Understanding Quality Management PDF

QUALITY GROUP 1 UNDERSTANDING QUALITY (QUALITY, COMPETITIVENESS, CUSTOMER) QUALITY Reputations for poor quality last for a long time and good or bad reputations can become national or international. Yet the management of quality can be learned and used to improve reputation. For any organiz...

QUALITY GROUP 1 UNDERSTANDING QUALITY (QUALITY, COMPETITIVENESS, CUSTOMER) QUALITY Reputations for poor quality last for a long time and good or bad reputations can become national or international. Yet the management of quality can be learned and used to improve reputation. For any organization, there are several aspects of reputation which are important: 1. It is built upon the competitive elements of being ‘On-Quality; On-Time; On-Cost’. 2. Once an organization acquires a poor reputation for product or service quality or reliability, it takes a very long time to change it. 3. Reputations, good or bad, can quickly become national reputations. 4. The management of the competitive weapons, such as quality, can be learned like any other skill and used to turn round a poor reputation. Before anyone will buy the idea that quality is an important consideration, they would have to know what was meant by it. COMPETITIVENESS  CUSTOMER Research shows that focus on customer loyalty can provide several commercial advantages: Customers cost less to retain than acquire. The longer the relationship with the customer, the higher the profitability. A loyal customer will commit more spend to its chosen supplier. About half of new customers come through referrals from existing clients (indirectly reducing acquisition costs). Many companies use measures of customer loyalty to identify customers which are ‘completely satisfied’, would ‘definitely recommend’ and would ‘definitely. THE FOUNDATIONS OF TQM ‘Quality should be aimed at the needs of the consumer, present and futur’ – Deming, another early doyen of quality management. ‘The total composite product and service characteristics of marketing, engineering, manufacture and maintenance through which the product and service in use will meet the expectation by the customer’ – Feigenbaum, the first man to publish a book with ‘Total Quality’ in the title. ‘Conformance to requirements’ – Crosby, an American consultant famous in the 1980s. ‘Degree to which a set of inherent characteristics fulfils requirements’ – ISO (EN) 9000:2000 Quality Management Systems – Fundamentals and Vocabulary. QUALITY CHAIN UNDERSTANDING & BUILDING THE QUALITY CHAINS The ability to meet the requirements is vital, not only between two separate organizations, but within same organization.  QUALITY CHAIN Quality Chain is the series of chain inter-relating different departments within and outside the organization. It is a continuous process. Quality chain is a continuing improvement philosophy. The customers are the valuable assets for any organization. The customer satisfaction is one of the major criterion for quality management system. An internal customer is a vital and unavailable factor in the organization. All function either engineering, order processing, or production has an internal customer each receive an product or service and in exchange provide a product or service.  QUALITY CHAIN In each level of customer there should be a basic question to be asked to satisfy them, they are: What do they need from me? What do you do within my output? Are there any gaps between what you need and what you get? The quality management system begins with the basic need of ensuring that the external customer’s requirements are adequately measured. CUSTOMER SATISFACTION = CUSTOMER LOYALTY If quality is meeting the customer requirements, then this has wide implications. The requirements may include availability, delivery, reliability, maintainability and cost-effectiveness, among many other features. QUALITY OF DESIGN QUALITY OF CONFORMANCE TO DESIGN This is the extent to which the product or service achieves the quality of design. What the customer actually receives should conform to the design, and operating costs are tied firmly to the level of conformance achieved. Quality cannot be inspected into products or services; the customer satisfaction must be designed into the whole system.  MANAGING QUALITY To get away from the natural tendency to rush into the detection mode, it is necessary to ask different questions in the first place. We should not ask whether the job has been done correctly, we should ask first ‘Are we capable of doing the job correctly?’ QUALITY & PROCESSES A process is the transformation of a set of inputs into outputs that satisfy customer needs and expectations, in the form of products, information or services. Everything we do is a process, so in each area or function of an organization there will be many processes taking place. For example, a finance department may be engaged in budgeting processes, accounting processes, salary and wage processes, costing processes, etc. Each process in each department or area can be analysed by an examination of the inputs and outputs.  UNDERSTANDING QUALITY QUALITY ASSURANCE is broadly the prevention of quality problems through planned and systematic activities (including documentation). These will include the establishment of a good quality management system and the assessment of its adequacy, the audit of the operation of the system and the review of the system itself. QUALITY CONTROL is essentially the activities and techniques employed to achieve and maintain the quality of a product, process, or service. It includes a monitoring activity, but is also concerned with finding and eliminating causes of quality problems so that the requirements of the customer are continually met. QUALITY STARTS WITH UNDERSTANDING THE NEEDS The marketing processes of an organization must take the lead in establishing the true requirements for the product or service. Having determined the need, the organization should define the market sector and demand, to determine such product or service features as grade, price, quality, timing, etc. Excellent communication between customers and suppliers is the key to a total quality performance; it will eradicate the ‘demanding nuisance' view of customers, which even now still pervades some organizations. Poor communications often occur in the supply chains between organizations, when neither party realizes how poor they are The information requirements include: 1. Characteristics of performance and reliability – these must make reference to the conditions of use and any environmental factors that may be important. 