Quality Philosophies

Chapter 3
Philosophies and Frameworks
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
Leaders in the Quality Revolution

W. Edwards Deming Joseph M. Juran Philip B. Crosby Armand V. Feigenbaum Kaoru Ishikawa Genichi Taguchi
Deming Chain Reaction

Improve quality Costs decrease Productivity improves Increase market share with better quality and lower prices Stay in business Provide jobs and more jobs MANAGING FOR QUALITY AND
PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing 3
Key Idea
The Deming philosophy focuses on continual improvements in product and service quality by reducing uncertainty and variability in design, manufacturing, and service processes, driven by the leadership of top management.
Demings System of Profound Knowledge

Appreciation for a system Understanding variation Theory of knowledge Psychology
Systems
Most organizational processes are crossfunctional Parts of a system must work together Every system must have a purpose Management must optimize the system as a whole
Key Idea
The aim of any system should be for all stakeholdersstockholders, employees, customers, community, and the environmentto benefit over the long term.
Variation
Many sources of uncontrollable variation exist in any process Excessive variation results in product failures, unhappy customers, and unnecessary costs Statistical methods can be used to identify and quantify variation to help understand it and lead to improvements
Theory of Knowledge
Knowledge is not possible without theory Experience alone does not establish a theory, it only describes Theory shows cause-and-effect relationships that can be used for prediction
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Psychology
People are motivated intrinsically and extrinsically; intrinsic motivation is the most powerful Fear is demotivating Managers should develop pride and joy in work
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Demings 14 Points (Abridged)

(1 of 2)
1. Create and publish a company mission statement and commit to it. 2. Learn the new philosophy. 3. Understand the purpose of inspection. 4. End business practices driven by price alone. 5. Constantly improve system of production and service. 6. Institute training. 7. Teach and institute leadership. 8. Drive out fear and create trust.
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Demings 14 Points (2 of 2)
9. Optimize team and individual efforts. 10. Eliminate exhortations for work force. 11. Eliminate numerical quotas and M.B.O. Focus on improvement. 12. Remove barriers that rob people of pride of workmanship. 13. Encourage education and self-improvement. 14. Take action to accomplish the transformation.
www.deming.org
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Jurans Quality Trilogy

Quality planning Quality control Quality improvement
www.juran.com
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Key Idea
Juran proposed a simple definition of quality: fitness for use. This definition of quality suggests that it should be viewed from both external and internal perspectives; that is, quality is related to (1) product performance that results in customer satisfaction; (2) freedom from product deficiencies, which avoids customer dissatisfaction.
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Phillip B. Crosby
Quality is free . . .
Quality is free. Its not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.
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Philip B. Crosby
Absolutes of Quality Management: Quality means conformance to requirements Problems are functional in nature There is no optimum level of defects Cost of quality is the only useful measurement Zero defects is the only performance standard
www.philipcrosby.com
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A.V. Feigenbaum
Three Steps to Quality
Quality Leadership, with a strong focus on planning Modern Quality Technology, involving the entire work force Organizational Commitment, supported by continuous training and motivation
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Kaoru Ishikawa
Instrumental in developing Japanese quality strategy Influenced participative approaches involving all workers Advocated the use of simple visual tools and statistical techniques
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Genichi Taguchi
Pioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications:
Loss
0.480
No Loss
0.500 0.520
Loss
Tolerance
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Malcolm Baldrige National Quality Award

Help improve quality in U.S. companies Recognize achievements of excellent firms and provide examples to others Establish criteria for evaluating quality efforts Provide guidance for other American companies
Malcolm Baldrige, former U.S. Secretary of Commerce
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Criteria for Performance Excellence

Leadership Strategic Planning Customer and Market Focus Measurement, Analysis, and Management Human Resource Focus Process Management Business Results
Knowledge
Baldrige Award trophy
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The Baldrige Framework A Systems Perspective

Organizational Profile: Environment, Relationships, and Challenges
2 Strategic Planning
5 Human Resource Focus
1 Leadership 3 Customer & Market Focus 6 Process Management
7 Business Results
4 Measurement, Analysis, and Knowledge Management MANAGING FOR QUALITY AND

PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing 22
Key Idea
The Baldrige criteria define both an integrated infrastructure and a set of fundamental practices for a highperformance management system.
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Criteria Evolution (1 of 2)
From quality assurance and strategic quality planning to a focus on process management and overall strategic planning From a focus on current customers to a focus on current and future customers and markets From human resource utilization to human resource development and management From supplier quality to supplier partnerships
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Criteria Evolution (2 of 2)
From individual quality improvement activities to cycles of evaluation and improvement in all key areas From data analysis of quality efforts to an aggregate, integrated organizational level review of key company data From results that focus on limited financial performance to a focus on a composite of business results, including customer satisfaction and financial, product, service, and strategic performance
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Key Idea
Approaches that organizations use to address the Baldrige criteria requirements need not be formal or complex, and can easily be implemented by small businesses.
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Baldrige Award Evaluation Process

