hku-pkki dr. stephen w.k. ng, qust 2001 mdc-tqm group on tqm plus sharing – april 24, 2001 the...
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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 --
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
WHAT HAVE WE CHANGED
IN THE PAST30 YEARS
?????
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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 ??
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
Internet – The Speed Challenge
0 10 20 30 40
No. of years to reach 50 million users
Internet
TV
Radio
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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!
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
$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.
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
YOUR ROLE IN TQM PLUS MANAGEMENT is..
Leader
Model
Obstacle Remover
Adviser
Facilitator
Mentor
Supporter
Motivator
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
???
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
What do you think ……
ASIA COMPANIES BELONG
To
1 2 3
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
COMBINING THE BEST OF EAST & WEST
Quality & Speed
A STRONG ORGANIZATIONAL CULTURE IS NEEDED TO SUPPORT TQM PLUS
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
“ MOST WELL RUN AND WELL
MANAGED COMPANIES STILL
ONLY USE 50% OF THEIR
AVAILABLE RESOURCES”
Alexander Proudfoot
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
“ EIGHTY PERCENT OF THE
ABILITY TO GET RESULTS IS
BELIEVING THAT THEY ARE
THERE TO GET”
Alexander Proudfoot
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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%
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
You and me now
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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)
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
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…….
HKU-PKKI Dr. Stephen W.K. Ng, QuST 2001MDC-TQM Group on TQM Plus sharing – April 24, 2001
A “Wake Up Call” to Business Leaders
It’s Time to kill
your organization before
it kills your business and
you !!!