Quality Management Principles

1

• Quality Management Principles
• become
• CEO Management Principles
• Brenda M. Fisk,
• ASQ Canada Director
• With thanks to Marsha Ludwig-Becker, Fall 2001

2
Objectives

• Agree on the definition of a quality Management
  System
• Review history of some contributors
• Review the 8 quality management Principles
• Summarize finding
• Conclude

3
Quality Management or System?

• Quality Management
• Quality Policy
• Objectives
• Responsibilities
• Implemented through
• Quality Planning
• Control
• Assurance
• Improvement

• Quality System
• Organization Structure
• Procedures
• Processes
• Resources needed to implement
• Quality Management

4
Management Questions

• Page 261, Certified Quality Handbook
• What business are we in?
• What resources do we need to succeed?
• How should the resources be organized?
• What skills are required?
• What do employees need to do the job?
• How will we know they are successful?
• What do we do if things go wrong?
• What do we do to improve?

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ISO 9000-2000, paragraph 4.3

• To lead and operate an organization successfully
• Manage it systematically
• Visibly
• Principles developed
• for management to use
• Lead towards improved performance
• Are integrated in the standard

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Quality Management Principles

1. Customer focus
2. Leadership
3. People involvement
4. Process approach
5. Systematic approach to management
6. Continual improvement
7. Factual approach to decision making
8. Mutual beneficial supplier relationships

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A Quality System is a Management System
8
Quality Management Principles Definition

• A comprehensive and fundamental set of rules or
  beliefs for leading and operating an organization
  aimed at continually improving performance over
  the long term by focusing on customers while
  addressing the needs of all stakeholders.

9
Theories of Major Contributors

• Dr. Edwards Deming
• Quality is the primary driver for business and
  societal successChain Reaction
• 14 Points for Transforming the Western
  Management
• Seven Deadly diseases
• Understanding the System of Profound Knowledge

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What is the System of Profound Knowledge?

• Appreciation for the system
• Common purpose
• Knowledge about variation
• Understanding why the variation exits
• Theory of knowledge
• Operational definitions allow usefulness
• Psychology
• People have different needs appreciation

11
Philip B Crosby

• Conformance to requirements
• Conformance not elegance
• No such thing as a quality problem
• Economics of quality?
• Do it right the first time
• Cost of Quality performance measurement
• Zero defects performance standard

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Armad V Feigenbauam

• Quality is a corporate life
• Quality leadership continuous leadership
  through planned specific terms
• Quality technology evaluate new techniques and
  implement as appropriate
• Quality Commitment continuous motivation,
  training for task at hand

13
4 Management Fundamentals

• Continuous improvement is necessary to stay
  competitive
• Personally leading the effort by mobilizing
• Successful innovation required high quality to
  support it
• Cost and quality are complementary rather than
  conflicting objectives.

14
Kaoru Ishikawa

• Quality Control is responsibility of all
• Total Quality Control is
• a group activity
• will not fail if all cooperate
• is not a miracle drug
• Middle management will be targeted
• be prepared!
• QC Circles are part of TQC
• Do not confuse --objective with means

15
Quality needs a revolution

• Quality first, not short term profit
• Consumer orientation
• Next process is your customer
• Use facts and data
• Respect humanity as a philosophy
• Cross functional management

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Joseph M Juran

• Quality Handbook
• Two different and related concepts
• Quality is income oriented higher quality costs
  more
• Quality is cost oriented higher quality costs
  less
• Quality Trilogy
• Planning
• Control
• Improvement

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Walter A Shewhart

• Father of statistical quality control
• Disciplines of statistics, engineering and
  economics
• From Bell Laboratories
• Mentored Juran and Deming
• Two types of variation
• Chance causes
• Assignable causes

18
Genichi Taguchi

• Effective use of design of experiments
• Goal is the most robust combination of product
  and process
• Project that meet customer requirements by being
  most consistently produced by the process
• Taguchi Loss function

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• The Eight Principles
• Lets look at each one

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1 Customer Focus

• Organizations depend on
• customers and
• must understand
• strive to meet and
• exceed customer expectations.

