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Quality Management Principles Become CEO Management Practices

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Quality Management Principles Become CEO Management Practices original presentation by Marsha Ludwig-Becker adapted by Eric Whichard for Sept 2007 program – PowerPoint PPT presentation

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Title: Quality Management Principles Become CEO Management Practices


1
Quality Management Principles Become CEO
Management Practices
  • original presentation by Marsha Ludwig-Becker
  • adapted by Eric Whichard for Sept 2007 program

2
Objectives
  • Review the ISO 9004-2000 standards
  • Quality Management Principles
  • (QMPs)
  • Explore how these principles
  • can be applied
  • are being applied
  • should be applied in practice

3
ISO 9004-2000
http//www.asq.org/quality-press/display-item/ ind
ex.html?itemT2104Eauthor ANSI/ISO/ASQ20Q9004-2
000
4
ISO 9004-2000
  • ISO 9004-2000 is the guidance standard
    related to ISO 9001-2000
  • in the Introduction, section 0.1 General of ISO
    9004
  • adopting a quality system should be a strategic
    decision...
  • influenced by varying needs, objectives, etc....
  • this standard based on eight (8) quality
    management principles
  • no intent to imply uniformity

5
ISO 9004-2000
  • in the Introduction, section 0.1 General of ISO
    9004 further...
  • purpose of organization is to
  • identify / meet / exceed needs of customers /
    other interested parties (stakeholders)
  • achieve competitive advantage
  • in an effective / efficient manner
  • achieve / maint / improve performance /
    capabilities

6
ISO 9004-2000
  • in the Introduction, section 0.1 General of ISO
    9004 further...
  • application of QMPs provides benefits
  • and helps manage costs and risks
  • customer loyalty, repeat business
  • response to market opportunities
  • costs, cycle time, revenue, market share,
    profitability
  • alignment, competitive advantage
  • confidence (of all stakeholders)
  • value creation (for all stakeholders)
  • involved and motivated people
  • so, lets have a look at the QMPs...

7
Quality Management Principles
  • the Quality Management Principles are
  • A framework for leading an organization
  • by focusing on the needs of customers
  • and other stakeholders.

8
What are the Eight (8) Quality Management
Principles?
  • 1. Customer Focus
  • 2. Leadership
  • 3. Involvement of People
  • 4. Process Approach
  • 5. Systematic Approach to Management
  • 6. Continual Improvement
  • 7. Factual Approach to Decision-Making
  • 8. Mutually Beneficial Supplier Relationships
  • Lets walk through them one by one...

9
Principle 1 Customer Focusunderstand, strive
to meet and exceed customer expectations.
  • Organizations depend on their customers and
    should
  • understand needs, current future
  • meet / exceed those needs
  • to achieve
  • business performance effectiveness
  • customer loyalty
  • through
  • market / customer research
  • alignment of objectives with needs
  • measurement of customer satisfaction
  • balance among needs / interests of all
    stakeholders

10
Principle 1 Customer Focusunderstand, strive
to meet and exceed customer expectations.
Quality is perceived according to Kano Think
about what delights you as a customer

From Ludwig-Becker, M., Electronics Quality
Management Handbook, McGraw-Hill, 1997, p.67 from
Juran and Gyrna, Quality Planning and Analysis,
3rd Ed. McGraw-Hill, 1993,p. 247, used with
permission
11
Principle 1 Customer Focusunderstand, strive
to meet and exceed customer expectations.
  • What is the status of Customer Focus in YOUR
    world today?
  • What do you like? What would you change?
  • Who does it well? Poorly?

12
Principle 2 Leadershipunity, purpose, and
involvement
  • Leaders establish
  • unity of purpose and direction
  • environment where people are involved
  • to achieve
  • communication, motivation, alignment
  • organizations objectives
  • through
  • considering needs of all parties
  • vision, values, goals, targets, etc
  • fairness, respect, ethics, trust (elim. fear)
  • providing resources, removing road-blocks
  • inspiring, encouraging, recognizing

13
Vision Led Value Driven Leadership
14
Principle 2 Leadershipunity, purpose, and
involvement
  • Leadership skills must be cultivated

15
Principle 2 Leadershipunity, purpose, and
involvement
How do the leaders in your life perform in these
respects? How about YOU as a leader?
16
Principle 3 People Involvement People...are
the essence of the organization...
  • People at all levels
  • are the essence
  • their full involvement
  • organizations benefit ( those of its
    stakeholders)
  • to achieve
  • motivation, innovation, creativity
  • accountability, participation, contribution
  • through their understanding of
  • their roles and goals
  • importance of their contributions
  • strengths, opportunities, knowledge, experience
  • constraints, issues, problems (trust)

