TQM is still important and can make business success a certainty.Inshallah.

Brief introduction to tqm, based on the books.

Total Quality Management

TQM is as much a philosophy than anything else.

There are various levels of how “radical” a TQM philosophy can be, but the essence is that TQM is about reducing costs through increasing quality. Quality gets increased by making less mistakes, producing products with less defects, and so on and so forth. It is often said that “quality is free” – any cost put into improving quality will eventually save money later. The change to promote quality has to come from the top, i.e. the management, and for the management to do anything, they will have to be convinced that whatever they do earns them money. Due to this, an important point of TQM is quantifying the money you save through improving quality. This is done through assigning a cost to bad quality.

The most extreme for of TQM is working towards a philosophy of “There should be no mistakes. Ever. Anywhere. with anything. Did I mention ever?”. (Main proponent of this was a guy names Crosby, who wrote “Quality is free” in 1980). This seems to be the origin of the name, “Total Quality Management”, i.e. “There SHALL be TOTAL quality!” (said in a Gandalf’y voice) However, in general this approach of “no mistakes, ever, at all” is considered unrealistic, but it is worth a mention.

Instead “modern” TQM aims to have as few mistakes as possible, constantly striving to make less mistakes. This is a more complex issue than it seems. There are two very important people behind the basics of TQM. The didn’t agree entirely, but their ideas can mostly be used interchangeably. I will give an overview of their main ideas.

First up, Dr. Joseph M. Juran. He believed management needed a way to quantify quality, so he came up with metrics that quantify them. Quoting from page 12 of “Handbook of Total Quality Management”:

1. Internal Failure Costs – these costs relate to deduction of defects prior to the shipment of the product to the end user. Such may include the cost of rework, scrap, salvage, inspection.
2. External failure costs – These costs are incurred after the product has reached the end user and defects are detected. This may include warranty costs, complaints from customers, loss of goodwill, returned materials, and repairs.
3. Appraisal Costs – this involves the assessment cost for product quality levels. For example, incoming products are inspected for quality, as well as outgoing products. Processes may be periodically inspected and maintained.
4. Prevention costs – this deals with the cost of trying to prevent defects, such as training costs.

Juran also blamed management, and put forth 3 points management needed to make sure they sorted out. Quoting from page 13 of the same book:

1. Quality planning – he stressed the need to recognise and understand the customer group that the firms or business unit caters for. This customer group includes internal and external customers. Internal customers often arise when there is transaction or exchange between interdependent units or departments in the same organisation. Their needs must be recognised in order to improve quality.
2. Break down the needs of the customer. This makes it clear to members of the organisation and easier to develop a product design that will satisfy those needs. In a sense, this is a means of making customer needs operational.
3. Ensure that processes operate correctly and are capable of meeting product design specifications.

The other important guy in TQM is Dr. Deming (worked as a mathematical physicist in for the US department of agriculture in the late 20s). He outlined a lot more of the philosophies behind TQM. The most important thing he did was outline 14 points for management. I will give the short versions of them below, and attempt to scan the full versions and send you a PDF of them (as they nicely summarise many of the ‘softer’ philosophies behind TQM)

• Create consistency of purpose to achieve continuous improvement of products and services and survival of the firm.

In other words “What the hell are we SUPPOSED to be doing? What is expected of us?”

• Adopt the new management philosophy where western management must respond to challenge and lead through change

In other words, “Find problems and fix them”. An important point here is the subtle difference between maximising the wealth of the stockholders (which you shouldn’t necessarily be doing), and maximising the wealth of the stakeholders (which you SHOULD be doing). The stakeholders also includes customers, employees, etc.

• Cease dependence on inspection and build quality into the product

Basically, “stop looking for faults at the very end.” Quality should be maintained in every part of production – if an employee is directly aware of his or her mistakes, rather than a potential mistake being observed only at the very end of production, the employee will be more motivated to make less mistakes.

• Cease the practice of awarding business contracts on the basis of price tag alone

I.e. also consider quality.

• Continuously improve the system of production and service to improve quality and productivity

Always improve anything you can improve

• Institute training on the job
• Overhaul leadership of management and production workers to help people and machines do a better job
• Drive out fear to improve effectiveness

Basically, encourage and train employees to become better, don’t threaten them.

• Break down barriers between departments and encourage teamwork
• Eliminate slogans, exhortations and targets from the workforce

Rather than telling employees how well they should be doing, you should just facilitate so that they can do as well as they can. Ties in with “drive out fear.”

• Eliminate work standards, management by objectives, and numerical goals

Self explanatory, but there is an important subtlety. TQM is, in essence, about quantifying everything. This is to make sure everything can be made better. This quantifying should -not- be used to define goals, but rather to identify where improvements might be made.

• Remove barriers that rob the hourly worker, people in management and engineering their right to pride in workmanship

A complex point, but it boils down to making sure a worker can look at their work and be proud of it.

• Institute educational and self-improvement programs

If workers are motivated to go as well as possible, they will work to become as good as possible.

• Act to accomplish the transformation

Lead by example.

