· PDF fileContents 1. A Closer look at TQM Implementation and its ... frameworks, models and...

ICQI-Lahore, 2-3 May 2011

PhD Dissertation by Kamran Moosa 1

Contents

1. A Closer look at TQM Implementation and itsDynamics

2. TQM in Pakistan – Research Findings3. A proposed TQM Implementation Framework4. Conclusion

1 2 3 4 5 6 7 8 9

2



A CLOSER LOOK ATTQM IMPLEMENTATION AND DYNAMICS

1

Background

• TQM deals with improving organizational performanceand systems. Most studies and observations confirm thatTQM is most likely to improve the performance oforganizations• It is based on a number of tools, systems, frameworks,

models and philosophies• A number of TQM models/frameworks are reported with

successful results; but at the same time large failures arealso reported in its implementation• Most often, the failures are not found in the models,

frameworks or tools; rather in their ‘Implementation’approaches, methods and concepts.

1 2 3 4 5 6 7 8 9

4



Success & Failure of TQMin the Global & Pakistani Scenario

1. Only 10-30% success rate is commonly reported2. TQM is Mature in some countries; still immature in many3. Too many start these initiatives for 1-2 years and then

abandon; very few cross the 3rd year4. Thus, sustainable improvements are experienced by

handful of organizations in Pakistan and many otherdeveloping countries

5. Success and Failure of TQM in Pakistan: Effectiveimplementation was found in 15% firms , satisfactory in25%; poor in 60%. Moosa (2000)

6. 100 Conference papers on TQM practices from 1995 to2005; most reported problems in implementation andintegration with existing organizational culture

1 2 3 4 5 6 7 8 9

5

Organizations are ‘Systems’

• We have strong ‘Processes’ but weak ‘system’• 80% of usual complaints, rejections or failures in our

organizations at corporate or state level are not becauseprocesses are ‘ineffective’ but because ‘processes are notfollowed or integrated’, i.e. weak systems• TQM or QA is just an intervention program to strengthen

‘systems’ of organizations.



7

Confusion between ‘System’ and ‘Process’

8

Uniformity among depts’ and people

DEPT A DEPT B DEPT C

DEPT A DEPT B DEPT C



9

2005 2006 2007 2008 2008 2009

Consistency in time

10

ORGANIZATIONALSYSTEMS

The Objectives of TQM/QA

QualityManagement

UniformityConformity

&Improvement



11

Research Need and Justification

TQMTools/Methods

TQMPhilosophy(Core Values)

TQMModels

(Requirements)

Customer FocusLeadership (for Quality)Vendors RelationsProcess ApproachSystems ApproachProblem solvingContinual ImprovementEthics & Social Norms

ISOs StndsQuality Awards

BusinessExcellence

Models

BSCQFD

FMEASPC

QC ToolsBenchmarkingReengineering

COQSix Sigma

TQMImplementation

Models

McKinsey/s 4 LevelsUMIST’s 5 LevelsCrosby’s 5 StagesGhobadian’s ModelOakland’s ModelMSAC Model

1 2 3 4 5 6 7 8 911

12

Most firms who startTQM do not achieve Maturity

EFF

EC

TIV

EN

ES

S

1ST Year 2nd Year 3rd Year

Starter MatureAmateur



Evolution of ‘Quality’ Terminology

13

Standards

QualityExcellence

Chasing &CreatingProduct

Stds

Chasing &CreatingProduct

Stds

Chasing &Creating

Cust Req’ts &Q.Objectives

Chasing &Creating

Cust Req’ts &Q.Objectives

Chasing &Creating

Best Practices& KPIs

Chasing &Creating

Best Practices& KPIs

Inspection, Testing & Labs

QC, QA, TQM(Certifications)

Quality Awards,Business Excellence ModelsPerformance Excellence Models

14

1st Stage : Inspection oriented organizations

PRODUCTIONPRODUCTION

PU

RC

HA

SIN

GP

UR

CH

AS

ING

MARKETINGMARKETING

ADMINADMIN HRDHRDFINANCEFINANCE ITIT

Lab

DESIGNINGDESIGNING Internal Mnt.Internal Mnt.

Lab



15

2nd Stage : QA based


PU

RC

HA

SIN

GP

UR

CH

AS

ING

MARKETINGMARKETING


Lab


Lab

QAMonitoring Q ObjectivesAudits & ReviewsTrainingsQuality Improvement TeamsDocumentation

16

3rd Stage : Performance Excellence (through HoDs)


PU

RC

HA

SIN

GP

UR

CH

AS

ING

MARKETINGMARKETING


Lab


Lab

QualityFacilitation

Function

QualityFacilitation

Function

Quality Leadership by HoDsSelf AssessmentBalanced ScorecardQuality Award



17

Dashboards

KPI 1KPI 2KPI 3KPI 4

KPI 1KPI 2KPI 3KPI 4KPI 5

Dep

artm

ent A

Dep

artm

ent B

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

18

TQM – a tool to System’s Improvement

01

2

3

4

5

STOP

System Integrity IssuesProcesses Not followed

1

PROCESS MANAGEMENT

ProcessNot effective

2

PROCESSIMPROVEMENTWITH PROBLEMSOLVING

ProcessNot suitable

3

PROCESSCHANGE

AnalysisIncidences



Quality, QA and Org’l Culture

Quality(outcomes)