2. Aesthetic characteristics, such as style, colour, smell, task, feel, etc. 3. Any obligatory regulations or standards governing the nature of the product or service Items that require some attention include assessment of: 1. The suitability of the distribution and customer-service processes. 2. Training of personnel in the ‘field’. 3. Availability of ‘spare parts’ or support staff 4. Evidence that the organization is capable of meeting customer requirements.  Surveys – questionnaires, etc. Panel or focus group techniques In-depth interviews Brainstorming and discussions Role rehearsal and reversal Interrogation of trade associations  SO WHY IS UNDERSTANDING NEEDS IS CRUCIAL? QUALITY IN ALL FUNCTIONS For an organization to be truly effective, each component of it must work properly together. Each part, each activity, each person in the organization affects and is in turn affected by others. Quality, the way we have defined it as meeting the customer requirements, gives people in different functions of an organization a common language for improvement. Applications of TQM have materialized from groups of people that could see little relevance when first introduced to its concepts. Following training, many different parts of organizations can show the usefulness of the techniques. Clearly TQM cannot be restricted to the ‘production’ or ‘operations’ areas without losing great opportunities to gain maximum benefit. Managements that rely heavily on exhortation of the workforce to ‘do the right job right the first time’, or ‘accept that quality is your responsibility’, will not only fail to achieve quality but may create division and conflict. MODELS AND FRAMEWORK DEMING’S FOURTEEN POINTS JURAN’S TEN STEPS PHIL CROSBY’ S FOUR ABSOLUTES PHIL CROSBY’ S FOURTEEN STEPS AMERICAN QUALITY GURUS COMPARED AMERICAN QUALITY GURUS COMPARED  TOTAL QUALITY MANAGEMENT MODEL QUALITY AWARD MODEL  DEMING PRIZE (JAPAN, 1950) Established by the Union of Japanese Scientists and Engineers (JUSE). Focuses on TQM (Total Quality Management) as a systematic approach involving the entire organization to achieve high-quality products/services. Encourages companies to think independently, set high goals, and use the prize as a tool to transform and improve business management.  MALCOLM BALDRIGE NATIONAL QUALITY AWARD (MBNQA, USA, 1980S) Designed to promote organizational self-assessment and performance improvement. Award criteria focus on core values such as: Visionary leadership Customer-driven excellence Organizational learning Agility and innovation Results-focused performance Categories for assessment include Leadership, Strategic Planning, Customer Focus, Measurement and Knowledge Management, Workforce Focus, Operations, and Results. The award is highly valued for its framework, which integrates business strategy and quality management. EUROPEAN FOUNDATION FOR QUALITY MANAGEMENT (EFQM EXCELLENCE MODEL, EUROPE, 1990S) First framework to incorporate "Business Results" into the quality model. The model emphasizes the importance of leadership, strategy, people, partnerships, and processes in achieving excellence in key results. Provides ten steps for organizations to follow: Set direction through leadership. Assess business performance (customers, Establish desired results. employees, society). Drive strategy. Evaluate key performance results. Manage processes, people, Identify strengths and areas for improvement. partnerships, and resources. Innovate for performance improvements. Deploy approaches to achieve results. Learn how enablers affect results. THE FOUR PS AND THREE CS OF TQM - A MODEL FOR TQM & OPEX PERFORMANCE  PLANNING PERFORMANCE  PLANNING PERFORMANCE PEOPLE  PLANNING PERFORMANCE PEOPLE PROCESS  PLANNING E UR LT CU PERFORMANCE PEOPLE PROCESS  PLANNING CO MM E UR UN LT IC CU AT IO N PERFORMANCE PEOPLE PROCESS  PLANNING CO MM E UR UN LT IC CU AT IO N PERFORMANCE PEOPLE PROCESS COMMITMENT THANK YOU CHAPTER 3: LEADERSHIP AND COMMITMENT GROUP 2  DAMPIL, GLOVIE ANN DELA PENA, KLAIRE OUR TEAM DUNCIL, JOIE  EQUILA, ABEGAIL ESPINOLA, CRYSSALENE OUR FEBRIO, CARLA THERESE TEAM THE TQM APPROACH TQM is an approach to improving the competitiveness, effectiveness and flexibility of a whole organization. It is essentially a way of planning, organizing and understanding each activity, and depends on each individual at each level. For an organization to be truly effective, each part of it must work properly together towards the same goals, recognizing that each person and each activity affects and in turn is affected by others. THE TQM APPROACH The impact of TQM on an organization is first to ensure that the management adopts a strategic overview of quality. The approach must focus on developing a problem-prevention mentality; but it is easy to underestimate the effort that is required to change attitudes and approaches. THE TQM APPROACH A better mindset may be achieved by looking at the sort of barriers that exist in key areas. Staff may need to be trained and shown how to reallocate their time and energy to studying their processes in teams, searching for causes of problems and correcting the causes, not the symptoms, once and for all. COMMITMENT AND POLICY To be successful in promoting business effectiveness and efficiency, TQM must be truly organization-wide, it must include the supply chain and it must start at the top with the chief executive or equivalent. The most senior directors and management must all demonstrate that they are serious about quality.  