($12.00). Use (055) - ERICDOCUMENT RESUME JC 900 223 Spanbauer, Stanley J. Measuring and Costing Quality in Education: Using Quality and Productivity Methods To Improve Schools. …

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JC 900 223

Spanbauer, Stanley J.Measuring and Costing Quality in Education: UsingQuality and Productivity Methods To ImproveSchools.

Fox Valley Technical Coll., Appleton, WI.8g102p.

FVTC Bookstore, Fox Valley Technical College, 1825 N.Bluemound Dr., P.O. Box 2277, Appleton, WI 54913-2277($12.00).Reports - Descriptive (141) -- Guides - Non-ClassroomUse (055)

MF01/PC05 Plus Postage.*College Planning; Community Colleges; *CostEffectiveness; Cost Estimates; EducationalImprovement; *Educational Quality! Models;Organizational Objectives; Program Costs; ProgramDescriptions; Two Year Colleges

The Measurement and Costing Model (MCM) described inthis book was developed and tested at Fox Valley Technical College(FVTC), Wisconsin, to enhance the college's quality improvementprocess and to serve as a guide to other institutions interested inimproving their quality. The book presents'a description of the modeland outlines seven steps other schools can use to implement the MCM.The seven steps are as follows: (1) determine the key elements ofeducational quality; (2) establish criteria or "conformingrequirements" for measuring quality in each area; (3) decide onmeasurement strategies; (4) implement measurement techniques; (5)design a costing system; (6) calculate the costs of quality; and (7)set goals. Appendixes contain charts for each of six qualityelements, including information on conforming requirements,measurement strategies, and the cost of nonconformance. The sixquality elements are human resources, curriculum and instruction,planning, marketing, use of technology, and customer service. Inaddition, 1987-88 costs of conformance and nonconformance aredetailed. (WJT)

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Measuringand CostingQuality inEducation

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Using Quality andProductivity Methodsto Improve Schools

By Stanley 1. Spanbauer, Ph.D.

In Cooperation with the Faculty and Staffof Fox Valley Technical College

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11

About the Author

Stanley 1. Spanbauer has twenty-five years of experience inpost-secondary technical college education. He was Directorof Instruction at Fox Valley Technical College (FVTC),Appleton, Wisconsin, for sixteen years, and currently iscompleting his seventh year as Chief ExecutiveOfficer/President at the College. Under his leadership, FVTChas gained a national reputation fog its innovations ininstructional methcdology, economic development, andcomputer-based education. The college currently enrolls over45,000 full- and part-time students in a perpetualenrollment/graduation system.

He is past president and a charter member of the Board ofDirectors of the Midwest Association for IndividualizedInstruction.

Since 1985, he has led FVTC faculty and staff in theimplementation of a quality first movement at the college--thefirst public college in the country to initiate a .normal qualityprocess in its service and instructional components. His firstpublication, QualityEirstinfalot,2 hasreceived national and international attention. He was also acontributor for the publication, Fox Valley Technical CollegeQuality First Process Model.

Measuring and CostingQuality in Education

Using Quality and ProductivityMethods to Improve Schools

By Stanley J. Spanbauer, Ph.D.

In cooperation with the Faculty and Staffof the Fox Valley Technical College

Published by the Fox Valley Technical College Foundation

Appleton, Wisconsin Copyright, 1989

4

Written and produced to accompany the videotapeMeasuring and Costing Quality in Education

Additional copies may be ordered from:

FVTC BookstoreFox Valley Technical College

1825 N. Bluemound DriveP.O. Box 2277

Appleton, WI 54913-2277(Order blank on inside back cover)

Copyright C) 1989 by The Academy for Quality in Education. Fox Valley TechnicalCollege, P.O. Box 2277, Appleton. WI 54913-2277. All rights reserved. No part ofthis document may be reproduced by any n.eans or transmitted without permissionof the FVTC Foundation, Inc.

Printed in the United States of America.

Acknowledgements

Many persons provided invaluable assistance in bringing this publication fromconcept to completion. Their contributions are gratefully acknowledged.

Editorial and Technical Coordination - Jo Hillman

Graphic Artwork - Mary Ehman, Debby De Rosso

Research Janet Perry, Carol Mishler

Editorial Review - Don Beno, Jack Clarke, Bob Deckon, Merlin Gentz,Bob Keehan, Bob Martin, Gary Mennen, Dan Ost, Jim Pierce, Gloria Purse II,Jerry Rickman, Jon Stenerson, Carol Tyler, Jerry Wolf, Cattle Zilinsky

Information Processing - Cheryl Benzschawel, Marie Goffard,Amy Schiedermayer, Debby De Rosso

Special Contributions Jim Bourassa, Jack Clarke, Helen Dean,Bob Keehan, Dan Ost, Mary Lou Rae

Photographic Services - Gary Kiehne

This publication was reviewed by three committees:

QualityImprovementCouncil

Judy ArndtDon BencMary BrefeldRobert DarulaDebby DeRossoMike FlanaganMerlin GentzJeanne JosephRobert MartinSue MayJerry RickmanDan TutasCarol TylerLori Weyers

Quality AcademyAdvisoryCommittee

.rry EllerKathy KruegerTerri LanganLeigh MarchettiYvonne MatzStephen NagyVirg NoordykGloria Purse!!Ron Toshner

QualityMeasurementCommittee

Don BenoJack ClarkeMerlin GentzJanet PerryJohn RossVonnie SeegersBob SirenDon SleegerLori WeyersJerry Wolf

Dedication

This book is dedicated . . .

To the faculty, staff, and students of Fox Valley TechnicalCollege. Their enthusiasm for and commitment to excellenceis the impetus for innovation which has distinguished FVTC.

And to the Fox Valley Technical College Board. Theirdedication and support has created the environment to fostercontinual growth.

Table of Contents

Table of Contents

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Appendix A

Appendix B

Appendix C

Appendix D

Appendix E

Appendix F

Appendix G

Appendix H

List of Tables viii

Foreword ix

Introduction

Measurementleostinj Model 5

Determine Quality Elements 7

Establish Conforming Requirements 13

Decide on Measurement Strategy 15

implement Measurement Process Techniques 19

Collect Data and Chart Results 23

Develop Control Charts 35

Design Costing System 41

Calculate Costs of Quality 43

Set Goals 49

Summary 51

Conclusion 53

Quality Element - Human Resources 57

Quality Element - Curriculum and Instruction 61

Quality Element - Planning 65

Quality Element - Use of Technology 67

Quality Element - Marketing 69

Quality Element - Customer Service 71

Quality Element - FVTC 198748 Costs of Conformance 73

Quality Element FVTC 1987-88 Costs of Nonconformance 75

Endnotes 77

Measuring and Costing Quality in Education vii

List of Tables

List of TablesTable 1 Cyclical Process of Measuring, Goal Setting, and

Costing Quality 5

Table 2 Indicators of District Health (Enrollments) 18

Table 3 SRC Problem Solving Flow Chart 21

Table 4 Cause and Effect Diagram Showing Possible Causesof Student Withdrawals in FVTC Business Division 22

Table 5 Data Sheet Used to Collect Data Needed to Measureand Cost Quality Defects 24

Table 6 Chart Showing the Number of Withdrawals atFVTC for Each Month 26

Table 7 Pareto Diagram Showing the Number of Responsesfrom Students Who Withdrew from FVTC 27

Table 8 Charts of Earliest Starting Time and Days, Availablefor Student Customers 29

Table 9 Cafeteria Utilization, Week of 12/12 to 12/16, 1988 30

Table 10 Run Chart Showing Computer "Slow" and "Down"Time for Friday, February 10,1989 31

Table 11 Run Chart - Students Made Aware of Accident andSafety Procedures 32

Table 12 Frequency Distribuilon Charting Showing Numberof Student Withdrawals from Service DivisionPrograms 34

Table 13 P-Chart Showing Numbr:r of Withdrawals andFraction Defective p 36

Table 14 Control Chart for Fraction Defective (StudentWithdrawals)-1987-89 Average 37

Table 15 Sample "U" Chart Showing Average Number ofReasons with Upper and Lower Limits 38

viii Measuring and Costing Quality in Education

Foreword

Foreword

Quality improvement continues to be a major strategic thrustat Fox Valley Technical College. As stated in our qualitypolicy, we seek to provide instruction and services thatconsistently meet or exceed the expectations of our internaland extprnal customers.

This requires our managers to clarify specific responsibilitiesfor quality and to develop strategic plans and objectivesrelated to quality on an ongoing basis. it demands that everyperson be a part of our quality system to identify and eliminatethe sources of errors in our processes and procedures.

Part of the process of seeking continued improvement is toprovide everyone in the educational setting with the tools andtechniques of problem solving and measurement. Thisincludes understanding the powerful tools of statisticalthinking and statistical methods. Administrators in schoolsespecially need these tools to effectively manage theiroperations and departments.

In addition, it is essential that educators seek to know thecosts of poor quality and learn to measure and cost theperformance of processes both before and after correctiveactions have been taken.

The Measurement and Costing Model clJscribed in thismanual has evolved following more than four years ofexperiences in designing and implementing the qualityprocess at Fox Valley Technical College. Since the quest forquality is a perpetual process, this plan will continue tochange as we strive for perfection.

Stanley J. Spanbauer, Ph.D.Director/President

Measuring and Costing Quality in Education ix

10

Introduction

Introduction

. Can we describe, judge, and improve theeffectiveness of schools?

Can we correctly and concisely measure thevariances found in the processes common toeducation?

Can quality in education be looked at in financialterms the way it is in business and industry?

Are statistical techniques and processes usefulfor measurement in education?

These important questions are being asked more andmore as school critics demand reform in education. It isimperative that educators look for answers. For nomatter how good our schools are or how good they havebeen, they must become better to meet the educationalneeds of our fast-changing, technological world. Today,our nation's economic plight is being placed squarely inthe realm of education. Calls for school reform are moreprevalent than ever before. Most of these calls forreform ask for a complete overhaul of the system, andthey're coming from those outside the school--parents,citizens, and legislators, rather than from the educationalestablishment--teachers, administrators, and graduateschool professors.1

Somewhere between traditional school operation andradical reform lies the answer tc Improverm it of ourschools. The quality process provides the mechanismfor the meaningful change which is required. While thechange should be fostered by educators themselvesrather than by those outside the schools, private sectortechniques of management, measurement, and costingcan be applied. However, there are no quick fixes in

No matter how good ourschool:- are or how goodthey have been, they mustbecome better to meet theeducational needs of ourfast-changing, technologicalworld.

