24/3/2011

Talk on Route to IEM/BEM and

Total Quality Management (TQM)
The Route to World Class
March 24th & 25th 2011
By Dr Chong Chien Fatt
P.E., F.I.E.M., M.I.Mech.E., C.Eng., ACGI
B.Sc (Mech. Eng), M.Eng (Ind. Eng & Mgmt), D.B.A.

Table of Contents
1.0 Introduction to IEM/BEM
2.0 Reasons for Globilisation
2.1 World Labour Competitiveness
2.2 Global Competitiveness Ranking
2.3 Management Philosophies towards World Class
2.4 The business organization of the 21st Century

3.0 What is TQM?

3.1 Total Cost of Quality
3.2 Definitions of TQM
3.3 Purpose/Objective of TQM
3.4 The Gurus of TQM
3.5 Demings 14 Points of Management

4.0 Conclusion Why TQM?

4.1 Management Roles to Achieve World Class
4.2 Roles of Engineers
4.3 The Benefits of Excelling

1.0 Introduction to IEM/BEM

Institution of Engineers Malaysia (in short
IEM) is a professional learned society for the
aspiring engineering students and practicing
engineers to work together for the betterment
of the engineering profession

As of 2008, IEM membership stood at more
than 16,000

Having branches all over Malaysia

Kedah/Perlis
Branch

Miri
Branch

Terengganu
Branch

Penang
Branch

Sarawak
Branch
Perak
Branch

Eastern
Branch

IEM-HQ

Sabah
Branch

Southern
Branch

Negri Sembilan
Branch
Melaka
Branch

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IEM membership opens to all

engineering graduates

Types of Membership within IEM

 Student Member open to all engineering students
 Graduate Member open to all practicing engineers
registered with BEM

Primary BENEFITS as IEM Member

 Networking amongst engineers
 Technical Talks, Courses and Technical Visits
 Provider of Professional Development Program
(PDP)
 Route to become a Professional Engineer (PE)
 Provider of Continuing Professional Development
(CPD) Program

 Corporate / Fellow Member upgrading for experience

engineers leading to Professional Engineer status
 Associate Member non-degree engineering practitioner;
diploma or certificate holders
 Incorporated Member Professional Engineers from
international Engineering Institution recognized by IEM
 Honorary Member distinguish person who contributed to
engineering profession

Web site: www.iem.org.my

Membership Grades

IEM Management Structure

COUNCIL

Distinguished
Honorary Fellows

Fellows
700+

Honorary Fellows

8,500+

10+

Graduates

Students

5,500+

2,000+

Affiliates
20+

EX-COMM

Members

Incorporated

Associate
10+

10+

Route to MIEM / Professional Engineer

ENGINEERING
IN
MALAYSIA
The engineering profession in
Malaysia is regulated by the
Registration of Engineers Act, 1967
(revised in 1974, 1987, 1989, 2002, 2007)

STANDING
COMMITTEE
(8)

Activities SC
Q&A SC
PPC SC
E&T SC
Welfare SC
Publication SC
Pub. Affair SC
Finance SC

TECHNICAL
DIVISION
(16)

Mech Eng TD
GRADUATE
Elect Eng TD
& STUDENT
Civil & Struc TD
Bldg Serv TD
(YES)
Geotech TD
Highway & Transp TD
Tunneling & U/G TD
Environmental TD
Chemical TD
Agri & Food TD
Oil, Gas & Mining TD
Water Res TD
Proj Mgnt TD
Eng Education TD
Prod & Manuf TD
IT & SIG TD

Board of Engineers, Malaysia (BEM)

Under Registration of Engineers Act,
the Board of Engineers, Malaysia (BEM)
was established to administer its provision

Only Graduate Engineers and

Professional Engineers registered with
the Board of Engineers, Malaysia (BEM) are
entitled to practice engineering in Malaysia
All Engineers MUST register with BEM
within 6-months of engineering practice
Web site: www.bem.org.my

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Roles of BEM and IEM

Board of Engineers Malaysia (BEM)
Regulatory body for engineering practices in
Malaysia set-up under the Registration of
Engineers Act, 1967. All engineering practitioner
MUST register with BEM within 6-months of
practice
Institution of Engineers Malaysia (IEM)
A learned institution for practicing engineers in
Malaysia; networking, technical learning and
socializing group

Accredited
Engineering
Degree
(normal route)

ACADEMIC
REQUIREMENTS

Accredited
Engineering
Degree
(normal route)

GRADUATE
REGISTRATION

BEM Graduate
Engineer

TRAINING
REQUIREMENTS

Min 3-yrs
relevant work
experiences

IEM Graduate
Member

Recognized
Masters in
Engineering

IEM

Professional
Assessment
Examination

IEM Corporate
Member

IEM/BEM
Part 1,2,3
Unrecognized
Engineering
Degree

PROFESSIONAL
REGISTRATION

Completed
60-hrs of PDP

Competency
Assessment
Examination

Continuing
Professional
Development

Professional
Engineer

BEM

BEM Graduate
Engineer

LOCAL PUBLIC UNIVERSITIES

LOCAL PRIVATE UNIVERSITIES
Accrediting Body
Engineering Accreditation Council
(EAC)
Members:
Board of Engineers Malaysia (BEM)
Institution of Engineers Malaysia (IEM)
National Accreditation Board (LAN)
Public Services Department (JPA)