COMMITMENT AND POLICY Commitment creates responsibilities for a chain of quality interactions between the marketing, design, production/operations, purchasing, distribution and service functions. Within each and every department of the organization at all levels, starting at the top, basic changes of attitude may be required to implement TQM approaches. COMMITMENT AND POLICY One of the major challenges in project work, including consultancy, is the need to influence the values and behaviours of the entire delivery team. THE QUALITY POLICY 1. Identify the end customer’s needs (including perception). 5. Concentrate on the prevention rather than detection philosophy. 2. Assess the ability of the organization to meet these needs economically. 6. Educate and train for quality improvement and ensure that your subcontractors do so as well. 3. Ensure that any bought-in materials meet the required standards of performance and efficiency. 7. Measure customer satisfaction at all levels, the end customer as well as customer satisfaction 4. Ensure that subcontractors or suppliers between the links of the supply chain. share your values and process goals. 8. Review the quality management systems to maintain progress.  EXAMPLE The company will concentrate on its customers and suppliers. The performance of our competitors will be communicated to all relevant units. Important suppliers and partners will be closely involved in our quality policy. Quality management systems will be designed, implemented, audited and reviewed to drive continuous improvement.  EXAMPLE Quality improvement is primarily the responsibility of management. Management will enable all employees to participate in the preparation, implementation and evaluation of improvement activities. Publicity will be given to the quality policy in every part of the organization. Reporting on the progress of the implementation of the policy. CREATING OR CHANGING THE CULTURE The culture within an organization is formed by a number of components: 1. Behaviours based on people interactions. 2. Norms resulting from working groups. 3. Dominant values adopted by the organization. 4. Rules of the game for ‘getting on. 5. The climate.  EXAMPLE OF QUALITY POLICY Identify and understand our customer's expectations, measure customer perceptions, and implement Improvements to Increase customer satisfaction. Enable and engage our people at all levels in a relentless drive to improve operational performance along the value chain from suppliers to customers. Increase the motivation and skiils of our people to add value to our customers and our businesses, through continual training and development. Leverage our partners & suppliers strengths to improve our products and our businesses from product design through production, Installation and operation. Embed social responsibility & company ethics policies In our business practices. Continually improve environmental, health and safety performance through all products, operations, systems and services. VISION FRAMEWORK FOR AN ORGANIZATION  CONTROL Control is the process by which information or feedback is provided so as to keep all functions on track. It is the sum total of the activities that increase the probability of the planned results being achieved. Control mechanisms fall into three categories, depending upon their position in the managerial process EXAMPLES OF VISION FRAMEWORK STATEMENTS FROM ORGANIZATIONS IN PUBLIC AND PRIVATE SECTORS  EFFECTIVE LEADERSHIP Some management teams have broken away from the traditional style of management; they have made a 'managerial breakthrough'. Their approach puts their organization head and shoulders above others in the fight for sales, profits, resources, funding and jobs. Many public service organizations are beginning to move in the same way, and the successful quality-based strategy they are adopting depends very much on effective leadership  EFFECTIVE LEADERSHIP 1. DEVELOPING AND PUBLISHING CLEAR DOCUMENTED CORPORATE BELIEFS AND PURPOSE - A VISION 2. DEVELOP CLEAR AND EFFECTIVE STRATEGIES AND SUPPORTING PLANS FOR ACHIEVING THE VISION 3. IDENTIFY THE CRITICAL SUCCESS FACTORS AND CRITICAL PROCESSES  EFFECTIVE LEADERSHIP 4. REVIEW THE MANAGEMENT STRUCTURE 5. EMPOWERMENT - ENCOURAGING EFFECTIVE EMPLOYEE PARTICIPATION LEADERSHIP AND COMMITMENT strategies, CSFs and core processes ATTITUDES ABILITIES TRAIN PARTICIPATION If all employees are to Words are cheap Every employee Train, train, train and participate in making the and will be should be able to do train again. company or organization meaningless if what is needed and successful , then they must. The training should be also be trained in the basics employees see expected of him or related to needs, of disciplined management. from managers’ her, but it is first expectations and actions that they necessary to decide process improvement. 1. E Evaluate – the situation do not actually what is really It must be planned and and define their objectives believe or intend needed and always its 2. P Plan – to achieve those what they say. expected. effectiveness reviewed. objectives fully. 3. D Do – implement the plans. 4. C Check – that the objectives are being achieved. 5. A Amend – take corrective action if they are not.  Evaluate, Plan, Do, Check and Amend, rather than DISCIPLINE the more traditional and easier option of starting by doing rather than evaluating. QUALITY IN of workers from the collaborating departments or organizations who are working side by side in any task. Hence, the challenge is to THE 21ST achieve shared goals and common action across the supply chain – ‘Quality in the 21st Century.’ (Figure 3.6) CENTURY  EXCELLENCE IN LEADERSHIP The vehicle for achieving excellence in leadership is TQM. Using the construct of the Oakland TQM Model, the four Ps and four Cs provide a framework for this: Planning, Performance, Processes, People, Customers, Commitment, Culture and Communications.  The Four Ps PLANNING PERFORMANCE PROCESSES PEOPLE Ensure a system for Train managers and team Develop the vision Identify critical areas managing processes is leaders at all levels in needed for of performance. leadership skills and developed and constancy of Develop measures to problem solving. implemented. purpose and for indicate levels of Ensure through Stimulate empowerment current performance. personal involvement (‘experts’) and teamwork to long-term success. Set goals and that the management encourage creativity and Develop, deploy measure progress system is developed, innovation. and update policy Encourage, support and act towards their implemented and and strategy. continuously improved. on results of training, achievement. Align organizational Prioritize improvement education and learning Provide feedback to structure to activities and ensure activities. people at all levels Motivate, support and support delivery of they are planned on an regarding their recognize the policy and strategy. organization-wide performance against basis. organization’s people – agreed goals. both individually and in teams.  The Four Cs CUSTOMERS COMMITMENT CULTURE COMMUNICATIONS Be involved with Develop the values and Stimulate and Be personally and customers and other ethics to support the actively involved encourage stakeholders. Ensure creation of a total in quality and communication and customer (external and quality culture across internal) needs are the entire supply chain. collaboration. improvement understood and Implement the values Personally activities. responded to. and ethics through communicate the Establish and Review and actions and behaviours. vision, values, participate in improve Ensure creativity, mission, policies partnerships – as a innovation and learning effectiveness of and strategies. customer demand activities are continuous own leadership. Be accessible and developed and improvement in implemented. actively listen. everything.  EXCELLENCE IN LEADERSHIP TQM should not be regarded as a woolly-minded approach to running an organization. It requires strong leadership with clear direction and a carefully planned and fully integrated strategy derived from the vision. One of the greatest tangible benefits of excellence in leadership is the improved overall performance of the organization.  CHAPTER 4: POLICY, STRATEGY, AND GOAL DEPLOYMENT Presented by: GROUP 2  OUR TEAM FORTUNO, CHERRYLYN GAJILAN, HANNA SOFIA G. GALLA, LESLEY JOANE  OUR TEAM GERNALE, JOSHUA ANDREA GERONIMO, KRIZ KELLY INTEGRATING TQM INTO THE POLICY AND STRATEGY Leaders of any organization need a clear sense of direction and purpose, which they must communicate effectively throughout the organization.  Vision and mission and their deployment must be based on the needs and expectations of the organization's stakeholders.  The challenge for management is how to ensure that a gap doesn't appear between the chosen direction for the organization and the day-to-day operations. STEP 1: DEVELOP A SHARED VISION AND MISSION FOR THE BUSINESS/ORGANIZATION STEP 2: DEVELOP THE 'MISSION' INTO ITS CRITICAL SUCCESS FACTORS (CSF) TO COERCE AND MOVE IT FORWARD The Danger Gap which many organizations fall into because they do not foster the skills needed to translate the mission through its CSFs into the processes and people needs. There should be no more than eight CSFs and no more than four if the mission is survival Critical Success Factors (CSFs) are the building blocks of the mission  STEP 3: DEFINE THE KEY PERFORMANCE INDICATORS AS BEING THE QUANTIFIABLE INDICATORS OF SUCCESS IN TERMS OF THE MISSION AND CSF’S The mission and CSFs provide the what of the organization, but they must be supported by measurable key performance indicators (KPIs) that are tightly and inarguably linked.  STEP 3 Each CSF should have an ‘owner’ who is a member of the management team that agreed the mission and CSFs. The task of an owner is to: Define and agree the KPIs and associated targets ensure that appropriate data is collected and recorded monitor and report progress towards achieving the CSF (KPIs and targets) on a regular basis review and modify the KPIs and targets where appropriate  STEP 4 UNDERSTAND THE CORE PROCESSES AND GAIN PROCESS SPONSORSHIP This is the point when the top management team have to consider how to institutionalize the mission in the form of processes that will continue to be in place, until major changes are required.  STEP 4 BUSINESSES HAVE TWO FORMS OF PROCESSES 1. CORE BUSINESS PROCESSES 2. GAIN PROCESSES SPONSORSHIP  STEP 4 CORE BUSINESS PROCESSES describe what actually is or needs to be done so that the organization meets its CSFs  STEP 4 CORE BUSINESS PROCESSES describe what actually is or needs to be done so that the organization meets its CSFs  STEP 4 GAIN PROCESS SPONSORSHIP The task of a sponsor is to: 1. ensure that appropriate resources are made available to map, investigate and improve the process 2. assist in selecting the process improvement team leader and members  STEP 4 GAIN PROCESS SPONSORSHIP The task of a sponsor is to: 3. remove blocks to the teams’ progress 4. report progress to the senior management team.  STEP 5 BREAK DOWN THE CORE PROCESSES INTO SUB-PROCESSES, ACTIVITIES AND TASKS AND FORM IMPROVEMENT TEAMS AROUND THESE Once an organization has defined and mapped out the high-level core processes, people need to understand what activities are required within these core processes and how they combine at operational levels.  