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Long term customers

• Plus for business because
• Profits come from upgrades,
• Services,
• New products that people believe in
• Customer Satisfaction is only the first step in
  building long term loyal customers the need is
  to focus on retention and loyalty

22
Satisfaction
Quality is perceived according to Kano Think
about what delights you as a customer !

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2 Leadership

• Leaders must be people that
• Have the ability to think in time spans of years
  instead of months
• Visualize life in 5 years
• what do you want it to be
• Stress corporate big picture

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Leaders

• Develop a participative climate
• Partnerships
• Make others responsible
• Employee participation
• Walk what you talk
• Say what you mean, mean what you say

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Vision Led Value Driven Leadership
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Cultivate Leadership Skills

• No fear of failure, sponsor change
• 3M scientists spend 15 of time on new ideas
• Provide corporate funding
• Create a secure environment
• Compromise between Japanese concept of lifetime
  employment and the North American tendency to
  fire at will
• Creates greater work efficiency

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3 People Involvement

• Worker empowerment comes from the ability of
  employees to make a difference in the process
  they manage
• Workers need tools to analyze, organize,
  understand and use large amounts of data to make
  important decisions that impact the bottom line

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The Way of the Beaver People

• Work best when they control their own jobs
• Must have clear understanding of companys
  overall purpose as well as their place in it
  (clear goals, values)
• People must know that their thoughts, feelings,
  needs and dreams are respected listened to and
  acted on.
• They are in the information loop

Blanchard, Ken, One Minute Manager Quality
Digest, Nov. 1997, p. 19
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The Way of the Beaver People

• Then people take control of their work
• Must set realistic goals for employees
  Individuals take pride in in holding themselves
  accountable for productivity, innovations, cost
  control, customer service and other business needs

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The Way of the Beaver People

• Need boundaries--helps encourage self control and
  accountability
• Empowerment cultures become team cultures
• Then must be taught to work in teams

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Responsibility is delegated, not
authority--empowerment

• Three facets
• Wisdom to know what to do when to do it
• The will to do what needs to be done
• The where withal to do it

Figure 3.1a The Empowerment Cube
Guest Editorial, by John Troyer, Quality Digest,
Oct. 1996, p. 64
32
4 Process Approach

• Everything done is involved in a process
• Meet needs and requirements of internal and
  external customers
• Must have clear responsibility for each process
• Measure process, measure inputs, and outputs

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A Process might look like this
Note Figure 3.3 from ISO 9000-1 1994, p. 4
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The Cornerstone of Process--TQM
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Processes should satisfy Customer Needs

• If they dont they are NOT good processes
• Process improvement focuses on implementing the
  best methods for translating valid operational
  requirements into finished products and services
• Processes are defined by flow charts

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An illustrated flow chart
How to Manage Key Business Processes, by Rico
Yingling, Quality Progress, April 1997, p.
107-110. Used at Border Chem. in Kent, WA.
37
Identify the key processesand goals

• Define key cross functional business processes
• Identify key processes and related goals
• Form teams and develop charters
• Develop measurements
• Manage the Process
• Discuss process maintenance, improvement, team
  improvement

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5 Systematic Approach to Management

• Management is
• A series of interrelated processes
• A system is defined by identifying all
  interrelated processes and their interdependences
• A system is managed as system of interrelated
  processes
• Integrated Master Plan (IMP)
• Integrated Master Schedule (IMS)
• A system is improved by continuous measuring and
  evaluating
• An effective system provides confidence in an
  organizations capability to meet customer
  requirements

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The Business Process
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6 Continual/ Continuous Improvement

• Performance improvement 3 flavors
• Strategic planning
• customer needs
• Operational planning
• translates strategy into operational and
  financial requirements
• Process improvement
• focuses on best methods for operational
  requirements into finished product/services

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Demings PDCA Cycle
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Phases of continuous process improvement

• Awareness
• Resistance
• Expansion
• Integration
• Regeneration, or Continuous Improvement

Doherty, Steve D., A Blueprint for Excellence,
Quality Progress, April 1991, p. 84-85
43
Blueprint for Excellence at the Air Force
Logistics Command (AFLC)
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Strategies for Implementation

• 1. Commitment
• 2. Training
• 3. Targeting and Deployment
• 4. Resources
• 5. Measurements
• 6. Management Structure
• 7. Systems Alignment
• 8. Communication and Information