And that’s pretty much the most important parts from the introductions in the books.

To end on a concrete point though, and something that differentiates TQM as a philosophy from something like Six Sigma. Six Sigma by its nature defines an acceptable level of failure. This is fundamentally different from TQM, which stipulates that there is no such thing as an acceptable level of failure. Wherever there is failure, there is the potential to make things better. And making things better will always pay off.

 

Quality begins and ends with Education -Lets study (by YouTube videos) about Lean Mgmt and all things related like Kaizen,Problem Solving approaches etc…

You Must always study and study -contact Ramli at 0192537165 for all assistance to Make Your Company a Quality and Successful One!

ICQCC 2012 (the 37th Edition) will be held in Kuala Lumpur,Malaysia from 14th to 17th October,2012 at KL Convention Centre.This is the 2nd time Malaysia will be host to this International Conference for QCC.

To many Top Mgmt in Malaysia and also Rest of the World maybe Quality Control Circles (QCCs’) is no more important and an important Tool of Mgmt not like when QCC was initially started in Japan in 1962!Why?

Top Mgmt basically is so busy trying to make Great Profits to satisfy the greed and pockets of Shareholders and Stakeholders!True or False?

Nowadays,Top Mgmt like CEO,CFO or even CTO all have contractual terms and mostly for 2-3 years and subject to renewal or extension if so desired by Top Bosses!So,with a term of 2-3 years there is not much time for employee development work let alone coaching and mentoring session.Its all about performance and more profits!Sad to say,they forget that QUALITY PEOPLE MAKE QUALITY COMPANY AND THAT LEADS TO GREAT PROFITS AND PERFORMANCE!

QCC is one of the Tools of MGT developed in 1962 to help unleashed the talents of employees to infinite possibilities or performance.Like Dr.JM Juran he explained this by his PROJECT BY PROJECT approaches in work and by people in teams.

If you have read or attended the course on Quality Improvement Tools (QIT) by Juran Institute then you will realized the importance of this Project by Project approaches in work.Only by project (problem for solution) can organisations or companies improve or get BREAKTHROUGHS!

So,QCC was a similar approach to get all the problems at shop floors resolved and make the system better or in Juran terminolgy Go For Breakthroughs!

Top Mgt like in Malaysia all want FAST BIG RESULTS and many ignore the PDCA system of problem or improvement approaches and quickly want results at all costs!So,they get results but the problem keep coming back again and again because the root cause/s are not eliminated just shifted from one place to another!Like bad habits or poor discipline!

QCCs around the world since 1962 with Prof.Ishikawa from Japan and also JUSE have helped companies saved many millions and now billions of USD from wastages or COPQ appearing in processes and QCCs helped to eleiminate them and saved money from all the QCDSME subjects of improvements.

So thats why this QCC Movement is still around BUT looks like its death is coming unless new ways of promotion,marketing,training,exploration,R&D and other innovations are introduced,expanded and followed!QCC is good and is always good as Tool of MGMT if done the Right Way!

Now,in Malaysia especially they called QCC as Innovative & Creative Circle (ICC) for the private sector promoted by MPC and the Public Sector they also rebranded Kumpulan Meningkat Mutu Kerja or KMK before to Kumpulan Inovatif dan Kreatif (KIK) since Nov,2009 ( I think ).

OK,the rebranding is done well and good BUT the key performance,growth,participation by all like participation ratio of employees to total staff looks bad maybe on the downfall!True or False?

Ramli have been involved with QCC since he work in Matsushita in 1976 and later with Affin Bank in 1993 and got involved in all aspects of leadership,training,motivation,promotions,conventions,judging etc..Ramli also help introduce Managers Quality Teams (MQTs) with Affin Bank as a way to get all levels (TOP and Bottom) to really do Project by Project approaches in making the company Great in all aspects of Performance.

So,this ICQCC 2012 held in Malaysia again after the last one in 1996 (ICQCC 21st Edition) will hopefully be a “springboard” or booster to QCC@ICC@KIK in Malaysia to become Greater and position itself as a Greater Tool of MGMT in getting Great Results of Profits,People and Branding of the Company or Organisation to World Class Levels!Inshallah.

Contact Ramli Abu Hassan at hp:+6-019-2537165 or email: ramlipromoter for all training and consulting for QCC,MQT and World Class Performance subjects.Read Ramli’s Profile also at http://www.linkedin.com/in/ramlipromoter.

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Malaysia wastes lots of money for introducing new “things” when the older ones are as good or even better than the new ones!Whose fault?Of course the Leaders because they are the prime movers!Why?read on…..

The need for change is always important in a country like Malaysia because as they say the only thing that is constant is CHANGE!

However the “new things” or ideas made like a new establishment,a new methodology, a new guide,a new way of doing things and all that is new seem to leave a lot of question marks?Why?

These are what the modern world now called Management Fads!These are ideas created with such WOWs and then disappear from the Corporate Map as fast they appeared earlier on!Why?

