HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001

HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001

The Management Development Centre of Hong Kong

TQM Development Group 2001

TQM Plus – History & Development

Dr Stephen W. K. NgManaging DirectorQuST Continuation Ltd

April 24, 2001 - 6:30 P.M. to 8:30 P.M.

-- Experience Sharing --


WHAT HAVE WE CHANGED

IN THE PAST30 YEARS

?????


Customers Expectation – One of the key Drivers

OLD TRADITION

Good

Fast

Cheap

Pick Any Two!

OLD TRADITION

Good

Fast

Cheap

Pick Any Two!

NEW TREND

Increase CustomerSatisfaction

Whilereducing total cycle

times and costs

NEW TREND

Increase CustomerSatisfaction

Whilereducing total cycle

times and costs


1960’s 1970’s 1980’s 1990’s 2000’s

Product

Price

Quality

Service & speed

Information & Integration

Semiconductor Industry Drivers Over Time

Six Sigma 10X Cycle Performance Time Excellence and ??


Internet – The Speed Challenge

0 10 20 30 40

No. of years to reach 50 million users

Internet

TV

Radio


World i-Commerce in Billions Forecast of CorporateWeb-enabled Expenditures

0

500

1000

1500

2000

2500

1998 1999 2000 2001 2002 2003

WorldwideWorldwide U.S.U.S.

$479Billion$479

Billion

$2.2

Trillion$2.2

Trillion

0

1000

2000

3000

4000

1998 1999 2000 2001 2002 2003

Lowpotential

Lowpotential

$80$80 $170$170 $390$390 $970$970 $2,000$2,000 $3,200$3,200

$55$55 $145$145 $320$320 $640$640 $1,100$1,100 $1,800$1,800Source: Forrester Research 1999 Source: International Data Corp. 1999

Highpotential

Highpotential

e-Commerce is Huge!


Va

lue

$$

Data standardsCommon processes

©1999 i2 Technologies, Inc.

Website

Presence

Website

Presence

Publish

e-Commerce

Buying & selling

e-Commerce

Buying & selling

Transmit

e-Business

Buying & Selling,Information Sharing

Redeploying currentbusiness practices

e-Business

Buying & Selling,Information Sharing

Redeploying currentbusiness practices

E2E

Intelligente-Business

Synchronized end-to-end businessprocesses, spanning multiple enterprises

Optimized business processes

Intelligente-Business

Synchronized end-to-end businessprocesses, spanning multiple enterprises

Optimized business processes

Value Chain

Rapid Migration to e-Everything


Organizational Improvement Continuum

Incremental Quick - Hits

Process Improvements

Activity Improvements

New Practices

Outsourcing

Rightsizing

Progress Reengineering

Technology Innovation

Reorganization

Breakthrough Strategy

Market/Product Repositioning

Radical Strategic Change

6 SigmaTQM

BASE


Six Sigma Implementation Highlights

Metrics

Strategy

Sigma Quality Level

C p’ C pk’ P p’ P pk

DPMO

RTY

COPQ

"30,000 Foot Level" Metrics

Program

Initiative

Business Strategy

Driven from the top

Effective Project Selection

Selecting the Right Players

Defect Rates

Cycle Times

Expenditures

6σ

By F. Breytogle III


Balancing the Change in Asia( The 50/50 Rule )

50 %

Improve Productivity& Services 50 %

LowerTotal Costs

Be No.1

The Leadership Practice in the 21st Century


Commitment

Interdependent

Interactive/Aligned

Investment

Transactional

Understanding

Hostile

Connection/Culture

Synergistic

Integrate

Collaborate

Synchronized

The Journey to Synchronization

From A Consulting & QuST…

Silo

Communication

Stream

The SCM evolution

The effect of * Globalization,* e- Commerce, & * The new economy


$100

5%$65

Before e-SCM

R&DR&D

Total Cost Driver for e-SCM

35% 35% savings opportunitysavings opportunity

After e-SCM

10%

Direct Direct MaterialMaterial

4%

Indirect Indirect MaterialsMaterials

3%

Direct Direct OverheadOverhead

Sales Sales expenseexpense

3%

Cost of Cost of LaborLabor OthersOthers

4%

6%

I2 Technologies, Inc.


