BUS204e BUSINESS EXCELLENCE Course Briefing July 2018 Presentation Business Excellence • BE initiative is a roadmap for excellence • Plan that helps organisations to improve their performance 2017 SQA Winners: Defence Science and Tech Agency Ministry of Manpower Neo Group Limited (Catering) Select Group Pte Ltd SP Services Ltd 2016 SQA Winners: DBS Bank Maritime & Port Authority of Singapore Benefits: • Improvement in customer satisfaction & reduced employee turnover • Growth in business • Higher profit growth Business Excellence Framework Original BE Framework Enhanced BE Framework (2014): • Customer at the core of strategies • Leadership with vision & integrity • Harness innovation & knowledge • Anticipate the future for growth Revised Business Excellence (1 April 2017) Revised Business Excellence (1 April 2017) New changes from 1 April 2017: • Four BE frameworks will be streamlined into a single framework • All organisation will pursue Singapore Quality Class (SQC) as a foundation before exploring the niche areas • Key management and business trends will be embedded within the framework • New logos • Service Excellence Award reintroduced Note: From Jan 2017, BUS204e will refer to the revised framework (1 Apr 2017) Revised Business Excellence (1 April 2017) Revised BE Framework (Effective from 1 Apr 2017) BUS204e Business Excellence Facilitate in self‐ assessment of BE Important aspects of business excellence Plan and target improvements in organisation BUS204e Business Excellence Criteria used to evaluate BE Plan and manage BE BUS204e Business Excellence Flexible Learning • Learn Anytime, Anywhere, at your own pace Suite of learning support avenues • Online materials • Discussion forum • Instructor feedback on GBA Consultation Instructor‐ Guided Self Study • Emails • Course Briefing • Consultation session BUS204e Weekly Schedule • Week 0 (Week of 10 Sep 2018) – Online Session: Read SU1 & 2 – Online Activities: • Pre‐Course Quiz 1 (SU1 – 2): Start 10 Sep 2018, 12 noon‐End 17 Sep 2018, 12 noon BUS204e Weekly Schedule • Week 1 (Week of 17 Sep 2018) – Topics: Study Units 1 & 2 – Online Session: Read SU1 & 2 – Online Activities: • General Discussion Forum – Course Briefing on 21 Sep 2018, 7.00pm BUS204e Weekly Schedule • Week 2 (Week of 24 Sep 2018) – Topics: Study Units 1 & 2 – Online Activities: • General Discussion Forum • GBA Question 1 Feedback – send questions or draft answer to your instructor (by Friday of Week 2) and he will post a one‐page general comment BUS204e Weekly Schedule • Week 3 (Week of 01 Oct 2018) – Topics: Study Units 3 & 4 – Online Session: Read SU3 & 4 – Online Activities: • General Discussion Forum • Pre‐Class Quiz 1 (SU3 – 4): Start 01 Oct 2018, 12 noon‐End 08 Oct 2018, 12 noon • GBA Question 2 Feedback – send questions or draft answer to your instructor (by Friday of Week 3) and he will post a one‐page general comment BUS204e Weekly Schedule • Week 4 (Week of 08 Oct 2018) – Topics: Study Units 3 & 4 – Online Session: Read SU3 & 4 – Online Activities: • General Discussion Forum • GBA Question 3 Feedback – send questions or draft answer to your instructor (by Friday of Week 4) and he will post a one‐page general comment BUS204e Weekly Schedule • Week 5 (Week of 15 Oct 2018) – Topics: Study Units 5 & 6 – Online Session: Read SU5 & 6 – Online Activities: • General Discussion Forum • Pre‐Class Quiz 2 (SU 5 – 6): Start 15 Oct 2018, 12 noon‐End 22 Oct 2018, 12 noon – GBA: Deadline 18 Oct 2018, 2355 hrs BUS204e Weekly Schedule • Week 6 (Week of 22 Oct 2018) – Topics: Study Units 5 & 6 – Online Session: Read SU5 & 6 – Online Activities: • General Discussion Forum – Consultation Session on 26 Oct 2018, 7.00pm – ECA: Deadline 02 Nov 2018, 1200noon BUS204e Consultation Session (Week 6) • Consult Instructors on course content and seek clarification on topics • Guidance on assessment (ECA) • Date: 26 Oct 2018 • Time: 7.00pm • Room Locations: – C7.07: T01 – C7.08: T02 – C7.09: T03 – C7.10: T04 C8.04: T05 C8.05: T06 C8.07: T07 BUS204e Online Content & e-Learning Material • Study Guide – CANVAS BUS204_JUL18_L01 ‐> iBookstore • Online Quiz – CANVAS BUS204_JUL18_L01 ‐> Quizzes • Announcements and Instructor’s Feedback – CANVAS BUS204_JUL18_L01 ‐> Announcements – CANVAS BUS204_JUL18_Txx ‐> Announcements • Discussion Board – CANVAS BUS204_JUL18_Txx ‐> Discussions BUS204e Assessment Assessment Type Description Weight Allocation Online Quizzes Three Online Quizzes 6% Participation Participation (In-class and/or online) (wef Jul 2018) Group-based Case-study 38% Group-based Assignment End-of-Course Assessment (wef Jul 2018) 6% (wef Jul 2018) Individual Project 50% BUS204e Assessment 1. Online Quizzes (6%) ‐ ‐ Pre‐Course Quiz (PCOQ01) on Unit 1 & 2 ‐ Each quiz consists of 20 MCQ questions ‐ Unlimited attempts and grade = highest score ‐ Must pass by attaining at least 60% Pre‐Class Quiz 1 (PCQ01) on Unit 3 & 4, Pre‐Class Quiz 2 (PCQ02) on unit 5 & 6 ‐ Each quiz consists of 20 MCQ questions ‐ Allow 3 attempts and grade = highest score ‐ See details in “Announcements” on course website (under L01) BUS204e Assessment 2. Participation (6%) ‐ Assessed based on quality and quantity of: ‐ Examples of in‐class participation:  NONE for BUS204e ‐ Examples of out‐of‐class participation:  Primary form of assessment: [Group Participation] Completing and submitting draft answers for Instructor Feedback on GBA Questions  Note: As this is a group work, all members from the same group will receive the same participation mark.  Other form of assessment: [Individual student’s participation] Create and post discussions in CANVAS Txx Link  Note: Participation will be assessed individually based on contributions towards learning the subject. BUS204e Assessment 3. GBA (38%) – Group‐Based Assignment (38% ) – 4‐member group (3‐member acceptable) – Deliverable: Word‐processed report, with good references, 10‐ 13 page 4. ECA (50%) – End‐of‐Course Assessment (50%) – Individual work – Deliverable: • Word‐processed report, with good references, 10‐13 page • PowerPoint presentation, with cover page, introduction and conclusion • Video presentation, follows PowerPoint presentation, averagely 3‐5 minutes General Report Guidelines • XXX‐word essay – Answer must be in essay format – Essay must have structure and logical flow: introduction, body and conclusion – Use headings and sub‐headings (where possible) and bold key words – Indicate number of words written • Multi‐part question – Answer each part in sequential order – Take care of the flow of the points in your answer – Use headings and sub‐headings (where possible) or highlight key words General Report Guidelines • Presentation of answer Question: Identify one competitor to Tanglin Market Place. Answer 1: One competitor: Fairprice Supermarket. Answer 2: A competitor to Tanglin Market Place is Fairprice Supermarket. Answer 3: Tanglin Market Place identifies itself as a premium supermarket that sells exquisite ingredients targeted at “adventurous connoisseurs”, those that appreciates the finest foods. A close competitor would be Fairprice Finest. Plagiarism • Do NOT plagiarise • Citing of source(s) in reference page does NOT exempt you from plagiarism • Do NOT provide direct quotes • Reports and PowerPoint slides subject to plagiarism checks Source: CNN.com BUS204e Communication with Instructor • Email: use the SUSS MyMail system – Inbox feature within CANVAS is not linked to the SUSS MyMail. • Material and announcement: delivered via CANVAS L01 and Txx links • Questions and sharing: use the Discussion Board forums (CANVAS) or email • GBA Feedback submissions: use email Thank You. Course Development Team Head of Programme : Dr Alex Qian Deputy Head of Programme : Lam Chen Meng Course Developer(s) : Assoc Prof Lee Pui Mun : Dr Clarence Ng Technical Writer : Diane Quek, ETP Video Production : Danny Chin, ETP © 2018 Singapore University of Social Sciences. All rights reserved. No part of this material may be reproduced in any form or by any means without permission in writing from the Educational Technology & Production, Singapore University of Social Sciences. ISBN 978-981-4697-74-3 Educational Technology & Production Singapore University of Social Sciences 463 Clementi Road Singapore 599494 How to cite this Study Guide (APA): Lee, P. M., and Ng, C. (2018). BUS204 Business Excellence (Study Guide). Singapore: Singapore University of Social Sciences. Release V1.8 Table of Contents Table of Contents Course Guide 1. Welcome.................................................................................................................. CG-2 2. Course Description and Aims............................................................................ CG-3 3. Learning Outcomes.............................................................................................. CG-4 4. Learning Material................................................................................................. CG-6 5. Assessment Overview.......................................................................................... CG-8 6. Course Schedule.................................................................................................. CG-10 Study Unit 1: Total Quality and Quality Theories Chapter 1: Total Quality and Business Excellence.............................................. SU1-2 Chapter 2: Quality Theories................................................................................. SU1-27 Formative Assessment.......................................................................................... SU1-49 Study Unit 2: Quality Awards and Business Excellence Models Chapter 3: Quality Awards and Business Excellence Models........................... SU2-2 Formative Assessment.......................................................................................... SU2-24 Study Unit 3: The Business Excellence Framework Chapter 4: Enterprise Singapore − Business Excellence Framework............... SU3-2 Chapter 5: Self-Assessment for Business Excellence - Using Self-Diagnostic Tool (SDT)............................................................................................................... SU3-43 i Table of Contents Study Unit 4: Leadership, Strategy, People, Customer and Process Management Chapter 6: Leadership, Strategic Planning and High Performance Workforce Management............................................................................................................. SU4-2 Chapter 7: Focusing On Customers and Process Management...................... SU4-43 Formative Assessment.......................................................................................... SU4-82 Study Unit 5: Performance Measurement, Information Management and Sustainabilty Chapter 8: Performance Measurement and Information Management........... SU5-2 Chapter 9: Sustaining Business Excellence In Organisations.......................... SU5-31 Formative Assessment.......................................................................................... SU5-53 Study Unit 6: Towards Business Excellence In Organisations Chapter 10: The Route to Business Excellence In The Manufacturing Industry..................................................................................................................... SU6-2 Chapter 11: Business Excellence in the Service Industry................................. SU6-25 Formative Assessment.......................................................................................... SU6-49 ii List of Tables List of Tables Table 1.1 A Comparison of Quality Gurus............................................................. SU1-37 Table 3.1 Scoring Guide for Business Excellence Standards................................ SU3-49 Table 3.2 Simplified Business Excellence Self-assessment Tool........................... SU3-62 Table 6.1 Business Excellence 7 Criteria and their Related 21 Items..................... SU6-5 Table 6.2 Business Excellence 7 Criteria and their Related 21 Items................... SU6-28 Table 6.3 Past Winners of the SQA.......................................................................... SU6-43 Table 6.4 Past Winners of the SQA with Special Commendation....................... SU6-47 iii List of Tables iv List of Figures List of Figures Figure 1.1 Shoe maker and young apprentice......................................................... SU1-4 Figure 1.2 A group of workers of the Ford assembly line...................................... SU1-6 Figure 1.3 Toyota factory............................................................................................. SU1-9 Figure 1.4 Singapore Airlines flight attendants..................................................... SU1-15 Figure 2.1 The Baldrige Framework – A System Perspective................................ SU2-5 Figure 2.2 EFQM Excellence Award Framework..................................................... SU2-7 Figure 2.3 Business Excellence Framework (2017)................................................ SU2-10 Figure 2.4 Repositioning of the Business Excellence Framework (2017)............ SU2-11 Figure 3.1 The Business Excellence Framework...................................................... SU3-4 Figure 3.2 BE Certification Application and Assessment Process....................... SU3-36 Figure 3.3 The Business Excellence Framework.................................................... SU3-45 Figure 4.1 Strategic Planning Process...................................................................... SU4-16 Figure 4.2 Customer-Driven Quality Cycle............................................................ SU4-54 Figure 4.3 Customer Feedback: Performance-Importance Analysis................... SU4-55 Figure 4.4 Plan-Do-Check-Act Cycle....................................................................... SU4-68 Figure 5.1 Linkage to Strategy.................................................................................... SU5-9 Figure 5.2 Rapid Knowledge Transfer Framework............................................... SU5-13 Figure 5.3 Cause-and-Effect Relationships: IBM Rochester................................. SU5-21 v List of Figures Figure 6.1 Business Excellence Framework 1994..................................................... SU6-4 Figure 6.2 Malcolm Baldrige National Quality Award (MBNQA)........................ SU6-8 Figure 6.3 European Foundation for Quality Management Excellence Award.............................................................................................................................. SU6-8 Figure 6.4 Japan Quality Award................................................................................. SU6-9 Figure 6.5 Balanced Scorecard Model..................................................................... SU6-13 Figure 6.6 Business Excellence Framework............................................................ SU6-27 vi List of Lesson Recordings List of Lesson Recordings Total Quality Management - Evolving through the Decades................................. SU1-4 Total Quality: Principles, Practices and Techniques.............................................. SU1-19 Deming on Quality..................................................................................................... SU1-28 Quality Theory - Juran and Crosby......................................................................... SU1-33 Quality Awards and Business Excellence Models................................................... SU2-3 Business Excellence....................................................................................................... SU3-3 Business Excellence - Niche Standards................................................................... SU3-44 Leadership...................................................................................................................... SU4-6 High Performance Workforce................................................................................... SU4-23 Customers..................................................................................................................... SU4-45 Process Management.................................................................................................. SU4-57 Performance Measurement and Information Management................................... SU5-4 Results........................................................................................................................... SU5-16 Sustaining Business Excellence in Organisations.................................................. SU5-32 vii List of Lesson Recordings viii Course Guide Business Excellence BUS204 Course Guide 1. Welcome Presenter: Assoc Prof Lee Pui Mun This streaming video requires Internet connection. Access it via Wi-Fi to avoid incurring data charges on your personal mobile plan. Click here to watch the video. i Welcome to your study of BUS204 Business Excellence, a 5 credit unit (CU) course. This Study Guide is divided into two sections – the Course Guide and Study Units. The Course Guide provides a structure for the entire course. As the phrase implies, the Course Guide aims to guide you through the learning experience. In other words, it may be seen as a roadmap through which you are introduced to the different topics within the broader subject. This Guide has been prepared to help you understand the aims and learning outcomes of the course. In addition, it explains how the various materials and resources are organised and how they may be used, how your learning will be assessed, and how to get help if you need it. i https://d2jifwt31jjehd.cloudfront.net/BUS204/IntroVideo/BUS204_Intro_Video.mp4 CG-2 BUS204 Course Guide 2. Course Description and Aims Business excellence applies to all organisations. Achieving business excellence requires a concerted effort in many areas of the organisation. Developing business excellence is a manifestation of continuous improvements in all critical activities of the organisation. The criteria to evaluate whether an organisation has achieved business excellence usually rely on quality award frameworks such as the European Quality Award, the Macolm Baldridge National Quality Award and the Singapore Quality Award, among others. This course will discuss important aspects of business excellence requirements and the holistic criteria used to evaluate business excellence in the organisation. Students will also learn how to plan and target necessary improvements to help the organisation in its drive towards business excellence. On the successful completion of this course, students will be capable of planning for and managing business excellence. In addition, students will be able to facilitate the self-assessment of business excellence in organisations and apply necessary plans to sustain business excellence in them. CG-3 BUS204 Course Guide 3. Learning Outcomes Knowledge & Understanding (Theory Component) 1. Review the evolution of quality thinking and total quality management 2. Describe the concepts of total quality and business excellence 3. Describe Deming’s philosophy on Quality Management 4. Differentiate the philosophy on quality by different contributors to the field of quality management 5. Compare various business excellence frameworks 6. Illustrate how business excellence framework can be used to manage organisations 7. Interpret the Business Excellence framework established by Enterprise Singapore 8. Distinguish the various criteria of the Business Excellence framework established by Enterprise Singapore 9. Explain the need for and benefits of using self-assessment tools related to business excellence standards 10. Differentiate different business excellence standards 11. Practise organisational self-assessment of business excellence based on different standards 12. Discuss the relationships between enabling activities and organisational results 13. Relate knowledge to the execution of improvements in critical activities to achieve business excellence 14. Illustrate the concepts that underpin sustainable business excellence Key Skills (Practical Component) 1. Apply knowledge to enhance business excellence CG-4 BUS204 Course Guide 2. Demonstrate independent thinking and analytical judgement 3. Give oral presentations in class and on recorded video in areas related to Business Excellence 4. Demonstrate the essential knowledge and interpersonal skills to work effectively as a team CG-5 BUS204 Course Guide 4. Learning Material The following is a list of the required learning materials to complete this course. Recommended study material 1 Reference Lee Pui Mun, “Total Quality Management – Evolving Materials Through the Decades and its Future Direction,” Invited Keynote Paper, 14th International Conference on ISO 9000 & TQM, 14-ICIT, Scranton, Pennsylvania, USA April 5-7, 2010. Lee Pui Mun, “A Model for Sustaining Business Excellence: An Analysis of Singapore Quality Award Winners,” 5th International Conference on ISO 9000 and TQM, Singapore, April 25-27, 2000. 2 Websites https://spring.enterprisesg.gov.sg/Building-Trust/ Business-Excellence/Pages/business-excellenceoverview.aspx http://www.deming.org www.juran.com www.philipcrosby.com www.asq.org www.qualitydigest.com www.apqc.org http://www.americanquality.com/ https://www.nist.gov/baldrige CG-6 BUS204 Course Guide www.baldrigeplus.com CG-7 BUS204 Course Guide 5. Assessment Overview The overall assessment weighting for this course for the Evening Cohort is as follows: Assessment Assignment 1 Description Weight Allocation Pre-Course Quiz 01 2% Pre-Class Quiz 01 2% Pre-Class Quiz 02 2% Assignment 2 Group-based Assignment 38% Class Participation Participation in Learning 6% Management System End-of-Course ECA Assessment TOTAL 50% 100% The overall assessment weighting for this course for the Day-time Cohort is as follows: Assessment Assignment 1 Assignment 2 Description Weight Allocation Pre-Course Quiz 01 2% Pre-Course Quiz 02 2% Pre-Course Quiz 03 2% Group-based Assignment 38% CG-8 BUS204 Course Guide Assessment Class Participation Description Participation Weight Allocation during 6% seminars ECA End-of-Course 50% Assessment TOTAL 100% SUSS’s assessment strategy consists of two components, Overall Continuous Assessment (OCAS) and Overall Examinable Component (OES) that make up the overall course assessment score. Both components will be equally weighted: 50% OCAS and 50% OES. (a) OCAS: In total, this continuous assessment will constitute 50 percent of overall student assessment for this course. The sub-components are reflected in the table above. The continuous assignments are compulsory and are non-substitutable. It is imperative that you read through your Assignment questions and submission instructions before embarking on your Assignment. (b) OES: The ECA is 100% of this component. To be sure of a pass result you need to achieve scores of at least 40% in each component. Your overall rank score is the weighted average of both components. CG-9 BUS204 Course Guide 6. Course Schedule To help monitor your study progress, you should pay special attention to your Course Schedule. It contains study unit related activities including Assignments, Selfassessments, and Examinations. Please refer to the Course Timetable in the Student Portal for the updated Course Schedule. Note: You should always make it a point to check the Student Portal for any announcements and latest updates. You need to ensure you fully understand the contents of each Study Unit listed in the Course Schedule. You are expected to complete the suggested activities independently and/or in groups. It is imperative that you read through your Assignment questions and submission instructions before embarking on your Assignment. It is also important you comprehend the Overall Assessment Weighting of your course. This is listed in Section 5 of this Guide. Manage your time well so you can meet given deadlines and do regular revisions after completing each unit of study. They will help you retain the knowledge garnered and prepare you for any required formal assessment. If your course requires an end-ofsemester examination, do look through the Specimen or Past Year Exam Paper which is available on Learning Management System. Although flexible learning – learning at your own pace, space and time – is a hallmark at SUSS, you are encouraged to engage your instructor and fellow students in online discussion forums. A sharing of ideas through meaningful debates will help broaden