Hong Kong Society for Quality (HKSQ) is celebrating
its 30th Anniversary in 2016.
One of the activities to commemorate this occasion is the first seminar
of our Quality Philosophies Series featuring Deming, Juran and Crosby which
held on 9 April 2016. Then we arranged a
Deming Workshop on 3 July 2016 and the trainer was Dr. Aaron Tong (Former Chairman, HKSQ) who
was the first people I knew in Hong Kong attended Dr. Deming famous 4 Days Training
Course named “Methods for Management of Productivity and Quality” in USA in
1987. Since Deming’s theory established
30 years ago, Aaron would review that theory with us in modern management
perspective.
Before the seminar, I (Former Chairman, HKSQ)
introduced our flagship event named “The 1st World Summit for
Chinese Quality” and the post-summit innovation seminar entitled “Introduction
and Application of Extenics” on 8 & 9 July 2016, respectively. Extenics was Chinese original innovation
methodology developed by Prof. Cai Wen for 30 years.
1) The 1st World Summit for Chinese Quality (WSCQ)
(第一屆全球華人品質峰會) http://www.cityu.edu.hk/seem/wscq2016/
2) The post WSCQ innovation seminar
"Introduction and Application of Extenics" (可拓學創新方法的介紹及應用) http://www.hksq.org/Seminar-on_Extenics_9-July-2016_v3.pdf
Dr. Aaron Tong (Managing Director, TQM Consultants
Limited & Former Chairman, HKSQ) was the workshop trainer and he shared
Deming’s Philosophies and his experience.
He told us that he served company after he come back from USA in 1989
and then it had achieved Hong Kong Industry Awards both Quality and
Productivity. He employed what he learnt
from Deming and improved his served company getting the following results:
i)
First test from 100% inspection to 10% sampling
inspection
ii)
Burn-in test from 24hr reduced to 4hr
iii)
Final test from 80s reduced to 25s
The productivity had much enhanced and quality also
improved that field failure reduced 50%!
Moreover, the first test passing rate increased from 94% to 99%.
Then Aaron briefed the history of west management
since Tayor and then process production line was optimized by Henry Ford. However, Japan was ahead USA in manufacturing
in 80s. Mr. Konosuke Matsushia issued an
article in US newspaper in 1979 and said that “We are going to win and the
industrial west is going to lose out… Your firms are built on the Taylor model;
even worse, so are your heads.” Then USA
started to study why Japan industry success.
Then they found an American named Dr. Edwards
Deming who was famous in Japan. Deming’s
contribution in Japan was recognized and USA accepted his philosophies (In
Chinese: 出口轉內銷). At the time, Dr. Deming was around 80 years
old.
After that Dr. Tong explained Deming’s 14 Points one by one and shared his ideas.
(W. Edwards Deming’s 14 Points for Total Quality
Management - http://asq.org/learn-about-quality/total-quality-management/overview/deming-points.html
)
1)
Create
constancy of purpose for improving products and services.
Aaron explained that today’s environment was
changed (e.g. Short product life cycle, Internet + and new generation). Do the constancy of purpose still valid?
2)
Adopt
the new philosophy.
In the past, the West thinking was that increasing
Quality would decrease the Productivity.
However, Dr. Deming proposed “Do
it right the first time” without rework that could increase both Quality
and Productivity.
3)
Cease
dependence on inspection to achieve quality.
Aaron quoted the case about
US army parachute which compliance rate was 99.9% during WWII. The general was very angry because of half
solider die from parachute! Therefore,
the general asked the person-in-charge in the factory to test the parachute and
irregular to sample parachute for that person-in-charge to test it. After that no solider died because of
parachute quality. Aaron told us to
solve problem not necessary related to cost but policy. It could be seems as “Accountability”! He also discussed the Craftsman's spirit (匠人精神) that Japanese and Germans were representatives and
outstanding.
4)
End the
practice of awarding business on price alone; instead, minimize total cost by
working with a single supplier.
Aaron challenged the tendering system that do it
really Open, Fair and Justify (公開, 公平, 公正)? He also explained the different between
Single Source and Sole Source. Single source
is selectable but the sole source you haven’t choice.
5)
Improve
constantly and forever every process for planning, production and service.
Aaron said one of breakthrough in ISO 9001:2015 was
in the clause 10 Improvement. The note
stated “Example of improvement can include correction, corrective action,
continual improvement, breakthrough change,
innovation and re-organization.”
Then we discussed the PDCA vs DMAIC. Aaron said Japanese believed PDCA and they
met the problem and must do after plan without considered cost. But American considered DMAIC on ROI
first. After Analysis phase, we could
stop the project if it was not valuable to do it.
6)
Institute
training on the job.
Aaron quoted Motorola case that their policy was
50hr training per staff per year. But it
was trouble of team head to assign some training to ordinary staff! It is because lack of focus! Now, we focused on competence-based
training. One of participants (Charles)
shared that training is only 10%. Supervision involved 20% of staff
development. But the most important is
self-study involved 70%. Therefore, many
professional organizations employed Continuous Professional Development
(CPD). In addition, Aaron said teacher taught
student in the past but student could know more new things than teacher in this
internet era.
