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QUALITY PHILOSOPHIES AND PRINCIPLES

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Title: QUALITY PHILOSOPHIES AND PRINCIPLES


1
UNIT 3
  • QUALITY PHILOSOPHIES AND PRINCIPLES

2
Unit Objectives
  • Who are the quality gurus or philosophers that
    have shaped quality thinking and practices?
  • What are the characteristics of contemporary
    quality philosophies?
  • How has the concept of quality changed and
    evolved over the years?
  • How quality principles evolve over the years?

3
The Quality Gurus or Philosophers
  • The Quality Gurus can be divided into four main
    periods
  • The pioneer (Walter Shewhart)
  • The early Americans who took messages of quality
    to the Japanese in the early 1950s (W Edwards
    Deming, Joseph M Juran and Armand V Feigenbaum).
  • The Japanese response from the late 1950s onwards
    (Dr Kaoru Ishikawa, Dr Genichi Taguchi and Shigeo
    Shingo).
  • The new Western wave concentrating on Quality
    Awareness from the 1970s onwards (Philip Crosby,
    Tom Peters and Claus Moller).

4
The Quality Philosophers/Gurus
5
Walter Shewhart (1891-1967)
  • Western Electric Bell Telephone Engineer
  • Father of Statistical Quality Control (SQC)
  • Founder of the Control Chart (e.g. X-bar R chart)
  • Originator of PDCA cycle
  • ASQC (American Society for Quality) 1st Honorary
    Member 1947

6
William Edwards Deming (1900-1993)
  • Studied under Shewhart at Bell Laboratories
    (Awarded a Ph. d in Mathematical Physics in 1928)
  • Western Electric Statistician
  • Advisor, Author, Teacher Consultant
  • ASQC Honorary member in 1970
  • Invited to Japan Led the Japanese Quality
    Movement
  • Deming introduced the statistical quality-control
    element to Japanese industry in the 1950s.
  • Founder, Third Wave of Industrial Revolution
  • Bureau of Census Advisor in Population Sampling
  • Popularized Shewhart PDCA cycle

7
PDCA CYCLE/DEMING CYCLE
DO
8
Joseph Moses Juran (1904-2008)
  • Joined Western Electric as an Industrial Engineer
  • Developed the western Electric Statistical
    Quality Control Handbook
  • Also well-known for helping improve Japanese
    quality
  • Developed the Juran Trilogy for managing quality
  • Enlightened the world on the concept of the vital
    few, trivial many which is the foundation of
    pareto charts

9
Pareto Charts
10
Pareto Charts
  • The Pareto effect even operates in quality
    improvement 80 of problems usually stem from
    20 of the causes.
  • Pareto charts are used to display the Pareto
    principle in action, arranging data so that the
    few vital factors that are causing most of the
    problems reveal themselves.
  • Concentrating improvement efforts on these few
    will have a greater impact and be more
    cost-effective than undirected efforts.

11
Philip B. Crosby (1926-2001)
  • Vice president, Quality at International
    Telephone Telegraph (ITT)
  • Introduced the four absolutes of quality
  • Written the book Quality is Free (1979)

12
Armand Vallin Feigenbaum (??)
  • President/CEO, General Systems Company
  • Founder, International Academy for Quality
  • ASQC President (1961-63)
  • US Army Material Command Advisor of Quality
    Assurance
  • Stressed a systems approach to quality
  • Cost of quality may be separated into costs for
    prevention, appraisal, and failures (e.g., scrap,
    warranty)

13
Kaoru Ishikawa (1915-1989)
  • Ph. D in Engineering
  • A university Professor
  • Leader of the Japanese Quality Movement
  • Developed the Japanese Quality Strategy
  • Developed concept of true and substitute quality
    characteristics
  • Advocate the use of the 7 tools (e.g., cause-and
    effect diagram, pareto chart, etc.,)
  • Advanced the use of QCC (Quality Control Circle)
  • Developed concept of Japanese Total Quality
    Control/Company-wide quality control (CWQC)

14
Genichi Taguchi (1924-?)
  • Worked in Electrical Communication Laboratory of
    the Nippon Telephone and Telegraph Co
  • A visiting Professor at the Indian Statistical
    Institute Visiting Research Associate at Prince
    University
  • A Professor at Aoyama Gakuin U in Tokyo
  • Director of the Japanese Academy of Quality
  • Advisor at the Japanese Standard Association
  • Introduced quality loss function (deviation from
    target is a loss to society)
  • Promoted the use of parameter design

15
Shigeo Shingo (1909 -1990)
  • Graduated in Mechanical Engineering in 1930
  • A professional management consultant, manager,
    advisor and trainer
  • President of the Institute of Management
    Improvement
  • Worked in Toyota Motor Co, Matsushita Electrical
    Industrial Co
  • Advocated the replacement of (SQC) with source
    inspection (controlling at the source rather than
    through sampling inspections)
  • Developed Poka-Yoke devices/system (mistake
    proofing devices) such as sensors and monitors to
    identify defects at the point they occur
  • Zero defect approach because zero defects is
    the ultimate goal