your learning and crystallise your thinking. CG-10 Study Unit 1 Total Quality and Quality Theories BUS204 Total Quality and Quality Theories Chapter 1: Total Quality and Business Excellence Learning Outcomes At the end of this unit, you are expected to be able to: • Review the evolution of quality thinking and total quality management. • Describe the concepts of total quality and business excellence. Overview Chapter 1 of the study unit offers an introduction to the concept of quality, quality management and business excellence. The material written in this Study Unit serves as a study guide only. It is imperative that you spend time reading the specified article(s) listed in the Readings and References in order to have a better understanding of the subject matter covered in this study unit. Read Lee Pui Mun, “Total Quality Management – Evolving Through the Decades and its Future Direction,” Invited Keynote Paper, 14th International Conference on ISO 9000 & TQM, 14-ICIT, Scranton, Pennsylvania, USA, April 5-7, 2010. SU1-2 BUS204 Total Quality and Quality Theories (Source: Pixabay / Public Domain) 1.1 Total Quality and Business Excellence Globalisation is well entrenched in our 21st Century economy as more countries are embracing the free market model and opening up their borders for investments and trading. Focus on customers and stay lean is a key fundamental strategy in global competitiveness. The philosophy of total quality management supports this fundamental business strategy. Total quality management philosophy inculcates business practices that will satisfy customers, reduce costs, increase productivity, and enhance quality. Total quality management practices help organisations to achieve business excellence. The concepts of total quality management have been incorporated into a business excellence framework. Organisations are using the business excellence framework to drive their operations and activities. Total quality management has now become a norm rather than an exception in many organisations. For any organisation, there are several aspects of quality and reputation which are important: • It is built upon the competitive elements of quality, reliability, delivery, and price, of which quality has become strategically the most important. SU1-3 BUS204 Total Quality and Quality Theories • Once an organisation acquires a poor reputation for quality, it takes a very long time to change it. • Reputations, good or bad, can quickly become known locally and globally. • To remain competitive, emphasis on quality can be used to differentiate the organisation from its competitors. • Sales and marketing people must understand not only the needs of the customer but also the ability of their own organisation to meet them. 1.2 Total Quality Management (TQM) – Evolving Through the Decades (reference: Lee, 2010) Lesson Recording Total Quality Management - Evolving through the Decades Craftsman Products Figure 1.1 Shoe maker and young apprentice (Source: Wikimedia Commons / Public Domain) SU1-4 BUS204 Total Quality and Quality Theories The desire to develop quality products probably had been in existence during the era of pre-industrial revolution. Before the start of the factory and the use of mass production, products were done by craftsmen. The craftsman built each product individually with substantial autonomy and quality work is essential as a matter of pride and accountability. Because of the skills and responsibility needed to build the whole product, craftsmen often had to go through a long period of apprenticeship (usually a few years) before they could be confident of producing products by themselves. The products produced by these welltrained craftsmen usually had high standard of quality. A failed product could easily be traced to the craftsman responsible for it. Because of accountability and pride, craftsman products had to be of a high quality. On the other hand, craftsman products were usually limited in quantities and therefore not easily available to the masses. Even in our modern society today, craftsman products are usually synonymous with high quality and they often command premium prices. Italian and French branded goods and Italian handcrafted sports cars are some examples of premium pricing on products. Mass Production and the Concept of Quality from a Statistical Viewpoint In 1776, James Watt developed the steam engine and heralded the beginning of the Industrial Revolution. The steam engine enabled production machinery to be developed and because of the need for power generation to drive the production machinery, such machinery had to be housed in a central location. Thus, the concept of a factory was born. Craftsmen were now gathered in the factory instead of working at disperse sites. In the 1800s, the concept of interchangeability was created. Interchangeability allowed products to be designed with many parts in which the parts could be made by different people and then brought together to be assembled into a whole product. Interchangeability implied that any selected piece of the same part could be fitted with any selected piece of another part and the sum of all fitted parts in the product would still maintain functionality and form. With this innovative concept, the role of the craftsmen was diminished as many workers could now simply be hired to make parts after being given minimal training. As the 19th Century came to an end, factory production was slowly reducing the dominant position SU1-5 BUS204 Total Quality and Quality Theories of agriculture production in many highly industrialised countries. The productivity of factory production was further given a major boost with the ideas of Federick W. Taylor and Henry Ford. Federick W. Taylor came up with a concept in which production activities are divided into tasks with predetermined and standardised steps. With this concept, highly skilled workers were not needed to make products. What was needed is a group of unskilled workers that could be easily trained to perform specific tasks and when managed as a whole, will allow them to quickly build the whole product. Figure 1.2 A group of workers of the Ford assembly line (Source: Wikimedia Commons / Public Domain) Henry Ford came up with the idea of mass production with the use of conveyor belt technology to drive production. As raw materials started to be moved from the beginning of the conveyor belt system, workers could be arranged to gather around the conveyor belt system to systematically work on the raw materials, each worker being responsible for executing a specific task while the work-in-progress materials passed through them. At the end of the conveyor belt system, continuous stream of the final products would exit at short interval from each other. This concept of production created the ability to mass produce products that could be supplied to the masses. SU1-6 BUS204 Total Quality and Quality Theories However, as products were now produced with a group of workers instead of by a single craftsman, quality problems surfaced. Perhaps the reasons for quality problems to surface were due to the lack of pride and accountability as workers were now making parts rather than a whole product. Also, when interchanged parts were assembled and if there were quality issues, they would be highlighted immediately without being covered by immediate rework as was the case when work was carried out by an individual craftsman. Before the factory era, quality issues would only be evident when products were subjected to use. The advent of interchangeability and mass production gave rise to a new set of quality issues, those that occurred during production and within the production environment. The quality issues faced within production environment were that some interchangeable parts that were produced may not conform to established specifications or acceptable process range. In the 1930s, W. A. Shewhart came up with the concept of a control chart to monitor the stability of a process in producing parts that are consistently within an acceptable process variance range. The acceptable variance range is translated into control limits using statistical computations. With control charts, came 100% quality inspections along the production line. In the 1940s, during the Second World War, sampling inspection was added to speed up quality inspections at production lines. Sampling inspection was also derived from statistical computations. Sampling reduces the need to do 100% inspection yet ensures that the probability of having defective products not been detected to be very small. This is the era in which production yields were emphasised. Management Oriented Quality Concepts At the end of World War II, many countries were devastated economically and structurally, including Japan. Japanese manufacturers began to rebuild their factories. Japanese products would become synonymous with good quality in a few decades after they embarked on rebuilding factories. This phenomenon partly came about when SU1-7 BUS204 Total Quality and Quality Theories Japanese manufacturers were introduced to management-oriented quality concepts by pioneers like W. Edwards Deming and Joseph M. Juran. Both men went to Japan in the early 1950s to introduce their quality concepts and philosophy to Japanese managers. Besides the concepts of statistical control charts and sampling inspections, both quality scholars advocated that substantial quality improvements could only be realised when organisations rallied everyone in the organisation to accept the case for continuous improvements to their processes and that senior management had to lead the quality initiatives. This era marked the advent of quality thinking related to continuous quality improvement through concerted organisation effort and management involvement, rather than just detecting and weeding out poor quality products via inspections. For Deming, it culminated in his System of Profound Knowledge and 14 Points of Management. For Juran, some of his most important works included the Juran Trilogy (Planning, Control and Improvement) and the Pareto Diagram for prioritising quality issues. Following the advice of management-oriented quality concepts by Deming and Juran, the Japanese started to focus on system-wide quality improvement activities. In the 60s to early 80s, prominent Japanese quality experts such as Kaoru Ishikawa and Genichi Taguchi added practical techniques and methodologies to the framework of quality management thoughts and system-wide quality concepts. Kaoru Ishikawa provided managers and workers with practical tools and techniques to identify causes of quality problems and to solve quality problems and make systematic improvements. One of his most famous tools is the Ishikawa Diagram. Genichi Taguchi introduced the Quality Loss Function, a model to compute the economic loss that would incur when a product’s key specifications vary far from the intended target. Ishikawa advocated resolving quality problems in the production phase while Taguchi focused on enhancing and ensuring product quality at the design phase. It was during this era in which Quality Circles were introduced in Japanese industries. Quality Circles require groups of workers to come together periodically to discuss problems related to work and work environment and find solutions to these problems. SU1-8 BUS204 Total Quality and Quality Theories Quality Circles as well as most of the practical quality tools developed by the Japanese experts advocated teamwork and employee participation. The Japanese together with the quality management pioneers Deming, Juran and Armand Feigenbaum had shifted quality thinking from one of identifying defects to one that focused on preventing defects by improving the processes. This important shift in quality thinking also contributed to the development of the concept, the Toyota Production System (TPS). Figure 1.3 Toyota factory (Source: Bertel Schmitt / Wikimedia Commons / CC-SA 3.0) Activity 1 Test your knowledge: Describe the highlights in the history of quality before and since the industrial revolution. What caused the most significant changes? Total Quality Management as a Holistic System of