TOWARDS SUCCESSFUL IMPLEMENTATION OF TQM

(1)

Dr. Kamran Moosa

Advisor & Past Chairman,

Quality & Productivity Society of Pakistan

T

OWARDS

S

UCCESSFUL

I

MPLEMENTATION

OF

TQM

PAKISTAN

Part 1 Overview and

State of TQM

in Pakistan

Part 2 TQM

Implementation

Challenges

2

(2)

Journey of Quality

Management in Pakistan

3

PART 1

PAKISTAN

Population

180 M

GDP Contribution

20 % Agriculture

26 % Industry

54 % Services

% Occupation

45 %

Agriculture

21 %

Industry

34 %

Services

Labor Force

60 Million

Capita Income

$ 1256 (2012)

Pakistan

(3)

PAKISTAN

Cont…

Literacy Rate

58 %

Primary Schools

155,500 ; Students 20.0 M

Middle & Secondary

70,000 ; Students 9.3 M

Colleges

1,558 ; Students 1.0 M

Universities

135 ; Students 1.4 M

______________________________________________

Overall

227,400 ; Students 31.7 M

5 (Source: Pakistan Economic Survey 2011-2012, GOP)

K. MOOSA, MEQA 2013 CONFERENCE, JEDDAH, SAUDI ARABIA

PAKISTAN

PAKISTAN INDUSTRY

5000 Garments

1220 Ginning

750 Finishing

700 Knitwear

456 Spinning

400 Towels

200 Weaving

6 Textile

8800

Manufacturing Units

(4)

PAKISTAN

Cont…

725 Tanneries

460 Garments

524 Footwear

348 Gloves

302 Sports/Goods

7 Leather

2360

Manufacturing Units

PAKISTAN

Cont…

77 SUGAR PLANTS

11 FERTILIZERS PLANTS

25 CEMENT PLANTS

87 OIL MILLS

500 STEEL MILLS/RELATED

1129

CHEMICAL PLANTS

750 SOFTWARE

370 CONSTRUCTION

131 ISP’s

Others

Manufacturing

Units

(5)

PAKISTAN

Automobile

& Aircraft

Manufacturing Units

Cont…

47 MANUFACTURERS

6 CARS (1 LOCAL)

19 TRUCKS/BUSES

22 MOTORCYCLES

780 DIRECT VENDORS

3 AIRCRAFT OVERHAULING

1 LOCALLY DESIGNED

(JF Thunder)

9 Made in Pakistan

Made in Pakistan

PAKISTAN

10 TQM in Education & Certifications

Certification Bodies (ISO Stds)



20 Academic / Universities



135 universities



Accreditation Bodies (HEC, PEC, PMDC, etc)



TQM as a subject in MBA



SQC in BSc Engineering



MSc in QA/TQM by two institutions



PGD in QA by two institutions

Chambers of Commerce



TQM Bureau, Lahore Chamber of Commerce

& Industry

(6)

PAKISTAN 1980s

1990s

2000s

2010s

TQM Growth

TQM Journey in Pakistan

Inspection / Testing

ISO Stds

TQM / TPM

Six Sigma,

SQCC Schools

HEC’s Self Assessment

Big Industry

Automobile,

Defence, Engg.

Textile

Automobile,

Telecom

Banks, Software

Engineering,

Banks, Telecom

universities

11

PAKISTAN 1980s

1990s

2000s

2010s

TQM Growth

TQM Journey in Pakistan

Inspection / Testing

ISO 9000

TQM / TPM

Six Sigma,

SQCC Schools

HEC’s S.A.

Good Lab is good QC

ISO 9000 as a QA Model;

everyone took interest

Criticism on ISO 9000; goals

not met; serious concerns

Quality Circles in

Schools; Six Sigma

picked up; partial

Q’Award

(7)

PAKISTAN

• 20 years of outstanding TQM history

• Quality Circles, Kaizen, JIT, 5S, TPM,

Statistical Process Control

• 50-60 Quality Circles / year

• 8000-9000 Kaizen per year

13 Case 1: Indus Motors Karachi

PAKISTAN

• 2007: Initiative of Quality Circles / TQM in

Education in Northern Region of Pakistan

• 70 institutions involved in SQC as extra

curricular activities

• Objective: To produce Quality minded

Citizens

• Annual Convention where students

participate

Case 2: TQM / Students Quality Circles in Schools

Modernage School, Abbottabad

14

(8)

PAKISTAN

• Adopted Bloom’s Taxonomy as a Basic

Learning Quality; i.e. 6 Levels

–

Level 1: Remembering

–

Level 2: Understanding

–

Level 3: Applying

–

Level 4: Analyzing

–

Level 5: Evaluating

–

Level 6: Creating

• Adopted TQM/SQC in curriculum, Exams,

and Teaching Methods

• Personality Development

• New Initiative ‘Industrial Kid’; industry

liaison at school level

Case 3: TQM in School:

SPS School & College, Swat

15

PAKISTAN

1. QM / QA deals with improving process based approach to

organizational

performance improvement & standardization,

still at growth level at the

national level

2. Used in Pakistani industries and organizations as voluntary programs since

1990’s;

20 years of experience in Pakistan

(e.g. ISO Stds).