16
Tom Peters
  • Educated in engineering business
  • Worked as a principal at Mckinsey Co when he
    wrote his book In search of Excellence (1982)
    excellent performance within 43 large American
    Companies
  • Identified leadership as being central to
    quality improvement process
  • Best known for his customer orientation
  • Describe 12 attribute or traits of quality
    revolution

17
Claus Moller
  • European a Danish business economist
  • Founded Time Manager International (TMI) in 1975
  • TMI provide management training in the Soviet
    Union EEC
  • TMI also involved with quality management
    training
  • His 1st book Personal quality was published in
    1988

18
The Shewhart Philosophy
  • Shewhart was the pioneer and visionary of modern
    quality control.
  • Shewhart is most widely recognized for his
    control chart development and statistical
    contributions through Bell Laboratories.
  • Indeed, the Shewhart charts (e.g., X-bar and R
    charts) have become fundamental tools of quality
    control but, of wider impact, Shewhart
    published, in 1931, Economic Control of Quality
    of Manufactured Product, a landmark book in
    modern quality control.
  • His book was used by the Japanese after World War
    II, with the aid of visiting consultants, to help
    shape modern quality practice in Japan.

19
The Shewhart Philosophy
  • Shewhart, using a literal definition of quality
    (Latin qualitas, from qualis, meaning "how
    constituted"), defined two common aspects of
    quality
  • (1) "objective quality," which deals with the
    quality of a thing as an "objective reality" (of
    the thing) independent of the existence of man
    and
  • (2) "subjective quality," which deals with the
    quality of a thing relative to what man thinks,
    feels, or senses as a result of the "objective
    reality."

20
The Shewhart Philosophy
  • Shewhart linked the subjective quality property
    with value and concluded "it is impossible to
    think of a thing as having goodness independent
    of some human want."
  • This definition has been expanded by Ishikawa to
    include "true" (customer-language based) and
    "substitute" (technical-language-based) quality
    characteristics which form the basis for modem
    quality planning and quality function deployment.

21
The Shewhart Philosophy
  • It is of great historical interest to point out
    that the Shewhart postulates (lines of reasoning)
    and general conclusions published in 1931 laid
    the foundation for modern quality theory and
    practice throughout the industrial world.

22
The Shewhart Philosophy
  • His general conclusions are stated below
  • It seems reasonable to believe that there is an
    objective state of control, making possible the
    prediction of quality within limits even though
    the causes of variability are unknown....It has
    been pointed out that by securing this state of
    control, we can secure the following advantages
  • Reduction in the cost of inspection.
  • Reduction in the cost of rejection.
  • Attainment of maximum benefits from quantity
    production.
  • Attainment of uniform quality even though the
    inspection test is destructive.
  • Reduction in tolerance limits where quality
    measurement is indirect.

23
The Deming Quality Philosophy
  • Deming's 14 points
  • Demings seven deadly diseases
  • Deming's profound knowledge system

24
Deming's 14 points
  • Create constancy of purpose toward improvement of
    product and service, with the aim to become
    competitive and to stay in business, and to
    provide jobs (create vision and commitment).
  • Adopt/learn the new philosophy. We are in a new
    economic age. Western management must awaken to
    the challenge must learn their responsibilities,
    and take on leadership for change.
  • Cease dependence on inspection to achieve
    quality. Eliminate the need for inspection on a
    mass basis by building quality into the product
    in the first place. (worker must take
    responsibility for their work understand
    variation seek to reduce the common causes)

25
Deming's 14 points
  • End the practice of awarding business on the
    basis of price tag. Instead, minimize total cost.
    Move toward a single supplier for any one item,
    on a long-term relationship of loyalty and trust.
  • Improve constantly and forever the system of
    production and service, to improve quality and
    productivity, and thus constantly decrease costs.
  • Institute training on the job (both management
    workers require proper tools knowledge).

26
Deming's 14 points
  1. Institute leadership. The job of management is
    leadership, not supervision leadership means
    providing guidance to help employees do their job
    better with less effort.
  2. Drive out fear. Create trust. Create a climate
    for innovation so that everyone may work
    effectively for the company.
  3. Break down barriers between departments (optimize
    the efforts of team).

27
Deming's 14 points
  1. Eliminate slogans, exhortations, and targets for
    the work force asking for zero defects and new
    levels of productivity (workers become frustrated
    when they cannot improve or are penalized for
    defects) overlook the source the problems the
    system.
  2. A. Eliminate work standards on the factory floor
    (Eliminate numerical quotas for production.
    Instead learn and institute methods for
    improvement). b. Eliminate management by
    objective numbers without a method to achieve
    them (Instead, learn the capabilities of
    processes, and how to improve them). Numbers
    have no meaning without a method to achieve them.