Organisation Performance Excellence Starting in the 1980s, American managers began to realise that Japanese products were becoming very competitive and more importantly, they were sought after by consumers because of good quality and reliability. They found out that for the past few decades, SU1-9 BUS204 Total Quality and Quality Theories the Japanese had been practising system-wide quality improvement with employee participation from all areas beside the factory floor. They came to realise that they have to change their own way of thinking about quality, which largely had been focusing on quality control and quality inspections. The American managers started to implement the philosophical quality concepts advocated by Deming. This was the era when the term Total Quality Management (TQM) was coined. TQM symbolises a management-oriented approach to quality as well as the need to cultivate organisation-wide participation in quality initiatives. Philip B. Crosby became known during this era with his concept of zero defects. TQM slowly became a major quality movement in the US in which the key initiatives were management commitment, quality leadership, continuous improvement, a focus on customer needs, and employee involvement. The movement gathered momentum and in the mid-1980s, it spawned an organisation self-assessment TQM framework that assesses the performance of an organisation in terms of its ability to produce quality products and maintain business competitiveness. These organisation self-assessment frameworks evolved into quality award criteria frameworks and as we came into the 21st Century, TQM activities became a norm rather than an exception in most organisations as businesses strive to be more competitive. The TQM selfassessment frameworks were thus more aptly termed business excellence frameworks. These business excellence frameworks will be examined in later chapters in this course. Besides the growth of international quality awards, the 1980s also saw the introduction of the ISO9000 family of Quality Standards, which is a certification programme for organisations. The main purpose of ISO9000 is for companies to document their quality systems in a series of manuals to facilitate trade through supplier conformance. The main difference between ISO9000 certification and quality award is that the former is used as a means to acknowledge that the firm has a credible quality system put in place while the latter is an accolade that is given to a firm in recognition for its excellent performance through providing quality products and services. Although differing in focus, they both SU1-10 BUS204 Total Quality and Quality Theories however share the same goal, which is to encourage and guide organisations in setting up a total quality management programme that is sustainable and effective. The 1980s could be considered as the defining period for TQM as the quality management movement firmly entrenched itself as a required imperative for achieving business competitiveness. It was during this era in which the service industry also started to adapt quality management thinking into their operations (minus the quality inspections and control charts). During this era, Bill Smith convinced Motorola (a major manufacturer of communications equipment) that the direction for process improvement should be towards achieving a six-sigma level of performance. Mikel Harry, also working in Motorola at that time, successfully translated the Six Sigma concept into a methodology for improvements that became the defining quality management movement in the 1990s. Six Sigma Although TQM and international quality award criteria frameworks provide the basis for managers to implement a quality management programme in their organisations, many managers and workers struggled to execute the principles of total quality management in reality. Take the example of one of the basic principles of TQM, continuous improvement. How could one start executing continuous improvements? What to improve, why need to improve and how much to improve? These are fundamental questions that need to be answered. Although the knowledge base on quality management had expanded by many folds over the past few decades prior to the 1990s, managers and workers who were not seasoned quality practitioners would find it hard to follow and apply the plethora of quality concepts, tools and techniques that are out there to support continuous improvement activities. Using the Six Sigma concept advocated by Bill Smith of Motorola in the 1980s, Mikel Harry came up with a structured methodology that provided an easy-to-follow approach for non-seasoned quality practitioners to apply when performing continuous improvement activities. His methodology centred on making improvements to process operations and it encompassed Define, Measure, Analyse, Improve, and Control (DMAIC). Six Sigma (as a methodology) allows managers and workers to identify a potential process for SU1-11 BUS204 Total Quality and Quality Theories improvements by establishing its key performance variable and computing a sigma value based on it for the process. With this process measure, analysing areas of improvement for the process and instituting improvements plus monitoring future process performance become much easier to comprehend. Six Sigma became a very popular quality improvement methodology and it has been applied in both manufacturing and service industries. In the 1990s, another quality-related concept was also introduced. The term “lean manufacturing” was coined to identify a set of principles that included cellular production, pull system of manufacturing, rapid changeover and setup, teamwork and quality management. The objective of applying lean manufacturing is to reduce waste while optimising resources and quality of products or services. Activity 2 Test your knowledge: Identify the factors that contributed to the increased awareness of quality in modern business. 1.3 Different Perspectives on Quality Quality is often used to signify 'excellence' of a product or service. An example of an excellent product is Rolls-Royce cars where people associate it with 'top quality', 'perfection' and 'excellence'. In some manufacturing companies, the word 'quality' is often used to indicate that a piece of material or equipment conforms to certain physical dimensional characteristics often established in the form of a design specification. In a hospital operating theatre, it is used to represent some sort of 'strict conformance', 'perfection' and 'professionalism'. SU1-12 BUS204 Total Quality and Quality Theories If we are to define quality in a way that is useful for organisations to achieve excellence, we must include the requirements of the customers’ needs and expectations. If not, what an organisation established in its design specifications may not be what the customers needed or wanted in the product or service. In short, quality can be taken as meeting the customer requirements. This has been expressed in many ways by other authors: • 'Fitness for purpose or use' ◦ Juran (see Study Unit 2). • 'The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs' ◦ BS 4778: 1987 (ISO 8402, 1986) Quality Vocabulary: Part 1, International Terms. • 'Quality should be aimed at the needs of the consumer, present and future' ◦ Deming (see Study Unit 2). • 'The total composite product and service characteristics of marketing, engineering, manufacture and maintenance through which the product and service in use will meet the expectation by the customer' ◦ Feigenbaum, the first man to write a book with 'Total Quality' in the title. • 'Conformance to requirements' ◦ Crosby (see Study Unit 2). • 'Degree to which a set of inherent characteristics fulfils requirements' ◦ ISO (EN) 9000:2000 Quality Management Systems — fundamentals and vocabulary. Other words we should consider are reliability and durability. 'Why do customers buy German cars like BMW and Mercedes Benz?' 'Quality and Reliability' is often the answer. The two are used synonymously, often in a totally confused way. Clearly, part of the acceptability of a product or service depends on its ability to function satisfactorily and robustly over a period of time, which means reliability and durability respectively. It is the SU1-13 BUS204 Total Quality and Quality Theories ability of the product or service to continue to meet the customer requirements. Reliability ranks with quality in importance. Quality is sometimes a confusing concept and not easily understood because employees view quality in relation to different criteria. Employees working for the same firm often view quality differently. This is a pertinent problem in having a coherent view of what is good quality For example, product design engineering might feel that customer satisfaction is mostly influenced by product design and product attributes and might go through great length to design a product that satisfies the customer. However, the product also needs to satisfy marketing’s need for a quick design cycle time and accounting’s need for low cost products. When employees from different departments in an organisation do not share a common understanding of what constitutes good and ideal quality, the firm will suffer in terms of competitiveness. If you ask twenty people to define quality, you probably will get twenty definitions. Quality means differently to different people. Quality could mean perfection, consistency, customer satisfaction, fast delivery, reliability, doing it right the first time, etc. One way to define quality is to look at how it is applied in products and services, either one or both of which are what business organisations exist to serve. Looking at quality in products, it could be defined from five different perspectives, transcendent, product-based, user-based, manufacturing-based, or value-based. 1. Transcendent Definition: Quality is something that is intuitively understood but nearly impossible to communicate such as beauty or love, or a mark of uncompromising standards and high achievement. 2. Product-Based Definition: Quality is found in the components and attributes of a product. It is a function of a specific, measurable variable or attribute. 3. User-Based Definition: If the customer is satisfied, the product has good quality. It is fitness for intended use. 4. Manufacturing-Based Definition: If the product conforms to design specifications, it has good quality. SU1-14 BUS204 Total Quality and Quality Theories 5. Value-Based Definition: If the product is perceived as providing good value for the price one pays, it has good quality. 