Measuring and Costing Quality in Education

11

Introduction

The public is calling for newmethods of accountability ineducation.

educational reform. While it is possible to have apositive impact on improvement in a short time, no effortcan substantially change school culture in less thanthree to five years.

Schools, by their very nature, are continually involved inmeasurement, whether it be testing the success ofstudents and/or competence of teachers and staff, ordetermining the success or need for improvement.However, some of these practices need renewal.Today, the public is calling for new methods ofaccountability in education, replacing archaic andoutmoded practices which are unacceptable. Sinceeducation is critical to our nation's future, we can nolonger maintain the status quo. We must turn to modernbusiness practices and implement quc,:ty processes ineducation. Such processes include the use of statisticalapproaches to schoo! accountability. School managers,therefore, must learn to use measurement techniques tounderstand the people and processes in the work unitsof the school. The manager must understand variationand use statistical calculation to learn which staffmembers need special help and which processes needchanging.

This book describes how measurement, costing, andgoal setting techniques can be used in schools in thequest for improvement of educational processes. Whilethese techniques are only a part of the overall qualityprocess being advanced at FVTC, they are most critical.All quality experts concur that measurement, goalsetting, and costing are significant to qualityimprovement. W. Edwards Deming, renownedmanagement consultant, feels that measurement is themost critical of all processes. He feels that managementshould have a knowledge of statistics upon which tomake decisions. Determining costs of quality is notnearly as significant as measuring and controlling

2 tvleasuriiv and Costing Quality in Education

12

Introduction

processes using statistics, he believes. Philip Crosby,on the other hand, feats that costing is the best and theonly true measurement of the quality process.

While quality theorists offer a variety of approaches tomeasurement, they agree that continuous research andevaluation are necessary. Goals, they concur, shouldbe based on measurement, since measurementtechniques determine if goals have been reached.Therefore, quality improvement requires a continuouscycle of measuring, goal setting, and costing. This bookdescribes a model being tested at Fox Valley TechnicalCollege to measure and cost quality. It is a plan whichis unique to education, and educators will find thelanguage and jargon familiar. Those who carefullyImplement this plan will be able to provide answers toquestions about the successes and improvements madein schools using modern methods of qualityimprovement.

Juality improvementrequires a continuous cycleof measuring, goal setting,and costing.

Measuring and Costing Quality in Education 3

;,, 13

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The annual organizational climate survey is one source of information inthe measuring/costing process. The data is reviewed in the model'scyclical process with an eye toward fine tuning systems and procedures.

4 Measuring and Costing Quality in Education

14

Measurement/Costing Model

Measurement/CostingModel

The model contains seven main activities which lead tothe identification and selection of problems, themeasurement and costing of problems, and theestablishment of goals. The activities are cyclic,undergoing constant review and modification. Eachactivity is also subject to change based on newvariables. Table 1 illustrates this model.

DetermineQuality

Elements

EstablishConforming

Requirements

Decide onMeasurement

Strategy41101=IIIMMIIM,1

1.-..........ipImplement

Measurement/Charting Process

Collect Data and Chart ResultsDevelop Control Charts

Design CostingSystem

CalculateCosts ofQuality

Set Goalsfor

Improvement

Table I - The Cyclical Process of Measuring, Goal Setting, and Costing Quality


15

Measurement'Costing Model

The staff at FVTC are just beginning to use chartingtechniques and statistical data during theproblem-solving process. While some staff membershave received advanced instruction in statistical processcontrol, most have only a limited knowledge of the useof statistics in measurement. However, it is significantthat faculty, technical staff, and managers are starting touse data to analyze processes and make decisions,rather than deciding things arbitrarily.


16

Determine Quality Elements

Determine QualityElements

Defining the key elements of quality in the school is animportant first step. These elements serve as the basisfor the schoolwide goal setting, measurement, andcosting activities which will occur. It is important thateveryone working in the school knows and understandsthe elements which are approved by the QualityImprovement Council based on input from the variousquality committees. The elements target the globalaspects of the school which will assist in the evaluationprocesses that periodically occur. Therefore, great careshould be taken to not only define the elements but alsoto communicate them to everyone in the organization.Seven quality elements were developed by the QualityImprovement Council at Fox Valley Technical College.A summary of each is given below, and each element isshown in Appendices A through F together withconforming requirements, measurement strategies, andcosts of nonconformance.

Human Resources (Appendix A)

The most important resource of any organization isits employees; and in education, competent facultyare crucial to the learning/teaching process.Support persons, including technical staff,counselors, managers, and other professionals,also provide valuable services to students and otherschool customers. The organization has theresponsibility to work with each person to enablethem to meet the preestablished requirements fortheir job. Each individual should be providedopportunities to interact with others in ways in which

It is important that everyoneknows and understands theelements of quality.


17


The goal is do it right thefirst time.

mutual respect for one another and the organizationis nurtured. In return, each person is expected todisplay behavior which creates a positive attitude,enthusiasm, loyalty, and commitment to goals,objectives, and mission of the school. However,there will be no long-term improvement inprocesses with this alone. The manager mustcreate an environment in which people have joy intheir work. The manager must also statisticallystudy and help the staff improve. That type ofimprovement will be long lasting.

A quality work environment exists which issupportive of people doing their job as bast theycan; with the goal of doing it right the first time.Everyone strives to meet the educational andservice needs of their customers. Theorganizational climate fosters an attitude of respectfor one another and a desire to maximize eachperson's potential.

The environment is safe, clean, technologicallycurrent, comfortable, and attractive for educationaland administrative functions.

Curriculum and instruction (Appendix B)

Next in importance to qualified instructors is thecurriculum used to support the learning process. Acompetency-based format is required sinceoccupational instruction :a based on jobrequirements.

Competency-based curriculum:

establishes the students' and instructors'roles in the process of instru.;tion.


18


communicates what is to be accomplished ininstruction.

specifies resources required to accomplishthe learning goals and tells how the learningwill be evaluated.

When the curriculum has been described, amanagement system is designed to support theteaching/learning process. This process includesall the people and all the support systems to ensurethat learning occurs in an effective and efficientmanner. The use of a multiple-entry, multiple-exitsystem is advocated since it permits the learner toenter instruction at various times and exit when thecompetency-based curriculum requirements havebeen met. At Fox Valley Technical College, thissystem is called "Perpetual Enrollment/Graduation"(PEG).

Planning (Appendix C)

The overall planning process is an importantfunction of every school district. It encourageseveryone to think creatively and project to thefuture. it is the continual process of makingdecisions in a systematic way based on analysis ofthe future and statistical study. This analysis andstatistical study should be the basis for reallocationof resources in a school. Therefore, planning andstatistical analysis is used as a cornerstone for theestablishment of operational goals and individualobjectives. Participation by all staff, at all levels, isrequired. An important factor is the need to link thisplanning and analysis with the budgetary process inorder to provide resource allocation.


The planning processencourages everyone tothink creatively and projectto the future.

9


Marketing permeates allaspects of the organization. . . marketing is everyone'sresponsibility.

Use of Technology (Appendix D)

Effectively merging instructional, administrative, andoffice information systems enhances thecontemporary school. The integration of micro andmainframe computers into vast networks is possiblewhile maintaining the individuality of genericterminals and micro work stations. An occupationaleducation system that uses a competency-basedcurriculum with perpetual enrollment and graduationrelies on maximum use of technology with aneffective, automated information system. Acarefully planned, computerized network, togetherwith an effective and comprehensive media andtelecommunications department, enablas the schoolto meet conforming requirements while operating aflexible instructional system.

Marketing (Appendix E)

The marketing process aligns the mission, goals,and objectives of the institution with activities whichare timely and effective. Marketing permeates allaspects of the organization including employee,board, and customer relations. This integrationresults in the development and refinement of anorganizational image which is positive and clear toexternal and internal publics. A quality image isdeveloped with successful graduates and satisfiedcustomers. Therefore, marketing is everyone'sresponsibility.

Customer Service (Appendix F)

The key to the success of any school is meeting theneeds of its customers. The schoc, nas anobligation to its current students/customers,graduates, and potential enrollees to maintain a

10

20Measuring and Costing Quality in Education


quality image in the community. This image mustbe clearly stated and understood, as well asdescribed in the requirements of this element.

A total organizational approach that promotesquality of service as perceived by the customershould be the driving force in the operatiwi of eachservice department of the school. The approachrequires:

customer-oriented, "front-line" people.

a management team supportive of"front-line" people.

customer-friendly systems designed for theconvenience of customers.

jig .a

The customer's perception of quality is the bottom line. From the"sound" of a smile to attention to every detail involved in theproduct/service, the customer positively or negatively assesses quality.


21

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A

4.., c,,P.,-,t,

ik

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14.4 _.,,,

Data gathered from the student/customer forms the basis forconformance requirements established to meet or exceed customerneeds.


22

Establish Conforming Requirements

Establish ConformingRequirements

Once the quality elements have been selected for theorganization, the criteria for each should be carefullydefined. These criteria are called conformingrequirements, and they become the basis for schoolwidemeasurement, costing, and goal setting.

Since conforming requirements are so critical to thequality process, they should be written with great careand undergo constant review. Each conformingrequirement should contain a measurement standardwhich tells what individuals will do and, if possible,indicates the conditions under which the activity will beperformed. Once established, the requirements shouldbe communicated to everyone in the school.

The quality elements selected by Fox Valley TechnicalCollege are shown in Appendices A through F. Usingsuggested strategies or tools, the requirements aremeasurable. For example, Appendix E contains theconforming requirements of the Quality ElementMarketing. Conforming Requirement 3 reads as follows:

"There is a written marketing plan that iscurrent and in support of the District MarketingPlan for each instructional and administrativeunit."

To determine whether this requirement is met, ameasurement strategy or tool is listed. In this examplethere are two--Instructional Audits and North CentralEvaluations. During these activities, each department

Once established,conforming requirementsare communicated toeveryone in the school.


23

Establish Conforming Requirements

reports on its plan and shows how it is used and how thedepartment plan supports the school's plan.

Another example can be found under Quality ElementCurriculum and Instruction found in Appendix B.

Conforming Requirement 11 states:

"All classes begin and end on time."

This requirement is measured on the annual StudentSatisfaction Survey with an item asking about theinstructor's punctuality in starting and ending classes.