28
Deming's 14 points
  • A. Remove barriers that rob the hourly worker of
    his right to pride of workmanship. b. Remove
    barriers that rob people in management and in
    engineering of their right to pride of
    workmanship (Performance appraisal destroys
    teamwork by promoting competition).
  • Institute a vigorous program of continuing
    education and self-improvement.
  • Take action to accomplish the transformation. Put
    everybody in the company to work to accomplish
    the transformation. The transformation is
    everyone's job. A major cultural change

29
The seven deadly diseases that obstruct the quest
for quality
  1. Lack of constancy of purpose to plan product and
    service that will have a market and keep the
    company in business, and provide jobs.
  2. Emphasis on short term profits invest in
    research development.
  3. Evaluation of performance, merit rating, or
    annual review (annual appraisal) destroy
    teamwork.
  4. Mobility of management job hopping (personal
    career advancement is placed ahead of welfare of
    the organization).
  5. Management by use only of visible figures, with
    little or no consideration of figures that are
    unknown or unknowable.
  6. Excessive medical costs bad for long-term
    competitiveness.
  7. Excessive costs of liability/warranty, fueled by
    lawyers who work on the basis of contingency
    fees. proliferation of lawsuits and
    multimillion dollars judgments.

30
The System of Profound Knowledge
  • The system of profound knowledge is made up of
    four areas
  • (1) appreciation for a system,
  • (2) knowledge about variation,
  • (3) theory of knowledge, and
  • (4) psychology.

31
System of Profound Knowledge Appreciation of a
system
  • A system is a set of functions or activities
    within an organization that work together for the
    aim of the organization.
  • A production system is composed of many smaller,
    interacting subsystems.
  • These subsystems are linked together as internal
    customers and suppliers.
  • The components of any system must work together
    if the system is to be effective.

32
System of Profound Knowledge Appreciation of a
system
  • Management's job is to optimize the system.
  • Sub-optimization results in losses to everybody
    in the system.
  • All the people who work within a system can
    contribute to improvement, which will enhance
    their joy in work.

33
System of Profound Knowledge knowledge about
variation
  • The second part of Profound Knowledge is a basic
    understanding of statistical theory and
    variation.
  • We see variation everywhere variation exists in
    production processes.
  • Actually, a production process contains many
    sources of variation

34
System of Profound Knowledge Causes of Variation
  • Product manufacturing was measured and where
    variations occurred in manufacture the cause was
    traced back to either (1) special causes or (2)
    common causes.
  • (1) Special causes are easily identifiable and
    solvable at a local level - for example a change
    in operator, shift of procedure.
  • (2) A common cause is due to the design or
    process of the system and is the responsibility
    of management to solve.

35
System of Profound Knowledge Proportion of
Variation
  • Common causes of variation generally account for
    about 80 to 90 percent of the observed variation
    in a production process.
  • The remaining 10 to 20 percent are the result of
    special causes of variation, often called
    assignable causes.

36
System of Profound Knowledge Theory of knowledge
  • The third part of profound knowledge is the
    theory of knowledge, the branch of philosophy
    concerned with the nature and scope of knowledge,
    its presupposition and basis, and the general
    reliability of claims to knowledge

37
System of Profound Knowledge Theory of knowledge
  • Deming emphasized that knowledge is not possible
    without theory, and experience alone does not
    establish a theory.
  • Any rational plan, however simple, requires
    prediction concerning conditions, behavior, and
    comparison of performance.

38
System of Profound Knowledge Theory of knowledge
  • A statement devoid of prediction or explanation
    of past events conveys no knowledge.
  • Experience only describes-it cannot be tested or
    validated-and alone is no help in management.
  • Theory , on the other hand, shows a cause and
    effect relationship that can be used for
    prediction.

39
System of Profound Knowledge PSYCHOLOGY
  • Psychology helps us understand
  • people,
  • interactions between people and circumstances,
  • interactions between leaders and employees, and
  • any system of management.

40
system of Profound Knowledge PSYCHOLOGY
  • Much of Deming's philosophy is based on
    understanding human behavior and treating people
    fairly.
  • People differ from one another.
  • A leader must be aware of these differences and
    work toward optimizing everybody's abilities and
    preferences.
  • Most managers operate under the assumption that
    all people are alike.
  • However, a true leader understands that people
    learn in different ways and at different speeds,
    and manages the system accordingly.

41
Concluding remark on the system of profound
knowledge
  • A leader of transformation, and managers
    involved, need to learn the psychology of
    individuals, the psychology of a group, the
    psychology of society, and the psychology of
    change.
  • Some understanding of variation
  • Including appreciation of a stable system, and
    some understanding of special causes and common
    causes of variation, are essential for management
    of a system, including management of people.

42
The Juran Philosophy
  • Juran defined quality as (I) product performance
    that results in customer satisfaction (2)
    freedom from product deficiencies, which avoids
    customer dissatisfaction-- simply summarized as
    "fitness for use."

43
The Juran Philosophy
  • This definition can be broken down into four
    categories
  • (1) quality of design,
  • (2) quality of conformance,
  • (3) availability and
  • (4) field service.

44
The Juran Philosophy
  • Quality of design concentrates on market
    research, the product concept, and design
    specifications.
  • Quality of conformance includes technology,
    manpower, and management.
  • Availability focuses on reliability,
    maintainability, and logistical support.
  • Field service quality comprises promptness,
    competence, and integrity.