1.4 Quality in Practice Figure 1.4 Singapore Airlines flight attendants (Source: Oden / Wikimedia Commons / CC 2.0) In any organisation − a hospital, a university, a bank, an insurance company, government, an airline, a factory − competition is part and parcel: competition for customers, for students, for patients, for resources, and for funds. Organisation competes on its brand reputation − for quality, reliability, price and delivery − and most people now recognise that quality is the most important of these competitive elements. Many organisations have used quality strategically to win customers, obtain business resources or funding, and be competitive. By consistently meeting customer requirements, we can achieve a higher level of customer satisfaction − delighting the customer. Many organisations today possess the capability to meet their customers' requirements, time and time again, and create a reputation for SU1-15 BUS204 Total Quality and Quality Theories 'excellence'. A development of this thinking regarding customers and their satisfaction is customer loyalty, an important variable in an organisation's long-term success. Focus on customer loyalty can provide several commercial advantages: • Customers cost less to retain than acquire. • Customer’s dissatisfaction may be beyond repair and customer retention may not be possible. • Repairing damage and retaining customer will cost many times than prevention. • The longer the relationship with the customer, the higher the profitability. • A loyal customer will commit to spend more. • Many new customers come through referrals from existing customers (indirectly reducing acquisition costs). Quality has to be Managed − It will not just Happen To manage quality, it must involve everyone in the process and it has to be applied throughout the organisation. This includes people in the support functions of organisations that may never see, experience, or touch the products or services that their organisations provide (final product). Failure to meet the requirements in any part of a quality chain has a way of multiplying and a failure in one part of the system creates problems elsewhere, leading to more failures and problems. In critical industries like aerospace, quality and reliability are paramount as failures during operation often will result in tragic loss of lives. The highest level in engineering quality can be seen in products like fire-fighting equipment or fighter jet pilot eject seat where they must work 100% of the time. The price of quality is an on-going examination of the requirements and our ability to meet them. This alone will lead to a 'continuing improvement' philosophy. The benefits of ensuring that requirements are met at every stage, every time, are truly enormous in terms of increased competitiveness and market share, reduced costs, improved productivity and SU1-16 BUS204 Total Quality and Quality Theories delivery performance, and even down to the elimination of waste and to the support of sustainable development. Read Lee Pui Mun, “Total Quality Management – Evolving Through the Decades and its Future Direction,” Invited Keynote Paper, 14th International Conference on ISO 9000 & TQM, 14-ICIT, Scranton, Pennsylvania, USA, April 5-7, 2010. Activity 3 Test your knowledge: Explain the various definitions of quality. Can a single definition suffice? Why? SU1-17 BUS204 Total Quality and Quality Theories Click here for the PDF SU1-18 BUS204 Total Quality and Quality Theories 1.5 Total Quality: Principles, Practices and Techniques Lesson Recording Total Quality: Principles, Practices and Techniques Total quality management is a management philosophy based on principles and practices. Principles are prescribed beliefs of the philosophy and practices are the activities by which the principles are implemented. Techniques are the tools, methodologies, and approaches that help to support the practices and make them more effective. Three basic principles can be used to describe the philosophy of total quality. 1. A focus on customers and stakeholders 2. Employee engagement and teamwork by everyone in the organisation 3. A process focus supported by continuous improvement and learning Customer and Stakeholder Focus:The customer is the ultimate judge of the quality of the product or service. Organisations have to be ready at all times to respond to customer needs and wants as this is a key step to meet quality expectation. The notion of customer expands beyond the consumers to include internal customers. Internal customers are employees who receive work from other employees. Viewing from an organisation perspective, if work done by employees and supplied to other employees is not up to quality expectation, it will ultimately affect the quality of the product or service given to the external customers or the consumers. Both employees and the community in which the organisation is associated with are called stakeholders. Ensuring that stakeholders view an organisation as one that embraces total quality will contribute to building an excellent organisation. SU1-19 BUS204 Total Quality and Quality Theories Employee Engagement and Teamwork:When managers give to employees the tools and support to make good decisions and the freedom to make contributions and some decisions, the chances of achieving better quality in products and services are much higher. Empowering employees and encouraging them to be more engaging and participative in their work will produce more ideas and innovations to enhance quality. Teamwork encourages more ideas to flow and more multi-faceted skills to be deployed to tackle quality problems. Working in teams, whether it is within the organisation or with suppliers, allows quality issues to be resolved in a more effective manner and at a faster pace. Process Focus and Continuous Improvement: A process is a sequence of activities that is intended to achieve some result. A product or a service is produced by a series of interconnected processes. Total quality philosophy calls for a focus on process improvement in order to achieve better quality in products and services. Improvement in the processes must be continuous. The rationale is that your customer needs and wants do change from time to time and also your competitors will always try to catch up with you or stay ahead of you. Given this rationale, processes must be improved periodically in order to keep up with the changes in customer needs and also to counteract competitor’s actions. Continuous improvement relates to both incremental changes and profound changes or improvements to an organisation processes. Most improvements are based on a Plan-DoCheck-Act cycle. This is akin to a learning cycle of four stages: 1. Planning [Plan] 2. Execution of plans [Do] 3. Assessment on the progress of plans [Check] 4. Revision of plans based upon assessment findings [Act] Total Quality practices can be classified into six basic areas of management that are generic to any organisation: 1. Leadership 2. Strategic planning and design of organisational and work systems SU1-20 BUS204 Total Quality and Quality Theories 3. Customer engagement and knowledge acquisition 4. Workforce management 5. Process management 6. Information and knowledge management In other words, to achieve total quality and eventually business excellence, one must be able to excel in these six areas of management. Total Quality techniques include a wide variety of tools, methodologies and approaches that will facilitate employees to plan activities, collect data, analyse results, monitor progress, and solve problems while working on improving quality. Activity 4 Test your knowledge: What is the concept of total quality? What is the implication of total quality on the way an organisation is managed? 1.6 Quality and Business Excellence Business excellence is a term used to define an organisation which has built a competitive advantage through the adoption and deployment of total quality philosophy that eventually enables the organisation to achieve superior business results over a long term. The importance of quality in achieving competitive advantage was demonstrated by a research from PIMS that concluded that: • Product quality is an important determinant of business profitability. SU1-21 BUS204 Total Quality and Quality Theories • Businesses that offer premium quality products and services usually have large market shares because of improved brand reputation that will attract more new customers. • Quality is positively and significantly related to a higher return on investment for almost all kinds of products and services. This is because manufacturing and service operations will be more efficient and thus incurring lower costs and products and services will have less failures, thus lowering after-sales service costs. • High-quality producers can usually charge higher premium prices by riding on their ability to offer better quality and reliability for their products and services. Profitability is a measure of financial result. Business excellence goes beyond having superior financial results. It includes superior employee results (more satisfied and committed employees, less employee turnover, better developed employees, etc.), process results (better production yields, less waste from production, streamlined operations, less costly operations, faster delivery, higher quality outputs, etc.), and customer and stakeholder results (more satisfied and loyal customers, less customer complaints, better community relations, society contributions, etc.). By adopting the total quality philosophy and focusing on establishing excellent practices in the six areas of management, organisations can try to work towards achieving business excellence. Summary This chapter brings you through the evolution of quality and explains the different perspectives of quality. Total quality is a philosophy and to adopt the philosophy successfully in organisations, one needs to implement its principles through practices and techniques. The evolution in quality thinking and its acceptance as a philosophy to be practised in organisations have made the goal of achieving total quality a norm rather than an exception in many organisations. It has been accepted that achieving good quality in SU1-22 BUS204 Total Quality and Quality Theories products and services will provide a competitive advantage and eventually generate superior business results that are sustainable in the long run. This thinking has led to the linkage between total quality and business excellence. Achieving quality is a means to secure business excellence. The practices needed to support such an endeavour are areas of business management that are common to any organisation: 1. Leadership 2. Strategic planning and design of organisational and work systems 3. Customer engagement and knowledge acquisition 4. Workforce management 5. Process management 6. Information and knowledge management Students in programmes offered by the Business School and, in particular, the BSc. Business programme, will go through a curriculum that has courses in all six areas of business management mentioned above. It is imperative that a student who has successfully taken this course will be able to understand the relationship and the linkage among the six areas of business management that are vital to achieving business excellence and that when the six areas are managed effectively as a whole, an organisation can attain business excellence. SU1-23 BUS204 Total Quality and Quality Theories Solutions or Suggested Answers SU1-Chapter 1 Activity 1 Solution Evidence of the search for quality dates back to ancient Egypt, as indicated in the precision and uniformity of methods used in the construction of the pyramids. The craftsperson of the Middle Ages took special care to ensure quality in his/her product, a necessary step since he/she dealt directly with the customer. In the late 18th Century, the Industrial Revolution occurred with development of interchangeable machine parts. The Industrial Revolution itself was a key turning point, since it made quality assurance a critical component of the production process. However, quality was determined only after the products were finished, rather than during the manufacturing process, so as volume increased and costs decreased, craftsmanship decreased. Quality control techniques were further developed in the early 20th Century, when methods of inspection to improve and maintain quality were gradually separated from production techniques. The significant difference between early and late 20th Century quality approaches was the development of the concept of “total quality” as applied to every area of an organisation, not just the production and/or operations functions. In the early 21st Century, the emphasis has been placed on bringing quality improvement to the “bottom line” results by alignment of quality objectives with organisational goals. SU1-24 BUS204 Total Quality and Quality Theories SU1-Chapter 1 Activity 2 Solution There have been several factors contributing to increased awareness of quality including gaps between competitors’ quality levels, product recalls, and massive quality failures. The realisation of the superior quality of Japanese, German, and other products from nonUS firms in the 1970s, 1980s and up to the present (Then, in initial quality levels; today, in long-term product reliability) was a “wake-up call” about the lack of quality for many US products. In the last 20 years, periodic quality issues have arisen, such as the extensive product recalls by the Consumer Product Safety Commission in the early 1980s. From “battery fire” of computing devices and Boeing Dreamliner, to product recalls such as the ones for many car manufacturers have kept the public's minds on quality throughout the 