11

Chapter 3Chapter 3

Philosophies Philosophies andandFrameworksFrameworks

The Management & Control of Quality, 7e

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Leaders in the Quality Leaders in the Quality RevolutionRevolution W. Edwards DemingW. Edwards Deming Joseph M. JuranJoseph M. Juran Philip B. CrosbyPhilip B. Crosby Armand V. FeigenbaumArmand V. Feigenbaum Kaoru IshikawaKaoru Ishikawa Genichi TaguchiGenichi Taguchi

Who’s Who?Who’s Who?

ab

c

Deming ____

Juran ____

Crosby ____

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Deming Chain ReactionDeming 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

Key IdeaKey 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.

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Deming’s System of Deming’s System of Profound KnowledgeProfound Knowledge Appreciation for a systemAppreciation for a system Understanding variationUnderstanding variation Theory of knowledgeTheory of knowledge PsychologyPsychology

77

SystemsSystems

Most organizational processes are Most organizational processes are cross-functionalcross-functional

Parts of a system must work Parts of a system must work togethertogether

Every system must have a purposeEvery system must have a purpose Management must optimize the Management must optimize the

system as a wholesystem as a whole

Key IdeaKey Idea

The aim of any system should be for all stakeholders—stockholders, employees, customers, community, and the environment—to benefit over the long term.

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VariationVariation

Many sources of uncontrollable Many sources of uncontrollable variation exist in any processvariation exist in any process

Excessive variation results in Excessive variation results in product failures, unhappy product failures, unhappy customers, and unnecessary costscustomers, and unnecessary costs

Statistical methods can be used to Statistical methods can be used to identify and quantify variation to identify and quantify variation to help understand it and lead to help understand it and lead to improvementsimprovements

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Theory of KnowledgeTheory of Knowledge

Knowledge is not possible without Knowledge is not possible without theorytheory

Experience alone does not Experience alone does not establish a theory, it only establish a theory, it only describesdescribes

Theory shows cause-and-effect Theory shows cause-and-effect relationships that can be used for relationships that can be used for predictionprediction

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PsychologyPsychology

People are motivated intrinsically People are motivated intrinsically and extrinsically; intrinsic and extrinsically; intrinsic motivation is the most powerfulmotivation is the most powerful

Fear is demotivating Fear is demotivating Managers should develop pride Managers should develop pride

and joy in workand joy in work

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Deming’s 14 Points Deming’s 14 Points (Abridged)(Abridged) (1 of 2)(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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Deming’s 14 Points Deming’s 14 Points (2 of 2)(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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Juran’s Quality TrilogyJuran’s Quality Trilogy

Quality planningQuality planning Quality controlQuality control Quality improvementQuality improvement

www.juran.com

Key IdeaKey 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.”

Phillip B. Crosby

Quality is free . . . “Quality is free. It’s 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. CrosbyPhilip B. Crosby

Absolutes of Quality Management:Absolutes of Quality Management: Quality means conformance to Quality means conformance to

requirementsrequirements Problems are functional in natureProblems are functional in nature There is no optimum level of defectsThere is no optimum level of defects Cost of quality is the only useful Cost of quality is the only useful

measurementmeasurement Zero defects is the only performance Zero defects is the only performance

standardstandardwww.philipcrosby.com

A.V. FeigenbaumA.V. Feigenbaum

Three Steps to QualityThree Steps to Quality– Quality Leadership, with a Quality Leadership, with a

strong focus on planningstrong focus on planning– Modern Quality Technology, Modern Quality Technology,

involving the entire work forceinvolving the entire work force– Organizational Commitment, Organizational Commitment,

supported by continuous supported by continuous training and motivationtraining and motivation

Kaoru IshikawaKaoru Ishikawa

Instrumental in developing Instrumental in developing Japanese quality strategyJapanese quality strategy

Influenced participative Influenced participative approaches involving all workersapproaches involving all workers

Advocated the use of simple Advocated the use of simple visual tools and statistical visual tools and statistical techniquestechniques

Genichi TaguchiGenichi Taguchi

Pioneered a new perspective on quality Pioneered a new perspective on quality based on the economic value of being based on the economic value of being on target and reducing variation and on target and reducing variation and dispelling the traditional view of dispelling the traditional view of conformance to specifications: conformance to specifications:

No Loss LossLoss

Tolerance

0.500 0.5200.480

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Malcolm Baldrige Malcolm Baldrige National Quality AwardNational Quality Award

Help improve quality in Help improve quality in U.S. companiesU.S. companies

Recognize achievements of Recognize achievements of excellent firms and provide excellent firms and provide examples to othersexamples to others

Establish criteria for Establish criteria for evaluating quality effortsevaluating quality efforts

Provide guidance for other Provide guidance for other American companiesAmerican companies

Malcolm Baldrige, former U.S. Secretary

of Commerce

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Criteria for Performance Criteria for Performance ExcellenceExcellence

LeadershipLeadership Strategic Planning Strategic Planning Customer and Market Focus Customer and Market Focus Measurement, Analysis, and Measurement, Analysis, and

Knowledge ManagementKnowledge Management Human Resource Focus Human Resource Focus Process ManagementProcess Management Business ResultsBusiness Results

Baldrige Award trophy

The Baldrige Framework –The Baldrige Framework –A Systems PerspectiveA Systems Perspective

4Measurement, Analysis, and Knowledge Management

5Human

Resource Focus

3Customer &

Market Focus

7Business Results

2Strategic Planning

1Leadership

6Process

Management

Organizational Profile:

Environment, Relationships, and Challenges

Key IdeaKey Idea

The Baldrige criteria define both an integrated infrastructure and a set of fundamental practices for a high-performance management system.