45
The Juran Philosophy
  • The pursuit of quality is viewed on two levels
  • (l) The mission of the firm as a whole is to
    achieve high product quality and
  • (2) The mission of each department in the firm is
    to achieve high production quality.

46
The Juran Philosophy
  • Juran's prescriptions focus on three major
    quality processes, called the Quality Trilogy
  • (1) quality planning --the process of preparing
    to meet quality goals
  • (2) quality control-- the process of meeting
    quality goals during operations and
  • (3) quality improvement --the process of breaking
    through to unprecedented levels of performance.

47
The Juran Quality Trilogy Diagram
48
Quality planning begins with
  • (1) identifying customers, both external and
    internal,
  • (2) determining their needs and
  • (3) developing product features that respond to
    those needs at a minimum combined cost.
  • (4) the process that can produce the product to
    satisfy customers' needs and meet quality goals
    under operating conditions must be designed.
  • (5) compares results with previous plans, and
    meshes the plans with other corporate strategic
    objectives.

49
The Quality Planning Process
50
The Quality Planning Process
51
Quality control involves
  • (1) determining what to control,
  • (2) establishing units of measurement to evaluate
    data objectively,
  • (3) establishing standards of performance,
  • (4) measuring actual performance,
  • (5) interpreting the difference between actual
    performance and the standard and
  • (6)taking action on the difference.

52
Quality improvement program involves
  • (1) proving the need for improvement,
  • (2) identifying specific projects for
    improvement,
  • (3) organizing support for the projects,
  • (4) diagnosing the causes,
  • (5) providing remedies for the causes,
  • (6) proving that the remedies are effective under
    operating conditions and
  • (7) providing control to maintain

53
The Feigenbaum Philosophy
  • Traditionally (pre-1970s) in the United States,
    quality assurance was widely associated with
    establishing and measuring conformance to
    technical specifications on the shop floor and in
    inspection departments.
  • The evolution which has occurred in transforming
    this narrow, reactive view of quality to its
    current broad companywide, approach in the United
    States can be credited to Feigenbaum.
  • He has had a great impact on this transformation
    through his total quality control concept and
    strategies

54
The Feigenbaum Philosophy
  • Feigenbaum define total quality control as an
    effective system for integrating the
    quality-development, quality-maintenance, and
    quality-improvement efforts of various groups in
    an organization so as to enable marketing,
    engineering, production, and service at the most
    economical levels which allow for full customer
    satisfaction

55
Feigenbaum's horizontal scope of total quality
control
56
The Feigenbaum Philosophy
  • Feigenbaum stresses a systems approach to quality
    through the definition of a quality system

57
The Feigenbaum Philosophy
  • A quality system is the agreed on, company-wide
    and plant-wide operating work structure,
    documented in effective, integrated technical and
    managerial procedures, for guiding the
    coordinated actions of the work force, the
    machines, and the information of the company and
    plant in the best and most practical ways to
    assure customer quality satisfaction and
    economical costs of quality.

58
The Feigenbaum Philosophy
  • Feigenbaum's philosophy is summarized in his
    Three Steps to Quality
  • Quality Leadership
  • Modern Quality Technology
  • Organizational Commitment

59
Quality Leadership
  • A continuous management emphasis is grounded on
    sound planning rather than reaction to failures.
    Management must maintain a constant focus and
    lead the quality effort.

60
Modern Quality Technology
  • The traditional quality department cannot resolve
    80 to 90 percent of quality problems.
  • This task requires the integration of office
    staff as well as engineers and shop- floor
    workers in the process who continually evaluate
    and implement new techniques to satisfy customers
    in the future.

61
Organizational Commitment
  • Continuous training and motivation of the entire
    workforce as well as an integration of quality in
    business planning indicate the importance of
    quality and provide the means for including it in
    all aspects of the firm's activities.
  • The Japanese latched on to this concept of total
    quality control as the foundation for their
    practice called Company- Wide Quality Control
    (CWQC), which began in the 1960s.
  • Feigenbaum's ideas also have become important
    elements of the Malcolm Baldrige National Quality
    Award Criteria.

62
Ishikawa Philosophy
  • Ishikawa provided a great deal of leadership in
    shaping the Japanese quality movement through his
    vision and activities associated with the Union
    of Japanese Scientists and Engineers (JUSE).
  • By 1967 Japanese quality control could, be
    distinguished from that practiced in the West

63
Six characteristics of Japanese Quality Control
  1. Company-wide quality control participation by
    all members of the organization in quality
    control.
  2. Education and training in quality control.
  3. Quality control circle activities.
  4. Quality control audits (for effectiveness).
  5. Utilization of statistical methods.
  6. Nationwide quality control promotion (including
    training) activities.

64
  • Ishikawa's impact on quality control practices
    has been extensive.
  • Ishikawa developed the concept of true and of
    substitute quality characteristics.

65
True VS Substitute quality characteristics
  • The "true" quality characteristics are the
    customer's view of product performance, expressed
    in the customer's vocabulary.
  • "Substitute" quality characteristics are the
    producer's view of product performance expressed
    in the producer's technical vocabulary.
  • The degree of match between true and substitute
    quality characteristics ultimately determines
    customer satisfaction.

