Section I - Management and Leadership (18 Questions)

20. 1A-2 Continuous Improvement Tools – TQM

In the CQE Certified Quality Engineer Body of Knowledge, under the section of Continuous Improvement Tools, there are five tools identified, and this is the fifth tool, which is TotalQuality Management This is a type of philosophy much beyond a simple tool. This is a way of working. So TQM was quite famous or quite active in the industry somewhere in 1918-1990 and after that, slowly died off and a few other things picked up and one of the important things that came out of Total Quality Management was quality awards. A number of awards are based on the principles of TQM or Total Quality Management, and as the name says, Total Quality Management is a way to achieve quality or customer satisfaction by everyone working in the organizationto improve the product or processes so everyone in theorganization.If they work towards quality, that's total quality management. This involves a number of things, motivating people. Engaging people. Changing the number of aspects defined in TQM, but in the current scenario, if you want to look at some quality awards such as EFQM European Foundation forQuality Management or Malcolm Bailbridge National Quality Award, these awards are basically based on these TQM principles.

21. 1B-1 Strategic Planning

Previously, we talked about the history of quality, we talked about some quality gurus, we talked about their philosophy, and we talked about certain continuousimprovement tools such as Lean Six Sigma, TQM, the theory of constraints, etc. So with this now, we move to the next part of this course, which is section one B,the quality management system, and in the quality management system, the first thing is strategic planning, which is one-by-one, so when it comes to quality, you really cannot deny that quality cannot be achieved without the full support of the top management. Top management sets the tone and that's what is carried out in the organization, so if you need to set up a quality management system, you need to have top management support for that. When you have an organization, it has a lot of levels of planning and if quality is not embedded in that planning, then really quality doesn't mean anything, so strategic planning is something which is done at the highest level of the organization, so to start with Let's understand what strategic planning includes. Let's see here on the next slide, which is here Strategic planning includes all the activities that set priorities, so what are the priorities of the organization? What is the organization's goal? Where the organisation wants to focus the energy and resources is because, again, this is set up by the top management of the organisation and activities to ensure that the employees or stakeholders are working towards a common goal, so you have a common goal. Everyone is working towards achieving a priority set. So that's what strategic planning is: you know where you want to put your energy or where you want to put your resources, and then you have some target goals to achieve. Anything that does this sets priorities. sets the goal. The resources are set, and of course, as things change, your plan will also change, as the environment changes. This is what strategic planning is if the quality management system is integrated into the strategic planning of the organization. Normally, QMS, or quality management system, cannot be implemented, so when you have a large organization, a strategic plan is comprised of several plans. There are a number of objectives. Goals. mission. Vision All these things are set up so many of these things basically confuse you, so on the next slide, let's quickly look at all the terms related to high level management planning. That will probably give us a good sense of how our quality management system should be integrated into those plans. Let's see that on the next slide, so the strategic planning process. The whole process can be summarised as V mosa v for vision. M, for mission. "O" for objectives. As for strategies and A for action plans, let's quickly look at these terms. The first thing is vision. That's the top thing in organisational planning. Organizations need to have a vision. A dream. What's the dream of this organization? So the next thing in the level of planning is the mission. The mission tells them what you want to do and why you want to do it. Below that come objectives. Objectives are how much of what you want to do. So whatever you said in mission, that's what you want to do. In objectives, you say how much of that you want to do. And then come strategies. Strategies are related to what you want to do and what you want to achieve. And again, connecting back to the vision, how you want to achieve your vision and strategies, tell them what you want to do, how you want to meet those objectives. Now you have said what you want to achieve and how much you want to achieve. Then in strategy, you will be defining how you will achieve much of your mission. And then the next level of that is A, which is an action plan. Then you have a detailed action plan to meet your strategic goals. So this is the whole process of organisational planning. So, as a CQE certified quality engineer who is interested in setting up quality in the organization, you need to know these plans so that you can see where quality fits into these bigger plans of the organization.