It is soon obvious that some of the quality elements andthe accompanying conforming requirements are notdirectly applicable to all people in each wIrk unit. Forexample, the requirements for Curriculum andInstruction are likely to be most appropriate for facultyand the instructional managers. On the other hand,many of the conforming requirements for the WorkEnvironment (Human Resources) quality element will bemost applicable to the school's maintenancedepartment. Since all school employees are a part ofthe process, it is desirable that all are aware of theelements and their use throughout the school.


24

Decide on Measurement Strategy

Decide on MeasurementStrategy

After the conforming requirements are written, the nextactivity involves deciding on a strategy for measuringthem. This should be done as soon as possible since allschool employees need to know the measurementmechanism. In many cases the processes which areappropriate as measurement strategies are already inuse. At Fox Valley Tenhnical College, a number ofdifferent strategies are used, and, in many cases, thereis more than one measurement strategy for eachconforming requirement. While the strategies havevarying degrees of valid statistical credibility, all areindicators of improvement. A list of those used isprovided and explained below.

Instructional Audit

Instructional audits provide a review of eachinstructional program conducted by an outsice teamof experts from business, industry, and otherschools. Each program is audited at least onceevery seven years. An annual "mini-audit" of eachprogram is conducted to identify programs whichare experiencing problems.

North Central Accreditation Evaluation

The North Central Accreditation Evaluation at FVTCis an intensive self-evaluation and review conductedat intervals of five to ten years, &pending on theconditions reported in the prior accreditation visit.The quality process, together with the measuring,goal setting, and costing activities described in this


25


bock, becomes the basis for the self-evaluationstudy for each accreditatbn review. Properlyapplied, these components provide an ongoinganalysis of school improvement.

Student Satisfaction Survey

Students are the primary customers of the school,and surveys are conducted to find out how well theschool is meeting student requirements. At FoxValley Technical College, student evaluations areconducted in each class in order to give all studentsan opportunity to evaluate the instruction. Inaddition, an annual, campus-wide studentsatisfaction survey is conducted.

Organizational Climate Survey

Everyone who works in the school has theopportunity to annually complete an organizationalclimate survey which focuses on the quality ofservices provided by managers as well as the workenvironment of the school. Climate surveys mayhave limited value depending upon the cor.Jitions inthe school or in the department when it is

administered. The analysis of this survey data is,

however, the vehicle for promoting greater

communications between employees and theirmanagers and for using corrective action as neededto improve problem areas.

Postgraduate Satisfaction Survey

Employers of FVTC graduates and educators fromfour-year schools in which students enroll upongraduation provide feedback concerning theeffectiveness of instruction. This type of survey isconducted annually in order to note changes which


26


are important to improvement of the overalloperation of the school.

Indicators of District Health

A monthly report made available to the FVTCschool board and internal staff defines conciselyand graphically the major elements of the school.Comparative data related to enrollments,withdrawals, graduation, and other demographicinformation about the system and its customers areincluded in the Indicators of District Health. Teblo 2,shown on page 18, is a graphic illustration of thistype of report.

Other Reports

Numerous other reports including attendancerecords, accident reports, advisory committeeminutes, and the school budget are instrumentsused as part of the measurement strategy. In

addition, error-cause removal (ECR) reports areused at Fox Valley Technical College as vehiclesfor faculty and staff to identify problems. These aregood indicators, but generally require further studyand analysis. These measurement tools orstrategies are identified for each conformingrequirement of the quality elements. Thoseselected at FVTC are shown in Appendices Athrough F. Many existing reports and surveys wereconsidered for their appropriateness asmeasurement strategies for the requirements.Where no appropriate measure existed, one wasdeveloped.


27


Summary

It is important to write clear, measurable conformingrequirements for each quality element. Therequirements are measured in a variety of waysusing different tools or strategies--surveys, audits,evaluations, reports. In addition, wherever possible,costs are calculated for each conformingrequirement. The costing model itself is explainedlater.

UNDUPLICATED HEADCOUNT BY TYPE

NUMBER

60,000

50,00" -

,LM Adult Vocational 40.000

r Apprenticeships30.000

Associate Degree

v7A Vocational 20,000Diploma

10.000

0'

Through May

47,512 48.474

1986-87 1987-88 1988-89

Adult Vocational 42.147 39,689 41,891Apprenticeships 501 685 766Associate Degree 3.128 3,365 4,059

i Vocational Diploma 1,736 1,654 1,758

Table 2 - Indicators of District Health (Headcount)Source FVTC Summary by rogram (Ungraded)dee!)


Implement Measurement Process Techniques

Implement MeasurementProcess Techniques

There are some basic steps to follow in the

problem-solving process at the work unit level. The first

is to decide which problem should be addressed and toarrive at agreement as to the scope and extent of the

problem. Next is to develop a complete picture of all the

possible causes of the problem. After the picture iscomplete, the team tries to reach agreement on thebasic cause of the problem. Then, it is necessary towork toward an effective solution to the problem andfinally, to .mplement the solution and use monitoringprocedures and charting techniques to make sure the

activity being measured remains under control.

Statistical quality control processes provide the educator

with tools to accomplish these steps.

Statistical quality control techniques are used tomeasure the performance of an operation or processand express it in numbers. Once the statistics are

collected, it is possible to determine if the process isrunning smoothly. Walter A. Shewhart, a statistician for

Bell Laboratories, developed these techniques to bringprocesses into "statistical control." He defined the limits

of variation through the setting of acceptable highs and

lows. The entire process of measuring, charting, andrecognizing when to act and when to leave alone isknown as statistical process control (SPC). Using this

technique, performance can be measured both beforeand after corrective action has been taken. Since thegoal in education is to improve the quality of instructionand services, there must be stable processes because

only then can there be confidence in what the quality

level is. Statistical methods of quality control provide a

The process of measuring,charting, and recognizingwhen to act and when toleave alone is known asstatistical process control(SPC).



Charting permits analysis ofthe variation in a dimensioncaused by all parts of thetotal process.

way to picture and control quality. The greatest value ofthese techniques comes from using them continuouslyto control quality. They must become a way of life to beeffective.2

When using quality control techniques, charts are madebased on the information which is gathered. Theinformation used is variable data which shows if theprocess meets conforming requirements or standards.Charting points out the defects which need to bereduced or eliminated. Charting permits analysis of thevariation in a dimension caused by all parts of the totalprocess. It's a communicating tool which tells theperson when to act and when to leave the processalone.

There are a number of problem-solving tools forimproving processes in the school setting. Three basicand powerful tools are brainstorming, cause and effectanalysis, and Pareto analysis. These are especiallyhelpful in solving chronic problems. However, beforethese tools are used, it may be necessary to use a flowchart to show the team how the process fits into the totalproblem-solving activity. This flow chart may bedeveloped by the team leader or there may be a sampleflow chart developed for the entire school. The flowchart used at Fox Valley Technical College is found inTable 3 on page 21. It graphically illustrates how theprocess works.

The team uses brainstorming techniques to decide on aproblem, to study and gather input on its causes, and toflow chart the problem. Brainstorming encouragesgroup participation and allows room for creativity andnew ideas. It is a group problem-solving method whichtaps people's creative ability to define and solveproblems. It helps people to feel comfortable



contributing to the group and developing trust in eachother.

EstablishTeam

SelectTeam

Facilitator

IsFacilitatorTrained

NO

ConductSPC

Training

AnCurrent ProcessCollect

Data

Is Therea Solution

YES

10.

SolveProblem

--,-........A

CollectMoreData

Table 3 - SPC Problem Solving Process Flow Chart

The team facilitator leads the brainstorming pr^:ess.The facilitator exercises enough control over the groupto keep it on track and at the same time encouragestotal participation by team members. In the process,each person takes a turn to express an idea which isrecorded. Wild ideas are encouraged and criticism isnot allowed as the ideas are presented.

Since the list of ideas which evolves is a mixed-up arrayof thoughts, some organization is required. This isaccomplished through the use of the cause and effectdiagram. This diagram shows in picture form how the


31


ideas from brainstorming relate to one another. It

arranges disjointed ideas into a logical order so that theycan be better organized. The cause and effect diagram,sometimes called an Ishikawa or "fish bone" diagram,helps to look at ideas, establish relationships, andexamine factors that may influence a given process orevaluation.3 Table 4, shown below, is an example of aCause and Effect Diagram.

HUMAN IRESOURCES

Poor Academic Prep

Not Right Skills

Poor CounselingToo Competitive

EQUIPMENT

Too Complicated

Not ModernProblems With

computers

Need Job

or AI s

Hassles in Registration

Low Funds

Classes ConflictWI

STUDENTWI fHDRAWALS

Need Review Classes

Need Career Info Poor Instruction

Finding Time to Study

FINANCE PROCEDURES

Table 4 Cause and Effect Diagram Showing Possible Causes of StudentWithdrawals in the FVTC Business Diosion


32

Colle"t Data and Chart Results

Collect Data and ChartResults

Once the problem-solving goals have been set for thework unit, a plan should be established to collect dataand chart results.

There are a number of factors to consider to ensurecollection of the correct data. First, it is essential tomake clear the purpose for which data is to be collected.Using carefully defined conforming requirements, thedata collected is used to provide a basis for action orchange to occur. The data collected should help identifywhat defects are most prevalent and what factors arecausing defects.

Once the purpose is defined, the next problem is tochoose the sampling technique. Samples desired,frequency of collection, and sampling method to be usedmust be determined. It is essential that there be anawareness of possible errors in measurement andefforts made to keep errors at a minimum. Differentreadings may result from using different measurementinstruments and/or from different people reading andinterpreting the data. There may be, in fact, existingreports which identify the kinds of defects which occur inschools. While in some cases sufficient data isavailable, most often additional data collection isnecessary. However, it is extremely important toeliminate measurement variation early since bad data isworse than no data.

A data sheet or check sheet is used to collect theinformation you want. It is an organized form which putsthe data in the way you want it. Any form is acceptable


33

Collect Data and Chart Results

as long as it does the job. Table 5, shown below, is anillustration of a sample data list which has beendeveloped from data collected through withdrawalreports.

DATA SHEET

Data

Collection

- FVTCDate:

Collector Robert Darula, Dean

April 10. 19$9

of Student Services

Strategy Counselor Withdrawal Reports

DateNumber of Program Withdrawals

Business Technical Service General Econ. Dev. TotalsJanuary

.4.