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7 Factual Approach to Decision-Making

• Cant manage what you cant measure
• In God we trust, all others bring data
• Programs that produce employee involvement
• Statistical Process Control (SPC)--more than for
  manufacturing
• Now used in all soft processes
• Software, in Europe, only think of SPC
• Motorolas Six Sigma program is an SPC program
  that produces a goal for all employees to aim at
  and rally around

46
Caveat

• Must measure all processes, especially business
  processes
• This is where the money can be saved and customer
  satisfaction heightened
• Measurement must be automatic built into the
  process

47
Factual Approach to Decision-Making
From As Easy as Two Plus Two, News for a
Change, Association for Quality and
Participation, Cincinnati, OH., Nov. 1997, p. 4
48
Measuring Business Processes
From Kordupleski, R., Rust, R, and Zahorik, A,
Why Improving Quality Doesnt Improve Quality,
California Management Review, vol.38, no. 3,
Spring 1993, p. 91
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8 Mutually Beneficial Supplier Relationships

• A Win Win Philosophy!!!!
• Involve suppliers in product development
• On Site, strategic planning, input on product
  plans
• Electronic purchase orders and automated systems

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Supplier Partnership is the new buzzword

• Part of a new way of doing business
• TQM is making the difference
• Fewer suppliers/longer term suppliers,
  specialization, cost
• Cross functional teams including suppliers
• Best Value Customer satisfaction
• Involved in Service sector as well

51
Supplier Chain Management

• Measures cycle time
• Cuts transportation costs 5-12
• Inventory costs 10-40
• Schedule changes 15-65
• Cuts out stovepipes allows more benchmarking

52
Response Process
From The Hearth of the Matter, by Roberto
Michel, Manufacturing Systems (A Cahners
publication) April 1997 or see
http//www.manufacturingsystems.com. Figure 1.7
from Ludwig-Becker, M., Electronics Quality
Management Handbook, McGraw-Hill, 1997, p.388
53
Summary

• Implementation is not easy
• Takes a good leader
• Takes vision/perseverance
• Requires infrastructure
• Requires communication
• Much planning
• start immediately!
• Goes along well with ISO 9000 implementation

54
Conclusion

• We
• agreed on the definition of a quality Management
  System
• Reviewed history of some contributors
• Review the 8 quality management Principles
• Summarize finding
• and so

55

• Thank you very much
• I hope you enjoyed the presentation!
• Brenda Fisk,
• ASQ Canada Director

56
Sources

• California Management Review, S549 Haas School of
  Business 1900, Berkeley, CA 94720,
  cmr_at_haas.berkeley.edu
• ANSI/ISO/ASQ Q9004-2000, Quality Management
  Systems--Guidelines for performance improvements,
  American Society for Quality (ASQ), P.O. Box
  3005 Milwaukee, WI 53201, 2000
  http//standardsgroup.asq.org
• The Informed Outlook, International Forum for
  Management Systems, Inc., 15913 Edgewood
  Dr.Montclair, Virginia 22026, www.informintl.com
• ANSI/ASQC Q9001- 1994, Quality Management and
  Quality Assurance Standards--Guidelines for
  Selection and Use, ASQ, Milwaukee, WI, 1994
• Ludwig-Becker, M., Electronics Quality Management
  Handbook, McGraw-Hill, 1998, becker2_at_worldnet.att.
  net

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Sources

• Manufacturing Systems (A Cahners publication)
  April 1997 or see http.www.manufacturingsystems.co
  m
• Quality Digest, 1350 Vista Way., P.O. Box 882,Red
  Bluff, CA 96080, qualitydig_at_qof.com
• Quality Management Principles Internet site
  httpwww.wineasy.se/qmp/about.html and ISO 9004
  July 1998, p.415-416 ISO/CDI ISO 9000-1998, p.
  2
• Quality Progress, American Society of Quality,
  611 E. Wisconsin Ave., P.O. Box 3005, Milwaukee,
  WI 53201
• For Quality Function Deployment (QFD)Lou Cohens
  book, How to Make QFD Work for You,
  (Addison-Wesley, 1995) as well as the QFD
  internet pagehttp.www//akao.larc.nasa.gov/dfc/qfd
  .html