3. Only

10-30% success rate

is commonly reported in internal QA programs

(and even in external QA programs)

4. Too many companies start these initiatives for 1-2 years and then

abandon;

very few cross the 3

rd

_year.

_{Weak Sustainability}

5. Effective implementation of internal QA was found in 15% firms ,

satisfactory in 25%; poor in 60%. Ref: Moosa (2000)

6. Role of ISO Certifications is weak, need some upgradation

7. National Quality Award called Prime Minister Quality Award mobilized in

2012. Not yet awarded.

(9)

Quality and Productivity

Society of Pakistan

Building a World-Class Pakistan

QPSP Website

(10)

QPSP memberships

19

PAKISTAN

• Forums (monthly Quality Forum)

• Magazine (Quest for Excellence)

• Biannual Exams (Certified Quality

Manager – 2 times/year)

• Collaborations on

–

Conferences (ICQI, with PIQC)

–

Students Quality Circles (Modernage)

–

Prime Minister Quality Award (NPO)

(11)

Annual Magazines

21 Conference

(12)

Towards Successful

Implementation of TQM

PART 2

PAKISTAN

Dimensions of TQM program

TQM

Tools & Methods

TQM

Cultural Values

TQM

Models & Frameworks Customer Focus Leadership (for Quality) Vendors Relations Process Approach Systems Approach Data based Analysis Problem solving Continual Improvement Ethics & Social Norms Creativity

ISO Certifications Quality Awards Business Excellence Models Accreditation Models Quality Function Deployment Failure Mode & Effect Analysis Statistical Process Control Benchmarking Cost of Quality Business Process Reengineering Six Sigma GR&R Design of Experiments Total Productive Maintenance

TQM

Implementation Project Mgt McKinsey/s 4 Levels UMIST’s 5 Levels Crosby’s 5 Stages Ghobadian’s Model Oakland’s Model Technical Cultural

(13)

PAKISTAN

TQM Culture – the ultimate goal

Successful

TQM Deployment

TQM

Project Management

TQM

Values/Culture

TQM

Frameworks

TQM

Tools

Learning

Processes

Project

Mgt

Processes

Leadership

& Cultural

Processes

25

PAKISTAN

TQM

Development

Deployment

Sustainability

(Continuity)

TQM Development, Deployment & Sustainability

26

(14)

PAKISTAN

Studies on TQM Implementation

• Success and Failure of TQM in Global scenario

–

Most studies confirm improvement in performance due to TQM but very

little on its sustainability;

Singhal’s study (2001) is most prominent

Ollila (1995), Terziovsk (1999),

–

10-30% success

reported in many studies ;

Oakland (2007), Yui (1995), Beer (2003), Hackman (1995), Caudron (1993), Harari (1993), Korukonda (1999)

• Success and Failure of TQM in Pakistan

–

Effective implementation was found in 15% firms , satisfactory in 25%;

poor in 60%.

Moosa (2000)

–

100 Conference papers on TQM practices from 1995 to 2010; most

reported problems in implementation and integration with existing

organizational culture.

(Jamshed Khan 2000, lever Brother 2000, Habib Rafiqe (2000), Gillete (2000), saphire Textile (1998), Packages (2000), PTC (2000)

27

PAKISTAN

Success

25%

Failure

75%

Challenge: TQM Failure 75%

(15)

PAKISTAN EFFE C TI V EN ES S

1ST_Year ₂nd_Year ₃rd_Year

Starter

Amateur

Mature

10-20%

80-90%

TQM Maturity over years

Development

Phase Starts

Deployment

Phase Starts

Sustainability

Phase Starts

29

PAKISTAN

How can you standardize an SOP ?

HANDWASHING

(16)

Sustainability = Quality x Time

31 Compliance to

Processes

Suppliers

Organization

Products & Services

IT

Part time faculty Software

Mnt

PAKISTAN

Examples

Competency Rate Duration of vacant posts % of Poor Hiring Number of persons hired

Number of Trainings

HRD

Error Rate Delays Cost of unit test Number of tests Types of Tests

TESTING

DEPT.