The Challenge To TQM PLUS

Triggers

Redefine AndReposition

Adopt BestPractices

DoNothing

Prosper

Survive

Fail

Advantage

Decay

Parity

RIP

….. There comes a time in the history of every company where they have to change dramatically to move to the next level of performance. Miss that moment ….. and they begin to decline.

A. Consulting

SCM

SIX SIGMA


Six Sigma Data Quality

In the 80’s, inadequate process quality led to our Six Sigma initiative.

In the decade ahead, data and information quality must make the Six Sigma journey.

The Challenge of Six Sigma Quality in everything we do in the 21th Century


Performance Excellence Stephen’s Process Development Model

A

B

C

Could be

Best-in-class

Should be

as is

entitlement

baseline

as was Old standard

A

B

C

D

Class

Quality Performance

Speed of Execution

Benchmarking

6 Sigma & beyond


YOUR ROLE IN TQM PLUS MANAGEMENT is..

Leader

Model

Obstacle Remover

Adviser

Facilitator

Mentor

Supporter

Motivator


Three Kinds of Corporations Need To Change

In The Concept of Reengineering

1. Companies in deep trouble. They have no choice.

2. Companies not yet in trouble but have the foresight

to see trouble coming.

3. Companies that are in peak condition. No

discernable difficulties. Seek to raise the

competitive bar even higher.What is you company’s

position

???


What do you think ……

ASIA COMPANIES BELONG

To

1 2 3


VOICE OF CUSTOMERS …… BEFORE YEAR 2001Expectations from Suppliers in Total Supply Chains

World-class total supply chain leadership Time compression - continued reduction in total cycle time Perfect supplier in Quality, OTD & Responsiveness Fourth party logistics management World-class flex model of Compaq DJIT to HUB concept Consignment inventory, bill to use One system, two companies Customerized performance metrics - TQRD of HP Schedule sharing & inventory management Third party JIT service Single unit procurement 4-week lead time support Kitting service Value-added services Consignment warehouse of Motorola Shared inventory


Motorola’s TQM Plus Process

Quality Control

(QC)50‘

Quality Assurance

(QA)60‘

Total Quality Control (TQC)

70‘

Total Quality Management

(TQM)80‘

Total Quality Service (TQS)

90‘

Six Sigma Challenge

1987

Total Service Quality

Management (TSQM)

1997

Service Quality Excellence

Customer Advocacy

2000

Motorola Total Customer Satisfaction Drive Performance Excellence

Challenge To You and Your

Plan NOW

By Dr. S.W.K.Ng, QuST


Race to Best-In-Class

Compete

Survive

Automation10 - 30%

Integration20 - 40%

Simplification & Standardization

50 - 70%

1) Materials Requirements Planning2) Output Scheduling3) Factory On Time Delivery4) Rough Cut Capacity Planning

OF Release 1 BaselineFactory Execution

Lead Time / Responsiveness

Logistics Simplification

Next Generation

Tool Set

Continuous Improvement in Factory & Planning

Automation

Step Number 1: Build a solid foundation• Consistent business practices • Predictable, repeatable processes • Metric consistent with service focus

CRITICAL 4:

What It Will Take To Win – example of a global corporation


TOTAL SERVICE QUALITY MANAGEMENT (TSQMTM) MODEL

Service Vision,Strategy & Action

People Training,Development and

Culture

Leader

ship

Execution

Communication

TCSTQM Plus

Systems, Tools,Metrics, Processes and

Rules

By Dr. Stephen W.K. Ng

The TQM Plus strategy…….starts with Service Quality Mindset

TCS – Total Customer Satisfaction


COMBINING THE BEST OF EAST & WEST

Quality & Speed

A STRONG ORGANIZATIONAL CULTURE IS NEEDED TO SUPPORT TQM PLUS


THE QUST EVOLUTION IN MOTOROLA- a 6 sigma culture example

QuST Timeline

1987Work Improvement

Team (WIT) approach

1991‘Total Quality Now’