16 9 2 20 - 4718 36 8 10 3 75

March 42 17 38 32 - 129April 6 22 2 - 34May 28 32 - 12 72June 3 2 -July - - - 0August 21 24 2 12

. 9 1

September 27 37 20 1 85October 19 1/ 1 10 1 42November 25 5 2 14 - l 46December 10 48 52 37 - 147

Totals 215 243 108 170 5 7414

Table 5 - Data Sheet Used to Collect Data Needed toMeasure and Cost Quality Defects

The next step is to decide how to arrange the data.Since data are collected in various forms, differentformats are used to display the data. There are anumber of display charts which may be used to arrangeand display data. Two of these, histograms and Paretocharts, are explained in the following pages.

A histogram chart is used to identify overall tendencies.It is a simple graph with bars and therefore is also calleda bar graph. Within a frequency table, data issequenced and then displayed on a graph which showsthe shape of distribution 0; the data. A histogram is built


34


by creating a frequency distribution of the data collected.After the frequency distribution is prepared, a graph isdrawn with class intervals on the horizontal axis. Thevertical axis shows the sum of the observations orcalculations within each class interval. Once drawn, thehistogram shows the shape of the distribution. Oftentimes the histogram shows a symmetrical or normaldistribution. This has most of the instances in themiddle, with a fairly equal distribution on both sides.Other patterns which emerge on a histogram includebimodal which is characterized by two distinct groupingsof data; patterns which have data skewed either right orleft; and, random data in which no distinct patternoccurs.

Table 6, shown on page 26, is a chart with a randompattern. Note that the pattern of school withdrawals onthis chart shows no distinct pattern; however, the data isvaluable in that it identifies two months, March andSeptember, having the greatest frequency. Furtheranalysis is in order. In fact, the data could probably bebest shown using a Pareto chart.

A Pareto chart is a bar graph that shows the frequencyof problems in decreasing order of significance. Thistype of chart indicates which problem occurs mostfrequently and should, therefore, be handled first.Table 7, shown on page 27, is a graphic illustration of aPareto chart which shows the reasons why studentswithdrew from Fox Valley Technical College. It is usedto determine priorities. The Pareto chart is sometimesdescribed as a way to sort out the "vital few" from the"trivial many." Besides displaying bars in order offrequency from left to right, an axis is drawn to showpercentages. Note that the percentage for eachadditional bar is added to reflect 100 percent of allcases.


35


WITHDRAWALSMONTHLY TOTALS

198748

dumberof Student

Withdrawals

JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY

Month

Table 6 - Chart Showing the Number of Withdrawals for Each Month



100

lumberof

Responses

-0

116

Personal100

Financial

77%

100%

-4 80%

70%

60°C

50%

40%

21%

71

ProgramNot

WhatExpected

66

Unsureof

Academic'Career

Field

Reasons

65

Dissatisfiedwith

CareerField

64

DifficultyFindingTime toStudy

63

ClassesConflicted

withWork

30%

20%

Table 1- Pareto Diagram Showing Responses from StudentsWho Withdrew from Fox Valley Technical College

10%

Source 1988 Student Leaver Survey (333 responding)

A Pareto chart is helpful because it identifies the majorproblems. The tallest bar is clearly the major reasonand the principal focus of the chart.

Other types of charts are used to display informationand various types of sampling techniques are used togather data. The method is influenced by the processwhich is being examined and the sophistication of theobserver and charter. Whenever possible, data shouldbe collected by the person who controls the activitybecause that person can also initiate corrective action inreal time. Using check sheets, calculators, computers,and existing data, the person responsible for the activitylooks at the data and, in cooperation with his/hermanager, interprets the information in an effort toimprove the process. The person in charge of theprocess is best equipped to identify special causes ofvariation and then eliminate them.

Whenever possible, datashould be collected by theperson who controls theactivity because that personcan also initiate correctiveaction in real time.


37


Some examples of charts which have been developed atFox Valley Technical College appear in Tables 8through 12. These charts may not be "classic"examples of those commonly used in industry.However, they are useful in that they worked for thedepartment involved, and that's what really matters. Abrief explanation of each follows.

Example 1 - Student Preferences for ProgramSchedule

In early 1989, the Electromechanical Departmentproblem-solving team undertook the challenge ofexamining their course offering schedule to determine ifthe entry system was satisfying the needs of theirstudent customers. The program, when initiated basedon perceived demand, was structured to offer morning,afternoon, and evening sections. Upon closeexamination, it was discovered that, while the morningand evening sections had numerous people on waitinglists and were continuing to run at capacity, theafternoon section had a much smaller waiting list; and,on occasion, was running at less than capacity.

The problem-solving team developed an instrument tosurvey the students on the afternoon and eveningwaiting lists to determine if they might be interested inenrolling in the evening section if an additional sectionwere offered.

The basic information gathered, as shown on the chartson Table 8 on page 29, clearly established preferencesof the student customers. As a result, the afternoonsection was discontinued and an additional eveningsection was created from 3:30 to 10:00 p.m., Mondaythrough Thursday.



30 27%

25

20 16.2%15

10 /75 .7/71

r77/A0

5:30 4:30 1:30 3:30 2:30Hours of the Day

10.8%

51.2%

Numberof

Respondents

9.8% 9,8%

T W M Th F M-ThDays of the Week

Table 8 - Pareto Charts of Earliest Starting Time and Days Available for Student CustomersSource' Jim Bourassa. FVTC

Electromechanical Instructor

Example 2 - Analysis of Cafeteria Utilization

Table 9, shown on page 30, is a chart developed by theFood Service instructional problem-solving team todetermine if cafeteria expansion was justified. The chartand data focuses on a "typical" week of cafeteriautilization from 10:30 a.m. to 12:30 p.m. It wasdiscovered, through the charting process, that on no dayduring that wee!: did the cafeteria reach its maximumcapacity. Based on the data, the space alreadyallocated was determined to be adequate. Continued


39


charting will be done to determine if that decision wasindeed valid.

400

350

300

250

200

ISO

100

50

0

1

in 30 a in

11 00am

11 30 a m

12 00 noon

12.30 p m

Numberof

Persons

12/12 12/13 12114

Dates

12/1S 12/16

Table 9 - Cafeteria Utilization, Week of 12/12 to 12/16, 1988

Source Helen Dean. Instructor. Food Service Department

Example 3 - Operational Status of Computer System

A third example, a "custom-made" example of a runchart, was developed in the school RegistrationDepartment. Table 10, shown on page 31, is a samplechart which was used to measure computer status asperceived by a system user (internal customer).Developed and plotted by the Registration Clerk, thesecharts are being used to determine whether there is apattern between time of day and/or day of the week inwhich the registration computer system is either slow ordown. Following three months of data collection, thedata receives initial analysis by the Registration Clerk. Itis placed on control charts and forwarded to the CollegeData Processing Department for appropriate correctiveaction.


40

4I

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115111111$41111111111111=11111114

111111211141111111111111ONNIUM

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101111111111191111111191110

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11411111114111W44011441111111114

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1111111111111111:111111111nal

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1111111118411111411111044.1114011110

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SUMMON 1111~401111111114MINO

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ONOSVOINISIIIMOIONOMMINISOSSIM

"S.

4

444

4

A

II4

40

8I

d041

4

40

44444

1I040,4

al0

0

0,

4Is

40194040

*400

II

4110610

111

111S

0so

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11

440

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44f

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044

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100%

90%

80%

70%

60%50

50%

40%

30%

20%

10%

0

Ac.e....Strongty Agree

tagree o Strongly Chte9ee

0 N. A

91

71

1-30-87 S 22-87 10-26-87 2.2;=.88 8.31-88

100

1.24-89

Table 11 - Run Chart - Students Made Aware of Accident and Safety Procedures

Source Dan Ost,instru,:tor, Parts Specalist Program

These charts are used to illustrate that charting, to beeffective, does not have to be the result of an elaboratesystem of statistical processing and analysis. Teachersand service department staff can use these and othertechniques of data gathering and charting to initiatecorrective action and solve problems. Basicproblem-solving techniques and charting practices leadtoward more sophisticated charting and statisticalanalysis.

A number of FVTC faculty and staff have been trained inusing statistical process control (SPC) techniques.Several were formally trained at workshops conductedby statistical experts, including Dr. Deming. Most ofthem are teachers who are certified by the AmericanSociety of Quality Control (ASQC) and now teach SPCto business and industry in the region. In addition, 26faculty members and managers were trained locally. Amajor goal is to train all managers and several more


42


instructors and staff to use these basic statisticalprinciples of building and analyzing control charts.

One problem which is being analyzed at Fox ValleyTechnical College is the student withdrawal process.Information concerning student withdrawals is gatheredon a daily basis and compiled into monthly reports.These monthly student withdrawal reports are used withdata on program enrollments to determine thepercentage of withdrawals in each program.

Table 12, shown on page 34, is a frequency distributionchart which lists each program in the Service Divisionand shows the number of withdrawals for each during asix-month period. The information is gathered by eachinstructional division.

Using these charts, which can be developed on a daily,weekly, monthly, or semester basis, managers andfaculty can conduct further study to determine how toimprove student retention. The staff may decide toexamine factors such as the following to assist inimproving the process:

entry levels of students using G.P.A.'s (GradePoint Averages) from high school

basic skill levels of students using ACT(American College Testing) or SAT (ScholasticAptitude Test) scores

career development and counselingexperiences of entering students


43

35.0

3 0.0

25.0

20.0

15.0

10.0

5.0

0.0wits.tin h.111u.

Frequency Distribution ChartStudent Withdrawals 6-1-88 to 2-1-89

Shirley Adams - Dean

Percent Withdrawals

1

111111Alla

A MIRVr

12.79.031.0

13.4111.0

134.0

10311.0

107.0

1.31.0

24.0

3.26.0

319.0

3.23.0Hi 0

11.6

9.0344.0

14.19,0

34.0

3.18.0

1119.0

33.313.039.0

0.00.024.0

311.3

4.014.0

111.1

11.023,0

4.33.01,0

10.46.0

43.0

2.11

103.01442,0

Table 12 - Frequency Distribution Chart StudentWithdrawals Service Division

44

=Mlieelle

Develop Control Charts


Control charts are also used to examine and reduce thenumber of student withdrawals at Fox Valley TechnicalCollege. Control charts are graphic illustrations of aprocess or attribute showing plotted values withstatistically determined central lines and upper andlower control limits. They are used to determinewhether the process has been operating with acceptablelimits. They are tools which can provide reliableinformation upon which appropriate decisions can bemade. Control charts provide information which isvaluable in reducing variation through careful analysis ofthe items which are statistically beyond the upper orlower limits--"out of control." Control charts lead toimproved quality and productivity because the datahelps to show special causes which are either adjustedor which may lead to changes in the process itself.