% Defectives/Rejected Cost of Production/item Number of items/unit time Number items produced

Types of products produced

PRODUCTION

DEPT.

Graduate Competency Rate Job Placement Rate % of Satisfied Graduates % of Satisfied Employers Number of Students Number of Teachers Number of Programs Number of Branches

UNIVERSITY

Delivery Rate Damage Rate Transactions/day/person Number of Letters

Number of Post Offices Number of Transactions

POST OFFICE

Quality

Objectives

(17)

TQM dashboard (Example)

33

PAKISTAN

Quality, QA and Org’l Culture

Quality

Outcomes

KPIs

Due to Poor Culture of Standardization Due to Poor Culture of

Creativity & Involvement _{Standardization}Culture of

Needs improvement

Culture of Creativity & Involvement

Needs improvement

34

(18)

PAKISTAN

I

MPROVEMENT

To Improve

PERFORMANCE

S

TANDARDIZATION

To Strengthen

SYSEMS

TQM

TQM Key Objectives

Effective Development,

Training, Enforcement

Auditing of

SOPs

Effective Development,

Training, Enforcement

Auditing of

KPIs

70-80%

20-30%

35 What TQM does 70/20/10

0

1

2

3

4

5 STOP

(Processes Not followed)

1

PROCESS CONTROL Process Not effective

2

PROCESS IMPROVEMENT WITH PROBLEM SOLVING Process Not suitable

3

PROCESS CHANGE

Analysis

Incidences

(19)

PAKISTAN

A

C

B

3 6 9 12 18

Time (months)

Acceptable

Satisfactory

Good

Excellent

60%

15%

25%

37 ISO 9000 Survey

PAKISTAN 90 70 ₆₀ 50 ₄₀ 30 ₁₅ 0 10 20 30 40 50 60 70 80 90 100

P

ro

d

u

ctio

n

S

ale

s

P rod. P la nni ng

F

inan

ce

QA

M

ar

ke

ting

Desi

g

n

Quality Practices in Departments

%

38 ISO 9000 Survey (Cont.)

(20)

PAKISTAN 95 85 80 30 25 25 25 20 15 10 5 0 10 20 30 40 50 60 70 80 90 100 IS O 9 0 0 0 SPC C . S u rv e y QC C B e n c h m a rk ing R e e n g ine e ring Q. A w a rd Kaiz e n /5 S Q PD J IT Ne w M g t T o o ls

%

39 ISO 9000 Survey (Cont.)

Application of TQM Tools

PAKISTAN

TQM Aspects vs Intermediate & Final Impacts

40 (Final)

(21)

PAKISTAN

TQM survey 2010

Responses of Items with p<0.05

PAKISTAN

42 Responses of Items with p<0.05

TQM survey 2010

(22)

PAKISTAN

43 Responses of Items with p<0.05

TQM survey 2010

PAKISTAN

(23)

PAKISTAN

45 TQM survey 2010

PAKISTAN

Categorization of Contextual Factors

•Leadership of TQM Program

•Size of Organization

A Category

Most Influencing

•Effectiveness of ISO 9000

•Formally Adoption of QA System in firm

•Job Positions

B Category

Medium Influencing •Export orientation •Location of Firms •Sectors •Type of Firms

C Category

Little influencing •Experiences of Employees •Background of Employees •Age of Employees

TOWARDS SUCCESSFUL IMPLEMENTATION OF TQM

Dr. Kamran Moosa

Advisor & Past Chairman,

Quality & Productivity Society of Pakistan

T

OWARDS

S

UCCESSFUL

I

MPLEMENTATION

OF

TQM

Part 1

Overview and

State of TQM

in Pakistan

Part 2

TQM

Implementation

Challenges

Contents

2

Journey of Quality

Management in Pakistan

3

PART 1

Population

180 M

GDP Contribution

20 % Agriculture

26 % Industry

54 % Services

% Occupation

45 %

Agriculture

21 %

Industry

34 %

Services

Labor Force

60 Million

Capita Income

$ 1256 (2012)

Pakistan

Cont…

Literacy Rate

58 %

Primary Schools

155,500 ; Students 20.0 M

Middle & Secondary

70,000 ; Students 9.3 M

Colleges

1,558 ; Students 1.0 M

Universities

135 ; Students 1.4 M

______________________________________________

Overall

227,400 ; Students 31.7 M

5

(Source: Pakistan Economic Survey 2011-2012, GOP)

PAKISTAN INDUSTRY

5000 Garments

1220 Ginning

750 Finishing

700 Knitwear

456 Spinning

400 Towels

200 Weaving

6

Textile

8800

Manufacturing Units

Cont…

725

Tanneries

460

Garments

524

Footwear

348