Receive Applications
Stage 1 Independent Review
Judges Select for Consensus Review?
No
Feedback report to applicant
Stage 2 Consensus Review
Judges Select for Site Visit Review?
No
Stage 3 Site Visit Review

Stage 4 Judges Recommend Award Recipients to MANAGING FOR QUALITY AND NIST Director/DOC PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

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Self Assessment
A primary goal of the Baldrige program is to encourage many organizations to improve on their own by equipping them with a standard template for measuring their performance and their progress toward performance excellence.
Boeing Airlift & Tanker Programs 1998 recipient
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Deming Prize
Instituted 1951 by Union of Japanese Scientists and Engineers (JUSE) Several categories including prizes for individuals, factories, small companies, and Deming application prize American company winners include Florida Power & Light and AT&T Power Systems Division
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Other Quality Awards

European Quality Award Canadian Awards for Business Excellence Australian Business Excellence Award Chinese National Quality Award (New)
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ISO 9000:2000
Quality system standards adopted by International Organization for Standardization in 1987; revised in 1994 and 2000 Technical specifications and criteria to be used as rules, guidelines, or definitions of characteristics to ensure that materials, products, processes, and services are fit for their purpose.
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Key Idea
ISO 9000 defines quality system standards, based on the premise that certain generic characteristics of management practices can be standardized, and that a well-designed, well-implemented, and carefully managed quality system provides confidence that the out-puts will meet customer expectations and requirements.
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Objectives of ISO Standards

Achieve, maintain, and continuously improve product quality Improve quality of operations to continually meet customers and stakeholders needs Provide confidence to internal management and other employees that quality system requirements are being fulfilled Provide confidence to customers and other stakeholders that quality requirements are being achieved
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Structure of ISO 9000 Standards

21 elements organized into four major sections:
Management Responsibility Resource Management Product Realization Measurement, Analysis, and Improvement
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ISO 9000:2000 Quality Management Principles

1. 2. 3. 4. 5. 6. 7. 8. Customer Focus Leadership Involvement of People Process Approach System Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier Relationships
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Key Idea
ISO 9000 provides a set of good basic practices for initiating a quality system, and is an excellent starting point for companies with no formal quality assurance program.
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Six Sigma
Based on a statistical measure that equates to 3.4 or fewer errors or defects per million opportunities Pioneered by Motorola in the mid-1980s and popularized by the success of General Electric
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Key Idea
Six Sigma can be described as a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and a clear financial return for the organization.
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Key Concepts of Six Sigma

(1 of 2)
Think in terms of key business processes, customer requirements, and overall strategic objectives. Focus on corporate sponsors responsible for championing projects, support team activities, help to overcome resistance to change, and obtaining resources. Emphasize such quantifiable measures as defects per million opportunities (dpmo) that can be applied to all parts of an organization
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Key Concepts of Six Sigma

(2 of 2)
Ensure that appropriate metrics are identified early and focus on business results, thereby providing incentives and accountability. Provide extensive training followed by project team deployment Create highly qualified process improvement experts (green belts, black belts, and master black belts) who can apply improvement tools and lead teams. Set stretch objectives for improvement.
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Key Idea
Although different, Baldrige and Six Sigma are highly compatible and can each have a place in the management system of a successful organization.
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Chapter 3

Philosophies and Frameworks

Leaders in the Quality Revolution

Deming Chain Reaction

Demings System of Profound Knowledge

Demings 14 Points (Abridged)

Jurans Quality Trilogy

Malcolm Baldrige National Quality Award

Malcolm Baldrige, former U.S. Secretary of Commerce

Criteria for Performance Excellence

The Baldrige Framework A Systems Perspective

5 Human Resource Focus

1 Leadership 3 Customer & Market Focus 6 Process Management

4 Measurement, Analysis, and Knowledge Management MANAGING FOR QUALITY AND

Baldrige Award Evaluation Process

Judges Select for Consensus Review?

Feedback report to applicant

Stage 2 Consensus Review

Judges Select for Site Visit Review?

Feedback report to applicant

Stage 3 Site Visit Review

Feedback report to applicant

Other Quality Awards

Objectives of ISO Standards

Structure of ISO 9000 Standards

ISO 9000:2000 Quality Management Principles

Key Concepts of Six Sigma

Key Concepts of Six Sigma

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