Control charts give faculty, service staff, and managerscommon graphic and numerical communication tools.School managers, skilled in using and interpretingcontrol charts, can assist others in the correctiveprocess through identifying needed action based ondata, not on guesswork.

There are different types of control charts and manybooks have been written on their use and interpretation.One resource is the Transformation of AmericanIndustry Training System which was developed toincrease the capacity of our nation's community collegesfor helping industry improve quality. While the trainingmaterials were developed for use in business andindustry, they may be appropriate for use by educationalmanagers to learn the basic techniques of statisticalprocess control.4

With control charts neededaction is based on data, noton guesswork.



An example of one type of control chart being used atFox Valley Technical College is found in Table 14,shown on page 37. The p-chart helps in controllingdefects in services and is useful in education. It is usedwhen the sample size (n) varies. The control chartshown in Table 14 provides information which may beuseful in monitoring student withdrawals. It providesdata related to the average number of withdrawals in aspecific program for the past three years, reported on amonthly basis. The percentage of enrolled studentswhich withdraw each month is presented and upper andlower limits are shown. The data for this control chartwas reported on a chart shown in Table 13, below. Theinformation was subsequently plotted on the controlchart described above and shown in Table 14. Note thatthis control chart shows that this is not a stable process.

Program Accounting inspection Review of Withdrawal Forms

(1987.89 Averages)

Month Averan#5identsa7z1987Average %i r ops-89

FractionDefective p

July 95 1.7 .018

August 101 6.0 .059

September 218 2.7 .012

October 282 3.3 .012

November 286 5.1 .018

December 272 3.0 .011

January 271 4.0 .015

February 262 9.0 .034

March 259 2.7 .010

April 280 2.0 .007

May 279 6.5 .023

Totals 2,605 46 .219/

Averages 236 4 18 .020

Table 13 p Chart Showing Number of Withdrawals and Fraction Defective p

Table 15, shown on page 38, shows another sampleControl Chart which is called a "U" Chart. Note that thechart shows the limits of reasons for withdrawal by



instructional division. Using "U" chart calculations, thechart displays the average number of reasons given byeach person who withdrew. Then, upper limits andlower limits are calculated. Samples can be taken atregular intervals to determine if the process is changingfundamentally. When analyzing this chart on a regularbasis, the manager can see if things are getting worse(reasons increasing) or if there is less dissatisfaction(reasons decreasing).

- Control Chart for Fraction DefectiveStudent Withdrawals (1987-89 Average)

0.061 -

lig"

47. 45

43..041 1----.039

. 35

8:033

I:013

_1 July j Aug i Sept 0014 Nov Deo ; Jan I Feb Mar 1 Apr May

10.01810 059i 0.012 io.oi2lo.oiwo.on,10.01510.034! 0 01041007:0.023LF

Table 14 Student Withdrawals (190749 Average)for FVTC Accounting Program

J.020 (I - .0101.020 1

2/b

.010 .0274 .C..? srA - .00t5

UCLp = 047

- 75

LCLo = -.0075

Simply stated, a control chart is a graph with statisticallydetermined limit lines which include upper control limits,a central or mean line, End lower control limits. Theselines, shown on the chart, become keys to processanalysis. From these p ocess analysis control charts,other charts used for process control can be designed.These control charts depict what changes in data occurover time and also permit the study of the impact of


47


various factors in the process that change over time.They show whether any of the points fall between oroutside the limits or form unnatural patterns.

CHAR? RUMS PIER ion NI

PLO?LI . *weft%

VW n

LINTER U. TOTAL 01140$ KM*1.0d TOTAL PUCIS SAMPLID

CON11101UMUS

U l q 1,

%mutt CAN VAS?. *UT COMM.. 1..MilWt CALCULATION WWII. VIA?(AI DIPKULT Caviar POINT)

REA

2.00

1.

1.25

111111111111111111111111111110 i01111111110UCL 2.01

E111111111=

FOR WITHDRAWALSNAN

TICKAICAL Attitlin MMUS

1

Classes Conflicted with Work 30 15 III

Difficulty Finding Time to Study 22 29 t3

Dissatisfied with Career Field t8 29 isFinancial 37

_34 29

Personal 33 49 34

Program Not What I Expected 26 24 21

Unsure of AtaderniKareer Field 22 29 15

Total Defective Units (NP)/Defects IQ 188 209 148

Proportion (P.U) 1.58 1.69 1.64

Sant* Size (N) 119 124 90

Table 15 - Sample "U" Chart Showing Average Number of Reasonswith Upper and Lower Limits

The design anu analysis of control charts does notrequire advanced statistics; however, before they areused, a review of statistical process control techniquesis needed. Books by Deming, Juran, and Ishikawa haveillustrations and explanations of statistical techniquesused in establishing limits on control charts.5

Control charts perform many functions which may helpschools improve their quality. They can provide ahistory of many processes used in education. They canmeasure quality progress and improvement and pointout trouble areas, especially in service departments.They are also effective as presentation and informationsystems. Since they are control devices, they also



provide valuable information for analysis and ultimateaction. Most of all, control charts display variability andgive school managers objective statistical informationwhich will help in decision making. A quality informationsystem is needed to ensure that problems are beingsolved analytically, goals are attained, and prevention oferrors occurs. Statistical process control provides thesystem.

The general goal of control charting is to focus work onsome definite change in the process for improvement,through the creation of less variability within the controllimits. Management has the responsibility to provide thenecessary leadership which empowers others to bestriving toward achieving statistical control of processesby analyzing factors and looking at possible causes ofthose things which are statistically out of control. Thestatistically-oriented manager uses the data to helpdetermine which staff under his/her jurisdiction needspecial help.

While some of the charts presented in this book mayinvite technical criticism from SPC experts, they arepreliminary attempts to incorporate industrialapplications in educational evaluation. The key conceptbeing stressed at Fox Valley Technical College is that itis no longer acceptable to use subjective analysis whenmaking decisions to modify processes. Managers,teachers, and technical workers are being encouragedto use data collection, charting, and other statisticaltechniques to realize the benefits obtained from thedynamics of averages. As training in statisticaltechniques continues, and as educators become morecomfortable with these industrial applications, thetechnical competence will lead to more appropriateapplications.

Statistical process controlprovides the system toensure that problems arebeing solved analytically,goals are attained, andprevention of errors occurs.


The thoughtful design of costing systems through the carefulidentification of measurement criteria helps to put the dollars and senseinto the process.


50

Design Costing System


In the past, the cost of quality has been used only as ameans of measuring defects and errors in themanufacturing plant. Seldom has it been used as anevaluation tool. Fox Valley Technical College hasdesigned a costing system which can be applied toeducation. The model was first developed to determineinitial quality costs for the organization. These initialcosts of quality become increasingly more credible ascost center data is calculated in the various departmentsof the school and displayed in a central costing program.

Establishment of the costing plan begins with theidentification of measurement criteria. These are calledconforming requirements. Once these have beenwritten, a measurement strategy is determined.Decisions can then be made regarding the cost offactors of achieving the conforming.

According to the American Society for Quality Control(ASQC), the cost of quality includes the expendituresassociated with the prevention of nonconformances andthe appraisal of products or services for conformance tostated requirements (or failing to meet requirements).6

Calculating and continually monitoring the cost of qualityis essential to the process--providing a critical measureof its success.

Two Types of Costs

The Fox Valley Technical College Cost Committeeselected two types of costing elements--the cost ofconformance elements and the cost of nonconformanceelements. The model contains a listing of these


51


elements together with the criteria used to determinecosts under each.

Trt ' V,-,:;:dgesjor

'

Jr-

Data collected Is stored in the computer system to ensure ease ofretrieval and generation of reports.


52

Calculate Costs of Quality


As stated earlier, there are two types of costs tocalculate. These costs of quality include expensesnecessary to make or do things right (cost ofconformance) and the costs of doing things wrong (costof nonconformance).

COSTS OF CONFORMANCE

Conformance costs are those expenses related toidentifying and preventing eors, and the systemrevision needed to keep the same errors fromreoccurring. Elements included in the Fox ValleyTechnical College costing model are as follows:

Marketing Research

These are the costs involved in gathering andevaluating data on customers' needs andperceptions about their satisfaction with the school.The criterion used in the Fox Valley TechnicalCollege model is 50 percent of the budget of theResearch Department. Approximately one-half ofthe time of the staff in that department is involved insurveying and evaluating data related to the qualityprocess.

Quality Training

The costs for developing and conducting formaltraining programs to orient employees to qualityprocesses and error prevention are included in thiscalculation. Fox Valley Technical College usesmany different levels of training, and the criterionincludes the calculation of all costs associated with



that training with the exception of the time taken byemployees to attend training sessions, unless theyare paid extra to attend. Since employee time is amajor cost, future calculations should include costsfor time.

Quality Coordination

The actual costs required for coordinating thequality first process includes the salary of the qualitycoordinator and the supplies and materials used todocument the process. The amount used fordetermining these costs at Fox Valley TechnicalCollege is the entire budget for the quality firstprocess with the exception of those costs which areshown in other categories.

Quality Monaoring and Auditing

While the goal of the quality improvement processis prevention rather than appraisal, it is necessaryto maintain a monitoring and auditing system todetermine its level of success. Included are thecosts for internal financial control systems used inthe process. The criterion used is one-half of theResearch Department's budget.

Wellness Programs

All wellness programs at Fox Valley TechnicalCollege which are used to improve employeeproductivity and reduce absenteeism are a part ofthis conformance cost element. These includestress management, nutrition, and exerciseprograms conducted for employees. The criterionused to determine these costs is the actualexpenses for wellness programs.



The costs of conformance calculated for Fox ValleyTechnical College during the 1987-88 fiscal year areshown in Appendix G. Most of these costs were a partof the regular school budget prior to the initiation of thequality first process. In many cases, staff time andservices were transferred from other duties andfunctions to the quality process.

COSTS OF NONCONFORMANCE

When calculating the costs of nonconformance, it isnecessary to determine, as closely as possible, theactual expenses involved when school systems are notoperating at 100 percent efficiency. Even though it maybe impossible to reach 100 percent efficiency anderror-free productivity in all aspects of the school'soperation, it is important to calculate the costs ofdeviating from perfection. Doing this improvesemployee awareness of the costs of quality and givesschool officials a yardstick to determine improvement.Costs of nonconformance calculated for Fox ValleyTechnical College using data from the last quarter of the1987-88 fiscal year are shown in Appendix H. The itemsincluded are as follows:

Resource Utilization/Enrollments

Costs occur when maximum enrollment is notmaintained in each instructional program, resultingin excess student stations. The costs aredetermined by analyzing utilization reports whichshow the ratio of student occupancy as comparedwith maximum utilization potential. These costs canbe decreased as the department moves towardincreasing the student station utilization.