66
True VS Substitute quality characteristics
  • Ishikawa proposes three steps which are the basis
    of quality-planning and quality
    function-deployment techniques.
  • Understand true quality characteristics.
  • Determine methods of measuring and testing true
    quality characteristics.
  • Discover substitute quality characteristics, and
    have a correct understanding of the relationship
    between true quality characteristics and
    substitute quality characteristics.

67
Seven Quality Tools
  • Ishikawa has been associated with the development
    and advocacy of universal education in the seven
    "indispensable" or fundamental tools (of quality
    control)
  • Cause-effect (Ishikawa) diagram.
  • Stratification.
  • Check sheet.
  • Histogram.
  • Scatter diagram.
  • Pareto chart (vital few, trivial many).
  • Graphs and statistical control charts.

68
Seven Tools of Quality
69
Some key elements of his philosophy are
summarized here
  • 1. Quality begins with education and ends with
    education.
  • 2. The first step in quality is to know the
    requirements of customers.
  • 3. The ideal state of quality control occurs when
    inspection is no longer necessary.
  • 4. Remove the root cause, not the symptoms.
  • 5. Quality control is the responsibility of all
    workers and all divisions.

70
Some key elements of his philosophy are
summarized here
  • 6. Do not confuse the means with the objectives.
  • 7. Put quality first and set your sights on
    long-term profits.
  • 8. Marketing is the entrance and exit of quality.
  • 9. Top management must not show anger when facts
    are presented by subordinates.
  • 10. Ninety-five percent of problems in a company
    can be solved with simple tools for analysis and
    problem solving.
  • 11. Data without dispersion information (i.e.,
    variability) is false data.

71
Genichi Taguchi
  • Taguchi emphasizes an engineering approach to
    quality.
  • He stresses producing to target goals or
    requirements with minimal product performance
    variation in the customer's environment.
  • Variation is termed noise (interference).

72
Taguchi identifies three distinct types of noise
  1. External noise - variables in the environment or
    conditions of use that disturb product functions
    (e.g., temperature, humidity, and dust).
  2. Deterioration noise or internal noise - changes
    that occur as a result of wear or storage.
  3. Unit-to-unit noise - differences between
    individual products that are manufactured to the
    same specifications.

73
Taguchi focuses on design for quality by defining
three design levels
  1. System design (primary) - functional design
    focused on pertinent technology or architectures.
  2. Parameter design (secondary) - a means of both
    reducing cost and improving performance without
    removing causes of variation.
  3. Tolerance design (tertiary) - a means of reducing
    variation by controlling causes, but at an
    increased cost.

74
Taguchis Loss Function
  • Genichi Taguchi developed a "loss function" based
    on the idea that loss to society occurs whenever
    there is a deviation from the most desirable
    value
  • Taguchi believes that the customer becomes
    increasingly dissatisfied as performance departs
    farther away from the target.

75
Taguchi Loss Function
  • He suggests a quadratic curve to represent a
    customer's dissatisfaction with a product's
    performance.
  • The curve is centered on the target value, which
    provides the best performance in the eyes of the
    customer.
  • Identifying the best value is not an easy task.  
  • Targets are sometimes the designer's best guess.

76
Taguchi Loss Function
77
Taguchi Loss Function
78
Taguchi Loss Function
  • LCT represents lower consumer tolerance and UCT
    represents upper consumer tolerance.  
  • This is a customer- driven design rather than an
    engineers specification.  
  • Experts often define the consumer tolerance as
    the performance level where 50 of the consumers
    are dissatisfied.  
  • Your organization's particular circumstance will
    shape how you define consumer tolerance for a
    product.

79
Taguchis Loss Function
  • The larger the deviation from the desired value
    the greater the loss to society.
  • These losses occur regardless of whether or not
    the specifications have been met.
  • Any reduction in variation will lead to a
    corresponding reduction in loss.

80
Shingo Philosophy
  • A true "zero defects" level of quality is the
    ultimate level of conformance to specification.
  • Zero defects (ZD) implies that each and every
    item built conforms to specification.
  • Shingo maintains that statistical-based quality
    control is not conducive to zero defects.
  • He states that statistical quality control can
    lower, but not eliminate, defects. Shingo
    proposes the poka-yoke (mistake-proofing) system
    to totally eliminate defects.

81
Shingo Philosophy
  • The mistake-proofing concept is a human- or
    machine-sensor-based series of 100 percent
  • source inspections,
  • self-checks, or
  • successive checks
  • to detect abnormalities when or as they occur and
    to correct them on the current unit of production
    as well as system wide.

82
The Shingo Zero Quality Control System consists
of four fundamental principles
  1. Use source inspection the application of control
    functions at the stages where defects originate.
  2. Always use 100 percent source inspections (rather
    than sampling inspections).
  3. Minimize the time to carry out corrective action
    when abnormalities appear.
  4. Set up poka-yoke (mistake-proofing) devices, such
    as sensors and monitors, according to product and
    process requirements.

