Управление качеством в международных корпорациях. Практикум на английском языке

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to the service industry as Service Management (Norman, 1984). Parasuraman and his co-workers in 1985 developed a conceptual model of service quality which was refined into a measurement for service quality called SERVQUAL (1988). However, interests in servicequalitytookoffwhenAlbrechtandZemkepublishedtheirbook, “ServiceAmerica”, in 1985. Thereafter, the hotel industry became the first among the private the service industries to implement service quality. This was followed by the financial and banking services which adopted SQM as a means of measuring their customer orientation and customer satisfaction. Today, service quality is accepted as a norm in the service industries.

In Singapore, the republic civil service embraced service quality very early in the 1990s and went on to develop service quality into a world-class concept to enable Singapore to become a world center for trade, finance, port, hotel and service industry (Singapore Competitiveness Report, 1998). Part of the success of the service country could be attributed to the formation of the Service Quality Centre in 1990. This center is a joint venture between the Productivity and Standards Board of Singapore and SingaporeAirlines to create a training center to improve service quality. Since then, the civil service has gone on to develop the “PS21” vision, which is the public service in the twenty-first century (Singapore Competitiveness Report, 1998).

In Malaysia, the first Civil Service Excellence Work Culture was launched in 1989 and provided the impetus for service quality in the country. These initiatives were supported by recognition awards at nationallevel(seebelow)tohelpinimprovingqualityinthecivilservice. Sustaining service quality initiatives is not easy and the government has to come up with campaigns from time to re-ignite interests in the civil service sector. In Brunei, Indonesia and Philippines, the civil service continued on with their QCCs which became modified to include service quality techniques.

Case: World-class standards and global in Asian countries

In 1995 and 1997, South Korea, Singapore, Malaysia and Indonesia went one step further in quality by going for world-class and benchmarking for improvements.

South Korea is the more advanced in setting the standards of best global practice in the nine selected Asian countries. In 1995,

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the government of Korea encouraged the 100-PPM (part per million) practiceforfirmsthatshowedconsistentlylowdefectrate(under0.01% defects). Today, there are 450 firms that have achieved 100-PPM certification (Kim & Park, 1999). Hyundai Motor Company has been instrumental in supporting this campaign by ensuring that its suppliers comply with 100-PPM standards. In 1996, Korea’s Samsung Display Devices adopted the Six-Sigma program (developed by Motorola) keep defects to below 3–4 defects in a million parts as a means to cut down costs by 250 billion Korean Won. Kim and Park (1999) envisage that Global Quality Management will take the place of existing TQM systems as manufacturing and information technology cuts across more international geographical borders due to competition and the need to move industries globally in search of manufacturing advantages.

Two hundred companies in Singapore have been identified and will be nurtured to be developed into global companies under the assistance of the Productivity and Standards Board, with the injection ofgrantsandfundsfromtheSingaporegovernment.Thesehavebeen put under the category of National Quality Class. Benchmarks with worldcompaniesandthetransferofthebesttechnologiesfromaround the world are in progress. For instance, the Singapore Economic Development Board is attracting the world’s top ten universities to be set up in the Singapore Technology Park. Already, John Hopkins Hospital (for Medicine), IMEDE university form Europe and Boston University are already confirmed of their set up in Singapore, and the local universities have established strategic alliances with MIT (USA) and other top universities to develop the manpower in Singapore into world class (Chan, 1999).

Malaysia has set its sights to be world class by the National ProductivityCentreformingabenchmarkingdatabaseforbestpractice and performance (NPC webpage, 1999). Companies which subscribe to BOND, the database, are able to access on-line benchmarking resources to search for best practices world–wide. For instance, Carsem – an electronic manufacturer, – is shown in a sample in the database, as having the best practice for customer handling system. The government has also set up the Multimedia Super Corridor, a 20km long area for the development of world–class IT projects, and many of the ventures initiated by the government is to develop the mind-set of Malaysians to think “world class” (Chan, 1999).

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India has the Quimpro Gold Standard for firms which have been recognized to be of world-class quality (Chandra & Bhatnagar, 1999).

In Indonesia, in 1996, PT Terang Kita, a cable manufacturer, was identified by the Japanese Standards Association (JSA)/International Standardization Cooperation Center as a company to be a model and reference for implementation of TQM and standardization in Asia. This award is given by the government of Japan to assist developing countries in TQM (Prajogo, 1999). Besides this, there is no national effort in promoting world-class in Indonesia.