STEP 5 BREAK DOWN THE CORE PROCESSES INTO SUB-PROCESSES, ACTIVITIES AND TASKS AND FORM IMPROVEMENT TEAMS AROUND THESE  STEP 6 ENSURE PROCESS AND PEOPLE ALIGNMENT THROUGH A POLICY DEPLOYMENT OR GOAL TRANSLATION PROCESS One of the keys to integrating excellence into the business strategy is a formal ‘goal translation’ or ‘policy deployment’ process. If the mission and measurable goals have been analysed in terms of critical success factors and core processes, then the organization has begun to understand how to achieve the mission FIGURE 4.6 FIGURE 4.7 FIGURE 4.8 FIGURE 4.10  STRATEGIC AND OPERATIONAL PLANNING Changing the culture of an organization to incorporate a sustainable ethos of continuous improvement and responsive business planning will come about only as the result of a carefully planned and managed process.  STRATEGIC AND OPERATIONAL PLANNING Strategic planning is the continuous process by which any organization will describe its destination, assess barriers standing in the way of reaching that destination, and select approaches for dealing with those barriers and moving forward. THE DEVELOPMENT OF THE POLICIES AND STRATEGIES Develop the policies and strategies based on organization’s needs and the organization’s capabilities, and that it wants to ensure these are communicated, implemented, reviewed and updated. This can then form the basis of top level goals, planning activities and setting of objectives and targets. CUSTOMER/MARKET SHAREHOLDERS Appropriate economic Customers’ needs and trends/indicators and their expectations understood, impact analyzed and now and in the future. understood. Developments anticipated Policies and strategies and understood, including appropriate to those of competitors and shareholder/stakeholder their performance. needs and expectations developed. PEOPLE PROCESSES A key process framework to Everyone appropriately deliver the policies and trained and developed to strategies designed, provide the required understood and competencies and skills the implemented. organization needs to deliver the policies and strategies. PARTNERS/RESOURCES SOCIETY Society, legal and Needs and expectations of environmental issues partners understood. understood. Policies and strategies aligned with those of partners  CHAPTER 5: PARTNERSHIPS AND RESOURCES Group 3  MEMBERS: Gomez, Chrislyn Kate M. Lucena, Alden Raziel R. Gonzales, Karlyn Heart L. Malihan, Jelian Angela Herrera, Diana Jane C. Menpin, Mariel F. Hetigan, Enah Marie S. Mesina, Patricia May M. Juan, Monica J. Nedera, Allaine B. Lingkit, Joyce Gwyneth L.  1 OVERVIEW 1. Partnering and Collaboration 2. Global Outsourcing 3. Supply Chain Effectiveness in the Global Economics 4. The role of Procurement / Purchasing in Partnerships 5. Just-in-Time (JIT) Management 6. Resources 7. Collaborative Business Relationships (BS11000) Partnerships and Resources  2 PARTNERING AND COLLABORATION PARTNERS Business, technologies and economies have developed in such a way that most organizations now recognize the increasing need to establish mutually beneficial relationships with other organizations. Partnerships and Resources  3 PARTNERING AND COLLABORATION PARTNERING is a long-term commitment between two or more organization for the purpose of achieving specific business goals and objectives by maximizing the effectiveness of each participant’s resources. Partnerships and Resources  4 The Quality of Partnerships has been recognized throughtout the world as a key success criterion Partnerships and Resources significantly reducing the management overhead through increasing the level of 1 collaboration on a number of key dimension that research shows to be critical in effective partnerships. establishing the right partnerships from the outset through understanding what 2 makes partnerships work and building that info the selection, review and “re- contracting” process.  FIVE KEY DIMENSIONS OF GOOD 5 COLLABORATION Strategic Alignment: Partnerships and Resources how well aligned are the partners Once the goals for the and how do they achieve this alignment at all key levels of partnership are established, management? partners may carry out a “HEALTH CHECK” on the current Customer focus: operations to assess strengths to what extent do both parties and areas for improvement develop and deliver the desired standards of service and experience across the whole service chain?  6 Decision-making and governance: how the partnership is managed to best effect and efficiency. Partnerships and Resources Communication and transparency: how well data and knowledge is captured, shared and disseminated in a way that builds value and not cost. Investment and Improvement: the extent to which the partnership jointly invests in and improves the partnership operations and outcome measures.  7 A key aspect of successful Partnerships and Resources partnerships is good communications and exchange of information which supports learning between two organizations.  8 When establishing partnerships, attention should be given to: 1 Maximizing the understanding of what is to be delivered by the Partnerships and Resources partnership. Understanding what represents value for money. 2 3 Understanding the respective roles and ensuring an appropriate allocation of responsibilities. Working in a supportive, constructive and a team-based 4 relationship.  9 5 Having solid program of work, comprising agreed plans, timetables, targets, key milestones and decision points. Partnerships and Resources Structuring the resolution of complaints, concerns or disputes 6 rapidly and at the lowest practical level. 