83
Crosby Philosophy
  • Crosby, in his classic book Quality Is Free,
    provides a high level of public visibility for
    quality issues.
  • The Crosby "Quality Management Maturity Grid,"
    traces corporate quality awareness and a quality
    maturation from a level of uncertainty to one of
    certainty.
  • His grid addresses quality understanding,
    organization, problem handling, cost, and
    improvement.

84
Crosby's quality management maturity grid
QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________ QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________ QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________ QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________ QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________ QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________
Measurement Categories Stage I Uncertainty Stage 11 Awakening Stage III Enlightenment Stage IV Wisdom Stage V Certainty
Management understanding and attitude No comprehension of quality as a management tool. Tend to blame quality department for "quality problems." Recognizing that quality management may be of value but not willing to provide money or time to make it all happen. While going through quality improvement program learn more about quality management becoming supportive and helpful. Participating. Understand absolutes of quality management. Recognize their personal role in continuing emphasis. Consider quality management as essential part of company system.
Quality organization status Quality is hidden in manufacturing of engineering departments. Inspection probably not part of organization. Emphasis on appraisal and sorting. A stronger quality leader is appointed but main emphasis is still on appraisal and moving the product. Still part of manufacturing or other. Quality department reports to top management, all appraisal is incorporated and manager has role in management of company. Quality manager is an officer of company effective status reporting and preventive action. Involved with consumer affairs and special assignments. Quality manager on board of directors. Prevention is main concern. Quality is a thought leader.
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Crosby's quality management maturity grid
Measurement Categories Stage I Uncertainty Stage 11 Awakening Stage III Enlightenment Stage IV Wisdom Stage V Certainty
Problem Handling Problems are fought as they occur no resolution inadequate definition lots of yelling and accusations. Teams are set up to attack major problems. Long-range solutions are not solicited. Corrective action communication established. Problems are faced openly and resolved in an orderly way. Problems are identified early in their development. All functions are open to suggestion and improvement. Except in the most unusual cases, problems are prevented.
Cost of quality as of sales Reported unknown Actual 20 Reported 3 Actual 18 Reported 8 Actual 12 Reported 6.5 Actual 8 Reported 2.5 Actual 2.5
86
Crosby's quality management maturity grid
Measurement Categories Stage I Uncertainty Stage 11 Awakening Stage III Enlightenment Stage IV Wisdom Stage V Certainty
Quality improvement actions No organized activities. No understanding of such activities Trying obvious "motivational" short-range efforts. Implementation of the 14-step program with thorough understanding and establishment of each step. Continuing the14-step program and starting Make Certain. Quality improvement is a normal and continued activity.
Summation of company quality posture "We don't know why we have problems with quality." "Is it absolutely necessary to always have problems with quality?" "Through management commitment and quality improvement we are identifying and resolving our problems." "Defect prevention is a routine part of our operation." "We know why we do not have problems with quality."
87
Crosby Philosophy
  • Crosby is best known for the concepts Do It Right
    First Time and Zero Defects.
  • He does not believe workers are responsible for
    poor quality - you have to get the management
    straight.

88
The essence of Crosby's quality philosophy
  • The essence of Crosby's quality philosophy is
    embodied in what he calls
  • (l) the "Absolutes of Quality Management" and
  • (2) the "Basic Elements of Improvement."

89
The Crosby four absolutes of Quality Management
are
  1. Quality is defined as conformance to
    requirements, not as 'goodness' or 'elegance'.
  2. The system for causing quality is prevention, not
    appraisal.
  3. The performance standard must be Zero Defects,
    not 'that's close enough'.
  4. The measurement of quality is the Price of
    Non-conformance, not indices.

90
The fourteen basic elements of Quality
Improvement are
  1. Make it clear that management is committed to
    quality.
  2. Form quality improvement teams with senior
    representatives from each department.
  3. Measure processes to determine where current and
    potential quality problems lie.
  4. Evaluate the cost of quality and explain its use
    as a management tool.

91
The fourteen basic elements to Quality
Improvement are
  • Raise the quality awareness and personal concern
    of all employees.
  • Take actions to correct problems identified
    through previous steps.
  • Establish process monitoring for the improvement
    process.
  • Train supervisors to actively carry out their
    part of the quality improvement program.

92
The fourteen basic elements to Quality
Improvement are
  1. Hold a Zero Defect Day to let everyone realize
    that there has been a change and reaffirm
    management commitment.
  2. Encourage individuals to establish improvement
    goals for themselves and their groups.
  3. Encourage employees to communicate to management
    the obstacles they face in attaining their
    improvement goals.

93
The fourteen basic elements to Quality
Improvement are
  • Recognize and appreciate those who participate.
  • Establish quality councils to communicate on a
    regular basis.
  • Do it all over again to emphasize that the
    quality improvement program never ends.

94
Tom Peters Philosophy
  • Peters' identified leadership as being central to
    the Quality Improvement Process.
  • He considered that 'management' should be
    discarded in favor of 'leadership' - the new role
    being that of a cheerleader and facilitator.