Due to PoorCulture of

Standardization

Due to Poor Culture ofCreativity & Involvement

Culture ofStandardization

Needsimprovement

Culture ofCreativity & Involvement

Needs improvement

RESEARCH FINDINGS

TQM IN PAKISTAN, 2010

Ref:Journal of Asian Business & ManagementVol 9, 4, 525-551, Jan 2010, Macmillan Publishers Ltd, UK‘An empirical study of TQM Implementation: Examination of aspectsversus impacts’By Kamran Moosa, Ali Sajid, Rashid A. Khan & Anwar Mughal

2



21

1. CRITICISM ONON ISO 9000 &Certification/ConsActivities

2. FILTERATION3. SIX SIGMA

FOCUSSTRATEGIC QAIMPROVEMENTSTOOLSQ. Policy DeploymentSix Sigma, TPM, CMMMAJOR INDUSTRYSoftware, Telecom,Banking, Govt.Defence

1. ISO 9000 (QMS/QA)2. Certification Boom3. TQM Subject in Uni

FOCUSQUALITY ASSURANCE& QMSTOOLSISO 9000

MAJOR INDUSTRYAutomobile, Textile,Software, EngineeringDefense

1. JAPANESE OEMS2. AOTS – JAPAN

Trg in Japan

FOCUSPROCESS CONTROL

TOOLS- Statistical QC,- Kaizen- Quality Circles

MAJOR INDUSTRYAutomobile

Quality ControlmeantINSPECTION &TESTING

FOCUSGOOD LABS

TOOLSMETROLOGY

MAJOR INDUSTRYBig Industries, e.g.Steels mills, plants,etc.

Journey of Quality Management in Pakistan

Before 80s 1980s ► 1990s ► 2000s ►Before 80s 1980s ► 1990s ► 2000s ►

1st

INSPECTIONORIENTATION

4TH

PERFORMANCEEXCELLENCE

3RD

SYSTEMORIENTATION

2nd

PROCESSORIENTATION

Job Position

22



2: Provincial Background

23

3: Type of Organization

24



4: Size of Organization

25

5: Head of TQM Program

26



6: Effectiveness of ISO 9000

27

Categorization of Contextual Factors

•Leadership of TQM Program•Size of Organization

A CategoryMost Influencing

•Effectiveness of ISO 9000•Formally Adoption of QA System in firm•Job Positions

B CategoryMedium Influencing

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

C CategoryLittle influencing

•Experiences of Employees•Background of Employees•Age of Employees

D CategoryLeast influencing

28



Multiple Regression TestMODEL

1

MODEL

2

MODEL

3

MODEL

4

Maturity in

System

Customers

Satisfaction

Business

Improvements

Employees

Satisfaction

Constant 0.22 0.35 0.56 0.31

Organizational

Behavior0.20 0.14 0.28 0.42

Existing

TQM Practices0.70 0.01 0.24 0.32

Customers Focus 0.06 0.46 0.25 0.11

Vendors

Focus0.03 0.14 0.00 0.25

R- Sq 70.9% 65.4% 50.3% 80.5% 29

TQM Impact 1: Maturity of Systems

Maturity of Quality System = f (Existing TQM System, Org’l Behavior)R2 is 70.9% implying a good model

• Deming (1986) points out that around 84% of quality related issuescan be attributed to insufficient and ineffective systems inorganizations

30



TQM Impact 2: Customers’ Satisfaction

Customers’ satisfaction related results = f (Customer Focus, Org’l Behavior)

• Its R2 is found to be 65.4%, which is satisfactory.

31

TQM Impact 3: Business Improvement

Business Improvement = f (TQM Program , Org’l Behavior, Customer Focus)

• Process improvement is found positively correlated with productimprovement. Process improvements results in improvement in products(R=0.62, p=0.00)

32



TQM Impact 4: Employees’ Satisfaction

Employees’ Satisfaction Results = f (TQM System, Org’l Behavior)

33

MSACA PROPOSED FRAMEWORK

FOR TQM IMPLEMENTATION

3



TQM Aspects & Impacts:A new Way to Look at TQM Implementation

35

MSAC:The Proposed TQM Implementation Framework

36



37

CONCLUSIONS

38

4



Conclusions

1. Organizations are its ‘Systems’; TQM is a successful intervention programfor organizations in order to strengthen its systems.

2. Sustainability of organizations can only be guaranteed with making‘systems’ more stronger. Deep rooted and stronger organizations areonly with deep rooted mature systems.

3. TQM is a successful paradigm to strengthen organizations and theirsystems. It can only be useful if implemented effectively. Its successrate is very limited and time consuming globally, including in Pakistan. Itseffectiveness can not be ensured without studying its dynamics,implementation frameworks, and best practices.

4. TQM is available through various programs, models and frameworks likeISO standards, PMQA, Accreditation Models and Tools like QualityCircles, Kaizen, TPM, Six Sigma, SPC, and BSC. There is no escape fororganizations to fight internal and external challenges. These have to belearned and deployment progressively. 39

40

End of thePresentationEnd of thePresentation

· PDF fileContents 1. A Closer look at TQM Implementation and its ... frameworks, models and...

Documents

Transcript of · PDF fileContents 1. A Closer look at TQM Implementation and its ... frameworks, models and...