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Session 2Session 2Session 2Session 2PhilosophiesPhilosophies

and Frameworksand Frameworks

S.P. JAIN

CENTER OF

MANAGEMENT

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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

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Who’s WhoWho’s Who??

DemingJuran

Crosby

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Deming Chain ReactionDeming Chain ReactionImprove 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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Deming’s System Deming’s System of Profound Knowledgeof Profound 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 purposeEvery system must have a purpose Management must optimize the Management must optimize the

system as a wholesystem as a whole

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

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PsychologyPsychology People are motivated People are motivated

intrinsically and extrinsicallyintrinsically and extrinsically 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

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Juran’s NotionsJuran’s NotionsQuality as product featuresQuality as product features..

What are external customers?What are external customers?

What are internal customers? What are internal customers?

How do you know what your customers How do you know what your customers want?want?

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Juran’s NotionsJuran’s NotionsQuality as freedom from Quality as freedom from

defectsdefects.. Is satisfaction created?Is satisfaction created?

The importance of service recovery. The importance of service recovery.

How good is good enough?How good is good enough?

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Is 99.99% Good EnoughIs 99.99% Good Enough??

12 newborns will be given to the wrong parents 12 newborns will be given to the wrong parents everydayeveryday

114,500 mismatched pairs of shoes will be shipped 114,500 mismatched pairs of shoes will be shipped each yeareach year

18,322 pieces of mail will be mishandled each hour18,322 pieces of mail will be mishandled each hour 2,000,000 documents will be lost by the IRS this year2,000,000 documents will be lost by the IRS this year 2.5 million books will be shipped with the wrong 2.5 million books will be shipped with the wrong

covers this yearcovers this year 315 entries in Webster’s Dictionary will be 315 entries in Webster’s Dictionary will be

misspelledmisspelled

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……still good enoughstill good enough??

20,000 incorrect drug prescriptions will be written this 20,000 incorrect drug prescriptions will be written this yearyear

5.5 million cases of soft drinks produced this year will be 5.5 million cases of soft drinks produced this year will be flatflat

291 pacemaker operations will be performed incorrectly 291 pacemaker operations will be performed incorrectly 3056 copies of tomorrow’s Wall Street Journal will be 3056 copies of tomorrow’s Wall Street Journal will be

missing one of the three sectionsmissing one of the three sections How many customers will walk out of your doors and never How many customers will walk out of your doors and never

come back?come back? The “silent ones” don’t stay silent for long - on average The “silent ones” don’t stay silent for long - on average

they tell six other people about their experience!they tell six other people about their experience!

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High Performance High Performance OrganizationsOrganizations

Training and continuous learningTraining and continuous learning Information sharingInformation sharing New roles for employeesNew roles for employees New organizational structuresNew organizational structures New worker-management partnershipsNew worker-management partnerships Compensation linked to performance Compensation linked to performance

skillsskills Employment securityEmployment security Supportive work environmentsSupportive work environments Putting it all togetherPutting it all together

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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. CrosbyAbsolutes 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

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A.V. FeigenbaumA.V. Feigenbaum

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

focus on planningfocus on planning Modern Quality Technology, Modern Quality Technology,

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

supported by continuous training supported by continuous training and motivationand motivation

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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

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Genichi TaguchiGenichi Taguchi Pioneered a new perspective on Pioneered a new perspective on

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

No Loss LossLoss

Tolerance

0.500 0.5200.480

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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 individuals, factories, small companies, and Deming application companies, and Deming application prizeprize

American company winners include:American company winners include: Florida Power & Light, and Florida Power & Light, and

AT&T Power Systems DivisionAT&T Power Systems Division

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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 U.S. companiesU.S. companies

Malcolm Baldrige, former U.S. Secretary

of Commerce

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Criteria for Criteria for Performance ExcellencePerformance Excellence LeadershipLeadership Strategic Planning Strategic Planning Customer and Market Focus Customer and Market Focus Information and AnalysisInformation and Analysis Human Resource Focus Human Resource Focus Process ManagementProcess Management Business ResultsBusiness Results

Baldrige Award trophy

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The Baldrige The Baldrige Framework –Framework –

A Systems PerspectiveA Systems Perspective

4Information and Analysis

5Human

Resource Focus

3Customer &

Market Focus

7Business Results

7Business Results

2Strategic Planning

1Leadership

6Process

Management

Organizational Profile:

Environment, Relationships, and Challenges

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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 Evaluation Baldrige Award Evaluation ProcessProcess

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The Baldrige Award The Baldrige Award Scoring SystemScoring System

• Three evaluation dimensions - Three evaluation dimensions - ApproachApproach, , DeploymentDeployment, and , and ResultsResults

• Scoring is linked to the Scoring is linked to the importance to the applicant’s importance to the applicant’s businessbusiness

• Scoring guidelines (Table 3.5)Scoring guidelines (Table 3.5)

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Feedback ReportFeedback Report

StrengthsStrengths - approaches or results - approaches or results that demonstrate effective response that demonstrate effective response to the Criteriato the Criteria

Opportunities for improvementOpportunities for improvement - - how the applicant can better how the applicant can better address the purposes of the address the purposes of the Criteria, or issues that require Criteria, or issues that require clarificationclarification

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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 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.

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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

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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