95
According to Tom Peters
  • Leadership is the centre of
  • Care of Customers
  • Constant Innovation
  • People

96
The twelve traits of a quality revolution are
  • Management obsession with quality
  • Passionate systems
  • Measurement of quality
  • Quality is rewarded
  • Everyone is trained for quality
  • Multi-function teams

97
The twelve traits of a quality revolution are
  1. Small is beautiful
  2. Create endless 'Hawthorne' effects
  3. Parallel organizational structure devoted to
    quality improvement
  4. Everyone is involved
  5. When quality goes up, costs go down
  6. Quality improvement is a never-ending journey

98
Claus Moller Philosophy
  • Moller sees Personal Quality as the basis of all
    other types of quality.
  • It is the people who produce the goods who must
    be inspired to do their best, and this will only
    be mastered by improving the personal development
    of the individual.
  • This will lead to increased competence in
    Productivity, Relations and Quality.

99
The Moller twelve golden philosophies to improve
personal quality are
  1. Set personal quality goals
  2. Establish your own personal quality account
  3. Check how satisfied others are with your efforts
  4. Regard the next link as a valued customer
  5. Avoid errors
  6. Perform tasks more efficiently

100
The Moller twelve golden philosophies to improve
personal quality are
  • Utilize resources well
  • Be committed
  • Learn to finish what you start - strengthen your
    self-discipline
  • Control your stress
  • Be ethical - maintain your integrity
  • Demand quality

101
Moller two simple techniques for raising personal
quality
  • In addition Moller has developed two simple
    techniques for raising personal quality
  • To do/check system (continuous self-checking the
    quality of performance)
  • The quality business card (devise a card which is
    a personal guarantee of quality of work).

102
Concerning company quality Moller lists 17
hallmarks of a quality company
  1. Focus on quality development
  2. Management participation in the quality process
  3. Satisfied customers/users
  4. Committed employees
  5. Long-term quality development

103
Concerning company quality Moller lists 17
hallmarks of a quality company
  1. Clearly-defined quality goals
  2. Quality performance rewarded
  3. Quality control perceived positively
  4. Next person in work process is a valued customer
  5. Investments in personnel training and development
  6. Prevention/reduction of mistakes

104
Concerning company quality Moller lists 17
hallmarks of a quality company
  1. Appropriate decision level
  2. Direct route to end users
  3. Emphasis on both technical and human quality
  4. Company actions directed towards customer needs
  5. Ongoing value analysis
  6. Company recognition of its role in society

105
Evolution of Quality Principles (Summers, 1997,
P8)
106
Artisan
  • Up until the advent of mass production, artisans
    completed individual products and inspected the
    quality of their own work or that of an
    apprentice before providing the product to the
    customer.
  • If the customers experienced any dissatisfaction
    with the product, he or she dealt directly with
    the artisan.

107
Inspection
  • As the variety of items being mass-produced grew,
    so did the need for monitoring the quality of the
    parts produced by these processes.
  • Industries saw a need to ensure that the customer
    received a quality product
  • At 1st, inspection was the primary method of
    ensuring quality product or services

108
Inspection
  • Refers to those activities designed to detect or
    find nonconformances existing in already
    completed products and services.
  • Inspection, the detection of defects, is a
    regulatory process.

109
Inspection
  • It involves the measuring, examining, testing, or
    gauging of one or more characteristics of a
    product or service.
  • This result is compared with established
    standards to determine whether or not the product
    or service conforms

110
Inspection
  • Inspection occurring only after the part or
    assembly has been completed can be costly.
  • If a large number of defective products has been
    produced and the problem has gone unnoticed, then
    scarp or rework costs will be high.

111
Inspection
  • The same is true in a service environment.
  • If the service has been incorrectly provided, the
    customer receiving the service must spend
    additional time in the system having the problem
    corrected.

112
Quality Control (QC)
  • QC refers to the use of specifications and
    inspection of completed parts, subassemblies, and
    products to design, produce, review, sustain, and
    improve the quality of a product or service.

113
Quality control goes beyond inspection by
  • 1. Establishing standards for the product or
    service, based on the customer needs,
    requirement, and expectations.
  • 2. Ensuring conformance to these standards. Poor
    quality is evaluated to determine the reasons why
    the parts or services provided are incorrect.

114
Quality control goes beyond inspection by
  • 3. Taking action if there is a lack of
    conformance to the standards. These actions may
    include sorting the product to find the
    defectives. In service industries, actions may
    include contacting the customer and correcting
    the situation.
  • 4. Implementing plans to prevent future
    nonconformance. These plans may include design or
    manufacturing changes in a service industry they
    may include procedural changes

115
Statistical Quality Control (SQC)
  • Building on the four tenets of QC, statistics
    were added to map the results of part inspection.
  • The use of statistical methods of production
    monitoring and part inspection became known as
    statistical quality control (SQC), wherein
    statistical data are collected, analyzed, and
    interpreted to solve quality problems.

116
Statistical Quality Control (SQC)
  • The primary concern of individuals involved in
    quality is monitoring and control of variation in
    the product being produced or service being
    provided.

117
Statistical Process Control (SPC)
  • The prevention of defects by applying statistical
    methods to control the process is known as
    statistical process control (SPC).

