Daisy Chou KMDC, Hon. Chairlady Master Black Belt Knowledge Management Manager Strategic Quality Manager Research Director Chief Statistician Lecturer The Evolution of Quality Management

Daisy Chou 18 March Revolution of (Quality) Management Scientific Management ( ) Frederick Taylor Management By Objective ( ) Peter Drucker, Peter Senge Quality Management / Total Quality Mgt (1980-now) Walter Shewhart & Edward Deming

Daisy Chou 18 March Evolution of Quality Management (since 1980) Quality Circle Total Quality Management Total Quality Service Benchmarking Process re-engineering Learning Organization Information Management Knowledge Management

Daisy Chou 18 March Stage I Quality Management : TQM (mid 80’s- mid 90’s) Senior Management - sponsor and finance project Manager / supervisor – lead and commit on process improvement Quality consultant – provide training, support and occasionally share knowledge Work-improvement team – identify and select problem, data collection, recommend and implement solution

Daisy Chou 18 March Strategies and Tools Each unit (division, region, function) has process improvement project All people were trained in TQM concepts and tools Seven tools of Quality Tools Benchmarking tool Climate Survey Customer Satisfaction Survey Quality Personnel title / position (Mostly overlapped with functional role)

Daisy Chou 18 March Quality Personnel Understand TQM philosophy Use of TQM tools Functional knowledge: mainly manager, engineer, HR, technician Skills: articulate, convincing, presentation skill, business acumen, team player Preferred knowledge: statistical, organizational, business, senior management relationship

Daisy Chou 18 March Roles & Responsibility Quality Personnel with dual roles: Day to Day functional operations Facilitate TQM training Facilitate or lead process improvement Collaborate with corporate quality group and align business quality strategy and goal to the corporate’s. Full-time Quality Personnel: TQM specialist Articulate TQM philosophy and competence on use of TQM tools and statistical techniques Change agent Provide consultancy to business unit’s management, quality personnel on quality training, improvement Work closely with external quality consultants or quality personnel of other enterprises Develop Quality strategy and support top management implementation

Daisy Chou 18 March How To Do (PDCA) Plan: (Flow-charting, Brainstorming, ‘Fishbone’, Multi-voting, Pareto) 1. Team formation: manager (leader), supervisor, engineer, technical, customer service, administration, quality consultant (facilitator) 2. Initiate planning process, Analysis current situation Identify opportunity (eg Fault Repair – recurring fault within 2 weeks) 3. Develop Improvement (eg develop new procedures /checklist for fixing recurring fault)

Daisy Chou 18 March PDCA Do: (Control chart, statistical analysis, staff survey) Implement the pilot (check the process for an unintended outcome) Check: (Action plan, control chart, performance data) Evaluate the Pilot (if the new procedures/materials reduce recurring faults) Act: (Document) Standardization, training, and monitor Check: Review regularly Future Planning : PDCA cycle again

Daisy Chou 18 March Stage II Quality Management : Six Sigma – mid 90s to mid 2000s Senior Management - sponsor / champion/ yellow belt, identify six sigma project Manager / supervisor – champion/ accountable / green belt, negotiate goals and scope Quality consultant – Black Belt, Master Black Belt, lead six sigma project Six Sigma team – cross functional employees

Daisy Chou 18 March Strategies and Tools Not everywhere in the business has six sigma project Most people are basic quality training All manager must trained as ‘yellow belt’ Other Process mapping tools eg SIPOC, FMEA Heavy use of statistical analysis especially DOE Black-Belt is a position: not overlap with other function

Daisy Chou 18 March Six Sigma Black Belt Knowledge Understand QM philosophy Use of QM and statistical methods, heavy rely on software support on process mapping, analysis and tracking Skills: leadership, articulate, convincing, presentation skill, independence Statistical skill is a must. Other Preferred knowledge: finance and accounting knowledge

Daisy Chou 18 March Roles & Responsibility Black Belt with dual roles (not so often): Day to Day functional operations Lead the function teammates on Six sigma project Accountable on the Six Sigma project Full-time Black Belt: Competence in statistical application Process knowledge Able to see the big picture Lead team or work with other Black Belts on the Six Sigma project at regional or global level Train and mentor Green Belt or Black Black in case of MBB Implement solution to meet the targets Share learning in the Black Belt community

Daisy Chou 18 March TQM consultants vs Six Sigma Black Belts The organization can have both personnel The organization can have (and supposed to have) both process improvement and breakthrough improvement activities All tools are inter-changeable and there’s no ‘superior tool’ from one to another – use the right tool is the key

Daisy Chou 18 March Stage III Quality Management: Knowledge Management - early 2000s to now Senior Management - QM is an unspoken culture. Growth of the company’s Intellectual capitals is the key to the success. Manager / supervisor – how to build and leverage intellectual capitals. All employees are knowledge workers (ie including quality personnel) ‘Knowledge’ is the Power ‘Innovation’ is the competitive edge

Daisy Chou 18 March Quality Management – Who, what, when, where and how to start Who – you: take quality personally What – unstable process, most deflects, most variations, most annoying When – now Where –process you can control or influence How – PDCA, DMAIC, Communication, Trust, CoP, Reviews, Documentation, Implementation, Share lesson learned

Daisy Chou 18 March Dos and Don’ts Flowchart Identify performance metrics and measure Collect and plot data Aim to reduce variations & cycle times Document and review Implement and protect the improvements (standardization) Knowledge transfer Make assumptions Treat 2 points as a trend Take and use only data that are already available Set target without understand the system performance Put targets & specification on the control chart Mix up correlation with causation Treat symptom as a root cause Fix a stable system Focus on removing defects DO DON’T