2.0 Reasons of Globalization

Total Quality Management (TQM)
The Route to World Class

Favorable cost
Access to
international markets
Response to
changes in demand
Reliable sources of
supply
14 major trade
agreements in 1990s
Peak: 26% in 2000

World Trade Compared to World GDP

Source: Real GDP and Trade Growth of OECD Countries, 200103,
International Trade Statistics 2003, World Trade Organization,
www.wto.org
Russell & Taylor, III, Operations Management - 5th Ed. 2006

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2.1 World Labour Competitiveness

2.2 Global Competitiveness Ranking

1. Finland
2. United States
3. Sweden
4. Denmark
5. Taiwan
6. Singapore
7. Switzerland
8. Iceland
9. Norway
10.Australia

Germany:
$26.18
USA: $21.33
Taiwan: $5.41
Mexico: $2.38
Hourly Wage Rates for Selected Countries
Source: International Comparisons of Hourly Compensation Costs for Production
Workers in Manufacturing, Bureau of Labor Statistics, U.S. Department of Labor,
Updated September 30, 2003.

China: $0.50
Russell & Taylor, III, Operations Management - 5th Ed. 2006

Russell & Taylor, III, Operations Management - 5th Ed. 2006

2.3 Management Philosophies

towards World Class
Delights/
Satisfaction
Exciters
Flexibility
&
Meet
Continuous
World
Innovation
Customers Improvement
Class
Requirements
Dissatisfaction

Customer Expectation
MBO Era

TQM/Six
Sigma Era

Source: Global Competitiveness Report

20032004, World Economic Forum,
January 2004, www.weforum.org

Learning
Management By
Anticipation Era Organisation Era

3.0 What is TQM?

2.4 The business organisation of

the 21st Century:
1.
2.
3.
4.

Reduce cycle time

Benchmarking companys performance
Continuous education and training
An organization and leadership structure that
encourages total participation and full-use of brain
power by all
5. Commitment to improve quality, top down
6. Improving all operations continuously
7. Measuring system
8. Suppliers partnership
9. Understand customer needs and wants
10. Long-lasting customer relationship
11. A preventing, not correcting system for mistakes

3.1 Total Cost of Quality

Traditional View

A Strategy (towards continuous change) or

Philosophy or an Operationalized process or a
Fad????
A fad if we expect quick results and become
disenchanted because we are not like the Japanese in
the first two months.
A process if we just look at the steps for implementation,
but do not look at the major strategic effects.
A philosophy if we do not look at the specific, concrete
way it can be used to implement improvements.
TQM is really all of these.
This type of strategy requires both the philosophical
and the operational aspects.
A strategy toward becoming leading edge and world
class.

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3.1.1 Zero Defects View

3.2 Definitions of TQM

Total Quality Management (TQM) is the
application of quantitative methods and human
resources to improve all the processes within an
organization and exceed customer needs now
and in the future.

The total
costs of
quality fall
as defect
levels
decrease

TQM is .A customer-focused management

process of Continuous Improvement that utilizes
employee involvement and the appropriate
application of the technical tools of quality.

3.3 Purpose/Objective of TQM

The purpose of TQM is to provide a quality

product to customers, which will, in turn,
increase the productivity and lower cost

TQM allows the organization to achieve the

business objectives of profit and growth

Job Security. TQM creates a satisfying place

to work

3.4 The Gurus of TQM

Dr. Armand Feigenbaum
Landmark text: Total Quality Control (1951)
Predicted quality would surpass price as the top issue for
decision making.

Dr. Shewhart:
Inventor of Control Charts
PLAN, DO, STUDY, ACT cycle for analysis of problems

Dr. W. Edwards Deming (1900-1993)

The Father of Quality Management
Dr. Joseph M. Juran
VITAL FEW and the TRIVIAL MANY; Big Q versus Little q

Philip Crosby
QUALITY IS FREE"

Dr. Kaoru Ishikawa

Cause and Effect Diagram

Dr. Genichi Taguchi

How????
Demings Economic Chain Reaction

Improve
Quality

Improved
Productivity

Decreased
Costs

Capture
Larger
Market

Fewer
Mistakes
Or Delays

Stay in
Business

Better Use
Of Resources

Provide
More
Jobs

3.5 Demings 14 Points of

Management
1) Create constancy of purpose - improvement of
a product and service with plan to become
competitive.
2) Adopt philosophy of not accepting delays,
mistakes, defective materials and defective
workmanship.
3) Cease dependence on mass inspection prevent defects instead of detect defects
4) End of the practice of awarding business on
the basis of price tag.
5) Find Problems - work continually on the
system for improvement