Brunei is too far behind in the quality management to pursue world-class practices, although Shell Brunei will be best poised to pursue this initiative as part of their long term TQM initiative started in 1988 and is now in the stage the oil company calls the advancement stage (Heng, 1999).

Thailand and Philippines are certain to move to world class quality direction as soon as they have completed their respective phases of TQM implementation. Meralco (Llana, 1998), the power company in Philippines, will stand a good chance of attaining world–class as they have started bench–marking as part of the quality improvement process started way back in 1986. The company has experimented with many techniques even before the concepts like TQM were popularly known. Thailand may have delays in world–class practices because of language barriers as consultants and the local managers have to overcome this first obstacle. There are lots of multinational companies and they will be the first to aspire to world–class, although driven by their head office directives.

Tasks

1.Analyze which countries have the best-developed infrastructure facilities (based on numbers or reach of population) in the selected Asian countries?

2.In which years TQM was applied to the civil service? Discuss it in your group.

3.How do you think why TQM was so difficult to apply? Explain your opinion.

Question

1.WhyThailand’scompanieshaddelaysinworld-classpractices?

2.WhatkindofawardwasgiventoIndonesiancablemanufacturer

from Japanese Standards Association?

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3.In which country the government was set up the Multimedia Super Corridor for support quality and to think «world class»?

4.What is the 100-PPM in Korean quality standards?

References

1.Albrecht C., Zemke R. Service America. Homewood, Illinois: Dow Jones-Irwin. 2015.

2.Asian Productivity Organization. Webpage: www.apo–tokyo. com. 2012.

3.CalingoL.,Ma.R.«TotalQualityManagementinthePhilippines: Public Policy and the State of Practice». Selected Asian CountriesEC Management Centre, Brunei unpublished. 2014.

4.Chan T. H. «Comparative Study on Quality Management Practices in Malaysia». Comparative Study of Quality Management Practices in Selected Asian Countries, Nanyang Technology University/ Ministry of Education, Singapore. 2013.

5.Chan T. H. «Singapore Basic Information Facts ~ Government Information & Plan». Singapore: Nanyang Technology University, unpublished. 2015.

6.Chandra P., Bhatnagar R. «Quality Management Practices in India», Comparative Study of Quality Management Practices in Selected Asian Countries, Nanyang Technology University/ Ministry of Education, Singapore. 2012.

7.CountryFactbookHomePage(2012).www.odci.gov/cia/publication/ factbook: Brunei: “bs.html” pp. 1–8–Indonesia: “id.html” pp. 1–8– Malaysia:“my.html”pp.1–9–Philippines:“rp.html”pp.1–9–Singapore: “sn.html” pp. 1–8 –Thailand: “th.html” pp. 1–9.

8.Kim K. Y., Park J. B. «Quality Management Practices in South Korea: Evolution and Current Assessement. Comparative Study on Quality Management Practices in Selected Asian Countries», Quality Management.

9.Research Unit, Nanyang Technological University/Ministry of Education, Singapore. unpublished. 2014.

10.Korea StandardsAssociation. «The History of Korean Quality Management Practices». Korean Standards Association. 2012. pp. 116, pg. 187.

11.Lee P. M., Lim B. C. «Quality Management in Singapore. Selected Asian Countries». EC Management Centre, Brunei, unpublished. 2013.

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16. SEVEN JAPANESE QUALITY

MANAGEMENT TOOLS

The purpose of this practice – to discuss and fix bases of quality management tools, its main principles in Japan.

This practice will allow creating competences PK-3: possession of skills of the strategic analysis, development and implementation of strategy of the organization aimed at providing competitiveness; and PK-5: ability to analyze interrelations between functional strategy of the companies for the purpose of preparation of the balanced administrative decisions and also to acquire the following knowledge and abilities:

–knowledge of quality management basesin Japan;

–understandingofanorderofitsimplementationinthecompanies’ activity;

–ability to define, what elements quality managementin Japanconsist in and how to use them to develop the company and economy.

Relevance of practice consists in necessity to know Seven Japanese quality management tools.

Theoretical part

The Japanese began applying the thinking developed by Walter Shewhart and Edward Deming during the 1930s and 1940s. Japan’s progress in continuous improvement led to the expansion of the use of these tools.

Kaoru Ishikawa, the then head of the Japanese Union of Scientists and Engineers (JUSE), thus, decided to expand the use of these approaches in Japanese manufacturing in the 1960s with the introduction of the seven quality control (7QC) tools.

