pd

fM
ac
hi
ne
tri
al
ve
rs
io
n
 Development of Productivity Specialist

n
io
rs
ve
al
tri
ne
hi
ac
fM

Presented by
pd

TQ
M
Hasan Haider
Head Training Division
National Productivity Organization
 VISION STATEMENT

n
io
rs
- Nothing can with stand the powers
ve
of the determined and resolute mind.
al
tri
Barriers fall, everything succumbs ----
ne
hi

if positively inspired the very gates of

ac

heaven open.
fM
pd
 n
Please think of the best “Gift” you could get

io
rs
ve
from this course:
al
- Something you want to “Take Away”
tri
ne

- Something you want to know

hi
ac

- Something you need from this program.

fM
pd
 Tutor Introduction
• Head Training Division, NPO Pakistan

n
• Head of the Department, LCCI TQM Bureau

io
rs
• Management Representative, LCCI

ve
• Master of Business Administration (MIS)
al
tri
• Master in Educational Leadership and
ne

Management
hi

• IRCA Registered Lead Auditor

ac
fM

ISO9000/14000
• Provided ISO-9000-TQM-BPR consultancy
pd

to more than 40 companies

• Trained over 30000 participants of different
sectors and conducted more then 250 courses.
• Conducted more than 30 audits for QMS
 Introductions
Your name and the company you represent.

n
io
rs
Your job background.
ve
al
Your expectations what you will learn today.
tri
ne

Your favorite activity when not at work

hi
ac
fM

or
pd

Your favorite vacation.

 Logistics

n
Phones/Messages

io
rs
ve
Contact Number
al
tri

Rest rooms
ne
hi

Food
ac
fM

In Case Of Emergency

pd

Other
 • no prisoners

n
io
rs
ve
al
tri

• no options
ne
hi
ac
fM
pd

• no consensus
 Workshop Ground rules
Start on time.

n
io
Only one conversation.

rs
ve
Listen for understanding.
al
Be open to new ideas.
tri

Ask “Why?”
ne

Don’t repeat points already made.

hi
ac

Everyone participates.
fM

No rank.
pd

Switch of Your mobile phone.

70% attendance compulsory
 Have fun!
 Participation Meter

n
io
rs
Dominate Facts

ve
(Say “in my experience (Say “the facts I
al there can only be share with you are . . .”
tri
my view etc”
SOME PARTICIPATING
ne

ONLY PARTICIPATE
IF IT’S ME
hi
ac

False 45% 10% Agreement

fM

(Say “yes”, mean “no”) (“We agree on the

pd

shared facts”)
DON’T PARTICPATE 40% 5%
EVERYONE
PARTICIPATING
 The Power of Intersection based on AGREED facts

n
io
rs
ve
al
tri Your View
ne

Agreed
hi

Facts
ac
fM
pd

My View
 Reflections

n
io
rs
ve
• what did you learn that you didn’t know before
al
tri
• what did you see that really worked for you
ne
hi
ac

• what can you use from this with your team

fM
pd
 Course Objectives
• To understand the basic concept of Productivity and Quality.

n
• To understand the success stories behind Asian tigers.

io
rs
• To learn the problem solving techniques

ve
• To learn and understand TQM techniques and their
al
tri
applications.
ne

• To learn and understand the Productivity Specialist tools and

hi
ac

techniques.
fM

• Role of Productivity Specialist and Management consultant.

pd

• Application of Productivity tools in the SMEs at Micro level

 n
According to a study,

io
rs
ve
Pakistan looses
al
tri

approximately Rs. 450

ne

billion annually due to poor

hi
ac

quality and wastages.

fM
pd
 Proven history and many
History:
believers

n
Motorola GE

io
‘80s Motorola

rs
Texas Instruments
’92 Baldridge Award Honeywell

ve
(Allied Signal)
’96 GE/Honeywell American Express Bombardier
(Allied) al LG Dow
tri
Toshiba Sony Kodak
’98 Europe Raytheon Avery Dennison
ne

Xerox ABB
Black & Decker Ericsson Noranda
hi

Seagate DuPont
Air Products
ac

Honda Lockheed
Navistar
Hitachi Nokia
fM

Canon Citibank
Amazon TRW
Electrolux
HSBC Invensys
pd

Siemens Shimano (Siebe)

Ford
Philips JP Morgan
Volvo GKN DuPontSa
BT ’98 VOC/Transactional
Shell Agfa Dell Iomega

Starwood Lloyds TSB ’99 New Products/Processes

DaimlerChrysler '01 Integration with Lean, . . .
Airbus
 The challenge

We need
We need to
to be
be able
able to
to do
do three
three things
things well,
well, all
all at
at the
the same
same time!
time!

n
io
rs
ve
Reduce Cost al Reduce Lead Time Improve Quality
tri
ne
hi

Service Costs
ac
fM

Customer Price
pd

Net Margin
 Group Exercise
5 Minutes

n
io
rs
ve
al
tri
ne

Discuss what you think the definition

hi
ac

of Quality is. Give as many examples

fM

as you can
pd
 ISO -Language of Quality System

QUALITY

n
io
rs
- Degree to which a set of inherent characteristics

ve
fulfills Requirements (9000:3.1.1)
al Right First
tri
FURNISHED
Conformance to
ne

SUPPORT Time, All the

specification time. “Zero
hi
ac

Defect”
fM
pd

Build Right Meet

Characteristics implied/Market
Needs
 DIMENSION OF QUALITY

n
 Conformance to Specification

io
rs
 Performance

ve
 Quick response
al
 Features
tri

 Reliability
ne

 Durability
hi
ac

 Serviceability
fM

 Aesthetics
pd

 Perceived quality
 Humanity
 Cost Competitiveness
 What Customers buy?