17
Principle 3 People Involvement
  • Three facets of empowerment (each depends on the
    others)
  • Knowledge of what to do, when to do it
  • Will to do what needs to be done
  • The wherewithal to do it

Figure 3.1a The Empowerment Cube
Guest Editorial, by John Troyer, Quality Digest,
Oct. 1996, p. 64
18
Principle 3 People Involvement People...are
the essence of the organization...
How well are you involved by the leaders of the
organizations in which you participate? How well
do you as a leader involve others?
19
Principle 4 Process Approach...related
resources and activities are managed as a
process.
  • A process approach
  • achieves desired results more efficiently
  • manages related resources, activities, etc. as a
    process
  • to achieve
  • lower costs, reduce cycle times
  • consistency, predictability... improvement
  • through
  • defining result... process... inputs...
  • responsibility, accountability, measurement /
    analysis
  • identifying interfaces, interdependencies
  • focus on critical factors, best opportunities,
    risks, etc/

20
Principle 4 Process Approachrelated resources
and activities are managed as a process.
  • Everything done is involved in a process
  • Suppliers... Inputs... Process... Outputs...
    Customers (SIPOC)
  • Voice of the customer loops back to beginning
    (PDCA)

Note Figure 3.3 from ISO 9000-1 1994, p. 4
21
Principle 4 Process Approach
  • Baldrige Approach, Category 6 Process Management

22
Principle 4 Process Approachrelated resources
and activities are managed as a process.
Regarding the processes that you encounter, how
well are they managed? Are they managed as
processes, or otherwise? How / how well do you
manage your processes?
23
Principle 5 Systems Approach...managing a
system for effectiveness and efficiency
  • Systems are
  • collections of interrelated processes
  • their interfaces, interdependences, etc.
  • that are best managed as a whole (system)
  • to achieve
  • efficiency, effectiveness, improvement
  • confidence in capability
  • through
  • thorough definition and understanding
  • especially of the KEY processes
  • measurement, evaluation
  • responsibility accountability

24
Principle 5 Systems ApproachA Business System
of Processes
25
Principle 6 Continual Improvement...the object
of an organization that wishes to stay in
business.
  • Continual improvement
  • in overall performance
  • permanent objective
  • improving
  • capability, flexibility
  • alignment, agility
  • through
  • see above...
  • and below

26
Principle 6 Continual Improvement
  • Phases of continuous process improvement (see
    next chart)
  • Awareness, Resistance, Expansion, Integration and
    finally Regeneration, or Continuous Improvement
  • 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

Doherty, Steve D., A Blueprint for Excellence,
Quality Progress, April 1991, p. 84-85
27
Principle 6 Continual ImprovementBlueprint for
Excellence at the Air Force Logistics Command
(AFLC)
28
Principle 7 Factual Approach...based on..
analysis of data and information.
  • Cant manage what you cant measure
  • In God we trust. All others, bring data
  • supports improvement
  • better decisions, results
  • verifiable gains, means to hold them
  • Measure, collect data
  • Analyze it
  • Make results available
  • Use them

29
Principle 7 Factual Approach...
From As Easy as Two Plus Two, News for a
Change, Association for Quality and
Participation, Cincinnati, OH., Nov. 1997, p. 4
30
Principle 7 Factual Approach to
Decision-MakingMeasuring 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
31
Principle 7 Factual Approach...based on..
analysis of data and information.
  • Are you a facts and figures sort or person?
  • A go with the gut type?
  • How about those you work with?

32
Principle 8 Mutually Beneficial Supplier
Relationshipsenhance the ability of the
organization to create value.
  • A Win-Win approach
  • Both organizations can create more value
  • Better flexibility, speed, optimization
  • Balance short / long term
  • Pool expertise, share information
  • Better communication
  • Joint efforts
  • Mutual respect, recognition

33
Summary the eight QMPs
  • 1. Customer Focus
  • 2. Leadership
  • 3. Involvement of People
  • 4. Process Approach
  • 5. Systematic Approach to Management
  • 6. Continual Improvement
  • 7. Factual Approach to Decision-Making
  • 8. Mutually Beneficial Supplier Relationships
  • See Self Assessment for QMP Implementationinclude
    d in 9004-2000
  • See also
  • http//www.iso.org/iso/iso_catalogue/management_st
    andards/iso_9000_iso_14000/qmp.htm
  • for further elaboration

34
  • Further thoughts?

35
  • Further thoughts?
  • THANK YOU

36
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

37
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
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