7QC tools are fundamental instruments to improve the quality of products. They are used to analyze the production process, identify major problems, control fluctuations of product quality and provide solutions to avoid future defects.

These tools use statistical techniques and knowledge to accumulate data and analyze them. They help organize the collected data in a way that is easy to understand. Moreover, by using 7QC tools, specific problems in a process can be identified.

The first is the check sheet, which shows the history and pattern of variations. This tool is used at the beginning of the change process to identify the problems and collect data easily.

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The defining characteristic of a check sheet is that data are recorded by making marks («checks») on it. A typical check sheet is divided into regions, and marks made in different regions have different significance. Data are read by observing the location and number of marks on the sheet.

Kaoru Ishikawa identified five uses for check sheets in quality control:

1)to check the shape of the probability distribution of a process;

2)to quantify defects by type;

3)to quantify defects by location;

4)to quantify defects by cause (machine, worker);

5)to keep track of the completion of steps in a multistep procedure (in other words, as a checklist).

The team using it can study observed data (a performance measure of a process) for patterns over a specified period of time. It is also used at the end of the change process to see whether the change has resulted in permanent improvement.

The Pareto chart is named after Wilfredo Pareto, the Italian economist who determined that wealth is not evenly distributed. The chart shows the distribution of items and arranges them from the most frequent to the least frequent, with the final bar being miscellaneous.

The Pareto chart is used to define problems, to set their priority, to illustrate the problems detected and determine their frequency in the process. It is a graphic picture of the most frequent causes of a particular problem. Most people use it to determine where to put their initial efforts to get maximum gain.

The cause and effect diagram is also called the «fishbone chart» because of its appearance and the Ishikawa chart after the man who popularized its use in Japan. It is used to list the cause of particular problems. Lines come off the core horizontal line to display the main causes; the lines coming off the main causes are the sub causes.

This tool is used to figure out any possible causes of a problem. It allowsateamtoidentify,explore,andgraphicallydisplay,inincreasing detail, all of the possible causes related to a problem or condition to discover its root cause.

The histogram is a bar chart showing a distribution of variables. This tool helps identify the cause of problems in a process by the shape as well as the width of the distribution. It shows a bar chart of accumulated data and provides the easiest way to evaluate the

distribution of data.

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Then there’s the scatter diagram, which shows the pattern of relationship between two variables that are thought to be related.

A scatter plot, scatter plot, or scatter graph is a type of mathematical diagram using Cartesian coordinates to display values for two variables for a set of data.

The data is displayed as a collection of points, each having the value of one variable determining the position on the horizontal axis and the value of the other variable determining the position on the vertical axis. This kind of plot is also called a scatter chart, scatter gram, scatter diagram, or scatter graph.

The closer the points are to the diagonal line, the more closely there is a one-to-one relationship. The scatter diagram is a graphical tool that plots many data points and shows a pattern of correlation between two variables.

Graphs are among the simplest and best techniques to analyze and display data for easy communication in a visual format. Data can be depicted graphically using bar graphs, line charts, pie charts and control charts. While the first three are commonly used, the last is a line chart with control limits.

By mathematically constructing control limits at three standard deviations above and below the average, one can determine what variation is due to normal ongoing causes (common causes) and what variation is produced by unique events (special causes).

By eliminating the special causes first and then reducing common causes, quality can be improved. Control chart provides control limits that are three standard deviations above and below average, whether or not our process is in control.

The control chart was invented by Walter A. Shewhart while working for Bell Labs in the 1920s.

This tool enables the user to monitor, control and improve process performance over time by studying variation and its source.

Case: On the use of the basic quality tools for the improvement of the construction industry

In the era of competitive markets and globalization, quality concepts and philosophies have emerged as strategic issues at all organizational levels and in all industries and services including the construction industry which is the major asset of national economies.

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International quality standards and excellence models such the ISO 9000 standards, the EFQM model, Deming Prize and the KingAbdul– Aziz Quality Award model require organizations’ quality systems to be built on processes, rather than requirements, departments or functions. Consequently, proper process identification and management are becoming more relevant and critical challenges for quality professionals, process engineers and business leaders.

World/class organizations use total quality management (TQM) tools to identify, analyze and assess qualitative and quantitative data that are relevant to their processes with the main objective towards the continuous improvement of the process and the delivery of high quality products and services.