These new management fads just cannot exist anymore or stand the test of time due to being a copy of some older ones and actually the originator have not be honest enough to tell the world that he/she/they copied from some old management tool/s to now tell the world they have a new tool!

Ramli have been taught and practice Total Quality Management ever since he started work with Matsushita in 1976 in Sg.Way FTZ,Malaysia.From these early days Ramli learned about the fundamentals or basic of TQM@TQC@CWQC.Here we learn about the important role of Top Mgmt,Middle Mgmt and Employees as to how to make a Quality Product or Service through Quality People and Company.We learm about all the Basics of Quality,Quality Control and Quality Assurance.We also learn about the importance of Team Work,Projects,Tools&Techniques and many others.

We learn about Gurus of Quality like Deming,Juran,Crosby,Ishikawa,Imai and also Mgmt Gurus like Drucker,Matsushita,Henry Ford.We also learn from Business Leaders like Walton,Welch,Morita,Honda and many others including Gates,Packard and others.

The problem of new management ideas are being developed or “coined up” by Academia Experts and not so from Business Leaders and thats where the real deal is realized.How can people in air conditioned rooms or inhouse locations tell the whole world that their ideas are workable when there is no “hands on” or gemba(at site) situations?You cannot tell the world to cook delicious steaks if you describe or teach from reading books only but it will be better if you are a chef that have cooked many times the steaks concerned and you know whats its like to have a steak cooked with medium rare or just fully cooked!The tastes are different depending on the customer requirements!

Crosby will never agree with all these 6 Sigma stuff since he was the real man propagating ZERO DEFECT in all areas of work.Why?

Zero Defect can be debated many times as to the real objective of its existence.Was it only a mind set goal or really to make it happen at all workplaces?

Zero Defect or ZD really helped the world to go for the ultimate in quality performance because like in the 4 Absolutes of Quality that Crosby profess,ZD is the standard of performance n our work.No defect at all.How can we practice 6 Sigma in the airline industry where we allow a tolerable  3 air crashes per 1 million flights.The main aim is NO Air Crashes at all for as long as we can!Air crash means lost of lives and creating lots of sorrows and hardships to all involved and that include other businesses like heart transplants,delivering babies and marraiges.We want if possible all to be ZD!

In Malaysia the “war cry” for the need of innovation and creativity in the govt sector as well as private sector is going on everyday BUT actually this so called campaign have started way back in 1983 when Tun Mahathir launched the Look East Policy where what Japan or Korea or Taiwan do,Malaysia will copy and make it better!

The start of the QCC or KMK activities involving the “sokongan” group and workers group have all emphasised the importance of suggestions@ideas and these are done through creative and innovative ways or at time known as quality improvement or breakthroughs!

QCC@KMK now more popularly known as ICC@KIK (new branding only in Malaysia) have all focus on getting improvements made via their projects usually half yearly and yearly duration.All QCC@KMK projects produced great results and stats have shown from MPC and INTAN (the coordinating bodies for private and govt sectors) the savings of many millions of Ringgit all this while!

So,no need to shout to tell Malaysians of the need of innovation and creativity when in the first place all these basic foundations are done and deleivered already since 1983 BUT was not monitored well and continual improvement made to the existing processes or system!Thats the problem!

Malaysia have so many actions or activities introduced by all the PMs in our history of 54 years of Independence BUT as a new PM comes into office or a new KSN or CEO comes into office,they too want their ideas to be implemented and “kick out” the old or former ones!

This is a sheer wastes of Public Funds and the wheel keep on rotating with no concrete results or holding the gains stuff just more actions and more waste of public  or shareholders money.

Lets FOCUS on all we have done since 1957 and all good actions or projects we maintained and improved upon and all poor results or methodologies lets stop or discard them!

The Malaysian Education System is one area we must seriously review and all these problems of “nak bahasa atau inggeris” as our medium of communication and education syllabus be studied and that have produced the best results be used and not become a “political game” for all those politicians and interested people with selfish vested interests dictate our future!

So as Ramli analysed it is all about having Malaysian Leaders and Followers with Positive Personalities ie.with Great Faith in Allah SWT (God Almighty) who will lead and manage with sincerity,honesty,passion,dedication,discipline and all because of Allah First and Me Last attitude.

The Quran and Hadiths have been in existence almost over 1400 years ago together with all the Old Kitabs since Prophet Adam a.s. and they are still relevant and MUST be adhered to since Allah SWT have informed Prophet Muhammad pbuh that Islam is already made perfect and it is just for all Muslims to abide to it all the time and without need for any revisions since Allah SWT Knoweth’s Best and HE is the Almighty and Merciful.

Lets hope Malaysia become a Great Nation with Great People (Talent) and only with prudent management and right usage of public funds and acknowledging past good or best practices rather than creating new useless ones can make Malaysia greater to greatest!

Call Ramli at hp:+6019-2537165 or emailed at ramlipromoter@yahoo.com

see Ramli’s profile at http://www.linkedin.com/in/ramlipromoter

any financial support,please banked in at Ramli Abu Hassan,Maybank Acc: 164173649135

Thank YOU.