22. 1B-2 QMS Deployment Techniques

So Vmosa was a way to represent the top-level planning in the organization. When it comes to quality management systems or establishing quality in the organization, you need some tools. So that's what we will be learning in this section, which is section one B two tool. And here we will be talking about deployment techniques and tools. So, once you want to establish a quality management system in the organization, you will need some tools. Let's see what tools we are covering in this section. So these are the four sets of tools we will be talking about in this section. One is benchmarking. Benchmarking will tell you how you measure up and compare your performance with the companies or organisations that are best in class. So you look at best-in-class companies and see how you compare with them. That will help you or your organisation achieve the top level. Then comes stakeholder identification and analysis. Customers, employees, management, and the general public are all stakeholders in any organization. You need to analyse how each of these is interested in your organization's success. You analyse that and that will help you in implementing the quality management system. So even if you look at ISO 90 0120-15, there is a requirement to do stakeholder identification and analysis in that, which is a new requirement in the ISO 90 0120-15 version. I'm not covering details of that, but I just wanted to highlight the importance of stakeholder identification because for any planning, you need to understand what group of people are interested in your organization. And the third tool or technique that we will discuss here is performance measurement tools, specifically the balanced scorecard. A balanced scorecard will tell you where your organisation stands today. So this is sort of a measurement of organizations' performance because if you want to improve your organization,you need to know where you stand today. So that will be in the performance measurement tool where we will discuss the balanced scorecard and then we will be talking about a few project management tools and techniques such as Gantt, Chart, Part and CPM. These tools will help you in planning whatever work you are doing, the project which you are doing, implementing a quality management system, or any other project in the organization. So, with this basic introduction.

23. 1B-2a Benchmarking - Part 1

The deployment tool or technique, which we are talking about here, is benchmarking. Let's understand the definition of benchmarking. It's a process of comparing. Compared to what? Compared with your business performance versus the industry's best performance. So you look, look at what you have and what the best companies have. This could be any process. This could be any product. You simply compare your product to the best in class. For example, how is your delivery process compared to the best-in-class delivery process? How is your product compared to best in class product?That's basically benchmarking. So you compare what you have with what the best in class has. So basically, that motivates you or that tells you how you can be the best in that class. There are a number of global companies that are experts in something or other. So maybe when it comes to things like changing tires, people look at Formula One racing cars where they change the tyres in a fraction of seconds, like maybe one or 2 seconds.They changed all four tyres of the car, and the car is running again in the race. That basically gives you some ideas if you want to improve the speed of your service. Let's say you are a tyre changing company. How do you quickly change something you can implement to something you cannot implement? But then you look at how things are achieved when people do things as a best-in-class process. Companies like Walmart, Target, do a number of things which your small company, if you have one, can learn from that.So, once again, let's quickly recap the definition of benchmarking. Benchmarking is the process of comparing business processes and performance metrics to industrybest and best practises from other companies. So that's what the definition of benchmarking is. When we say benchmarking, there are three broad categories of benchmarking. One is process benchmarking,performance, and strategic benchmarking. Let's quickly look at these three types of benchmarking. The first one is process benchmarking. Here, what you are comparing is your process versus the best-in-class process. This could be a delivery process, billing process, customer service process, manufacturing process, or whatever process you have. And you compare that with the best-in-class process. So that would be process benchmarking. The second type of benchmarking is performance benchmarking. Here you compare the performance of your product or service with the best-in-class product or service. What's the mileage of your car? What's the download speed? What's the acceleration? So whatever products you have, what is the performance of that product or service versus the best in class performance? The third type of benchmarking is strategic benchmarking. Earlier, we were talking at the process level, at the product level here. In strategic benchmarking, it's how the management organisation is done that is strategic benchmarking. So how are the strategies developed? How does your company do that? How do best-in-class companies do that? So that's the strategic benchmarking of how companies compete. So, with these three types of benchmarking,let's look at two other types of benchmarking, which are internal and external benchmarking. Let's see that on the next slide. So here we have another classification of benchmarking. Internal What is external benchmarking? What's internal benchmarking? When you have a big organization, you have different departments and different locations. If one of the locations or one of the departments is doing something very good, then you can learn from that. So this is internal benchmarking. It's much easier because, for external benchmarking, you might need to visit that external organization. They should be willing to share their information. But internally, nobody stops you from learning from one location to another location. So, for example, if you have three plants, one in Mexico, one in the US, and one in Japan, and you see that the plant in Japan produces very high quality consistently, then your Mexico and US plants can learn from the Japanese plant. And now, since this is an internal company, you can always go and learn and see how things are being done in your Japanese plant. This is internal benchmarking, easily accessible information that you cannot see. In the case of external benchmarking, it's less time and resources needed. You can simply call that other plant manager in Japan and ask a few things and learn from them. So what's the problem with internal benchmarking? The problem is that there is a limit here. Because what you are doing is learning from within the organization. You are not learning from the best in class. You are not learning from world-class companies. You are just learning from the best person, the best location, or the best department. Whatever you have, it's easy. But the gains are less in the case of internal benchmarking. But when it comes to external benchmarking, of course, you can go to the best in class as long as they are willing to share their information with your organization. So this was the difference between internal and external benchmarking.

