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11/27/2019

1. Journey of Quality in Pakistan


Section 4
2. Prominent Quality Gurus (Qualiticians)
3. Quality Management Standards
Quality in
4. Business Excellence Models / Quality Awards
Pakistan

Quality
Gurus,
Standards
and Awards

Journey and Cases of Quality


Management in Pakistan

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PAKISTAN INDUSTRY

5000 Garments
Textile
1220 Ginning
8800 750
Manufacturing Units Finishing
700
Knitwear
456
Spinning
400
Towels
200
Weaving

K. MOOSA

Cont…
725
Tanneries
Leather 460
2360 Garments
524
Manufacturing Units Footwear
348
Gloves
302
Sports/Goods

K. MOOSA

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Cont…
Others
77 SUGAR PLANTS
Manufacturing 11 FERTILIZERS PLANTS
Units 25 CEMENT PLANTS
87 OIL MILLS
500 STEEL MILLS/RELATED
1129 CHEMICAL PLANTS
750 SOFTWARE
370 CONSTRUCTION
131 ISP’s

K. MOOSA

Cont…
Made in Pakistan

Automobile 47 MANUFACTURERS
6 CARS (1 LOCAL)
Made in & Aircraft
Pakistan
19 TRUCKS/BUSES
Manufacturing Units22 MOTORCYCLES

780 DIRECT VENDORS

3 AIRCRAFT OVERHAULING
1 LOCALLY DESIGNED
(JF Thunder)

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K. MOOSA

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TQM Journey in Pakistan Big Industry

Inspection / Testing
1980s Automobile, Defence,
Engg. Textile
ISO Stds 1990s
Automobile, Telecom

Banks, Software Engineering, Banks,


Telecom universities

TQM / TPM 2000s


2010s TQM Growth
Six Sigma,

SQCC Schools

HEC’s Self Assessment

K. MOOSA

System Maturity – ISO 9001 History


After 1 -2 years

Excellent 15% A

Good

Satisfactory
25%
B
Acceptable

3 6 9 12 18 C

Time (months)

60% 8

K. MOOSA

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TQM in Education & Certifications


Certification Bodies (ISO Stds)
 Around 20

Academic / Universities
 170 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 (finished)
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K. MOOSA

Quality Management System


related Standards

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Conformity Assessment

ISO17025 Product
MLAs LABS /
Testing
ILAC Calibration Product
International/Regional Accr. Clubs

Marks,JIS
APLAC CE

Product
Accreditation Bodies
INSPECITON Buyers Audits
ISO17020 AGENCIES
ISO Reqt’s
National

IAF 17011
MLAs ISO17021
CERTIFICATION
Process/
ISO9001 System
PAC AGENCIES
14001, Audits

IATCA
MLAs ISO17022
IRCA Personnel/ Qualification
Training Professionals
Criteria Institutes
Consultants
Credibility, Trustworthy
Professional, independent, transparent
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ISO Management System Standards


ISO 9001: Quality Management System
ISO 14001: Environmental Management System
ISO 20000-1: IT Service Management
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ISO 27001: Information Security Management System Nov

ISO 45001: Occupational Health and Safety Management System


ISO 21001: Educational Organization Management System
ISO 31000: Risk Management Guidelines
ISO 19011: Guidelines for Auditing Management Systems
------------------ OTHERS who follow ISO MSS patterns
AS 9100 Aerospace Quality Management System (based on ISO 9001)
ISO/TS 16949 Automotive Quality Management System

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National Quality Awards &


Business Excellence Models

Quality Awards / Business Excellence Models


1. USA: Malcalm Baldrige National Quality Award (MBNQA), by NIST
USA
2. Japan: Deming Award, by JUSE
3. Europe: European Quality Award, by EFQM

Pakistan: Prime Minister Quality Award, by NPO (not operational)

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MBNQA (USA)

European Quality Award


by EFQM (EUROPEAN FOUNDATION FOR QUALITY MANAGEMENT)

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Quality Gurus

Popular Qualiticians
DEMING
An American Consultant; regarded as the father of TQM

In 1940, used SPC in workplace

In 1950, US Supreme Commander invited him to Japan for


lectures to CEO’s representing 80% of Japan’s capital

In 1951, Deming application prize was initiated

In 1960, he was decorated by the emperor of Japan

Message: reduce variation, which he learned from Shewhart in Bell Laboratories in 1931: variability is
universal, caused by random and special causes that must be eliminated.

Estimates 94% problems are through system deficiencies - which are management responsibility (e.g.
variation in raw material caused by tendering; fear encourages burying mistakes;
individualism discourages teamwork.

Key thoughts: 14 points; Seven deadly diseases; 16 obstacles;


the new climate; and a system of profound knowledge.
◦14 Points: constancy of purpose, adopt a new philosophy, use statistical methods, single supplier,
institutionalize training and education, adopt and institute supervision, drive out fear, break down
barriers between depts, eliminate slogans for targets, eliminate numerical quotas and targets,
encourage pride of workmanship and eliminate the annual rating or merit system, institute vigorous
program of education and self-improvement in new skills, involve everyone.