The agendas of 2010 especially the New Normal and Thriving on Uncertainty just shows how “Bad to Worst” the Global Leaders have become and ignore the Teachings of the Old Gurus especially Deming,Juran,Crosby and many others who have died peacefully…Why the new Global Leaders behave like this?read on..

Ramli although living in Malaysia all his lifetime of almost 55 years realized that with the Great Technology and Innovation our Great Inventors have made like the Internet,Web 2.0&3.0,Mobile gadgets for easy communications and all the Wifi services easily available HAVE made our learning faster,better,maybe cheaper also,wider and so many good things or “wow” factors we experienced!

However the Human Values,Human Spirit of Leadership,Human Respect for the Teachings of Past Gurus and Leaders all seem to be “crumbling” and whats the word “forgotten and dont care” anymore!The present Global Leaders think they are too smart and dont need to learn from the past as the past have gone away and the future is what so important,really!Really?

Todays world is all about speed,fast results,immediate “do” factor,change is key,managing all ways as long we get results and escape the “big problem” and all others “instant” remedies!Why we behave such ways?Yes,the world is now populated to almost 7 Billion inhabitants maybe on 1stNov,2011 (Ramli’s birthday) and that 7thBillion person will be born in India.

We seek fast results because our New Gen of Z,Y and X especially are people whose lives are dealth with the Computers,Internet,Mobile,Entertainent,Fast Food,Global Travellers,Social Networking and almost all things using the Social Media for Learning,Interactions or Collaborations and thriving in the New Social Culture of the 21st Century!Even to some global citizens RELIGION is considered out of fashion and no need!For Muslims the Belief in Allah SWT and Prophet Muhammad pbuh as the Messenger of Allah SWT is still the fundamental stance and the Quran and Hadiths are still the guide for all Muslims and any deviation or non adherence is regarded unIslamic and unacceptable to the Muslim World.Maybe thats what make Islam so different with other religions of the World.

The agendas of the New Normal and Thriving on Uncertainty as many Leaders & Professionals around the world accepted and studied have just showed us the need to revisit our Fundamentals Belief as what is Good and Bad to leading and managing our nations,companies and even homes!We need to know our ACTUAL STANDARDS OF EXCELLENCE  and not compromise to lower our standards and agree to all things that are not so good than actually must be good!If we ignore Dr.Crosby teachings of his 4 Quality Management Absolutes like “quality has a performance standard of ZERO DEFECTS” then we are in GREAT DANGER! Why?

Then it means we make our aeroplanes where there will be great  likelihood they will “fall from the skies” due to errors of manufacturing,servicing and flying!We also allow our many hospital patients to die due to errors of operations,drug prescriptions,wrongly treated and diagnosed of sickness!So many errors can happen if we ignore Dr.Crosby teachings.Dr.Crsoby also taught us about MAKING QUALITY CERTAINED

Dr.Juran also advised us on the need to CONTROL AND IMPROVE (BREAKTHROUGH) our processes all the time and we must do them on a project by project basis.We must learn to be EFFECTIVE & EFFICIENT through Teamwork!

Dr.Deming also taught us many things about Quality Leadership just like Dr.Juran.Dr.Deming’s PDCA Cycle have been made so easy to understand to shop floor workers and also to Top Mgmt and Statisticians alike.

Looking back at all these MahaGurus of Quality (as what Ramli prefer to recoqnised them) means Masters of Quality ,they have showed us the way to be CERTAINED,PERFECTION,DO THE RIGHT THINGS RIGHT FIRST TIME philosophy and mindset.It is the new wave Thinkers,Leaders,Writers and what have you that want to be or act different and start introducing “an almost carbon copy of the MahaGurus teachings” like the 6Sigma,The New Normal,Thriving on Uncertainty and many others with a NEW NAME and PACKAGING but still with reference to the MahaGurus teachings and thoughts!

All these improper ways and in some ways signs of disregard or disrespect of the teachings of the Old Gurus or MahaGurus have allowed or build our NEW LEADERS with minds of plastic not steel,patience of a kid not a real man,anything goes not want to want to be a perfectionists and many other BAD TO WORST kind of thinking and actions.

So,as Dr.Juran once taught us if we have abnormalities happening in our processes and if we do not eliminate or bring them in control back then we are actually lowering down our standards of performance and living in crisis after crisis because we have not got back to our normal zone or zone of control.So,we live in chaos and we say “thriving in uncertainties or chaos conditions”.Who said we must live in such ways?We can come back to our normal self and bring back to our control conditions.Only when we are in control conditions can we now work our improvements or Breakthroughs!We need so many breakthroughs to improve from a status of 100 defects to 1 defect a month in our manufacturing processes for example.So,only by many Breakthroughs can we become Better to Best and not declare thats the way life is or the New Normal as some people like to call!

