolution
1970
Fitness of cost
QFD 7 management tool
Fitness to latent requirement
competition
1980
Fitness of corporate culture
1990
Fitness for societal and global environment
2000
Company Focus
Customer Focus
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Four Revolutions of Management Thinking in TQM
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Four levels of quality management
Level 4 Perfection
Top performance in quality management

• End customer
• orientation
• superior service
• Cultural
• relignment

Level 3 Prevention
Level 2 Quality assurance

• Process
• capability
• Supplier
• integration

Level I Inspection

• Improvement of
• process stability
• Start of worker
• involvement

• Quality through
• inspection
• Little quality
• conciousness
• and know-how

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Business Plan
Strategic Plan
Customer Quality Assurance
Strategic Market Analysis
Customer Feedback System
Product design Planning
Time frame
Competitive analysis
Us
Competitor
Current
Ongoing
A
P
Process Owner
C
D
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Identify Targets Goals

• Act
• Adopt
• Abandon
• Adjust

Identify Strategies to achieve Goals
Act
Plan
Do
Train in identified strategies
Check
Review Progress

• Against the
• Targets Goals

Undertake improvement Activity

• Within the
• strategy

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Fitness to STANDARD

• What is standard ?
• How is standard set ?
• How is standard used ?

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STANDARD

• Standard is degree of excellence.
• Standard serves as a basis for comparison.
• Standard is a minimum requirement.
• Standard is a model for imitation.
• Standard is a benchmark of achievement which
  is based on a desired level of excellence.

Oxford dictionary
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STANDARD

• is an agreement established for an object,
  performance, capability, arrangement, state,
  action, sequence, method, procedure,
  responsibility, duty, authority, way of thinking,
  conception, etc. for the purpose of unification
  and simplification so that profit or convenience
  may be obtained with fairness among the people
  concerned.

Japan Council on Industry
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Level of Standard

• Level of acceptability or minimum standard.
• Degree of excellence or desirable or optimal
  standard.

Donabedian. 1982
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Type of Standard

• Structure standard
• Process standard
• Outcome standard

Donabedian. 1982
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Focus of Standard

• Good manufacturing practice
• Clinical practice guideline
• Practice standard

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How is a standard set ?

• Collective judgement the gold standard
• Value based
• Dynamic VS Static

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How is a standard used ?

• Self-Assessment
• Inspection by authority bodies
• Accreditation

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Standard or Accreditation Around the World

• National accreditation program
• US, Canada, Australia, UK
• Government legislation
• Spain, China, Latin America
• France Malaysia

WHO/SHS/DHS/93.2
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Inspection

• Salvage
• Sorting, grading, reblending
• Corrective actions
• Identify sources of non-conformance

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Quality Control

• Develop quality manual
• Process performance data
• Self-inspection
• Product testing
• Basic quality planning
• Use of basic statistics
• Paperwork control

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Quality Assurance

• Quality system deployment
• Advanced quality planning
• Comprehensive quality manuals
• Use of quality cost
• Involvement of non-production operation
• Failure Mode and Effect Analysis
• Statistical process control

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TQMTotal Quality Management

• Policy deployment
• Involve supplier customers
• Involve all operation
• Process management
• Performance measurement
• Teamwork
• Employee involvement

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The Road to Quality Organizational Analysis Model
Quality guides
Performance measures
Market share Customer feedback
Customer satisfaction
Direction
Net profit Return on equity
Continuous improvement
Strategy
Team
Structure
Manager to worker ratio
Motivation
Absenteeism Turnover Boredom
Employees
Productivity
Return on assets Return on people
Tools
Leadership
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Examination Items
1. Customer satisfaction 30 2. Human
resource utilization 15 3. Quality assurance
of services 15 4. Quality results 15 5.
Leadership 10 6. Strategic quality
planning 9 7. Information analysis 6 (Malc
olm Baldrige National Quality Award Criteria)
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Stage 4 Quality is key to customer value
management (Market leader)
Beyond TQM
Stage 3 Market-perceived quality and value VS
competitors (Market focus)
Increase effectiveness

• Customer value learning
• and innovative organization.
• Be customer/market-driven

• Get close to market
• Use customer value
• analysis
• Be market-driven

Stage 2 Customer satisfaction (External focus)

• Get close to customer
• Understand needs
• expectations
• Be customer-driven

Stage 1 Conformance quality (Internal operation)

• Conformance to requirement
• Do it right at the first time
• Reduce reject rework

Customer value management
TQM
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Strategy
Quality
Satisfy
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