4650 Spring/ chapt. 3

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4650 Spring/ chapt. 3

• Philosophies and Frameworks

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Leaders in the Quality Revolution

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

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Whos Who?
b
a
Deming ____ Juran ____ Crosby ____
c
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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
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Demings System of Profound Knowledge

• Appreciation for a system
• Understanding variation
• Theory of knowledge
• Psychology

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Systems

• Most organizational processes are
  cross-functional
• Parts of a system must work together
• Every system must have a purpose
• Management must optimize the system as a whole

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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

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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
• 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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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

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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
• ATT Power Systems Division

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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 U.S. companies

Malcolm Baldrige, former U.S. Secretary of
Commerce
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Criteria for Performance Excellence

• Leadership
• Strategic Planning
• Customer and Market Focus
• Information and Analysis
• Human Resource Focus
• Process Management
• Business Results

Baldrige Award trophy
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The Baldrige Framework A Systems Perspective
5 Human Resource Focus
2 Strategic Planning
1 Leadership
7 Business Results
3 Customer Market Focus
6 Process Management
4 Information and Analysis
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Baldrige Award Evaluation Process
Receive Applications
Stage 1 Independent Review
Judges Select for Consensus Review?
Feedback report to applicant
No
Stage 2 Consensus Review
Judges Select for Site Visit Review?
No
Feedback report to applicant
Stage 3 Site Visit Review
Stage 4 Judges Recommend Award Recipients to
NIST Director/DOC
Feedback report to applicant
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The Baldrige Award Scoring System

• Three evaluation dimensions - Approach,
  Deployment, and Results
• Scoring is linked to the importance to the
  applicants business
• Scoring guidelines (Table 3.5)

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Feedback Report

• Strengths - approaches or results that
  demonstrate effective response to the Criteria
• Opportunities for improvement - how the applicant
  can better address the purposes of the Criteria,
  or issues that require clarification

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Self Assessment and the Baldrige National
Quality Program
A primary goal of the 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 winner
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Growth of State Award Programs Based on the
Baldrige
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Quality Awards Around the World
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ISO 90002000

• 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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Objectives of ISO Standards (1 of 2)

• 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 requirements are
  being fulfilled

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Objectives of ISO Standards (2 of 2)

• Provide confidence to customers and other
  stakeholders that quality requirements are being
  achieved
• Provide confidence that quality system
  requirements are fulfilled

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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 Iimprovement

See Table 3.7
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ISO 90002000 Quality Management Principles

1. Customer Focus
2. Leadership
3. Involvement of People
4. Process Approach
5. System Approach to Management
6. Continual Improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier Relationships