Like what Ramli heard and read that in 2010 at the World Economic Forum in Davos the Leaders there realized the need to Relearn the Fundamental Skills of Managing and Leading Rightly for Top Executives both in Business and Governments.The many problems of businesses and govrnments have occured rampantly in the last 5 years or so and maybe its time to “go back to school” rather than “making money like mad” with poor quality results and products offered to the customers or citizens alike eg.the million of cars being recalled from the market by many Top Automobile Manufacturers and also not so happy employees with businesses collapsed and unemployment rates on the high side and no new jobs made available anymore and saying its the New Normal.

Leaders especially have to “get the act together and rightly” so that their roles of Leaders that have been the essence of human existence become still as relevant as their predecessors before like Muhammad pbuh,Churchill,Roosevelt,Gandhi,Sukarno,Tunku Abdul Rahman and many more Great Leaders whom Ramli belief will not agree to all these new thoughts of the New Normal or Thriving on Uncertainty when actually the Control and Improve status was never done rightly and in full where Being Certained in Making Things Right must be the norm and practiced.We just cannot be at above par to win a game of golf,right?

Contact Ramli for your feedbacks or suggestions at mobile:+6019-2537165 and emailed at ramlipromoter@yahoo.com

DO SUPPORT AND PARTICIPATE RAMLI’S PLANNED CONFERENCE ON CORP U & WORLD CLASS PERFORMANCE THIS 20TH&21ST SEPT,2011 IN SHAH ALAM,MALAYSIA.RAMLI NEED CORPORATE SPONSORS AND PARTICIPANTS.

 

Toyota,Honda,Ford,GM,Proton are now behaving abnormally ie.sporadic spike but now the word is “That’s Normal”.What the hell is normal when you recalled thousands,hundred thousands and million of cars due to defects of all sorts from the market!

Ramli still remember very well the Teachings of Dr.J.M.Juran who in his famous Chart showing Control & Improvement Levels have indicated that if our processes are not well managed or in control zone then we will faced abnormalities in our processes and definitely defects due to errors are happening.Errors can be from new employees who were not well trained to do their work well and as in the SOP.Errors can also be wrong instruction or orders given by Managers as to what need to be done accordingly.Errors are also due to machine sudden breakdown due to poor maintenance and checking.Errors can also be due to wrong materials supplied or does not follow the actual specifications as supplied by the many vendors like in the car assembly lines.

All these errors occuring in the processes will therefore lead to the “sporadic spike” as Dr.Juran defined it in his famous Control&Improvement Chart.Without a good Control or working in the Zone of Control status is difficult for Management to start doing “Breakthrough” or Improvement Projects!We can only Improve when we have great control of our processes and working within the SOP or specification limits of our processes.

Nowadays  as  Ramli have read in Bloomberg Businessweek Year in Review Edition Dec 20,2010 to Jan 2,2011 that highlight what they called the New Normal.According to the magazine “Pimco’s Bill Gross used this term in an investor letter.He wrote “growth is slower,profit margins are narrower,and asset returns are smaller than in the decades past” It’s a time of steadily high unemployment,slow moving credit and budget cuts.Normal, in this context,is the last thing anyone wants.President Obama also used this phrase where he fears of a slow growth,higher inequality “New Normal” on 60 Minutes on Nov7,2010.All year long,the notion of a New Normal of reduced expectations dominated the national debate about the economy and its future.

To Ramli’s thoughts as a New Normal term and defined in the  Way We Think of Quality,then New Normal can have many bad implications to our quality performance and thinking (Paradigm)

This is defined as like having high rate of unemployment is the New Normal,having lots of rejects in your factories is also a New Normal.Maybe thats why with all the recalls of cars on the road by the Automotive Giants like Toyota,Honda,Nissan,Ford,GM,Proton and others is no more like before a A Big Market Claim but more of a New Normal situation where every automobile manufacturer also does the same mistake and its OK to be in this kind of situation.If Dr.Juran or Dr.Deming,both MahaGurus of Quality are still living,they will “scream” and demand a Top Management Review of their Quality and Act Immediately to at least come back to the Control Zone and not allow themselves to be at the Out of Control Zone or Abnormality status.

qc n qi

Only the Best Quality Companies knows what is Control & Improvement is and they make sure they always go for many Breakthroughs because only with Breakthroughs can they perform better and better all the time to become the Best Performer and Reap The Harvest of  Great Sales and Satisfied Customers.

This thinking of the New Normal will certainly make us become Bad Performers in our Business because we know acknowledge or accept the fact that having recalls by the millions or hundred of thousands of cars is OK and a New Normal thing to do?Try having a defect aeroplane and then recall it from the market?See whether your airline co will want to buy from you again or even fly your aircrafts in the air?The Road to Bankruptcy maybe is following to the New Normal Paradigm when it should be a Great Problem that needs to be Control and Improve immediately!

As far as Quality is concerned,we aim for Zero Defects as our standard of performance and to get Customer Satisfaction we must Control & Improve all the time and reach the highest level of quality achievement or performance where being and having 100% Quality is Normal!

Contact Ramli for enquiries or training at Mobile:+6019-2537165 or email at ramlipromoter@yahoo.com

Why Malaysian CEOs are not World Class?Our System of Management is wrong!Why?Mobility of Management is one of the “Deadly Disease”!Do YOU know?read on..