1990s and into the 21st Century. Improvements in technology, reassessment of inadequate managerial philosophies, and the economic impact of international competitiveness have also been important factors. SU1-Chapter 1 Activity 3 Solution Webster's definition of quality is vague and simplistic. "(Quality is) that which makes something what it is; characteristic element." The ANSI/ASQ definition states quality is "the totality of features and characteristics of a product or service that bears on its ability to satisfy given needs." No single definition is adequate because customer needs are constantly changing and because quality is "situational" -- e.g. a good design for one purpose, and in the eyes of one set of customers, may represent a poor design for another use or another set of customers. Reliance on a single definition of quality is frequently a source of problems. SU1-25 BUS204 Total Quality and Quality Theories SU1-Chapter 1 Activity 4 Solution The concept of total quality is complex and multifaceted. It requires a focus on people and customers at every level of an organisation, cost containment, a systems approach, integration into organisational strategy, a cross-functional and external-internal scope, and learning and adaptation to continuous change. It is based on a philosophy of the application of the scientific method and includes systems, methods and tools. It stresses the values of the dignity of the individual and the power of community action. The way that an organisation is managed must frequently be changed in order to meet the focused requirements of the philosophy and the systems approach. References Chan, F. (2010, Apr 28). Winning on quality, not price. The Straits Times, B21. James R, E., and James R, L. (2011). The management and control of quality. Canada: South-Western/Cengage Learning. John S, O. (2011). TQM (3rd ed.). Lee, P. M. (2010, Apr). Total Quality Management – Evolving Through the Decades and its Future Direction. Paper presented at Invited Keynote Paper, 14th International Conference on ISO 9000 & TQM, 14-ICIT, Scranton, Pennsylvania, USA. SU1-26 BUS204 Total Quality and Quality Theories Chapter 2: Quality Theories Learning Outcomes At the end of this unit, you are expected to be able to: • Describe Deming’s philosophy on Quality Management. • Differentiate the philosophy on quality by different contributors to the field of quality management Overview Chapter 2 of the study unit discusses Dr. Edward Deming’s philosophy on quality, which essentially represents the foundation of today’s thinking on total quality and business excellence. Besides Edward Deming, Joseph Juran and Philip Crosby’s contributions to quality philosophy will also be presented The material written in this Study Unit serves as a study guide only. It is imperative that you spend time reading the specified articles in order to have a better understanding of the subject matter covered in this study unit. (Source: Pixabay / Public Domain) SU1-27 BUS204 Total Quality and Quality Theories The need for quality increases with the increase in standard of living in any societies. Quality as a requirement in products and services has been around since time immemorial, although it has never been a subject of intense study until the turn of the 20th Century. With the onset of mass production and the use of interchangeable parts in products in early 1900s, quality as a subject of investigation and research came into fashion. Early researchers such as Walter Shewhart had developed quality concepts based on statistical viewpoint. Such a viewpoint is technical in nature and thus confined to technical functions in an organisation. However, it was Dr. W. Edwards Deming (1900-1993) who advocated a management approach to increase quality level in products. His seminal work set forth a new thinking in quality, i.e. it should not only be the responsibility of technical personnel in an organisation to improve quality but it is everyone’s responsibility, including top management in an organisation. This chapter presents Deming’s philosophy on quality as well as some other quality experts who have provided significant contributions to the field of quality management. 2.1 Deming on Quality Lesson Recording Deming on Quality SU1-28 BUS204 Total Quality and Quality Theories Dr. W. Edwards Deming In his seminal book “Out of the Crisis,” Deming claimed that better quality will lead to higher productivity, which in turn will lead to sustainable competitive advantage. Why does better quality lead to higher productivity? To Dr. W. Edwards Deming, improving quality is about focusing on continuous improvements in product and service quality by reducing uncertainty and variability in design, manufacturing, and service processes, and to be led by top management leadership. When uncertainty and variability are reduced, fewer mistakes will be made in producing products or services, thus there will be less rejects and waste, and faster and higher volume outputs. This in turn will lead to competitive pricing of products and services that will expand market share and sales. The end result is that the organisation is able to sustain a competitive business and provide jobs. This is the central theme of Deming’s philosophy on quality and it is called the Deming Chain. In order to operationalise his philosophy on total quality, he instituted Deming’s 14 Points. 1. Create and publish a company mission statement and commit to it. 2. Learn the new philosophy. 3. Understand the purpose of inspection. 4. End business practices driven by price alone. 5. Constantly improve system of production and service. 6. Institute training. SU1-29 BUS204 Total Quality and Quality Theories 7. Teach and institute leadership. 8. Drive out fear and create trust. 9. Optimise team and individual efforts. 10. Eliminate exhortations for work force. 11. Eliminate numerical quotas and Management by Objective [MBO], focus on improvement. 12. Remove barriers that rob people of pride of workmanship. 13. Encourage education and self-improvement. 14. Take action to accomplish the transformation. Activity 5 Test your knowledge: How does Deming’s definition of quality compare with the definitions discussed in Study Unit 1? To link the Deming’s 14 Points as an integrated approach to achieving quality in any organisation, he came up with the Deming’s System of Profound Knowledge. The System of Profound Knowledge has 4 components: • Appreciation for a system • Understanding variation • Theory of knowledge • Psychology Understanding the System of Profound Knowledge will allow one to practise Deming’s 14 Points in a purposeful manner. SU1-30 BUS204 Total Quality and Quality Theories A system is a set of functions or processes that work together for the benefit of achieving organisation’s aim. Most organisational processes are cross-functional and all functions or processes within the system must work effectively together in order to achieve the goal of higher quality outputs. Every system must have a purpose and that purpose is to provide benefits of different kinds for different stakeholders (customers, employees, stockholders, society, and environment). Management must optimise the system as a whole in order to reap maximum benefits for all stakeholders. Thus, when thinking of improvements, one must improve the system and not just parts of the system as all parts in the system are interrelated. The outputs from a system will contain variations. For example, two iPhones coming out from a production line may look identical in terms of size to you but when measured by highly sensitive instruments, every iPhone output will be of slightly different size (not detectable by the naked eye). These are called variations. Variations can be classified as controllable and uncontrollable. Controllable variations are variations caused by employee errors which can be rectified and eliminated. In fact, in any quality philosophy, controllable variations should always be eliminated. However, many sources of uncontrollable variations exist in a system. Uncontrollable variations cannot be totally eliminated, but they can be reduced. An example of uncontrollable variation is the natural tendency of a machine to incur wear and tear after operating for a while. The wear and tear in the machine will cause it to be unable to produce two identical outputs. Having non-identical outputs does not imply the products are of poor quality as long as the outputs still conform to stated specifications. However, excessive variations result in early product failures, unhappy customers, and incurring unnecessary costs to repair failed products and honour warranty. To Deming, statistical methods can be used to identify and quantify variations to help understand it and thus lead employees to find ways to reduce such variations. As uncontrollable variations are unavoidable, an organisation will have to continuously make periodic improvements so as to systematically reduce such variations. SU1-31 BUS204 Total Quality and Quality Theories The theory of knowledge is a profound statement. Deming wanted to stress that employees and managers must first know the theory (especially statistical theory – since statistics play an important role in studying variation) before applying practices to achieve quality improvement. Knowledge is not possible without theory and experience by itself does not establish a theory; it only describes a certain way of solving a problem given the situation. However, the situation may change and the problem will be slightly different the next time. Thus, without fully understanding what causes the problem to happen and trying to apply the same experience may not work the second time. Theory shows causeand-effect relationships that can be used for prediction and thus, allow an organisation to learn and eliminate causes rather than just manage symptoms of the problems. Lastly, in psychology, Deming maintained that human beings are motivated both intrinsically and extrinsically. Intrinsic motivation is more powerful and has a longer lasting effect. Thus, organisations must be able to provide both intrinsic and extrinsic motivation to their employees. Also, fear has demoralising effect and affects motivation in a negative manner. Managers should develop pride and joy in work through better employee development rather than using fear (and punishment) to drive work. Activity 6 Test your knowledge: How does each of Deming’s 14 Points relate to the 4 components of System of Profound Knowledge? Activity 7 Application Question: SU1-32 BUS204 Total Quality and Quality Theories In Deming’s Profound Knowledge system, one of the four interrelated parts is the Theory of Knowledge. Identify a situation that exists in an organisation you are familiar with or you have worked for, where this principle is lacking. Describe how this principle can impact an organisation and the quality of its product(s) or service(s). 