It is important to calculatethe costs of deviating fromperfection.


55


Rework in Service Departments

These costs are based on estimates of rework

which is required because of errors or replacement

due to incorrect, incomplete, or defective products

or services. Quality experts estimate that rework in

service departments accounts for between 20 and

40 percent of service department budgets. The

criterion used in the Fox Valley Technical College

model is 20 percent of each service department's

noninstructional budget. The school is working on

the design of an actual measurement mechanism.

Retention of Students

These are costs which result from student

withdrawals. They are the result of the loss of state

aids and tuition. The annual cost at Fox Valley

Technical College is approximately $1,900 per year

for each withdrawal.

Employee Attendance

These costs occur when employees are absent.

Included are salaries for overtime and substitutes.

The criterion used at Fox Valley Technical College

is based on the loss of time which is above the

national average for employee absence-1.8

percent of total time available to work under regular

schedules.

Scheduling of Human Resources

Inequitable scheduling of school managers and

technicaliclerical staff often occurs because of poor

planning and inappropriate management. Because

of this inefficiency, people are often reassigned to

projects which come up at the last minute.

48

I Mr I


56


Nonconformance occurs and excess costs resultbecause of this poor planning. The criterion used todetermine these costs is five percent of the totallabor costs for all management and support staffemployees. This criteria is very weak--improvementis being sought through the design of ameasurement element.

Customer Service

Individual customer complaints and inquiries aboutalleged poor service incur costs for staff toinvestigate, resolve, and respond. Included in thesecosts of nor conformance are local, state, andfederal investigations of alleged affirmative actionviolations, as well as complaints by students andothers. The criteria used to determine these costsis the equivalent of one full-time employee the timerequired to handle these complaints and inquiries isthe equivalent of one full-time person.

Management of schools, like any other managementprocess, requires accurate measurements which includesome of the factors described above and shown in theappendices. Some of these need further refinement andthis is occurring. Critics may contend that it is notpossible to effectively measure these kinds of costs.Fox Valley Technical College staff believe, however, thatcareful definition of quality elements in schools, coupledwith the establishment of measurable conformingrequirements can provide the framework for costcalculations. As the system of measurement andcosting matures, the accuracy of cost determination willimprove, and cost reductions will become apparent.

The accuracy of costdetermination will improve,and cost reductions willbecome apparent as thesystem of measurementand costing matures.


The posting of charts within the office area goes a long way towardcreating and maintaining an awareness of the process and the impact ofdaily quality improvement strides.


Set Goals

Set Goals

There are two levels of goals which are used in thequality/measurement process in education. First, thereare global goals which are the main targets upon whichoperational plans are developed. These goals target theconforming requirements of the quality elements. Theywere explained in a previous section of this book. Thesecond level of measurement is based onproblem-solving targets which are established in thevarious departments or work units. Goals are alwayslimited, to some extent, by the various processes inplace at the school. The highest of all goals shouldalways be continued improvement. The quality processprovides the vehicle for this to happen.

Each school should have a strategic plan which defineslong-range goals and objectives. These goals, togetherwith the mission statement, form the basis for theexistence and operation of the school. In the quality firstprocess, the purposes, long-range goals, and qualityelements provide the overall direction for the employees.The elements are influenced by the school's goals,mission, and purpose, and they form the organizations!targets for the quality improvement process. The16-step quality process model provides the "how" tofacilitate this link. Conforming requirements, which areestablished for each of the elements, become the basisfor measurement and costing which determines whetherimprovement is occurring in the organization. Usingproblem-solving and statistical process techniques, thework units of the school establish and measure theirunique goals. These are often related to the qualityelements.

The highest goal shouldalways be continued,trrovement. The qualityproces.; provides thevehicle for this to happen.

Measuring and Costing Quality in Education 59 49

Set Goals

All employees of the school should be familiar with themission, purpose, and long-range goals of theorganization. They should also have opportunities toparticipate in problem-solving activities in their workunits. The various work unit teams select problemswhich form the basis for specific quality goals which areestablished and charted. Initially, only a few problemsshould be identified for measurement, costing, and goalsetting. Team members should get together and decidewhich problems are to be studied using the statisticalquality control method.

The emphasis in the work unit goal-setting processshould be on the method or process used to meetcustomers' needs. According to Deming, theestablishment of team objectives is composed of foursubprocesses:

- identify customer needs

- determine sources of improvement- identify who can help accomplish improvement- develop mutual objectives?


Summary

Summary

Goal setting is an important part of the planning processin schools. Usually these goals are established andreviewed on an annual basis. Problems occur when theyare set and measured in isolation from the totaloperation of the organization.

The quality process alters the school's strategic planningsystem. It requires that the global goals focus on,among other things, the improvement of quality. Qualityelements are derived from the mission and purpose ofthe school and are first selected by the QualityImprovement Council. Later, as the quality processmatures, the elements are reviewed by persons fromthroughout the school. Sometimes, new elements areadded.

In addition to these quality elements, problem-solvinggoals and objectives are established in the work units.After problems are identified, charting techniques areused and measurement begins. This leads to theestablishment of improvement goals. Chartingtechniques help employees visually identifyproblem-solving processes, and measurementsdetermine if goals have been met. The use of statisticalprocess control techniques assist educators in theproblem-solving process and in the attainment of goals.

The implementation of the quality process will notalways lead to direct cost reductions for schools.Progress made toward a total quality environment willultimately lead to greater customer satisfaction whichwill result in tangible benefits for the organization. In

most cases, it is also possible to identify the costs of

Progress made toward atotal quality environmentwill ultimately lead togreater customersatisfaction which will resultin ta,gible benefits for theorganization.


6151

conformance (doing things right) and the costs ofnonconformance (doing things wrong).

The analysis of these costs should be shared with allschool employees. Since the overall goal is to reduceboth the costs of conformance and the costs ofnonconformance to the point where funds are availablefor other necessary services and instruction in theschool, all employees should be involved in theproblem-solving process. Additionally, they should beable to relate the impact of their problem solving on costreductions for the school.


62

Conclusion

Conclusion

Errors, cycle time, withdrawals, assignments, workloads,and other customer data can all be counted, charted,analyzed, and costed with some degree of accuracy.However, data should not be collected just to collectdata. It must be valid and useful. Other factors, oftenexternal to schools, are more difficult to measure andcost.

At Fox Valley Technical College, for example, one of ourproducts is "transfer of technology." No direct measuresof those cost benefits to the student and the employerare included in our model. There are other measureswhich could be added. Some examples of these are asfollows:

Quality of input through admissions testing

Quality of output through comparisons withnational norms

Certification scores of nursing graduatescompared to state averages of other educationalinstitutions

Certification of welders and mechanics

These and other internal and external measures andcosts will be added to the measurement and costingmodel as it matures. The significance of this model isthat it allows for continued input and modification basedon the creativity of the faculty and staff.


63

Conclusion

There are some basic principles of measuring andcosting for use by those involved in this process:

1. Use available data wherever possible; however,continue to select new measures. Take care inthe actual selection.

2. Only collect data if it's going to be used inimproving processes.

3. Use caution in announcing measurement andcosting results. The overzealous manager cancreate serious problems by publicizing resultsout of context.

4. Always adjust for inflation when reporting anymeasurement in terms of currency forcomparison purposes. In other words, costsdon't have to decrease for productivityimprovement to occur.

5. Select measures and cost elements only afterdetermining how each will effectively contributeto the overall purposes and goals.

On page 1, four questions were asked concerning themeasuring and costing of quality in education. The staffat Fox Valley Technical College, after almost four yearsof implementing the quality/productivity process, areconvinced that the answers to those questions are aresounding "yes."

- Yes, it is possible to describe, judge, andimprove the effectiveness of schools;

_ Yes, variances found in the variousprocesses common to education can becorrectly and concisely measured;


Conclusion

Yes, quality in education can be looked at infinancial terms the way it is in business andindustry; and

- Yes, statistical techniques and processesare useful for measurement and analysis ineducation.


65

Notes

Notes


66

Lb

Quality Element - Human Resources

Q.

Each fox Valley Technical College employee is a valuable resource to the organization. Fox Valley Technical College will v "k with each employee to enablethem to meet the pre-established requirements for their lob. Employees will be provided the opportunity to interact with others in such a way that mutual respect

co for one another and for the organization is achieved.

A quality work environment exists whiCh is supportive of people doing their job right the first time in meeting the educational andservice needs of their customers.k The organizational cliiiiate fosters an attitude of respect for one another and provides opportunities to maximize one's potential. Such an environment is safe,clean, technologically current, comfortable, and attractive for educational and administrative functions.

Fox Valley Technical College employees are expected to display behavior which creates a positive attitude, enthusiasm, loyalty, and a commitment to the goals,objectives, and mission of the institution. Employee commitment. dedication, and hard work will. in turn, enable the College to meet its goals, obiectives, andmission.

Conforming Requirements Measurement Strategy Cost of Nonconformance

1. Employees meet the minimum qualifications for the position they currentlyhold. Qualifications for each position must be periodically reviewed andupdated as duties and responsibilities change.

Instructional AuditsCertification AuditsPerformance Management Evaluation

$ x 25% certification audit exceptionLost labor and productivityCost of reclassification

2. Professional growth, career planning, and promotional preparednessopportunities are clearly defined. information and support aremade available to employees.

tristrucdonal AuditsProfessional Growth BudgetPerformance Management EvaluationProfessional Growth Plan

Program discontinuance$150,000 - $200,000Lower productivity

3. Recruitment activities exist to attract an applicant pool of the mostqualified people.

Affirmative Action Plan Loss of federal monies due to notmeeting certain mandated requirementsand student financial aid, if foundto be discriminatory.

Poor public relations.Cost of turnover.Cost of training orientation.

4. Employment practices provide equal opportunities for applicants andpromotion of employees.

Affirmative Action Annual Report Loss of federal monies due to notmeeting certain mandated requirementsand student financial aid. if foundto be discriminatory.

Poor public relations.


S. Recognition of an employee whose efforts meet andfor exceed the lobrequirements is immediate, individual, and flexible.