If we seriously study the status of Managing Corporate Malaysia,many of Malaysia’s CEOs have a 2-3 year contract and if their scorecard is excellent,the Board of Directors or basically the Owner of the Company will extend their contract for an equally 2-3 years more and so on.

So,these type of CEOs will eventually focus on bottom line results like Profits,Market Share,Market Capitalization,Branding and all the key Mgmt Ratios that BOD and Shareholders are happy with.The Voice of the Customers (VOC) and the Voice of the Employess (VOE) will be a subdued matter since all these VOC & VOE need development time to really “bear the fruits” of success and satisfaction.

Dr.Deming once again cautioned us about the subject of Mobility of Management in his explanation of the 5 Deadly Diseases effecting Management.

Dr.Deming stated that the Management of today do not know about the business they are in!They are in the company for so short a time like 1-3 years and they do not have good experience and knowledge about the company’s products,customers and suppliers what more all the nitty gritty or ABC of the business.Like in Malaysia many of the CEOs have accounting background and yes,they are good in “numbers” but not good in product knowledge or all about how the business is being run from “head to toe”!

Our CEOs will be happy with cost cutting measures,all the financial instruments that they can explore or introduce plus a whole lot of “short term actions” or short termed gained that they can make their company of group of companies realized!This after 10 years time will see the “nightmares” of those Top Mgmt actions and how much lost finally will be realized by the company in terms of market capitalization,profits and importance of the business to the country or world.Maybe these companies ceased in existence or bought over by some other companies!The thousands of workers and managers who lose their jobs will be devastating and just like “murdering” the whole family that depend on their fathers,mothers,sons and daughters for their living and meeting to daily needs.This is the serious effects of poor management and a social crime that is worst than a robber or killer of innocent people.So,what can be done to stop this deterioration?

Dr.Deming also stated in this aspect of Mobility of Management by the following 3 points:

1.this new management have no roots in the company

2.they also have no knowledge of the company

3.they also have no understanding of the company’s problems

 

Like as explained above,many of Malaysia’s CEOs or Top Mgmt are people brought in to “help with getting good profits and big fast ones” rather than ensuring continuity,sustainable good management,and build the people to build a great quality and successful company.

An example was given by Dr.Deming that in Japan a new manager was given the tasks to know the company well by delivering meat to customers premises for 7 years and by so doing with deligent and good customer service,this manager later became the Sales Manager and he prove to be perfect person for the business since he have good roots of the business and have lots of knowledge about the meat business and also understands all the problems experienced or will surfaced in the business.

Whats so different in Malaysia then?

Due to the short tenure of Malaysia’s CEOs managing businesses like Banking,Telecommunications,Infrastructures,Utilities,Auto Manufacturing,Food,Pharmeceuticals,Oil&Gas plus others they will have this 3 weakness that are No long roots in the Co,No ample knowledge of the company and not understanding the long time problems of the co!True of False?You tell me!

If we study the Malaysian businesses that thrived,sustainable,continual good stable profits and excellent customer satisfaction results are those Top Mgmt that have been there for more than 10 years or longer.Please see companies like Public Bank,Genting,AmBank,IOI,YTL,Selangor Pewter,Yeo Hiap Seng,Tan Chong Motors,Glomac,Bukit Kiara Properties and many more..

These companies have good management since they have constancy of purpose,quality is top priority,drive out fear (maybe),innovation and creativity,excellent teamwork,mobility of management at very minimum etc….

Both at the government and private sectors including all the GLCs,there need to be less mobility of management so that CEOs can make a plan and work that plan for making their company Great Companies!Each CEO have a place to grow their talents and make wealth and it is not good to be “jumping around” for new companies and let each CEO be “parked” at their respective locations and excel their perfomance to world class levels just like what Top Class CEOs have done in their respective business areas like IT,Banking,Food,Consumer Goods,Oil&Gas,Consulting,Fashion and others..you can read all these CEOs profiles in Fortune or Forbes magazines etc..

Maybe with this new thoughts (actually old thoughts from Dr.Deming announced way back in 1984 or earlier) and actions,Malaysia’s corporate and govt results will be better and more satisfying and meeting or surpassing all those indicators of the Vision 2020!Inshallah.

Enquiries and support,please contact Ramli Abu Hassan at +6-019-2537165 or emailed at : ramlipromoter@yahoo.com

 

This great quality problem or your product branding is tarnishing (among the World’s Auto Manufacturers) like “wildfires.”First,we heard of Toyota then Honda,Ford and now Proton!Whose Next?

Quality is the cornerstone of Good Business so when companies make product recalls from the market that means her quality is BAD and thats not good for business.Surprisingly,it looks like the consumers around the world,doesn’t bother maybe many Top Auto Manufacturers all seem to recall their cars for quality problems in the markets…

Here is an article from Star Online:

Saturday October 9, 2010

Recall to cost Proton RM5mil

By EUGENE MAHALINGAM
eugenicz@thestar.com.my

PETALING JAYA: The recall of 15,911 of Proton Holdings Bhd’s Gen.2 and Satria Neo models made between 2004 and 2008 due to a clock spring malfunction is likely to cost the company an estimated RM5mil, according to analysts.

