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11
Chapter 3Chapter 3Chapter 3Chapter 3
Philosophies Philosophies
andand
FrameworksFrameworks
22
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 ____
44
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
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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 Every system must have a purposepurpose
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 Knowledge is not possible without theorywithout theory
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 relationships that can be used for predictionfor prediction
1111
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 Recognize achievements of excellent firms and of excellent firms and provide examples to provide examples to othersothers
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
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 From human resource utilization to human resource development and human resource development and management 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 From data analysis of quality efforts to an aggregate, integrated organizational an aggregate, integrated organizational level review of key company datalevel review 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
3333
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 Technical specifications and criteria to be used as rules, guidelines, or be used as rules, guidelines, or definitions of characteristics to ensure definitions of characteristics to ensure that materials, products, processes, and that materials, products, processes, and services are fit for their purpose.services are fit 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.
3535
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
3636
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 Principles
1.1. Customer FocusCustomer Focus
2.2. LeadershipLeadership
3.3. Involvement of PeopleInvolvement of People
4.4. Process ApproachProcess Approach
5.5. System Approach to ManagementSystem Approach to Management
6.6. Continual ImprovementContinual Improvement
7.7. Factual Approach to Decision MakingFactual Approach to Decision Making
8.8. Mutually Beneficial Supplier Mutually Beneficial Supplier RelationshipsRelationships
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.
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