n
io
rs
ve
al
Customers do not buy goods and services;
tri
they want solutions of problems, and
ne
hi

fulfillment of their needs & wants.

ac
fM
pd
 Why Quality ?

n
io
 Greater customer satisfaction

rs
ve
 Higher productivity
al
tri

 Lower costs / shorter duration

ne

 Higher project team morale

hi
ac

 Fewer errors / defects

fM
pd

 Long term competitive advantage

 The Cost Of Poor Quality\
(As a % of Revenue)

n
io
Waste Customer Returns

rs
%
Rejects

3
ve 2-
Inspection Costs
Testing Costs
al Recalls

0%
tri
Rework

-4
ne

20
Complaint Handling Customer Allowances
hi
ac

Premium Freight Costs Incorrectly Completed Sales Order

fM

Excessive Field Service Costs Planning Delays

pd

Excessive Overtime Excess Inventory

Unused Capacity
Pricing or Billing Errors Incorrect orders shipped
Lost goodwill
Overdue Receivables Time with Dissatisfied Customer
Delays
Development Cost of Failed Products Late Paperwork
Employee Turnover Expediting Costs
 WHAT TO FOCUS??

n
io
Focus on Processes, Not People

rs
ve
al
tri

Quality... Everyone's Responsibility

ne
hi
ac

Quality... Mindset, Not an Event

fM
pd
 Group Exercise
5 Minutes

n
io
rs
ve
al
tri
ne

Discuss what you think the

hi
ac

definition of Productivity is. Give as

fM

many examples as you can

pd
 WHAT IS
PRODUCTIVITY?

n
io
rs
ve
Relationship Between
al
tri
ne

Output and Input

hi
ac
fM

Meaning of output and input has

pd

changed
 THE JOURNEY OF
PRODUCTIVITY

n
 Initially productivity was interpreted as labor productivity

io
rs
ve
 Over a period materials, energy, capital and other inputs
al
were brought into the ambit of productivity.
tri
ne

 waste reduction of all kinds and improving efficiency of

hi
ac

operations
fM

“more and more’ with

pd

less and less”

RESOURCE UTILIZATION
 PRODUCTIVITY
Productivity = Quantity + Quality +

n
io
Resources

rs
ve
Other things being equal, productivity
al
tri

rises when
ne

 the quantity of outputs increases

hi
ac

 the quality of outputs increases

fM

 and/or the cost of resources

pd

utilized decreases
 Productivity is …

n
io
Effectiveness + Efficiency

rs
ve
• Efficiency al
tri
– Doing things right
ne

– Making best use of resources in achieving goals

hi
ac
fM

• Effectiveness
pd

– Doing the right things

– Choosing effective goals and achieving them
 VARIOUS

n
INTERPRETATIONS

io
rs
ve
As an attitude of mind
al
As a process of change
tri

Improving quality of life

ne
hi

Working smarter than harder

ac

Higher wages
fM
pd

Productivity and quality are two

sides of the same coin
 VARIOUS
INTERPRETATIONS

n
io
rs
As concept of mind
ve
As a march for perfection
al
tri

As creating wealth

ne

As a journey without an end and a

hi
ac
fM

destination
Reducing wastes
pd

Human resources
Technology improvement
 VARIOUS
INTERPRETATIONS

n
io
 Organizational objectives

rs
ve
 Set of results
al
 Effective and efficient use of resources
tri
ne

 Highest level of performance

hi

 Training and development of employees

ac

 Sharing gains of productivity

fM
pd

 Profits
 Customer satisfaction
 Sustainable development
Importance of Higher Productivity

n
NATIONAL LEVEL

io
rs
Economic growth, social

ve
welfare, infrastructure, job
al
creation
tri
PERSONAL LEVEL
ne

High Quality Products &

hi

Services Wage level, Job

ac

security, Quality of Life

fM

CORPORATE LEVEL
pd

Company’s profits,
competitiveness, sustainable
productivity improvement
 Why enhance Productivity?

n
io
rs
ve
al
tri
Better Enhanced
ne

Lower per Better

Better Better return corporate
quality
hi

unit cost on Competitive

prices wages
ac

investment -ness
fM
pd
 Key Success Drivers for
Higher Productivity

n
io
rs
Human

ve
al Skills
tri
ne

Appropriate Management
hi

Systems
Technologies
ac
fM
pd

Attitudes Standards
 PRODUCTIVITY,

n
io
rs
ABOVE ALL
ve
al
IS ABOUT
tri
ne

THINKING & MAKING

hi
ac
fM

CHANGES
pd
 BETTER

n
io
rs
ORGANIZATIONS
ve
al
tri
DO NOT GET
ne
hi

BETTER
ac
fM

BY CHANCE
pd
 n
io
rs
ve
al
tri
ne
hi
ac
fM

Even if you are on the right track,

pd

you will get run over

- if you just sit there.
 What is
Required? Enhance
Institutional

n
io
Capacities

rs
ve
Enhance Focus on
al
productivity Value Addition,
tri
and upgrading
technologies
ne

Establish
hi

Institutional
ac

linkages (internal
fM

and external)
pd

Improve Quality
of products and Become globally
services competitive
 n
io
rs
ve
Productivity & quality
al
enhancement for economic
tri

growth and development

ne
hi
ac
fM
pd
 Fruits of Productivity

n
io
rs
ve
al
tri
ne
hi
ac
fM
pd