WorkshopFormed Quality and Speed Teams (QuST)

Aim at delivering more values to customers

1992-1994:• Quarterly Quality &Speed

Excellence Sharing• Yearly ‘Quality Week’

Generic QuSTExecutive QuST

1995-1996:• Quarterly

Quality &Speed Excellence Sharing

• Year round activities

4 QuST

8 D

omai

ns

1992:• Established ‘Small Win’

Recognition System

1993QuST renewed to includeTeamwork & Technology

as enabler

Strategic QuST

1995QuST

integrated into Quality Department

DomaDomain2

Domain3Domain4

Domain5

Domain6

ManagementSystem

CommunicationRecognition

Education

Participation

Measurement

1998-2002:• Customer

LoyaltyMCTG MMTG

CPSTG LATG

TM


“ MOST WELL RUN AND WELL

MANAGED COMPANIES STILL

ONLY USE 50% OF THEIR

AVAILABLE RESOURCES”

Alexander Proudfoot


“ EIGHTY PERCENT OF THE

ABILITY TO GET RESULTS IS

BELIEVING THAT THEY ARE

THERE TO GET”

Alexander Proudfoot


PREPARING FOR THE 21ST CENTURY And

Beyond

“ If a process doesn’t work over a period of time, don’t keep trying to

fix it. CHANGE it!”

J. Anklesaria


Effects of Service Programs on Customer Delivery

On Time Delivery to CRD Performance

50%

60%

70%

80%

90%

100%

1/99 3/99 5/99 7/99 9/99 11/99 1/00 3/00 5/00

Total Service Programs OTD to CRDSector Average OTD to CRD

On Time Delivery to PDD Performance

50%

60%

70%

80%

90%

100%

1/99 3/99 5/99 7/99 9/99 11/99 1/00 3/00 5/00

Total Service Programs OTD to PDD

Sector Average OTD to PDD


PKKI Balanced Scorecard 2002

VisionProvide enjoyable environment for high quality knowledge transfer between academia and business world

Mission•Be a Premier Institute of Management focusing on consultancy, executive learning and action research

•Equip employees and professionals with competencies to achieve higher quality and speed performance

Financial

•Healthy with surplus

•Reliability of performance

•Donation continuation

•Repayment of debt

•Reward & incentive

Customer

•Value for money

•Customer loyalty

•Corporate account

•SQ excellence

Internal

•Exceed customer expectations

•Effective SCM

•System management

•Superior project management

Learning & growth

•Continuous improvement

•Service innovation

•New programs

•Empowered professionals


SERVICE QUALITY INDEX - INTERNAL CUSTOMERS

Warehouse Customer Picking and Inventory Accuracy Performance:

14

7

4

2

0 0 00

2

4

6

8

10

12

14

16

1991 1992 1993 1994 1995 1996 1997

No

. o

f er

rors

per

mo

nth

Warehouse Customer Picking Performance

Inventory Accuracy Performance

Source of Information: Inventory Audit

Accuracy (in %)

100

99.75

99.25

98.251991 1992 1993 1994 1995 1996 1997

Time

98.75

.

.

. . . . .

98.30%

99.61%

99.99%

100% 100% 100%100%


You and me now


Elements of transformational leadership• Has a vision & be able to articulate it in concrete

terms• Perceived as a change agent• Able to develop rapport with his followers• Able to energize his followers to action to achieve

challenging goals• Provides supports to, and act as a coach & teacher

to his followers • Exhibits distinctive and consistent behavior (that

is consistent with his vision)• Sensitive to & knowledgeable about the

‘environment’ (internal & external)


THE TRANSFORMATIONAL LEADERS CONSIDER…..

* Incremental change isn’t enough for many companies today. They don’t need to change

what is; they need to create what isn’t

* Some people see things as they are and ask

why, transformational leaders see things as they never were and ask why not…….


A “Wake Up Call” to Business Leaders

It’s Time to kill

your organization before

it kills your business and

you !!!

HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001

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