One of the simplest and most effective tools used by engineers in manufacturing and service processes for problem solving and quality improvement, are the basic quality tools known as the magnificent seven. Japanese quality guru, engineering professor, Kaoru Ishikawa who is the inventor of the seven basic quality tools stated clearly that95% of quality related problems in any organization can be resolved using these tools and hence many opportunities for improving processes can be generated; This important statement has been proven in the field by different organizations and researchers including the construction industry worldwide.

In such an important industry, there is a room for improvement in terms of product quality, productivity improvement and more importantly in customer satisfaction. This can be achieved through the implementation of quality philosophies such as TQM, six sigma or the excellence models and the application of the associated tools and techniques.

The seven basic quality tools are simple tools that can be used by any professional to ease the quality improvement process. These are: flowcharts, check sheets, Pareto diagram, cause and effect diagram, histogram, scatter diagram, and control charts. These tools were originally developed by Kaoru Ishikawa, one of the pioneers of the Japanese quality movement. Ishikawa’s original list did not include flowcharts; instead, it had graphs as one of the tools. These seven basic tools have been considered a part of Statistical Process Control (SPC), equality management system that uses a set of tools to analyze, control, manage, and improve process quality.

It is to be stressed here that the control charts in particular and the seven basic quality tools in general have demonstrated great

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capacity in the improvement of manufacturing and services industries across the globe and the construction industry can benefit from these tools. There are basically five reasons behind this:

1)the seven basic quality tools are proven techniques for improving productivity;

2)they are effective in defects and errors prevention;

3)they prevent unnecessary process adjustments;

4)they provide diagnostic information;

5)they provide information about process capability to meet customer requirements

Task

1. Explain the key role of the seven management tools in the construction industry.

Questions

1.What are the main tools of quality management?

2.What is a checklist?

3.What tools are displayed using diagrams?

References

1.NayataniY.,T.EigaR.FutamiandH.Miyagawa.TheSevenNew QC Tools: Practical Applications for Managers, Quality Resources, White Plains NY. 2014.

2.Mizuno S., ed. Management for Quality Improvement: The 7 New QC Tools, Productivity Press, Inc., Cambridge MA. 2013.

17. QUALITY ASSURANCE AND RELIABILITY IN THE JAPANESE ELECTRONICS INDUSTRY

The purpose of this practice – to discuss and fix bases of Quality assurance and reliability, its main principles in the Japanese electronics industry.

This practice will allow creating competences PK-3: possession of skills of the strategic analysis, development and implementation of strategy of the organization aimed at providing competitiveness; and PK-5: ability to analyze interrelations between functional strategy of the companies for the purpose of preparation of the balanced

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administrative decisions and also to acquire the following knowledge and abilities:

–knowledge of quality management bases in the Japanese electronics industry;

–understandingofanorderofitsimplementationinthecompanies’ activity;

–ability to define, what elements of Quality assurance and reliability in the Japanese electronics industry and how to use them to develop the company and economy.

Relevance of practice consists in necessity to know the Japanese experience of Quality assurance and reliability.

Theoretical part

Quality and reliability are two attributes required for all Japanese products, although the JTEC panel found these attributes to be secondary to customer cost requirements. While our Japanese hosts gave presentations on the challenges of technology, cost, and miniaturization, quality and reliability were infrequently the focus of our discussions. Quality and reliability were assumed to be sufficient to meet customer needs. Fujitsu’s slogan, «quality built–in, with cost and performance as prime consideration», illustrates this point. Sony’s definition of a next-generation product is «one that is going to be half the size and half the price at the same performance of the existing one». Quality and reliability are so integral to Japan’s electronics industry that they need no new emphasis.

The quality movement in Japan began in 1946 with the U.S. Occupation Force’s mission to revive and restructure Japan’s communicationsequipmentindustry.GeneralDouglasMacArthurwas committed to public education through radio. Homer Sarasohn was recruitedtospearheadtheeffortbyrepairingandinstallingequipment, makingmaterialsandpartsavailable,restartingfactories,establishing theequipmenttestlaboratory(ETL),andsettingrigidqualitystandards for products (Tsurumi 1990). Sarasohn recommended individuals for company presidencies, like Koji Kobayashi of NEC, and he established education for Japan’s top executives in the management of quality. Furthermore, upon Sarasohn’s return to the United States, he recommended W. Edwards Deming to provide a seminar in Japan on statistical quality control (SQC).

Deming’s 1950 lecture notes provided the basis for a 30– day seminar sponsored by the Union of Japanese Scientists and

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