Based on reports, the clock spring connects switches and airbags to the radio, horn and cruise control.

OSK Research in its report yesterday said assuming that all the cars were affected, the repairs, which would involve replacement of the driver’s side airbags, would cost RM300 to RM400 per car.

“Assuming a worse-case scenario that would affect all 15,911 cars relating to deployment of the driver’s side airbags, this could see the total costs of the recall hovering between RM4mil and RM5mil, which is 1.4% of our financial year 2011 (net profit) forecast.”

MIDF Research in its report said it expected minimal impact to earnings as the number of cars affected was small and the parts affected not too costly.

“The recall affects 15,911 cars out of a total of 660,000 produced and sold by Proton over the four-year period. A quick check revealed that the replacement cost is relatively inexpensive (around RM300) and the work can be done fairly quickly in about one hour.

“The total cost for Proton is estimated at RM4.8mil,” it said.

OSK said the impact was likely to be minimal, given that the recall affected the company’s non-core models.

“On a positive note, however, the recall so far is limited to Proton’s non-core models although we do not rule out that this could affect its key models, such as the Saga, Exora and Persona, though we think chances of this would be quite minimal as Proton has stepped up its efforts to improve its quality given its improved rating,” it said.

OSK said it was making no changes to its forecast currently pending more clarity and guidance from Proton.

An analyst said the real impact would be on Proton’s brand image.

“Proton has always had issues over the quality of its vehicles, though the company has been doing a good job in recent years to help rectify this,” he said.

“News of its cars having defects will only refresh the memory of potential car buyers on the quality issue and this could steer them towards other makes that have a more sound track record. The uphill climb of assuring buyers about its quality just got harder.”

OSK also said the stock could face temporary negative reaction as the improved quality perception on Proton might be reassessed by potential buyers and also investors.

Proton’s shares closed down 4 sen to RM4.87 at 5pm yesterday on news of the recall.

HwangDBS Vickers Research in its report said there could be a knee-jerk reaction to the recall.

“This should drive Proton to be more diligent in sourcing its parts and improve the quality of the vehicle it produces,” it said.

Given that under 16,000 vehicles are affected against an annual sales volume of about 160,000 units, HwangDBS Vickers expects the impact on earnings on Proton’s financial year ending March 31, 2011 (FY11) to be minimal.

For FY10, Proton posted a net profit of RM239.09mil from a net loss of RM301.81mil a year earlier. Revenue increased to RM8.23bil from RM6.49bil previously.

Total sales volume increased 11% to 174,481 units from 156,845 in FY09.

AmResearch in its report said it did not think Proton would bear the full recall cost as part of the fault lied with the suppliers.

“While the recall may have a certain amount of impact on Proton’s sales volume, we note that Satria Neo and Gen.2 only account for 4% of Proton’s average monthly sales volume in 2010,” it said.

“Additionally, the quantum of recall is much smaller compared with the 34,000 units of the Savvy model that were recalled back in 2008 for wheel bearing problems.”

OSK also concurred that the recall of the Savvy in 2008 had a minimal impact on the company.

“Despite the concerns, earnings were not affected as Proton’s sales remained resilient given that the Savvy is a not a key contributor to total sales due to its small volume.

“Given the earnings potential from the newly-released Saga back then (January 2008) amid the negative news on the Savvy recall, Proton’s share price did not take any hit at all as the stock price ended in positive territory,” it said.

In a statement on Thursday, Proton group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said although the number of vehicles affected was small, the safety of its customers was paramount.

The cost of replacing the clock spring at its authorised service centres would be borne by the company, Proton said in the statement , adding that it would be sending letters to affected customers alerting them to the defect.

The Theory of Knowledge is so important,why?-so that we can predict something with some great accuracy or certainty!

the current mess airlines are facing from the recent volcanic ash eruption in Iceland.here the story from Yahoo News!

Airlines urge governments to reopen routes

AFP – 1 hour 44 minutes ago

Ground staff of Lufthansa airline work at Narita International Airport in Tokyo. Airlines have urged governments to reopen routes through the volcanic ash cloud over Europe, branding the flight ban a “European mess”.

PARIS (AFP) – – Airlines urged governments to reopen routes through the volcanic ash cloud over Europe on Monday, branding the flight ban a “European mess” and the economic fallout “greater than September 11”.

“Risk assessment should be able to help us reopen certain corridors, if not the entire airspace,” said Giovanni Bisignani, head of the International Air Transport Association (IATA), after airlines carried out test flights.

“We are far enough into this crisis to express our dissatisfaction at how governments have managed the crisis,” he told aviation reporters in Paris.

“It took five days to organise a conference call with the ministers of transport,” he said, adding later in an interview with BBC radio: “This is a European embarrassment and it’s a European mess.” Related article: EU emergency talks as volcano cloud havoc worsens

Bisignani, whose body represents the global airline industry, said it would take between three and six days for services to return to normal once governments lift the flight bans imposed over the past five days.