7 Enabling the incorporation of knowledge transfer and making sure this adds value. Developing a stronger and stronger working relationship 8 geared to delivering better and better products or services to the end customer  10 WHAT IS GLOBAL OUTSOURCING Global Outsourcing is the practice of hiring external companies or personnel to work and perform functions in another country. It is often used to reduce costs, access specialized skills, and technology that could increase efficiency. ADVANTAGE/ BENEFITS OF GLOBAL OUTSOURCING 11 Cost savings Global Outsourcing can reduce costs by hiring external companies whose country has a lower employment cost and having those companies complete the organization’s day-to-day tasks in a lower-cost economy. Improved efficiencies, quality and staff satisfaction Global Outsourcing gives the organization’s menial tasks on the offshore team, letting the onshore employees focus on core company objectives. The onshore teams have the time to excel at what they do best while the offshore team appreciates the opportunity of working for a foreign company.  12 Perceived Disadvantage of Global Outsourcing Partnerships and Resources  Language Barriers: 12 When outsourcing globally many providers operate in low-cost economies. This can directly impact the level of English language proficiency of your outsourced team as English may not be their first language. Partnerships and Resources Social and Cultural Issues What may be custom in one country may not be in the next. This rings true to both cultural and social customs. For example, some cultures may be more reserved and may not be as straightforward or open to feedback as you may be used to with your local team. Data Security You will likely be sending confidential company data to your globally outsourced team to perform their role efficiently. This can introduce data security risks and needs to be managed accordingly.  13 SUPPLY CHAIN EFFECTIVENESS IN THE GLOBAL ECONOMIES  14 The urgent pursuit of greater security of supply or improved efficiencies can necessitate the transfer of manufacturing or re-sourcing to alternative supply routes. These strategies represent great opportunities but also carry big risks. Reliance upon a single source of supply can be risky at any time, but in unpredictable economic conditions it can be downright dangerous.  Below is a brief, high-level overview of a process to strengthen 15 sourcing security in terms of quality, timeliness and cost, by sourcing a second supplier. 1 Decide the selection criteria that are right for the business Consider sourcing security needs by reference to a set of sourcing criteria. 2 Make an initial selection Using the selection criteria make an initial selection of candidates. 3 Toughen up the selection criteria and make a shortlist Using a more rigorous set of selection criteria, reduce the list.  16 4 Conduct site visits At this stage, really put the candidates under the microscope by scrupulously examining all the factors around the potential deal, including: Approach to managing a large production and assembly account Level of interest in the commercial opportunity Professionalism and ability to quickly accommodate site visits and assessments 5 Make a final evaluation... and choice When the site visits are complete, re-evaluate the key business criteria scores, moving them up and down as appropriate. Also, determine the candidates’ key strengths and weaknesses, together with associated risks, and draw the conclusion.  17 THE ROLE OF PROCUREMENT/PURCHASING IN PARTNERSHIPS MALIHAN & NEDERRA  18 The primary objective of a “Purchasing” or “Procurement” function is to obtain the correct equipment, materials and services in the right quantity, of the MALIHAN right quality, from the right origin, at the right time and cost. Procurement or Purchasing can also play a vital role as the organization’s ‘window-on-the- world’  The purchasing or 19 procurement system should be documented and include: 1. Assigning responsibilities for and within the purchasing/procurement function. 2. Defining the manner in which suppliers are selected, to ensure that they are continually capable of supplying the requirements. MALIHAN  20 3. Specifying the purchasing documentation – written orders, specifications, etc. – required in any modern procurement activity. MALIHAN  21 COMMITMENT AND INVOLVEMENT Improving supplier performance is difficult and depends greatly on getting real commitment from the top management of both companies working together. This can be helped by holding presentations for supplier directors, allowing them to understand how important their companies' performance is in the overall quality process. MALIHAN  22 POLICY Suppliers who It is the policy of Suppliers who incorporate this company to incorporate a statistical process ensure that the quality control (SPC) and quality of all management continuous purchased system into their improvement materials and operations will be methods into their services meets selected. operations will be its requirements. selected. NEDERRA  23 POLICY Routine inspection, Suppliers will be checking, audited and their It is the policy of this measurement and operating procedures, company to pursue testing of incoming systems and SPC uniformity of supply, goods and services methods will be and to encourage will not be carried reviewed periodically suppliers to strive for out by this to ensure a never- continual reduction company on ending improvement in variability. receipt. approach. NEDERRA  24 QUALITY MANAGEMENT SYSTEM ASSESSMENT CERTIFICATION Many customers examine their suppliers’ quality management systems themselves, operating a second party assessment scheme. Inevitably this leads to high costs and duplication of activity, for both the customer and supplier. NEDERRA JUST-IN-TIME (JIT) MANAGEMENT  Jus-in-time Management GONZALES  Jus-in-time Management GONZALES  Jus-in-time Management GONZALES  Jus-in-time Management GONZALES  Jus-in-time Management GONZALES  Jus-in-time Management GONZALES  Resources All organizations allocate non-human resources to support processes that aim to achieve their strategy. These resources include financial assets, buildings, equipment, materials, technology, information, and knowledge. Effective management of these resources is crucial for the efficiency and success of any organization, whether in manufacturing, service provision, or the public sector. Financial resources are the funds available to an organization for operating, investing, and achieving its goals. They include revenue, loans, and investments, and are essential for sustaining operations and growth. Investment is crucial for future business development and growth. Public sector organizations in health, education, or law need funding to function effectively. Financial strategies and processes are driven by the financial goals and performance of the business.