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Chapter 3Philosophies and Frameworks
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
1
Leaders in the Quality Revolution W.
Edwards Deming Joseph M. Juran Philip B. Crosby Armand V. Feigenbaum Kaoru Ishikawa Genichi Taguchi
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Whos Who?
b a
Deming ____
Juran ____c
Crosby ____MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Deming Chain ReactionImprove quality Costs decrease Productivity improves Increase market share with better quality and lower prices Stay in business Provide jobs and more jobsMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Key IdeaThe Deming philosophy focuses on continual improvements in product and service quality by reducing uncertainty and variability in design, manufacturing, and service processes, driven by the leadership of top management.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Demings System of Profound Knowledge Appreciation
for a system Understanding variation Theory of knowledge Psychology
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Systems Most
organizational processes are cross-functional Parts of a system must work together Every system must have a purpose Management must optimize the system as a whole
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Key IdeaThe aim of any system should be for all stakeholdersstockholders, employees, customers, community, and the environmentto benefit over the long term.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Variation Many
sources of uncontrollable variation exist in any process Excessive variation results in product failures, unhappy customers, and unnecessary costs Statistical methods can be used to identify and quantify variation to help understand it and lead to improvementsMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Theory of Knowledge Knowledge
is not possible without
theory Experience alone does not establish a theory, it only describes Theory shows cause-and-effect relationships that can be used for prediction
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Psychology People
are motivated intrinsically and extrinsically; intrinsic motivation is the most powerful Fear is demotivating Managers should develop pride and joy in work
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Demings 14 Points (Abridged)(1 of 2)
1. Create and publish a company mission statement and commit to it. 2. Learn the new philosophy. 3. Understand the purpose of inspection. 4. End business practices driven by price alone. 5. Constantly improve system of production and service. 6. Institute training. 7. Teach and institute leadership. 8. Drive out fear and create trust.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Demings 14 Points (2 of 2)9. Optimize team and individual efforts. 10. Eliminate exhortations for work force. 11. Eliminate numerical quotas and M.B.O. Focus on improvement. 12. Remove barriers that rob people of pride of workmanship. 13. Encourage education and self-improvement. 14. Take action to accomplish the transformation.www.deming.org13
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
Jurans Quality Trilogy Quality
planning Quality control Quality improvement
www.juran.comMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Key IdeaJuran proposed a simple definition of quality: fitness for use. This definition of quality suggests that it should be viewed from both external and internal perspectives; that is, quality is related to (1) product performance that results in customer satisfaction; (2) freedom from product deficiencies, which avoids customer dissatisfaction.MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Phillip B. Crosby
Quality is free . . .Quality is free. Its not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Philip B. CrosbyAbsolutes of Quality Management: Quality means conformance to requirements Problems are functional in nature There is no optimum level of defects Cost of quality is the only useful measurement Zero defects is the only performance standardwww.philipcrosby.comMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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A.V. Feigenbaum Three
Steps to Quality
Quality
Leadership, with a strong focus on planning Modern Quality Technology, involving the entire work force Organizational Commitment, supported by continuous training and motivation18
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
Kaoru Ishikawa Instrumental
in developing Japanese quality strategy Influenced participative approaches involving all workers Advocated the use of simple visual tools and statistical techniques
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Genichi Taguchi
Pioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications:
Loss0.480
No Loss0.500 0.520
Loss
ToleranceMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Malcolm Baldrige National Quality Award Help
improve quality in U.S. companies Recognize achievements of excellent firms and provide examples to others Establish criteria for evaluating quality efforts Provide guidance for other American companies
Malcolm Baldrige, former U.S. Secretary of Commerce
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Criteria for Performance Excellence Leadership Strategic
Planning Customer and Market Focus Measurement, Analysis, and Knowledge Management Human Resource Focus Process Management Business ResultsMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
Baldrige Award trophy
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The Baldrige Framework A Systems PerspectiveOrganizational Profile: Environment, Relationships, and Challenges
2 Strategic Planning
5 Human Resource Focus
1 Leadership 3 Customer & Market Focus 6 Process Management
7 Business Results
4 Measurement, Analysis, and Knowledge ManagementMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Key IdeaThe Baldrige criteria define both an integrated infrastructure and a set of fundamental practices for a highperformance management system.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Criteria Evolution (1 of 2) From
quality assurance and strategic quality planning to a focus on process management and overall strategic planning From a focus on current customers to a focus on current and future customers and markets From human resource utilization to human resource development and management From supplier quality to supplier partnershipsMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Criteria Evolution (2 of 2)
From individual quality improvement activities to cycles of evaluation and improvement in all key areas From data analysis of quality efforts to an aggregate, integrated organizational level review of key company data From results that focus on limited financial performance to a focus on a composite of business results, including customer satisfaction and financial, product, service, and strategic performanceMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Key IdeaApproaches that organizations use to address the Baldrige criteria requirements need not be formal or complex, and can easily be implemented by small businesses.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Baldrige Award Evaluation ProcessReceive ApplicationsStage 1 Independent Review
Judges Select for Consensus Review?