2.2 Other Significant Contributors to Quality Theories Lesson Recording Quality Theory - Juran and Crosby Joseph Juran Joseph Juran Joseph Juran (1904-2008) was born in Romania and went to the United States in 1912. He later joined Western Electric in the 1920s, where one of the early pioneers of quality SU1-33 BUS204 Total Quality and Quality Theories control using statistical methods, Walter A. Shewhart, was also working. Juran took a more strategic and planning approach to improvement. He promoted the view that organisational quality problems are largely the result of ineffective planning for quality. Juran proposed a simple definition of quality: “fitness for use.” This definition of quality suggests that it should be viewed from both external and internal perspectives. Quality is to be related to product performance that results in customer satisfaction and also freedom from product deficiencies, which will then avoid customer dissatisfaction. Juran proposed three basic processes that are essential to improve quality. These processes are referred to as the Juran trilogy. The three processes are quality planning, quality control, and quality improvement. In planning for quality improvements, Juran states that managers must begin with identifying customers, both external and internal, determining their needs, translating those needs into product or service specifications, developing product and service features that satisfy the needs, and developing the processes capable of producing the products or delivering the services within stated specifications. According to Juran, quality control is a process-related activity that ensures processes are stable and provides a relatively consistent outcome. The activity involves determining what to control, establishing units of measurement to evaluate data objectively, establishing standards of performance, measuring actual performance, interpreting the difference between actual performance and established standards, and taking action to reduce this difference. In quality improvement, Juran advocated a structured sequence of discovery, organisation, diagnosis, corrective action, and control. Joseph Juran also applied an economic concept to prioritise quality problems. The economic concept is called Pareto’s law or the 80/20 rule. Using Pareto’s law, we see that the majority of quality problems are caused by relatively few causes. Thus, one should focus on the huge number of quality problems that are created by a few causes and work SU1-34 BUS204 Total Quality and Quality Theories towards eliminating these few causes. By doing so, the majority of the quality problems would disappear. The Pareto’s Law became a useful quality tool. Juran’s ten steps to quality improvement are: 1. Build awareness of the need and opportunity for improvement 2. Set goals for improvement 3. Organise to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators) 4. Provide training 5. Carry out projects to solve problems 6. Report progress 7. Give recognition 8. Communicate results 9. Keep score 10. Maintain momentum by making annual improvement part of the regular systems and processes of the company Philip Crosby Philip B. Crosby SU1-35 BUS204 Total Quality and Quality Theories Philip B. Crosby (1926-2001) was corporate vice president for quality at an American company called International Telephone and Telegraph (ITT) for 14 years after starting as a line inspector. His most famous quote regarding quality is “Quality is free.” What costs money is the “unquality” things ‒ all the actions that involve not doing jobs right the first time. To understand this statement, one needs to look at the big picture. If every employee in an organisation does his/her job without making errors and with minimum variations, then the organisation can consistently produce quality products. When that happens, the organisation is able to increase productivity, reduce costs and probably price the products and services at a premium. The additional profits generated from providing quality products and services will more than cover the costs incurred in reinforcing quality, thus the quote “Quality is free.” Philip Crosby has been the most successful in marketing his quality expertise when compared to many of the leading quality authors and thinkers in his time. He became very well known for his book Quality is Free; where the primary thesis of the book is that quality, as a managed process, can be a source of profit for an organisation. Crosby’s philosophy on quality is embodied in his Absolutes of Quality Management, which consists of: • Quality means conformance to requirements • Problems are functional in nature • There is no optimum level of defects • Cost of quality is the only useful measurement • Zero defects is the only performance standard When comes to quality, Crosby has four absolutes: 1. Definition — conformance to requirements 2. System — prevention 3. Performance standard — zero defects 4. Measurement — price of non-conformance SU1-36 BUS204 Total Quality and Quality Theories Crosby also offered 14 steps to improve quality: 1. Make it clear that management is committed to quality. 2. Form quality improvement teams with representatives from each department. 3. Determine where current and potential quality problems lie. 4. Evaluate the cost of quality and explain its use as a management tool. 5. Raise the quality awareness and personal concern of all employees. 6. Take actions to correct problems identified through previous steps. 7. Establish a committee for the zero defects programme. 8. Train supervisors to actively carry out their part of the quality improvement programme. 9. Hold a 'zero defects day' to let all employees realise that there has been a change. 10. Encourage individuals to establish improvement goals for themselves and their groups. 11. Encourage employees to communicate to management the obstacles they face in attaining their improvement goals. 12. Recognise and appreciate those who participate. 13. Establish quality councils to communicate on a regular basis. 14. Do it all over again to emphasise that the quality improvement programme never ends. Table 1.1 A Comparison of Quality Gurus Deming Definition of A predictable quality degree of Juran Fitness for use Crosby Conformance to requirements uniformity and dependability SU1-37 BUS204 Total Quality and Quality Theories Deming Juran Crosby at low cost and suited to the market Degree of senior Responsible for Less than 20% of Responsible for management 94% of quality quality problems quality responsibilityt problems are due to workers Performance Quality has many Avoid campaigns standard/ motivation scales. Use statistics Zero defects to do perfect work to measure performance in all areas Critical of zero defects General approach Reduce variability by continuous improvement Cease mass inspection Structure General Prevention, not management inspection approach to quality — especially ‘human’ elements 14 Points for Ten steps Fourteen steps management to quality to quality improvement improvement Statistical process Statistical methods Recommends SPC Rejects statistically control (SPC) of quality control but warns that it acceptable levels of must be used quality SU1-38 BUS204 Total Quality and Quality Theories Deming Juran Crosby can lead to toodriven approach Improvement basis Continuous to Project-by-project A process, not a reduce variation team approach programme Eliminate Set goals Improvement goals without methods Teamwork goals Employee participation in Team and quality Quality circle approach improvement decision making teams Break Quality councils down barriers between departments Costs of quality Purchasing and goods received No optimum – Quality is not free Cost continuous — conformance improvement optimum there Inspection too Problems late—allows for complex defects system to enter through Acceptable Quality Levels (AQLs) is an are State requirements. Supplier is extension of business Most faults due to purchasers Statistical evidence and control charts required SU1-39 non- Quality is free Carry out formal surveys of themselves BUS204 Total Quality and Quality Theories Deming Vendor rating Juran Crosby No — critical of Yes, but help Yes and buyers. most systems supplier improve Quality audits useless Single sources of Yes supply No — can neglect - to sharpen competitive edge [Adapted from Juran’s Quality Planning and Analysis (Gryna, Chua and DeFeo, 2007)] Activity 8 Test your knowledge: How is Juran’s philosophy on quality similar to or different from Deming’s? SU1-40 BUS204 Total Quality and Quality Theories Click here for the PDF SU1-41 BUS204 Total Quality and Quality Theories Summary This chapter introduces the significant contributions of the three foremost authoritative experts on quality theories, Edward W. Deming, Joseph Juran, and Philip B. Crosby. Their contributions have profoundly changed the way organisations look at quality. Before their seminal works became known, quality was a purview of technical personnel in an organisation and the focus was on quality control (which is the sieving out of products that do not meet specifications, which are considered as low quality products or nonconforming products). In particular, Deming had instilled in organisations the notion of total quality or total quality management. Improving or ensuring quality is not any more the purview of the technical personnel but the responsibility of everyone in the organisation. More importantly, organisation leaders should always lead quality improvement initiatives and stay committed to them to ensure success. It is this change in thinking that all must participate in the quality effort which gave rise to the term “total quality management”. Juran and Crosby also added a structured approach in which an organisation could follow to implement quality improvement efforts. The three experts may seem to have somewhat differing philosophies on quality but their central tenet is similar. All called for a reduction in variations in processes, a focus on customer needs, leaders must drive the effort, all employees must participate and must be trained to be able to do the job right, systematic planning must be in place, and analysis of quality issues must be objective with the use of data and statistics, and improvements must be continuous. As these philosophies of quality became entrenched in the mindsets of organisation leaders after many years of practice, total quality management has now evolved into a goal to pursue excellence in performance, and now, many called it business excellence. The first two chapters of this course have presented the foundation and origin of the concept of pursuing business excellence. They provide the student with the knowledge SU1-42 BUS204 Total Quality and Quality Theories to evaluate how and why a business excellence framework is established in a specific manner. In the next two chapters of this course, the why and how of business excellence frameworks will be presented. SU1-43 BUS204 Total Quality and Quality Theories Solutions or Suggested Answers SU1-Chapter 2 Activity 5 Solution Deming never actually gave a definition of quality. However, if he had explicitly defined quality, he might have said: Quality is the result of action taken by management, acting as leaders, with the willing cooperation of knowledgeable workers, to constantly and forever improve products and services by reducing variability and uncertainty in processes, thereby remaining competitive and providing profits and enough jobs for everyone. SU1-Chapter 2 Activity 6 Solution Deming's System of Profound Knowledge consists of four interrelated parts: 1. Appreciation for a system 2. Understanding of variation 3. Theory of knowledge 4. Psychology There are a number of ways to classify his 14 Points below, which could include these as categories. SU1-44 BUS204 Total Quality and Quality Theories Under appreciation for a system, points 1, 2, 4, 5, 9, 13, and 14 are most oriented towards systems. Numbers 1 and 2, relating to vision, commitment, and development of a new philosophy of leadership require a big picture view of the organisation and its place in business and society. Number 4 relates to the requirement that total costs, not incremental costs, must be optimised throughout an organisational system. Number 5 is a call to make improvements continuously throughout the system. Number 9 requires the development of teamwork and breaking down of artificial barriers between departments and organisational units. Number 13 relates to broad education to benefit both the organisation and society, in the long run. Point 14 calls for a major cultural change within the organisation, and is similar to point 2. To understand variation, Deming established points 3, 5, 10, and 11. Point 3 requires that everyone understand inspection and use it to understand variation by avoiding mass inspection. Point 5 advises to improve constantly and forever, thus eliminating the causes of excessive variation and waste. Number 10 suggests that improvement does not take place by exhorting workers to do a better job, but by understanding the cause of poor quality and eliminating them. Point 11 makes a similar point that quotas and management by objectives are approaches that do not encourage improvement, but instead, create fear. SU1-45 BUS204 Total Quality and Quality Theories As Scholtes explained, when people don’t understand the theory of knowledge, they don’t know