Loss Function

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6) Institute modern methods of training

7) Responsibility changed from quantity to quality
8) Drive out fear
9) Break down barriers between departments
10) Eliminate numerical goals, posters and
slogans
11) Eliminate work standards that prescribe
numerical quotas.
12) Remove barriers that stand between the hourly
worker and his right of pride of workmanship
13) Institute a vigorous program of education and
retraining
14) Create a structure in top management that will
push every day on the above 13 points

1.Customer is the
arbiter of Quality

7.C.I be supported
by all people

1. SYSTEM
All people serves
customers through
and within a system

6.C.I is part of
the annual plan

3.5.2 The Three Timeless Principles

2.Improve processes
in order to improve
the system

C.I For Customer

Satisfaction

3. PEOPLE
People can reduce
variation and
improve systems
5.Involve all
people in C.I

3.Suppliers &
Contractors
are partners

2. VARIATION
Variation affects
all systems

4.Use Statistics
and Data

Principle 2 Variation affects all

systems
Distort customer perceptions
Generate wastages
Create conflicts

3.5.1 The Three Timeless

Principles and Seven Management
Imperatives following Demings 14
Points

Principle 1 - SYSYEM
All people serve customers
through and within
a system;

External and
Internal customers

Principle 3 People can reduce variation

and improve systems
First Role: Serve the System:
Produce No Defect
Accept No Defect
Pass on No Defect
Second Role: Improve the System by
involving in:
Continuous improvement
Teamwork
Reduction in variation
Personal quality
To achieve Companys Mission
Third Role: Self development to:
Attitudes and Behavior
Knowledge and Skills
Competency and Flexibility

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3.5.3 Seven Management Imperatives

1.Customer is the
arbiter of Quality
2.Improve processes
in order to improve
the system

7.C.I be supported
by all people

3.Suppliers &
Contractors
are partners

6.C.I is part of
the annual plan
5.Involve all
people in C.I

4.Use Statistics
and Data

4.0 Conclusion - Why TQM?

Choosing is fateful event, committing the
company to a single path to achieve
greatness and destines the company to
creating a business culture commensurate
with the vision/mission of the company

The Goal is to achieve perfection by:

View work as a process

Make all processes effective, efficient, and adaptable
Anticipate changing customer needs
Control in-process performance such as scrap reduction
Eliminate waste and rework
Investigate non-value added activities
Eliminate nonconformities
Use benchmarking to stay competitive
Lessons learned
Use tools such as SPC, design of experiments etc

Lineage of Innovation/World Class

1935

1970

1980

1990

2002

Manufacturing Productivity (IE, MRP, JIT, LEAN)

Quality Assurance and Reliability Engineering/ISO

Organisational Development
Broad Business Improvement
Total Quality Management
Process Redesign
Leadership Counsel
Customer Connect
Six Sigma

4.1 Management Roles to Achieve World Class

Move From
Leadership Style
External
Orientation

Use of Authority

Worth of People

Leaders acts as
Commanders &
Heroes
Customers &
Suppliers are treated
as enemies
Organization is
hierarchical &
authority is not
delegated
Seen only as a cost

Move To
Leaders act as
Coaches &
Enablers
They are treated as
partners

People
Relationships

Seen as an asset
with ability to
contribute to C.I.

Support for
Innovation

Seen as an asset
with ability to
contribute to C.I.

Approach to
Learning

Motivation
for Action

Move From
Move To
Groups are divided Teams are supported &
& people act in
team skills are
isolation
developed within &
across sections
Information is used Information is used to
for power &
create knowledge and
influence
understanding
Creativity is
Creativity is supported &
avoided due to fear genuine mistakes are
of failure
seen to be part of
learning
Goals put people
Goals encourage people
into conflict with
to look for synergy with
win-lose outcomes win-win outcomes

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4.2 Roles of Engineers

Engineers have an important role in the
progress of the nation to achieve Vision
2020
Whatever engineers we are, we can adopt
the Three Timeless Principles and the
Seven Management Imperatives (to a
large extent) to achieve World Class in
our organizations by adopting the following
roles:

New Roles of Engineers

As a Leader
Establish and communicate realistic goals and targets
Set a personal example for the team to follow
Be aware of team composition and individual capabilities
Facilitate a supportive environment for the team
Mentor by giving and receiving feedback on performance
-Towards goals and targets
-As effective team members

Working on the system

Contribute to the skills
development of people
Provide opportunities for the
creative involvement of people
Coordinate resources for improving
the system

Working in the system

Plan, organize and control
the regular flow of work with
the involvement of people
in the system

Change from Commander/Hero to Coach/Enabler

4.3 The Benefits of Excelling

Minimum price, highest value
Cost
Quick
delivery

Fast
throughput

Quality
Error-free
products and
services

Dependable
delivery

Minimum cost,
maximum value

Speed

Error-free
processes

Dependability

Reliable
operation

Ability to
change

Flexibility

Thank you for your attention

Q & A Session

Frequent new
products, maximum
choice