24. 1B-2a Benchmarking - Part 2

After looking at the definition of benchmarking and looking at different types of benchmarking, Now let's see how we do benchmarking. What's the process of benchmarking? Here are a few broad steps for benchmarking. The first thing is that you need to identify what function you want to benchmark and how you decide that. You will decide that based on the problems that you have. Based on the challenges that you have You might want to benchmark your billing process, you might want to benchmark your customer acquisition process, you might want to benchmark your manufacturing inspection, or whatever process, product, or performance you want to benchmark. The first thing is that you need to identify that. So, once you have defined what function you want to benchmark, the next step would be to do an internal check. What's your current performance? Because this is the most important thing that you need to study yourself first. Go through the full process of how things are being done and what the performance level is. This is the full review of your internal process before you even think of going out. So the first thing is you review your processes, how you are doing that, what's your current performance, and you record that. Now that becomes your baseline. From here you will improve. The next step would be to select the best-in-class company or organization. This could be internal or external to the organization. Then you select the best in class against which you want to benchmark. This you can do through your research,your public information, and contacting companies who are willing to share information with you. With that, you select the organisation or your plan or your department against which you want to benchmark. The fourth step would be to compare your performance versus the best in class performance. How do they compare to each other? Is there a big difference? How they do things, how you do things, that's what you do in comparison. Once you have done that, then you agree on an action plan that this is what you are going to do internally to achieve the best in class status, to improve your performance from your current level to somewhere near that best in class performance, or even beat that performance. You could even think of exceeding that performance because now you have done internal research, you have done external research, and you have an action plan. So think of either reaching that level or even being better than the best in class. And then you monitor your action plan. Whatever action plan you have done, you know that by this time we would have done this. Who is responsible for that? So with that, you monitor your performance and how these action plans are being implemented. And once it is done, you redo that. And redo means you look at some other process and you do benchmarking for some other process. So step by step, you improve the performance. So these are steps for benchmarking. Now if you see against each of these lines in the bracket, I have put DMA in C. And what is this? Previously, when we talked about Six Sigma, we said that the improvement process in Six Sigma is DMAC. If you want to improve your current performance, you can use a DMAC approach. So what I want to do is I want to look at these steps in terms of DMAC. In D, we define the problem. That's what we did when we said what function needed to be benchmarked. So in the measuring phase M phase, we looked at the current performance and we selected the best in class because of certain measurements. And then in the act part, we compared the performances. In this part, we implemented whatever we agreed upon. And in C, we controlled and monitored to see if we really achieved what we wanted to achieve. So, in addition to DMAP, I also looked at things from a PDCA point of view. A PDCA cycle is planned. Check out the performance. So this is another improvement cycle where you plan something. That's what you will see in these steps. You plan, you do something, then you check whether you are achieving whatever you wanted to achieve and then act based on whether there's any difference between what you wanted to achieve and what you actually achieved. So, the PDCA cycle keeps on repeating. I just wanted to give you a look at the improvement approaches, DMAC and PDCA. So even the benchmarking process could also be seen as a PDCA cycle or demand.

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