Companies are losing 200 million euros (270 million dollars) per day, he added. Air France-KLM said that it alone was losing 35 million euros per day, and Sweden’s SAS said it has lost 29 million in four days.

The Spanish presidency of the European Union is planning a video conference of member states’ transport ministers later on GMT Monday.

Laurent Magnin, chairman and managing director of French firm XL Airways, wrote to passengers to apologise for what he said was avoidable chaos caused by official confusion. Related article: EU prepared to allow exceptional aid to airlines: commission

“Orders and counter-orders are falling on us by the shovel load, forcing us to call you to come in and present yourself for departure at airports that are then suddenly shut down,” he said, in a message on his airline’s website.

“Our staff have been working for several days to try to find answers, but we’re forced to admit that the near total blockage of European airspace has left all our efforts at naught.”

Over the weekend several European airlines successfully staged test flights through parts of the ash trail blowing from Iceland, leading some to question whether the current flight bans are necessary.

Hundreds of thousands of passengers are stranded in airports around the world and airlines are losing tens of millions of dollars. Bisignani declared: “The scale of this crisis is now greater than September 11.”

Attacks on New York and Washington by Al-Qaeda using hijacked planes on September 11, 2001, triggered a crisis of confidence in the airline industry that had longstanding economic consequences.

European air traffic officials have designated much of the continent a virtual no-fly zone for a fifth straight day after ash from a volcano in Iceland drifted south and east.

Authorities fear that the ash and dust could pose a danger to jet engines and airliner airframes, but several companies carried out test flights over the weekend without reporting any damage to their planes.

Some countries have begun lifting restrictions at some airports, or at some altitudes, but the main western European hubs were still blocked and expected to remain so for at least the rest of Monday and into Tuesday morning.

French transport minister Dominique Bussereau said “you can never take too many precautions”, insisting authorities were working as quickly as possible but that advice from experts about the risks “was not very pleasant”.

A History of Managing for Quality in Malaysia -What was it like?Who were the Heroes?How actually did Malaysia benefit?

Ramli was able to retrieve from his personal library a book written by Dr.J.M.Juran one of our Great Quality Gurus titled “A History of Managing for Quality-the Evolution,Trends and Future Directions of Managing for Quality.”This book was edited by Dr.J.M.Juran and published in 1995.

While reading this book on subjects like what was the story of Quality in countries like US,Germany,ancient Rome,Russia,India,Japan and UK,Ramli then pondered as to what was the story of Quality for Malaysia herself then and now?

Malaysia’s history must be traced back a long time ago during the great years of The Malacca Sultanate because this was the Period of Malacca’s prominence in this part of the World esp the Far East where international trading,cultural exchange and politics were really happening at the greatest pace and historic significance.

Malacca with her strategic position and international trade involving traders from all over the world coming to Malacca City Port to meet and exchange their products and services grew and grew in prominence until the feeling of greed and dominance now slowly entered into the minds of some of the foreign visitors like from Portugal,Holland,Great Britain and Spain etc…

As history records,Malacca was then occupied by the Portuguese in 1511 and that saw the lost of powers of the Malacca Sultanate who all fled to neighbouring Malay states and some even to Indonesia and Thailand.

Only in 1957,did Malaya got her independence and the date 31stAugust,1957 finally gave back Malaya’s soveriengty and Malaya being an independant nation and free from any colonialists or dominance.However,Malaya was still “dominated economically” where her economy was still in the hands of foreigners and Malaya was still dependant on these foreign powers for her financial support and prosperity.

Only in the later years especially with the arrival of Dr.Mahathir as Malaysia’s 4th Prime Minister from 1981 where Malaysia have taken many bold steps to get out of this “economic cocoon” to understand why being strong economically,stable politically and rich culturally can lead Malaysia to be a Great Nation that stands on her own not for a year but for all the time and forever.Dr.M have really “shaken up” all Malaysians to know how good a feeling to be World Class,Self Sufficient,Malaysia Boleh Spirit,and many others that have propel our industries and Business Leaders as well as Govt Leaders to “get out to the world” and try to become Super Brands and World Class Companies or Organisations that other nations or people want to benchmark and learn from Malaysia like what Malaysia also learn from others from 1957 and maybe till now..learning is a continual process because you can be the best today BUT no more tomorrow.Competition is so great nowadays and the Greatest Company or Nation are those that keep on learning,applying and making it better all the time,thats Quality and to be a Quality Nation with all the World Class attributes we must build Quality People and thats what our journey is all about since the fall of Malacca Sultanate,to build Quality Malaysians for a Quality Malaysia!

Ramli is planning to write a book on this “Malaysia’s story of Managing Quality through the years since 1511” and hopefully Ramli is motivated enough to complete the book.Do you like to read this book if it is completed?Please buy Ramli’s books especially his first book “Revolusi Aksi” and 2 more books ready to print soon.Inshallah.

For enquiries,please contact Ramli at +6-019-2537165 or email: ramlipromoter@yahoo.com