118
Statistical Quality Control (SQC)
  • To manufacture products within specifications,
    the processes producing the parts need to be
    stable and predictable.
  • A process is considered to be under control, when
    the variability from one part to another or from
    one service to another is stable and predictable.

119
Predictions Based on Stable and Unstable Processes
120
Statistical Process Control (SPC)
  • Statistical process control emphasizes the
    prevention of defects.
  • Prevention refers to those activities designed to
    prevent defects, defectives, and nonconformance
    in products and services.

121
Statistical Process Control (SPC)
  • The most significant difference between
    prevention and inspection is that with
    prevention, the process rather than solely the
    product- is monitored, controlled, and adjusted
    to ensure correct performance.
  • By using key indicators of product performance
    and statistical methods, those monitoring the
    process are able to identify changes that affect
    the quality of the product and adjust the process
    accordingly.

122
Statistical Process Control (SPC)
  • Emphasis shifts away from inspecting quality into
    a completed product or service toward designing
    and manufacturing quality into the product or
    service.
  • The responsibility for quality moves from the
    inspectors to the design and manufacturing
    departments.

123
Statistical Process Control (SPC)
  • Statistical process control also seeks to limit
    the variation present in the item being produced
    or the service being provided.
  • While it once was considered acceptable to
    produce parts that fell somewhere between the
    specification limits,
  • statistical process control seeks to produce
    parts as close to the nominal dimension as
    possible and to provide services of consistent
    quality from customer to customer.

124
Statistical process control can be used to help a
company meet the following goals
  • To create products and services that will
    consistently meet customer expectations and
    product specifications
  • To reduce the variability between products or
    services so that the results match the desired
    design quality
  • To achieve process stability that allows
    predictions to be made about future products or
    services

125
Statistical process control can be used to help a
company meet the following goals
  • To allow for experimentation to improve the
    process and to know the results of changes to the
    process quickly and reliably
  • To further the long-term philosophy of continual
    improvement
  • To minimize production costs by eliminating the
    costs associated with scrapping or reworking
    out-of-specification products
  • To place the emphasis on problem solving and
    statistics

126
Statistical process control can be used to help a
company meet the following goals
  • To support decisions with statistical information
    concerning the process
  • To give those closest to the process immediate
    feedback concerning current production
  • To assist with the problem-solving process
  • To increase profits
  • To increase productivity

127
Positive Results of Statistical Process Control
  • Uniformity of Output
  • Reduced Rework
  • Fewer Defective Products
  • Increased Output
  • Increased Profit
  • Lower Average Cost
  • Fewer Errors

128
Positive Results of Statistical Process Control
  • Predictable, Consistent Quality Output
  • Less Scrap
  • Less Machine Downtime
  • Less Waste in Production Labor Hours
  • Increased Job Satisfaction
  • Improved Competitive Position

129
Positive Results of Statistical Process Control
  • More Jobs
  • Factual Information for Decision Making
  • Increased Customer Satisfaction
  • Increased Understanding of the Process
  • Future Design Improvements

130
Total Quality Management (TQM)
  • What is TQM?

131
Total quality management (TQM)
  • TQM is a management approach that places emphasis
    on continuous process and system improvement as a
    means of achieving customer satisfaction to
    ensure long-term company success.

132
Total quality management (TQM)
  • TQM utilizes the strengths and expertise of all
    the employees of a company as well as the
    statistical problem-solving and charting methods
    of statistical process control (SPC).

133
Total quality management (TQM)
  • TQM is based on and relies on the participation
    of all members of an organization to continuously
    improve the processes, products, and services
    their company provides as well as the culture
    they work in.

134
The Objective, and Principles TQM
135
Objective of TQM Continual Improvement
  • the notion that the performance standard to reach
    is
  • perfection
  • or zero defect to coin Phillip Crosby
  • or picking the last grain of rice in Japanese
  • involves incremental improvement breakthroughs

136
Principles of TQM Customer Focus
  • the notion that all work is performed for a
    customer and
  • it is the customer who determines its value

137
Principles of TQM Process Improvement
  • The concept of continuous improvement is built on
    the premise that work is a result of a series of
    interrelated steps and activities that result in
    an output.
  • Continuous attention to each of these steps in
    the work process is necessary to reduce the
    variability of the output and improve the
    reliability of the process

138
Principles of TQM Process Improvement
  • The 1st goal of continuous improvement is
    processes that are reliable reliable in the
    sense that they produce the desired output each
    time with no variation.
  • If variability has been minimized and the results
    are still unacceptable, the second goal of
    process improvement is to redesign the process to
    produce an output that is better able to meet the
    customers requirement.

139
Principles of TQM Total Participation (TP)
  • the idea that work has an additional dimension
  • In traditional organization, the worker expects
    to be told what to do and how satisfactory
    performance will be measured

140
Principles of TQM Total Participation (TP)
  • TP implies that the person closest to the task is
    most qualified to suggest improved ways of doing
    the job
  • He/she suggests ways to make improvements aimed
    at enhancing productivity value to the customer

141
Implication for Managers
  • Managers need to understand the differences and
    similarities in the leading quality philosophies
    and develop a quality management approach
    tailored to their organization.

142
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