Criteria Evolution Criteria Evolution (1 of 2)(1 of 2)

From quality assurance and strategic From quality assurance and strategic quality planning to a focus on process quality planning to a focus on process management and overall strategic management and overall strategic planningplanning

From a focus on current customers to a From a focus on current customers to a focus on current and future customers focus on current and future customers and marketsand markets

From human resource utilization to human From human resource utilization to human resource development and management resource development and management

From supplier quality to supplier From supplier quality to supplier partnershipspartnerships

Criteria Evolution Criteria Evolution (2 of 2)(2 of 2)

From individual quality improvement From individual quality improvement activities to cycles of evaluation and activities to cycles of evaluation and improvement in all key areasimprovement in all key areas

From data analysis of quality efforts to an From data analysis of quality efforts to an aggregate, integrated organizational level aggregate, integrated organizational level review of key company datareview of key company data

From results that focus on limited From results that focus on limited financial performance to a focus on a financial performance to a focus on a composite of business results, including composite of business results, including customer satisfaction and financial, customer satisfaction and financial, product, service, and strategic product, service, and strategic performanceperformance

Key IdeaKey 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.

Receive Applications

Judges Select for Consensus Review?

Judges Select forSite Visit Review?

Stage 1Independent Review

Stage 2Consensus Review

Stage 3Site Visit Review

Stage 4Judges Recommend Award

Recipients to NIST Director/DOC

Feedback report to applicant

Feedback report to applicant

Feedback report to applicant

No

No

Baldrige Award Baldrige Award Evaluation ProcessEvaluation Process

Self AssessmentSelf 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 winner

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Deming PrizeDeming Prize

Instituted 1951 by Union of Japanese Instituted 1951 by Union of Japanese Scientists and Engineers (JUSE)Scientists and Engineers (JUSE)

Several categories including prizes for Several categories including prizes for individuals, factories, small companies, individuals, factories, small companies, and Deming application prizeand Deming application prize

American company winners include American company winners include Florida Power & Light and AT&T Power Florida Power & Light and AT&T Power Systems DivisionSystems Division

Other Quality AwardsOther Quality Awards

European Quality AwardEuropean Quality Award Canadian Awards for Business Canadian Awards for Business

ExcellenceExcellence Australian Business Excellence Australian Business Excellence

AwardAward

Quality Awards Around Quality Awards Around the Worldthe World

Programs in place

No programs

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ISO 9000:2000ISO 9000:2000

Quality system standards adopted by Quality system standards adopted by International Organization for International Organization for Standardization in 1987; revised in 1994 Standardization in 1987; revised in 1994 and 2000and 2000

Technical specifications and criteria to be Technical specifications and criteria to be used as rules, guidelines, or definitions of used as rules, guidelines, or definitions of characteristics to ensure that materials, characteristics to ensure that materials, products, processes, and services are fit products, processes, and services are fit for their purpose.for their purpose.

Key IdeaKey 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 Objectives of ISO Standards Standards (1 of 2)(1 of 2)

Achieve, maintain, and continuously Achieve, maintain, and continuously improve product qualityimprove product quality

Improve quality of operations to Improve quality of operations to continually meet customers’ and continually meet customers’ and stakeholders’ needsstakeholders’ needs

Provide confidence to internal Provide confidence to internal management and other employees that management and other employees that quality requirements are being fulfilledquality requirements are being fulfilled

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Objectives of ISO Objectives of ISO Standards Standards (2 of 2)(2 of 2)

Provide confidence to customers Provide confidence to customers and other stakeholders that quality and other stakeholders that quality requirements are being achievedrequirements are being achieved

Provide confidence that quality Provide confidence that quality system requirements are fulfilledsystem requirements are fulfilled

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Structure of ISO 9000 Structure of ISO 9000 StandardsStandards 21 elements organized into four 21 elements organized into four

major sections:major sections:– Management ResponsibilityManagement Responsibility– Resource ManagementResource Management– Product RealizationProduct Realization– Measurement, Analysis, and Measurement, Analysis, and

IimprovementIimprovement

ISO 9000:2000 Quality ISO 9000:2000 Quality Management PrinciplesManagement Principles1.1. Customer FocusCustomer Focus2.2. LeadershipLeadership3.3. Involvement of PeopleInvolvement of People4.4. Process ApproachProcess Approach5.5. System Approach to ManagementSystem Approach to Management6.6. Continual ImprovementContinual Improvement7.7. Factual Approach to Decision MakingFactual Approach to Decision Making8.8. Mutually Beneficial Supplier RelationshipsMutually Beneficial Supplier Relationships

Key IdeaKey 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.

Six SigmaSix Sigma

Based on a statistical measure Based on a statistical measure that equates to 3.4 or fewer that equates to 3.4 or fewer errors or defects per million errors or defects per million opportunitiesopportunities

Pioneered by Motorola in the mid-Pioneered by Motorola in the mid-1980s and popularized by the 1980s and popularized by the success of General Electricsuccess of General Electric

Key IdeaKey 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.

Key Concepts of Six Key Concepts of Six Sigma Sigma (1 of 2)(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

Key Concepts of Six Key Concepts of Six Sigma Sigma (2 of 2)(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.

Key IdeaKey Idea

Although different, Baldrige and Six Sigma are highly compatible and can each have a place in the management system of a successful organization.