11/14/2014

1

Prof.Hani Alamri Professor of Operation & Quality Management

KAU- 2014 © Alex Hill and Terry Hill © Alex Hill and Terry Hill

Top Ten Facts on Total Quality Execution

1. 15% believe the QM strategy to be wrong for their company. 2. 1 in 4 receive no information on how to execute QM strategy. 3. Only 51% are convinced QM initiatives are staffed with the

right people. 4. 27% believe QM initiatives are being managed Correctly. 5. 18% indicate that performance is not measured. 6. 38% state that poor performers do not face any consequences. 7. Almost 20% are unable to explain how to set QM objectives 8. 27% receive no training on essential QM skills. 9. Of all managers, 24% do not receive any useful QM information

from other departments.

Typical Approach: “Business Alignment” Objective: Identify the People Implications of Business Strategy

Recommended Approach: “Business Integration”

Objective: Inform Business and TQM Strategy with Workforce Effectiveness Insights

Business Strategy

TQM Strategy

Business Strategy

TQM Strategy

Workforce Effectiveness

Business Alignment Effectiveness Percentage of Heads of TQM Globally 49%

Effective or Very Effective

Business Integration Effectiveness Percentage of Heads of TQM Globally 26%

Effective or Very Effective

Beyond “Alignment” to TQM Strategic Integration Two Approaches to Linking Business and TQM Strategy

COMMITTING TO QUALITY IMPROVEMENT

How many of you can explain your company’s current

QULATY MANAGEMENT Integration?

© I

nst

itute

for

Tota

l Q

ualit

y M

anagem

ent

(IT

QM

), Z

uri

ch,

Sw

itze

rland

Saudi

Ele

ctr

icity C

om

pany –

16th

Qualit

y C

onfe

rence –

Jeddah,

KS

A –

Febru

ary

18-1

9,

2014

2

Evolution of Strategic Quality Management

Self-Control

1800 Adam Smith

1900 Taylor

1950 Maslow

1970 1990 McGregor MBNQA/EQA

- Product Focus - Customer Focus - Individuality

- Limited Communication

Quality

Assurance

- Focus on Mass Production

- QM Focus on the Industry - Product/Structure Focus

- Begin of Process Focus Quality

Control

SQM/

Excellence

- Involving all organizational processes - Customer/Employee Focus

- Open Communication

Trade

Industrial

Time

Post-

Industrial

Time

11/14/2014

2

The Total Quality new Approach to Strategic Quality Management- SQM

• SQM is an approach to doing business that attempts to maximize an organization’s competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments.

• Key characteristics of the new total quality approach are as follows:

1. strategically based,

2. customer focus,

3. obsession with quality,

4. scientific approach,

5. long-term commitment,

6. teamwork,

7. employee involvement and empowerment,

8. continual process improvement,

9. bottom-up education and training,

10. freedom through control, and unity of purpose.

Strategy Scope

Approach

Organizational Resources & Capabilities

The Strategy Paradigm Competitive Context Direction

Competencies vs. Core Competencies vs. Distinctive Competencies

A competence is the product of organizational

learning and experience and represents real

proficiency in performing an internal activity

A core competence is a well-performed internal activity central to a company’s competitiveness and profitability

8

A distinctive competence is a competitively

valuable activity a company performs better

than its rivals

Shareholders

Directors / top

management

Staff

Staff representative

bodies

Regulatory

bodies Government

Suppliers

Lobby / interest

groups

Customers

‘Society’

Stakeholder groups

11/14/2014

3

What you

HAVE

in terms of operations capabilities

What you

NEED

to ‘compete’ in the market

Operations

resources

Market

requirements

What you

WANT

from your operations to

help you ‘compete’

What you

DO

to maintain your

capabilities and satisfy

markets

Strategic reconciliation

Reconciling market requirements and operations resources

SQM

© I

nst

itute

for

Tota

l Q

ualit

y M

anagem

ent

(IT

QM

), Z

uri

ch,

Sw

itze

rland

Saudi

Ele

ctr

icity C

om

pany –

16th

Qualit

y C

onfe

rence –

Jeddah,

KS

A –

Febru

ary

18-1

9,

2014

8

The EFQM Excellence Model 2013

– Excellent organisations achieve and sustain outstanding levels of performance that meet or exceed the expectations of all their stakeholders.