** Proper allocation of financial resources supports the execution of policies and strategies within the business. Other Resources Many different types of resources are deployed by different types of organizations. Most organizations are established in some sort of building, use equipment and consume materials. In these areas directors and managers must pay attention to: Utilization of these resources Security of the assets Maintenance of building and equipment Managing material inventories and consumption Waste reduction and recycling Environmental aspects, including conservation of non-renewable resources and adverse impact of products and processes. COLLABORATIVE BUSINESS RELATIONSHIPS (BS 11000) Collaborative Business Relationship often see business partners getting together to meet and collaborate to work out how they can improve their working relationships. Collaborating with your business partners successfully is not just about talking to them when you want something from them or when there is an issue or problem. It is a long-term commitment and way of working that creates an environment that fosters trust between businesses, organizations and people. The outcomes are beneficial to all parties both in terms of being a "successful business" as well as being a great place to work. Working with various businesses nationally as well as internationally is clear that this is an aspect of many businesses where there is room for much improvement.  Partnerships and Resources THANK YOU Presented By : Group 3 DESIGN FOR QUALITY GROUP 4 DESIGN, INNOVATION, AND IMPROVEMENT  DESIGN, INNOVATION, AND IMPROVEMENT Products, services and processes are designed both to add value to customers and to generate profit. But leadership and management style is also designed through the creation of symbols and processes which are reflected in internal communication methods, materials and behaviour. Almost all areas of all organizations have design aspects inherent within them  DESIGN, INNOVATION, AND IMPROVEMENT Design can be used to gain and hold on to competitive edge, save time and effort, deliver innovation, stimulate and motivate staff, simplify complex tasks, delight clients and stakeholders, dishearten competitors, achieve impact in a crowded market and justify a premium price. Design can be used to take the drudgery out of the mundane and turn it into something inspiring, or simply make money.  WHAT IS DESIGN? In the Collins Cobuild English Language Dictionary, design is defined as: ‘the way in which something has been planned and made, including what it looks like and how well it works.  INNOVATION Innovation entails both the invention and design of radically new products and services, embodying novel ideas, discoveries and advanced technologies, and the continuous development and improvement of existing products, services and processes to enhance their performance and quality.  IMPROVEMENT All organizations need to update their products, services and processes periodically. In markets such as electronics, audio and visual goods, and office automation, new variants of products are offered frequently – almost like fashion goods. While in other markets the pace of innovation may not be as fast and furious there is no doubt that the rate of change for product, service, technology and process design has accelerated on a broad front THE DESIGN PROCESS  THE DESIGN PROCESS The design process often concerns technological innovation in response to, or in anticipation of, changing market requirements and trends in technology. Those companies with impressive records of product- or service-led growth have demonstrated a state-of-the-art approach to innovation based on three principles: Strategic balance Top management approach Teamwork  DESIGNING If design quality is taking care of all aspects of the customer’s requirements, including cost, production, safe and easy use, and maintainability of products and services, then designing must take place in all aspects of: Identifying the need (including need for change). Developing that which satisfies the need. Checking the conformance to the need. Ensuring that the need is satisfied.  DESIGNING By structuring the design process in this way, it is possible to: Control the various stages. Check that they have been completed. Decide which functions need to be brought in and at what stage. Estimate the level of resources needed. DESIGN FOR QUALITY The design and development process TOTAL DESIGN PROCESSES Quality of design, then, concerns far more than the product or service design and its ability to meet the customer requirements. It is also about the activities of design and development. The appropriateness of the actual design process has a profound influence on the performance of any organization, and much can be learned by examining successful companies and how their strategies for research, design and development are linked to the efforts of marketing and operations.  