Performance Management EvaluationClimate survey: several questionsaddress this issue.

Recognition Plan

Attitude prehle.nDecreased productivityLoss of feeling of being part oforganization

6. Physical environment reflects the College's mission with emphasis on theadult learner.

North Central Evaluation Student costs

7. Physical facilities are attractive and are:- professionally designed and maintained- appealing to the needs of the customers- color-coordinated and aesthetically compatible with surroundings

Organizational Climate SurveyInstructional Audit

Employee costsReduction of FTE's

8. Physical facilities provide handicapped access that is not restrictive andmeets all state and local requirements

North Central EvaluationInstructional audits

Student costsEmployer costs

9. Physical facilities are clean and meet state and local health standards. North Central EvaluationOrganizational Climate Survey

Employer costs

10. Physical facilities are adequately furnished with- proper ventilation- controlled temperature

appropriate level of light lumens- adequate space allocation for each person- adequate design to promote proper sound decibels- adequate rest rooms that are strategically located,

sanitized, and maintained

.......--

North Central EvaluationOrganizational Climate Survey Employee absence

An ongoing annual safety audit is conducted by a College safety committeeand immediate attention is given to identify problems

.......

North Central EvaluationAccident reportsAttendance records

Employee absence due to accidentsinsurance costs

12. Job activities will be performed at predetermined levels within a specifiedtime period.

Periodic Performance EvaluationRequests for people to pursueprofessional growth

Loss of prooactivityRetraining costsCustomer dissatisfaction


13. Initiative on the job that includes suggesting new ideas to improve personaland/or FVTC performance and job satisfaction.

The number of ideas/suggestions thatemployees make via evaluation orsuggestion box. We need to encouragethis creativity to happen.

14. Flexibility which includes the ability and willingness to readily accept andadapt to changes in procedures or assignments.

Climate SurveyStudent Evaluation of Instruction

15. A positive attitude and enthusiasm on the job. including cooperation with altother employees. customers. and the general public, and working towardthe implementation of goals and policies with an openness to constructivecriticism.

Organizational Climate Survey: this willgive an indication, but will not measuredirectly. Could test new hires viaTesting CenterStudent Evaluation of Instruction

Decrease in productivityAbsenteeismTardiness

16 The ability to effectively communicatelisten. understand, speak. and beunderstood both in written and oral communication

Evidence of teamwork communication inclimate for work group area.

17 The development and demonstrated progress toward fulfillment of apersonalized professional growth plan

Existence of a Professional Growth PlanWork in progress toward fulfillment of planCertification Requirements

18. Manager needs to act.vely promote teamwork and problem-solving withintheir immediate unit and beyond :n order to develop higher levels ofjob satisfaction and esprit de corps.

Organizational Climate SurveyPerformance Evaluation

Higher reported numbers

71 72

Quality Element - Curriculum and Instruction


1. Curriculum is based on competencies needed for the person to performsuccessfully on the job.

Instructional AuditEmployer SurveyNorth Central Evaluation

Student and Employer Costs

2. There is a complete plan for learning for each course in a program and thecomputer is used as a tool to maintain a master file in a central location.(See policy - Curriculum Documentation)

Instructional AuditNorth Central Evaluation

Student CostsRework when revising curriculum

3. Each program has a written list of course prerequisites. Program Development State RegulationsProgram Revision State RegulationsNorth Central Evaluation

Student CostsLoss of FTE's

4. Examinations have criterion with a direct link to the performanceobjectives.

Instructional Audit Employer Costs

5. Students are aware of expectations for each course. This includes asyllabus, grading policy, attendance, and safety requirements.

'No measurement in place at this time.Will be a unit objective for next year

Student Costs

6. Students may receive advanced standing and/or credit for past experiencesin education or ,i1 occupations related to the program.

Instructional AuditStudent Satisfaction Survey'Counselor Survey (formal mechanismnot in place)

Student Costs

7. Programs are structured to permit multiple-entry and multiple-exit. Instructional AuditUtilization ReportsNorth Central Evaluation

Student Station Occupancy Ratios

8. The program's advisory committee is active and meets at least twice eachyear.

Instructional AuditNorth Central EvaluationMinutes sent to Vice President

Retraining Costs based on Guarantee

7 34


9. Each program will provide some type of work expeeence related to thestudents' training.


Student and employer costs

10. There is a plan in each Division to evaluate instruction and instructors.(See Human Resources Confohning Requirements)

instructional Audit*(Needs additional measurement

activities)

Student costsTaxpayer costs

11. An optimum class size is er4ablished for each course. Instructional AuditStudent Satisfaction Survey

Student costs

12. There are formal articulation andfor transfer credit agreements with areasecondary and postsecondary schools for each program.


Student costsTaxpayer costs

13. Instructors use a variety of teaching techniques to meet the unique needsof the learner.

Instructional AuditStudent Satisfaction Survey

Student costs

14_ Instructors conform to established timelines.a) Classes start and stop on time.b) Grades are submitted promptly.

Student Satisfaction Survey Student costs

IS. Curriculum and course requirements are consistent for content, textbook,and grading. Exceptions must be approved by the Dean.

Student Satisfaction Survey Student costs

19. Faculty assess students' needs, determine strengths and weaknesses,prescribe /earning paths for students. and make appropriate referrals toimprove the retention of students.

Instructional AuditStudent Withdrawal Report

Student costsLoss of FTE's

17. Curriculum and instruction is customi7ed for individual businesses to assistthem with their productivity and profitability.

Requirements of Customer Contract Employer costsRetraining 'cats

18. Instructors utilize industry standard technology placing emphasis on leadingedge technology as identified by advisory committee.

Instructional AuditEmployers SurveyPlacement Records

Student and employer costs

757G

2


19. All courses in full time programs have some high-technology componentswhich require students to use computers regularly.

instructional AuditEmployer Survey

Student and Employer Costs

20. Services to support student success are accessible and effective. Student Satisfaction Survey Student CostsLoss of FTE'

'Needs development of measurement strategy

11

Quality Element - Planning

(0 Fox Valley Technical College utilizes a strategic planning process which encourages and provides opportunities for participation at all levels in the organizationto include both short and long-range plans that are consistent with the directions of the institution. Planning is used as the cornerstone for establishing goals.operational plans, and individual management objectives with research being used to solidify that framework. An important factor is the necessity to link thestrategic planning process with the operational and budgetary process. The purpose of this linkage is to properly reflect resource allocation.

2Conforming Requirements Measurement Strategy Cost of Nonconformance

1. The College's current mission and purpose is clearly stated withoutambiguous or confusing jargon.

FVTC Board ApprovalDocumentation of Review Plan

District resources may be used oninappropriate activities.

2. There is a written organizational pian which contains strategic directionsthat are updated annually.

Approval of Executive CabinetDocumentation of Review Plan

Resources may be allocated improperlyrestating in unmet goals and unwiseuse of fiscal resources.

3. The needs of external customers are identified, and the data collectedis prioritized and utilized to provide direction for the organization.

Advisory Committee MinutesInstructional AuditsProgram ApprovalEmployer Survey

High cost, low enrollment programs.and customer complaints wherecustomer needs are not being met.

Employer costs.Loss of community support.

4. The strategic directions of the organization are evaluated in setting ourfuture directions.

instructional AuditsStudent Satisfaction Survey

Loss of student and taxpayer supportdue to unmet needs.

5. Individuals at all levels in the organization are involved in theplanning process and surveyed to :density their perspective onneecisipnoribes

Climate SurveyEmployee Satisfaction Survey

Poor staff morale, lack of supportand commitment to the organization.

Increased grievances and labor unrest.

6. The operational is the basis for development of the budget. Annual BudgetInstructional Audits

Goals and objectives in operationalplan not met, poor employee morale,lack of customer satisfaction.

'79 80


7. Communication on operational planning is on-going and flows upward,downward, and across the organization.

Climate SurveyInstructional AuditsNorth Central EvaluationAdvisory Committee Minutes

Poor coordination of activities resultin higher Fit costs and poor customersemce.

8. The planning process needs to be continuous (year round) and flexibleto allow the organization to be dynamic and responsive.

Budget AllocationsStaff SatisfactionInstructional AuditsNorth Central Evaluation

Inability to change priorities as needschange will result in higher studentdrop-out rates, poor employee morale.and higher employee turnover.

8

Quality Element - Use of Technology

Conforming Requirevents Measurement Strategy Cost of Nonconformance

I. Management units utilize technology and support services to effectivelymanage and produce concise reports. documents, communications,and schedules.

Survey staff to find out if they:Are receiving the reports they need tomanage effectively

Are getting the reports in a timelymanner

Are using the reports to guide theiraction

Review conciseness of internallygenerated reports and communications

Insist on short memos (no more than onepage)

Paper costsEmployee costs of meetings wherelengthy reports are presented

Costs of handling, reading, storing, etc.excessively long documents

Through the use of electronic data generation and on-line view capabilities,hard copy documentation is significantly it,-( ka..0.1.

Measure volume of paper used (should:how minis or of !9°':. decrease dur :ngfirst full year)Survey staff to determine:Extent of electronic system usePossible improvements

Paper costCosts of hanotmg aftri stormy hardcopy documents

3. All service and support units utilize technology to manage their processeseffectively and productively.

Determine processes to be automatedMeasure progress being made towardautomation

Employee costs of continuing to dothings manually

Cost of lost increases in productivity

.1 :nstructional managers utilize media and information processing systems toeffectively support faculty with the instructional process

Determine processes to be automatedMeasure progress being made towardautomation

Climate Survey

Lost employee proCuctivity

S. Technology is used to effectively assist in the teaching and management ofinstructional programs offered under the perpetual enrollment/graduationprocess.