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◦ Seven deadly diseases: the western style of management needs to be


completely transformed. The weaknesses are: lack of customer values among
every level; emphasis on short term goals (no 5-10 year goals); annual
performance ratings and reviews (they are usually biased, unstable, and
disregard teamwork); job hopping; using visible figures with no consideration
for unknown figures (happy/unhappy customers and intangible losses -
company may appear to be doing well, but in reality could be going downhill,
etc.)

For him, quality has as much to do with people as with products. It is


about the importance of management’s role and commitment and its obsession
with quality. He stresses the importance of educating employees to understand
the processes employed in organizations and the causes of variation as well as
the need for teamwork. Traditional approaches to management have created
barriers which need to be broken down

Popular Qualiticians
JURAN
He helped Japan and was decorated by its emperor. He was a colleague of
Deming at Western Electric Company at Chicago.
Juran shifted his emphasis to the management of quality.
Wrote Quality Control Handbook in 1951, the most comprehensive book on
quality control, assurance and management.
Quality: customer satisfaction + freedom from deficiencies = fitness for use. It is
not conformance to specifications
Juran Trilogy: Quality Planning, Control, and Improvement
◦ Quality Planning: determine customers, their needs, develop product,
then processes, and transfer to operations
◦ Quality Control: evaluate operating performance, compare to goals, and
eliminate the difference. Use SPC. Feedback and learn
◦ Quality Improvement: Most significant contribution to TQM. Eliminate
waste, and improve continuously.
Customers: External and internal supply chain. Who is ones customer? Not
always easy to define.

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Popular Qualiticians
CROSBY
Introduced ‘zero defect’ concept in 1960s
Formed Philips Crosby Associates in 1979; now owned by Proudfoot Inc. He was ITT’s Vice
Chairman for Quality for 14 years (1965-79)
Author of: Quality is Free; Quality Without Tears; Running Things; The Eternally Successful
Organization.
Four Absolutes of Quality:
◦ 1. Everyone must understand quality as ‘conformance to the agreed requirements of the customers; not as
goodness or excellence
◦ 2. There must be a system to ensure quality (conformance). That system is concerned with preventing errors,
not checking or appraising them.
◦ 3. The standard of performance against which non-conformance must be measured is zero
defects, not acceptable quality levels or percentage defective values.
◦ 4. Measure price of non-conformance (preferred the word price to cost). He asserts that manufacturing firms
spend at least 25% of sales doing things wrong; service companies spend at least 40% of their operating costs
on the same wasteful actions.

Deming and Juran reject zero defects. Juran believes that there is a law of diminishing returns on
quality and that a point can be reached where further improvements in quality are more
expensive than tolerating a level of failure. Deming believes that individual worker only has
limited control.
..(cont.)

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Estimates 80% of problems caused by


management and leadership. Executive integrity
essential, with personal example. Companies
reflect standards of their leaders.
Requirements for Permanent Improvements: senior managers should
stop considering quality being a problem, and turn it into an asset;
prove commitment to the four absolutes of QM; and the conversion to
the respective way of thinking should be permanent.
Key points for bringing change in organization: people take quality just
as seriously as management takes, no more; perpetual integrity is
essential, it can’t be done in short bursts of enthusiasm stemming from
regret; Quality Control is not prevention; Quality Improvements are
increased earning per share; continual education for every individual to
get things right the first time.

Popular Qualiticians
ISHIKAWA
Japanese Guru, 1950’s
Developed and promoted the following main concepts
◦ seven basic QC tools, he himself developed the fish-bone diagram
◦ internal customers, as the next person in the line
◦ Quality Control Circles, involving workers into teams to solve quality
problems through seven basic QC tools
◦ Rigorous development of workers in QCC and Seven basic QC Tools would
not require separate QC Dept. He brought Quality Control in workers at the
shop floor level in Japan

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Popular Qualiticians
TAGUCHI
Japanese Guru, 1960s
His prime focus was in making statistics practical
He viewed quality as an issue for the entire company and focused on the use of
statistical methods to improve quality, particularly in the area of product design.
Two of his concepts are particularly significant
◦ The Loss function
◦ Design Characteristics and ‘noise’

Loss Function:
Loss

Loss
Lower Upper
Target
specification limit specification limit

Noise: variation due to controllable factors such as deterioration (inner


noise), and uncontrollable such as operating environment and human
errors (outer noise). Both kinds of noise are more significantly impacted
by off-line activities:
◦ System Design: designing a product to satisfy customer’s requirements. He
used QFD (Quality Function Deployment) to establish the customer’s
requirements and convert them to design characteristics
◦ Parameter Design: involves identifying key process variables that affect
variation and then establishing levels for these parameters that will minimize
the variation. He used experimental designs to identify these parameters
◦ Tolerance Design: identifies the components that contribute most to
variations in the final product and then sets appropriate tolerances for these
components. The objective is to identify the most significant components
and tighten tolerances only for those instead of all components.

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Popular Qualiticians
KANO
A Japanese TQM consultant of 90’s
Introduced the concept of ‘must-be’ and ‘attractive’
qualities.
High satisfaction
Attractive

Low functionality High functionality


Must-be

Low satisfaction

Case 1: Indus Motors Karachi

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

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Case 2: TQM / Students Quality Circles in Schools


Modernage School, Abbottabad

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

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Pakistan Motorway Police


Acknowledgement: ICQI, Karachi Pakistan

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