how to plan, accomplish learning, improve, change, or solve problems, despite their best efforts. Thus points 1, 2, 5, 6, and 13 may be seen as falling under theory of knowledge category. Deming’s concept in points 1 and 2 of constancy of purpose and learning his new philosophy are needed in order to effectively plan, learn and change. Point 5 relating to constant improvement is also essential to knowledge, as is point 6 on instituting training, so that workers will be able to understand their work processes, predict the result of changes, and actively participate in problem solving and improvement. Point 13 is related in that it advises that education and self-improvement will assist the organisation in learning, changing, improving and reaching organisational goals. An understanding and appreciation of psychology is a requirement for points 7 through 13. Each of these has leadership and motivational characteristics that are essential to Deming’s new philosophy and to improved quality and productivity. Numbers 7 and 11 are related to improving leadership; points 8, 9, 10, 11, and 12 advise removing barriers that keep workers from doing their best, most effective work; and number 13 advises that workers should be educated, not just trained. SU1-Chapter 2 Activity 7 Solution Preparation: • After reading the section(s) of your Study Guide on Deming, you should view the recommended YouTube video on “W. Edwards Deming” (Part 1, 2 and 3). The following needs to be considered in your answer development: • Chosen organisation can be an existing organisation that you are currently working for or have worked for in the past. Alternatively, you can choose an organisation that you are very familiar with their business processes. SU1-46 BUS204 Total Quality and Quality Theories • Answer should be based on the 4 components of The System of Profound Knowledge as opposed to Deming 14 Points. • Deming principles must be well and clearly related to the quality impacted. • Although many applications of The System of Profound Knowledge were in a manufacturing (product-based) setting, this system is also applicable in servicebased industry in today’s world owing to the sophistication of service delivery and customers today. SU1-Chapter 2 Activity 8 Solution Like Deming, Juran advocated company-wide quality management, with a never-ending process of quality improvement, involving such activities as market research, product development, production process control, inspection and testing, and customer feedback. He emphasised the need for management commitment to quality improvement, and the need for training of all employees in quality techniques. Juran also asked workers to get to know their external and internal customers, and to identify and reduce causes of variation by determining the difference between standard and actual performance and taking action on the difference. Unlike Deming, Juran did not propose major cultural changes in the organisation, but sought to improve quality within the system familiar to US managers. His detailed plan was based on identifying areas for improvement and acting accordingly. Juran also recognised the different "languages," or trains of thought, which occupy different levels of an organisation, and advocated communication between these "languages," where Deming proposed that statistics should be shared as a common language. SU1-47 BUS204 Total Quality and Quality Theories Website(s): The W. Edwards Deming http://www.deming.org Institute The W. Edwards Deming Institute site provides a legacy of extensive information about the man, his philosophy, and the Deming Prize. The Juran Institute www.juran.com The Juran Institute site includes case studies of successful applications of quality improvement and access to many published papers for a free registration. SPRING Singapore, https:// SPRINGnews,2011 www.enterprisesg.gov.sg/ SU1-48 BUS204 Total Quality and Quality Theories Formative Assessment 1. TQM stands for ________ . a. Test Quality Materials b. Teaching, Quality and Management c. Track Quantities Missing d. Total Quality Management 2. TQM is a strategy that is designed to change the quality of a product to satisfy customer needs by using the concept of _________. a. management oriented approach b. brainstorming c. product maintenance d. product life cycle analysis 3. The specific concerns of total quality management (TQM) include a number of aspects. Which of the following is not normally associated with TQM? a. Primarily a “worker” rather than a management activity b. Inclusion of every person in the organisation c. Covering all parts of the organisation d. Meeting the needs and expectations of customers 4. What does the term Kaizen mean when applied to quality? a. Quality is everyone's job b. Mutual dependence c. Continuous improvement d. Maintain a steady flow 5. Which of the following is not a basic principle of Total Quality Management? SU1-49 BUS204 Total Quality and Quality Theories a. Identifying reliable suppliers b. Teamwork and employee engagement c. Continuous improvement d. Focus on stakeholders and customers. 6. Quality costs may be divided into costs associated with: a. prevention, appraisal, and failure b. people, process, and product c. customers, developers, and maintenance d. all of the listed choices. 7. Six Sigma methodology defines three core steps a. analyze, improve, check b. analyze, design, verify c. define, measure, analyze d. define, mitigate, control 8. Six sigma is based on a simple problem solving methodology known as: a. DMACC b. DELAY c. PDCA d. DMAIC 9. Quality Circles members are a. paid according to their contribution to quality. b. external consultants designed to provide training in the use of Quality tools. c. all trained to be facilitators. d. none of the listed choices. SU1-50 BUS204 Total Quality and Quality Theories 10. In the 1980s, __________ was established to enhance the competitiveness of businesses by promoting quality awareness, recognising quality and performance achievements, and publicising successful performance strategies of organizations in the areas of manufacturing, service, and small business. a. ISO 9000 b. ISO 14000 c. TQM d. the Malcolm Baldridge Award 11. What perspective does Crosby adopt when defining quality? a. Setting and meeting specifications is the critical issue. b. Quality must be defined subjectively. c. Fitness for purpose is the key. d. None of the listed choices. 12. If "quality is free", why do authorities recognise that an improvement programme needs investment? a. There is an inevitable worsening of quality during periods of change. b. Reductions in prevention, and appraisal costs lag behind investment in prevention. c. It is never free. d. Zero defects is not possible. 13. What do the initials of the PDCA cycle stand for? a. Plan, do, check, act b. Plan, design, control, act c. Problem, diagnosis, conclusion, action d. Plan, design, control, assess 14. Which of statements about poor service quality is correct? SU1-51 BUS204 Total Quality and Quality Theories a. Each complaint may hide many unresolved problems. b. Among those who complain, few will do business again even though their complaints are handled effectively. c. Finding a substitute service is an important reason for a customer quitting. d. Satisfied customers tell more people of their experience than dissatisfied ones do. 15. The so-called 'Quality Gurus' of total quality management (TQM) does NOT include one of the following: a. Philip Crosby b. Henry Ford c. W Edwards Deming d. Joseph M Juran 16. Which of the following is not part of the Deming Chain Reaction? a. Costs decrease. b. Productivity improvement. c. Stay in business. d. None of the listed choices. 17. Based on his 14 Points, Deming is a strong proponent of a. inspection at the end of the production process. b. an increase in numerical quotas to boost productivity. c. looking for the cheapest supplier. d. Improve constantly and forever the system of production and service. 18. Which of the following is not part of the Basic Elements of Improvement under Crosby’s Absolutes of Quality Management? a. Quality means conformance to requirements, not elegance. b. There is no such thing as a quality problem. SU1-52 BUS204 Total Quality and Quality Theories c. The only performance standard is Zero Defects. d. All of the listed choices. SU1-53 BUS204 Total Quality and Quality Theories Solutions or Suggested Answers SU1-Chapter 1 Activity 1 Solution Evidence of the search for quality dates back to ancient Egypt, as indicated in the precision and uniformity of methods used in the construction of the pyramids. The craftsperson of the Middle Ages took special care to ensure quality in his/her product, a necessary step since he/she dealt directly with the customer. In the late 18th Century, the Industrial Revolution occurred with development of interchangeable machine parts. The Industrial Revolution itself was a key turning point, since it made quality assurance a critical component of the production process. However, quality was determined only after the products were finished, rather than during the manufacturing process, so as volume increased and costs decreased, craftsmanship decreased. Quality control techniques were further developed in the early 20th Century, when methods of inspection to improve and maintain quality were gradually separated from production techniques. The significant difference between early and late 20th Century quality approaches was the development of the concept of “total quality” as applied to every area of an organisation, not just the production and/or operations functions. In the early 21st Century, the emphasis has been placed on bringing quality improvement to the “bottom line” results by alignment of quality objectives with organisational goals. SU1-Chapter 1 Activity 2 Solution There have been several factors contributing to increased awareness of quality including gaps between competitors’ quality levels, product recalls, and massive quality failures. SU1-54 BUS204 Total Quality and Quality Theories The realisation of the superior quality of Japanese, German, and other products from nonUS firms in the 1970s, 1980s and up to the present (Then, in initial quality levels; today, in long-term product reliability) was a “wake-up call” about the lack of quality for many US products. In the last 20 years, periodic quality issues have arisen, such as the extensive product recalls by the Consumer Product Safety Commission in the early 1980s. From “battery fire” of computing devices and Boeing Dreamliner, to product recalls such as the ones for many car manufacturers have kept the public's minds on quality throughout the 1990s and into the 21st Century. Improvements in technology, reassessment of inadequate managerial philosophies, and the economic impact of international competitiveness have also been important factors. SU1-Chapter 1 Activity 3 Solution Webster's definition of quality is vague and simplistic. "(Quality is) that which makes something what it is; characteristic element." The ANSI/ASQ definition states quality is "the totality of features and characteristics of a product or service that bears on its ability to satisfy given needs." No single definition is adequate because customer needs are constantly changing and because quality is "situational" -- e.g. a good design for one purpose, and in the eyes of one set of customers, may represent a poor design for another use or another set of customers. Reliance on a single definition of quality is frequently a source of problems. SU1-55 BUS204 Total Quality and Quality Theories SU1-Chapter 1 Activity 4 Solution The concept of total quality is complex and multifaceted. It requires a focus on people and customers at every level of an organisation, cost containment, a systems approach, integration into organisational strategy, a cross-functional and external-internal scope, and learning and adaptation to continuous change. It is based on a philosophy of the application of the scientific method and includes systems, methods and tools. It stresses the values of the dignity of the individual and the power of c...
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