QUALITY FUNCTION DEVELOPMENT (QFD)- THE HOUSE OF QUALITY The “house of quality” is the framework of an approach to design management known as quality function development It is first originated in Japan in 1972 at Mitsubishi’s Kobe Shipyard, but it has been developed in numerous ways by Toyota and its suppliers Dr. Yoji Akao originally developed QFD in Japan in 1966  WHAT IS QFD QFD refers to a system for designing a product or a service based on customers needs or requirements with the participation of members of all functions of the supplier’s organization. As translates the customer’s requirements into the appropriate technical requirements for each stage  THE ACTIVITIES INCLUDED IN QFD 1. Market Research 2. Basic Research 3. Innovation 4. Concept design 5. Prototype testing 6. Final-product or service testing 7. After sales and trouble-shooting THE QFD IN OPERATION As with all organizational problems, the structure of the QFD team must be decided on the basis of the detailed requirements of organization The QFD team must answer three questions: 1. WHO - Who are the customers 2. WHAT- What are the customers need 3. HOW - How will the needs needed THE QFD OR HOUSE OF QUALITY TABLES THE CENTRAL RELATIONSHIP MATRIX The central relationship matrix is the working core of the house of quality diagram. Here the WHATs are matched with the HOWs, and each customer requirement is systematically assessed against each technical design requirement. The nature of any relationship – strong positive, positive, neutral, negative, strong negative – is shown by symbols in the matrix.  STANDARDIZATION & SPECIFICATION Standardization ensures products or services meet quality criteria consistently. Specifications are detailed documents that outline these requirements, aligning with national and international standards. While standardization promotes reliability, it may slow innovation, especially in high-risk areas like waterproofing. Balancing proven methods with innovation is crucial to manage risks effectively. STANDARDIZATION & SPECIFICATION Performance-based specifications focus on measurable outcomes rather than specific methods, fostering innovation. In high-risk areas like waterproofing, prescriptive specifications are often necessary. Tools like 3D modeling and VR facilitate communication and collaboration on complex designs. Effective specifications result from thorough discussion and data analysis, balancing innovation with proven methods to ensure progress and reliability. DESIGN QUALITY IN THE SERVICE SECTOR  DESIGN OF SERVICES Differences between goods and services. Marketing and design of goods and services should conform to the same fundamental rules. Need for a different approach to service  3 DISTINCT ELEMENTS IN SERVICE PACKAGE PHYSICAL EXPLICIT IMPLICIT ELEMENTS SERVICE SERVICE OR OR OR FACILITATING SENSUAL PSYCHOLOGICAL GOODS BENEFITS BENEFITS PARTICULAR CHARACTERISTICS OF SERVICE DELIVERY SYSTEMS Intangibility Perishability Simultaneity Heterogeneity 5 CATEGORIES OF PLACING SERVICES Service factory Service shop Mass service Professional service Personal service.  SERVICE ATTRIBUTES Labour Intensity Contact Interaction Customization Nature of service act Recipient of service Table 6.1 gives a list of some services with their assigned attribute types and Table 6.2 shows how these may be used to group the services under the various classifications. Parasuraman et al. (see Zeithaml, Parasuraman and Berry, 1990) used the relationship between service quality and customer perceptions of product quality; his five dimensions are: 1. Reliability 2. Responsiveness 3. Assurance 4. Empathy 5. Tangibles FAILURE MODE, EFFECT AND CRITICALITY ANALYSIS (FMECA) In the late 1940s, the US military was committed to change from an approach of “find failure and fix it” to “anticipate failure and prevent it”. FMEA is a study of potential failures in product, service, and process design to determine their effects. It ranks potential failures in order of seriousness and criticality, aiming to identify critical features in product design, production, operation, and distribution. FMECA uses expertise from various fields to identify potential problems' importance levels and encourages action to reduce them. FMECA should be a major consideration at the design stage of a product or service.  ELEMENTS OF FMECA FAILURE FAILURE FAILURE MODE EFFECT CRITICALITY  HOW TO PERFORM FAILURE MODE, EFFECTS & CRITICALITY ANALYSIS (FMECA) 1. Identify the product or system components, or process function. 2. List all possible failure modes of each component. 3. Set down the effects that each mode of failure would have on the function of the product or system. 4. List all the possible causes of each failure mode. 5. Assess numerically the failure modes on a scale from 1 to 10. Experience and reliability data should be used, together with judgement, to determine the values, on a scale 1–10, for: P the probability of each failure mode occurring (1 = low, 10 = high). S the seriousness or criticality of the failure (1 = low, 10 = high). D the difficulty of detecting the failure before the product or service is used by the consumer 1 = easy, 10 = very difficult). 6. Calculate the product of the ratings, C = P x S x D, known as the criticality index or risk priority number (RPN) for each failure mode. This indicates the relative priority of each mode in failure prevention activities. 7. Indicate briefly the corrective action required and, if possible, which person, department/function or group is responsible and the expected completion date. PRESENTATION TEMPLATE THE LINKS BETWEEN GOOD DESIGN AND MANAGING THE BUSINESS THE LINKS BETWEEN GOOD DESIGN AND MANAGING THE BUSINESS Leadership and Management Style Planning Customers, Strategy and Planning People — their management and satisfaction THE LINKS BETWEEN GOOD DESIGN AND MANAGING THE BUSINESS Resource Management Process Management Impact on society and business performance PRESENTATION TEMPLATE THANK YOU FOR LISTENING!