No
Feedback report to applicant
Stage 2 Consensus Review
Judges Select for Site Visit Review?
No
Feedback report to applicant
Stage 3 Site Visit ReviewStage 4 Judges Recommend Award Recipients to NIST Director/DOCMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
Feedback report to applicant28
Self AssessmentA primary goal of the Baldrige program is to encourage many organizations to improve on their own by equipping them with a standard template for measuring their performance and their progress toward performance excellence.Boeing Airlift & Tanker Programs 1998 recipient
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Deming Prize
Instituted 1951 by Union of Japanese Scientists and Engineers (JUSE) Several categories including prizes for individuals, factories, small companies, and Deming application prize American company winners include Florida Power & Light and AT&T Power Systems Division
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Other Quality Awards European
Quality Award Canadian Awards for Business Excellence Australian Business Excellence Award Chinese National Quality Award (New)
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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ISO 9000:2000 Quality
system standards adopted by International Organization for Standardization in 1987; revised in 1994 and 2000 Technical specifications and criteria to be used as rules, guidelines, or definitions of characteristics to ensure that materials, products, processes, and services are fit for their purpose.32
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
Key IdeaISO 9000 defines quality system standards, based on the premise that certain generic characteristics of management practices can be standardized, and that a well-designed, well-implemented, and carefully managed quality system provides confidence that the out-puts will meet customer expectations and requirements.MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Objectives of ISO Standards
Achieve, maintain, and continuously improve product quality Improve quality of operations to continually meet customers and stakeholders needs Provide confidence to internal management and other employees that quality system requirements are being fulfilled Provide confidence to customers and other stakeholders that quality requirements are being achieved
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Structure of ISO 9000 Standards 21
elements organized into four major sections: Management
Responsibility Resource Management Product Realization Measurement, Analysis, and Improvement
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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ISO 9000:2000 Quality Management Principles1.2. 3.
4.5. 6.
7.8.
Customer Focus Leadership Involvement of People Process Approach System Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier RelationshipsMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Key IdeaISO 9000 provides a set of good basic practices for initiating a quality system, and is an excellent starting point for companies with no formal quality assurance program.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Six Sigma Based
on a statistical measure that equates to 3.4 or fewer errors or defects per million opportunities Pioneered by Motorola in the mid-1980s and popularized by the success of General Electric
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Key IdeaSix Sigma can be described as a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and a clear financial return for the organization.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Key Concepts of Six Sigma(1 of 2)
Think in terms of key business processes, customer requirements, and overall strategic objectives. Focus on corporate sponsors responsible for championing projects, support team activities, help to overcome resistance to change, and obtaining resources. Emphasize such quantifiable measures as defects per million opportunities (dpmo) that can be applied to all parts of an organizationMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Key Concepts of Six Sigma(2 of 2)
Ensure that appropriate metrics are identified early and focus on business results, thereby providing incentives and accountability. Provide extensive training followed by project team deployment Create highly qualified process improvement experts (green belts, black belts, and master black belts) who can apply improvement tools and lead teams. Set stretch objectives for improvement.MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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Key IdeaAlthough different, Baldrige and Six Sigma are highly compatible and can each have a place in the management system of a successful organization.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing
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