7)
Adopt
and institute leadership.
In the past, no leadership stated in ISO 9001 QMS
standard because leadership decision was subjective in the view of
auditor. Recently, ISO 9001:2015 was
added the leadership in which was more like Malcolm Baldrige National Quality
Award (MBNQA). Aaron briefed his idea
about leadership in three elements and they were Power, Authority and
Influence. Power could come from Money, Force
and Knowledge. Authority is from
organization and Influence is from team/group of people.
Aaron briefed the different between Leadership and
Management. Since I am CMQOE, I would like
to use the following table to explain it.
The information is come from CQM Primer in 2000.
9)
Drive
out fear.
Aaron discussed the Henry Ford’s statement that “Workers
only bring his hands to factory but not his brain.” Why? It
was because Ford’s mass production only for one type of product “T-model” and
only one color at that time. It is less
variance and very stable. Unit 1979, the
world was changed and Japan ahead USA manufacturing and they created QCC that
also employed the worker’s brain! Aaron
believed Honest, Forgiving and Knowledgeable.
But he said forgiving needed to be calibrated. Because of Chinese Culture, you don’t blame
the staff/people that was forgiving. His
understanding was that to told people the fact and then to help him doing his job
right.
10)
Break
down barriers between staff areas.
He told us the ultimate breakdown of barrier
between departments was found in GE Medical that they only remained the profit
departments (e.g. Sale and Marketing) and others were outsourcing! Another example was breakdown of barrier
among companies such as CLP who worked with his suppliers and customers.
11)
Eliminate
slogans, exhortations and targets for the workforce.
Aaron said it was Deming’s believe but his was
different. He introduced his company’s
slogans and it was what he would like to achieve but had not achieved yet. He also told us not only slogans but also
change the culture through penetration.
12)
Eliminate
numerical quotas for the workforce and numerical goals for management.
Why Deming promoted to eliminate numerical quotas? At his time, management by objective (MBO)
was very popular but Deming’s thinking was different. Because he knew the humanity and he tried to
TRUST people to do his best rather than control them.
12)
Remove
barriers that rob people of pride of workmanship, and eliminate the annual
rating or merit system.
Japan was the outstanding to pride of workmanship. During discussion, Aaron pointed out that
some Japan companies may be too much depended on their Craftsman's spirit (匠人精神) but they was not able to catch the change
of market. Another thing was appraisal
that Deming would like to eliminate it.
Aaron said it was because supervisor should know their subordinate
performance and the appraisal worked daily.
Once problem happened, supervisor should discussed with subordinate as
soon as possible to correct it.
13)
Institute
a vigorous program of education and self-improvement for everyone.
Aaron discussed with us that internal staff growth
or acquire of external expert. He
observed the trend was acquired from outside because real experts / talents
didn’t work with big companies but to be startup. So many new technologies were come from
M&A such as Google’s Android, Blogger, AlphaGo, etc.
14)
Put
everybody in the company to work accomplishing the transformation.
USA had transformation successfully based on Deming’s
philosophy and focused on self-management.
Group photo of speakers and participants were taken
for memory.
(Left: Sammy Chan, Gloria Leung, Ronald Chwa, Aaron
Tong, Minda Chiang, I, Warren Chim, Janson Kong, Charles Ho, Streamlet Siu and
Raymond Szeto)
Reference:
HKSQ - www.hksq.org
20160409: HKSQ
Quality Philosophies Series – Deming, Juran and Crosby - http://qualityalchemist.blogspot.hk/2016/04/hksq-quality-philosophies-series-deming.html
20110211: Quality Guru changed the world - http://qualityalchemist.blogspot.hk/2011/02/quality-guru-changed-world.html
20080310: Three Quality Gurus have long life - http://qualityalchemist.blogspot.hk/2008/03/three-quality-gurus-have-long-life.html
20071106: The History of Quality Management - http://qualityalchemist.blogspot.hk/2007/11/history-of-quality-management.html
Deming related
events:
20141105: HKSQ Dinner with Ms. Jane Seddon (PMI) - http://qualityalchemist.blogspot.hk/2014/11/hksq-dinner-with-ms-jane-seddon-pmi.html
20140615: HKSQ Dinner with John Hunter (Deming
Institute) - http://qualityalchemist.blogspot.hk/2014/06/hksq-dinner-with-john-hunter.html
20131127: Quality Management makes people and
organization SMARTER (Prof. Yoshinori Iizuka - Deming prize winner in 2006) - http://qualityalchemist.blogspot.hk/2013/11/quality-management-makes-people-and.html
20091210: Dinner with Prof. Hiroshi OSADA (Deming
Prize Winner 2009) - http://qualityalchemist.blogspot.hk/2009/12/dinner-with-prof-hiroshi-osada-deming.html
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