EFQM & TQM -ISO 9001/4

…..

0

0,2

0,4

0,6

0,8

1 1

1. Leadership

2. Policy & Strategy

3. People

4. Partnership & Resources

5. Processes, Products & Services 6. Customer Results

7. People Results

8. Society Results

9. Key Business Results

TQM & ISO9001

11/14/2014

4

Leadership People

Policy and

strategy

Partnership

and resources

People

results

Customer

results

Society

results

Key

performance results Processes ,

how the organisation

designs, manages

and improves its

processes in order to

support its policy and

strategy and fully

satisfy and generate

increasing value for

its customers and

other stakeholders.

EFQM excellence model – Processes, Products & Services

Operations and process management

Operations Management is About Managing Processes -

transformation processes

ENVIRONMENT

ENVIRONMENT

INPUT OUTPUT GOODS AND

SERVICES

TRANSFORMED RESOURCES

MATERIALS INFORMATION CUSTOMERS

FACILITIES STAFF

TRANSFORMING RESOURCES

TRANSFORMATION PROCESS

Operations and process management contribution to strategy

The five competitive objectives

Quality Being RIGHT

Speed Being FAST

Dependability Being ON TIME

Cost Being PRODUCTIVE

Being ABLE TO CHANGE Flexibility

Cost

Quality + dependability + speed + flexibility + cost

Flexibility

Quality + dependability + speed + flexibility

Speed

Quality + dependability + speed

Dependability

Quality + dependability

Quality

Quality

The sandcone model of improvement; cost reduction relies on a

cumulative foundation of improvement in the other performance

objectives

Interfunctional relationships between QMS and other functions

Engineering/ technical function

Accounting and finance

function

Human resources function

Information technology

(IT) function

Understanding of the capabilities and constraints of the

operations process

New product and service ideas Understanding of the

capabilities and constraints of the

operations process Market

requirements

Financial analysis for performance and

decisions

Provision of relevant

data

Recruitment development and

training

Understanding of human resource needs

Analysis of new technology options Understanding of

process technology needs

Provision of systems for design, planning and

control, and improvement

Understanding of infrastructural and

system needs

Marketing function

Operations function

QMS

11/14/2014

5

Design a store layout which gives smooth and effective flow

Design elegant products which can be flat-packed efficiently

Site stores of an appropriate size in the most effective locations

Maintain cleanliness and safety of storage area Arrange for fast

replenishment of products

Monitor and enhance quality of service to customers

Continually examine and improve operations practice

Ensure that the jobs of all staff encourage their contribution to business success

IKEA

Top-down

Bottom-up

Corporate strategy

Business strategy

Emergent sense of what the strategy should be

Operational experience

Operations resources

Capacity

Supply networks

Process technology

Development and organisation

Market requirements

Quality

Speed

Dependability

Flexibility

Cost

The four perspectives on operations strategy–top-down, bottom-up, market requirements and operations resources

Operations strategy

Strategic Reconciliation Market Requirements

Understanding

Markets

Operations Resources

Understanding

Resources and

Processes

Operations strategy is the strategic reconciliation of

market requirements with operations resources

Capacity

Supply networks

Process Development and organization

Quality

Speed

Dependability

Flexibility

Cost

Operations

Processes

Operations

Resources

Operations

Competences

Market

Positioning

Market

Segmentation

Competitor

Activity

Strategic

Decisions

Operations

Strategy

Decisions

Required

Performance

Performance

Objectives

Distinctive Competencies

Starbucks Innovative coffee drinks

and store ambience

Toyota Low-cost, high-quality

manufacturing of motor

vehicles

10

11/14/2014

6

Contributing to the leadership team and aligning business and functional visions

leadership responsibility and the ability to make sure that their processes deliver the internal and external services that fulfil their

organisational role.

Technical expertise

Leadership expertise

Process expertise

Being the trusted advisor to the business and representing your function’s perspective

Delivering your expertise through your service processes

Total Quality Approach fit into Performance objectives & Operations Strategy