Instructional AuditStudent Station OccupancyWithdrawal ReportsGraduate Follaw-upStudent Evaluation of Instruction

Lost FTE'sCost of idle student work stationsCost of student non-completionCost of poor institutional image

VI 83

I F

84

co


. Instructional management employs central computerized record-keepingsystems to monitor student progress and performance.

instructional AuditSurvey of StudentsSurvey of Staff

Student CostsCost of poor institutional image

7. Instructors utilize industry standard technology placing emphasis onleading-edge technology as identified by advisory committees.

instructional AuditEmployers SurveyGraduate Follow-upAdvisory Committees

Employer costs of additional trainingStudent costs of lost opportunityCost of lost Economic Developmentcontracts

Cost of lost FTE'sCost of retrainingCost of poor institutiodtal image

8. All courses in full-time programs rtdv, ^, m' .ugh technology componentswhich require studen's to use computer technology

Instructional AuditStudent Evaluation of InstructionAdvisory Committee's review


Cost of lost FTE'sCost of retrainingCost of poor institutional image

9. Courses use technology to assist faculty with computer-based testing, drilland practice tutorial education, and other computer-based educationcomponentr.

instructional AuditStudent Satisfaction SurveyStudent time on computer reportsAdvisory Committee's reviewCurriculum Design review


Cost of lost FTE'sCost of retrainingCost of poor institutional image

E5 86

Quality Element - Marketing


I. A current, flexible tactical marketing plan is in place and is implementedthroughout the College. This plan includes strategies to reach the followingmarkets:

a. High school market

b. 19-24 year old market

c. 25-54 part-time market

d. Business and industry training market

e. Avocational and life-long learning market

Percentage of high school graduateswho enroll at FVTC based on targets

Comparing unduplicated headcount fromprevious year based on targets

Coopering unduplicated headcount fromprevious year based on targets

Number of B & I contracts and dollarsgenerated compared with previous year

Number of avocational course enrollment figures as compared to previousyear

Failure to meet enrollment targetsresults in loss of state aids and tuition

Student loss x average credit load xTuition costs x state aids

Student loss x average credit load xTuition costs x state aids

Loss in dollars generated by contracts

Loss of tuition cost

2. The perception of general district citizens toward FVTC is favorable. Yearly Perception Research Studyconducted by Research Department

North Central Evaluation

Long term FVTC marketing costs wouldincrease

3. Customers are satisfied with FVTC products and services. Annual Employer Satisfaction SurveyAnnual Student Satisfaction SurveyGuaranteed Student Satisfactionfor B & I

Long term FVTC marketing costs wouldincrease

Cost of retraining

4. There is a written Marketing Plan for each instructional and administrativeunit that is current and in support of the District Plan.

Instructional AuditNorth Central EvaluationYearly Comprehensive District MarketingTactical Plan.

Long term FVTC marketing costs wouldincrease.

Staff layoffsProgram discontinuanceIncreased cost per PTE

87 88


5. Reliable and valid research is Incorporated n -.1 the marketing process Measurement of tactical marketing Does not have measurement tied to itto ensure continued improvement promotional strategies and reports

on results published. Documentsinclude

a. Evening Tabloidb B & I Seminar Catalogc Advertising-,nstitutionald. Catalogf Advertising-specific program

89E

a.

Quality Element - Customer Service


t. All customers" are greeted and served it friendly and cordial manner. Customer Satisfaction Surveys Customer Service - Costs are incurredto investigate, resolve, and respondto individual customer complaints orinquiries. Included are costs for local,state. and federal investigationsof alleged affirmative actionviolations. Criterion used Actualtime spent handling complaintsinitially estimated at onefull-time equivalent employee.

Retention of Students - Theseare'student attrition costs. While theloss of students creates utilizationcosts these are additional costs becauseof the toss of state aids and tuition.Criterion used m Loss of 530 full-timeequivalent students FTE's (1126)Dropouts x state aids/tuition loss)

2. All customers have opportunities to evaluate the instruction and servicesfrom the customers perspective,

Customer Satisfaction Surveys

3. All FVTC faculty and staff are continuously inserviced in all aspects ofcustomer service from the customers perspective.

Inservice program agendas

4. All customer complaints and concerns are handled quickly and efficiently. File of grievances. ECR forms. CAreports, customer complaints

5. All faculty and staff know and are trained on the scope of servicesavailable at FVTC.

Orientation program agendasInservice program agenda

6. There are internal and external customers. Every courtesy and supportis given to internal customers. they in turn can give the best qualityservice to external customers.

Customer Satisfaction Surveys

7. A method or methods to gather customer response istare developed andused to measure and improve customer service and satisfaction at FVTC.

Satisfaction SurveysOrganizational Climate Surveys

8. Customer Service Committee develops and reviews customer satisfactionreports. Me Committee suggests training programs and makes recommend-attons to the OIC to improve internal and external customer services.

Committee MinutesCustomer Satisfaction Surveys

9. Each service department of the school develops conforming requirementsspecific to the customers they serve.

List of Conforming Requirements ineach departmentCustomer Satisfaction Surveys

Includes students, staff. community visitors, employers, vendors. etc.

9192

C")

Quality Element - FVTC 1987-88 Costs of Conformance

Cast of ConformanceItemizedCasts

1.10 Mutat Ing Risoanch $ 26,554(Rased upon 50 percent of Research Department budget)1.11 Labor $ 22.0301.12 Printing 1.0321.13 Mailing and supplies 3,492

1.20 Quality Oriantdion and Training 68,805(assed upon actual costs except staff time)1.21 Labor (Instructor) 27.9511.22 Instructional materials 20,4101.23 Workshops and conferences 20.444

1.30 Quality First Process Coordination 43,707Based upon actual costs)

1.31 Labor (onordination) 27.2591.32 Supplies and materials 1,4251.33 Research design costs 15.023

1.40 Quality Monitoring and Auditing 26.554(Based upon 50 percent of Research Department budget)1.41 Labor 22,0301.42 Printing 1.0321.43 Mailing and supplies 3,492

1.50 Wellness Progr-m 6,439(Beset! upon costs of operation)1.51 Labor 5.9051.52 Supplies and materials 534

93TOTAL COST OF CONFORMANCE Simms

94

Quality Element - Pin 198788 Costs of Nonconformance

2.10 Resource Utilization /Enrollments

(Based upon percentage of maximum enrollments)2.11 Direct instruction $3,497,336

1,850,032

DirectEnrollment Capacity Cost

Business enrollment 713 895 2,354.753 478,844Geiteral Education enrollment 870 1,070 3.294.182 615,735Health and Human Services enrollment 790 887 2,689.274 294,092Technical enrollment 1,060 1,181 3,330.313 341,209Oshkosh enrollment 301 348 605,494 81,776Economic Development enrollment 89 106 239.283 38,376

3,823 4.497 12,513,299 1,850,032

Division Overhead 257,190

2.12Division

Division Idle

Cost CapacityBusiness enrollment 401,161 20.34% 81,577General Education enrollment 173,286 18.89% 32.390Health and Human Services enrollment 692,890 10.94% 75.773Technical enrollment 472,216 10.25% 48,381Oshkosh enrollment 85.134 13.51% 11,498Economic Development enrollment 47,213 16.04% 7.572

1,871,900

2.13 Institutional Overhead 75.14% 1,390,114

2.20 Rework in Service Departments 1,138,365(Based upon 20% of service department budgets or actual)

2,21 Labor to correct 961,1012.22 Machine time 135.4782.23 Supplies 41.786

1,138,385

95

2.30 Retention of Students(Based on FTE loss times state aids/tuition)

F.T.E.'s

2.156 000

Business dropouts 220 00General Education dropouts 264 00Health and Human Services dropouts 218.00Technical dropouts 286.00Oshkosh dropouts 88 00Economic Development dropouts 200

1.078 002.31 Loss of state aids 900 00 970.2002.32 Loss of tuition 1,10000 1.185.800

2.40 Employee Attendance 382,115(Based upon loss of time above 1.8% of total time available)

2.41 Overtime due to absence 18.497 537 1 80% 332.9562.42 Substitutes 49.159 49,159

2.50 Scheduling of Human Resources 924.877(Based upon 5% of labor costs)

2.51 Actual labor 18.497.537 5 00% 924.877

2.60 Customer Service 25.578(Based upon actual time handling complaints - initial estimate one emplcr,ve)

2.61 Reports and correspondence 25.578 25.578

TOTAL COST OF NONCONFORMANCE 58,124,270

Endnotes

Endnotes

1. Perry, Nancy J., "Saving the Schools - How Business CanHelp," Fortune, November 7, 1988, pp. 42-56.

2. Butler, Cynthia and Bryce, Rex G., "Implementing SRC withSignetics Production Personnel," Quality Progres , April,1986, pp. 42-43.

3. Guide to Quality Control, lshikawa, Kaoru, AsianProductivity Organization, UNIPUB, New York, New York,1976, p. 16.

4. Transformation of American Industry Training Systems,Productivity-Quality Systems, Inc., Dayton, Ohio.

5. Op. cit. pp. 66-67.

6. Principles of Quality Costs, American Society for QualityControl Quality Costs Committee, Campanella, Jack(Chairman), Hagan, John T. (Editor), Americar Society forQuality Control, Milwaukee, Wisconsin.

7. Scherkenbach, William W., The Deming Route to Qualityand Productivity, Mercury Press, Rockville, Maryland,1986, pp. 58-61.


99

The Academy for Quality in Education

The Academy for Qualityin Education

The Academy for Quality in Education has been established to provideassistance to educators who want to learn about and implement thequality improvement process. The Academy uses the quality modeldesigned by Fox Valley Technical College as its recommended plan forimplementation by other schools. The College staff members serve asfaculty in The Academy, and FVTC is a living laboratory for schools toreview.

Information concerning membership in The Academy and the servicesand products which are available may be obtained by contacting:

The Academy for Quality In Education5 Systems LaneP.O. Box 2277Appleton, WI 54913-2277Telephone 414-735-5707FAX 414-735-2582

Ca !lie ZilinskyAcademy Director


100

Order Additional Copies of

Measuring and Costing Quality in Educationand

Media Production to Accompany Model

From: FVTC Bookstore

Fox Valley Technical College

1825 N. Bluemound Drive

P.O. Box 2277

Appleton, WI 54913-2277

Telephone: 414-735-5764

Please send

Price: 1-10 copies $12.00 each

10-19 copies $10.00 each

Over 20 copies $8.00 each

(postage and handling included)

For media presentation specifics,

contact The Academy 414-735-5707

copies of the model to the address below.

Name

Organizatioi

Address

City State Zip

Payment enclosed $

Please invoice

Address (if different)

Please send information on the following Quality Improvement Process Publication(s):

Quality First in Edwation. . . . Why Not?

FVTC Quality First Process Model

Media Productions on Quality in Education

101

" 0.

S

- - I 6 I

4

Can we describe, qnd improve theeffectiveness of schbols?

Can we correctly and concisely measure' thevaria ces 'found in the proc'esses con-Imo:1\ toedu on?

Can cuality kn education be looker at in financialterms th,e way it is in bu8in-ess and iricustry?

Are statistical techniques and proce-ses useful formeasurer in education?

Find answers to these and otherimportant questions in this dollars

1\' and "sense" look at education,

I