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Quality is freeThe Art of Making Quality
Certain
Philip B. Crosby
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Part 1The Understanding
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Making Quality Certain
Making quality certain saves businessesmoney by doing things properly the first
time and so avoiding rework.
Concentrating on making quality certaincan increase profits by up to 5%-10% ofsales.
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Making Quality Certain
Making quality certain starts with:
getting top management to see quality as
just as important as other functions.
Explaining quality in a way everyone can
understand
Establishing a position where you can be a
champion of quality Reiterating that quality is achievable,
measurable & profitable
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The ITT Case: Quality Program
Objectives
Establish a competent qualitymanagement program in every
operation, both manufacturing andservice.
Reduce the cost of quality
Cost of quality: the expense of doing thingsincorrectly
Make ITT the standard for qualityworldwide
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Quality Control Programs
Quality controlReliability
Quality
engineeringSupplier quality
Inspection
ProductqualificationTrainingTesting
Consumer affairsQuality
improvementsMetrology
A complete quality control program is
a table of integrity systems:
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Integrity Systems
Integrity systems should be supported by 4pillars:
1. Management Participation:management must be active when itcomes to quality.
a. 1st struggle: overcoming the conventionalwisdom regarding quality
2. Professional Quality Members: hiring,training and empowering qualityprofessionals to do their jobs
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Integrity Systems (contd)3. Original Programs: quality control programs
should involve activities that can beimplemented at all levels.
a. Stressing quality improvement throughdefect prevention
b. Should be implemented on a unit by unitbasis
4. Recognition: providing effective recognitionfor individuals who support quality the
program over time.a. Cash/ financial rewards are not personal
enough
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Erroneous Assumptions About
Quality
1. Quality signifies the relative worth ofthings
The Truth:
Quality must be defined as conformance
to requirements
Requirements must be clearly defined so
they can be clearly understood Measurement must be ongoing to
determine conformance to requirements
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Erroneous Assumptions About
Quality
2. Quality is intangible and therefore notmeasurable
The Truth:
Quality is measured by the cost of non-
conformance
Costs are divided into prevention,
appraisal and failure categories Measurements should be displayed for
everyone to see
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Erroneous Assumptions About
Quality
3. There is an economics of quality
The Truth:
It is always cheaper to do things right the
first time
Finding the least expensive way to do a job
requires getting into process certification
and product qualification.
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Erroneous Assumptions About
Quality
4. Quality programs start with workers
The Truth:
People in manufacturing contribute little to
the prevention of problems; planning and
creation is done elsewhere (up top).
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Erroneous Assumptions About
Quality
Quality originates in the quality department
The truth:
Quality problems should be called by thenames of those who caused them
The quality department should measureconformance using available means
Results should be reported clearly and
objectively
Drive to develop a positive attitude towardquality improvement.
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The Benefit of Quality
Management
Quality Management is a systematic wayof guaranteeing that organized activities
happen the way they are planned Quality management is needed because
nothing is simple anymore
People at the lower level can do very little
to improve products or services.
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The Quality Management
Maturity Grid
Management: the function responsible forestablishing the organizations purpose,
setting measurable objectives, taking therequired action to achieve objectives
Quality management is too important to
leave to chance
Management must have a way ofmeasuring and controlling quality
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The Quality Management
Maturity Grid
The Quality Management Maturity Grid allows
everyone (regardless of quality training) to
determine where their operations stand froma quality standpoint.
The grid is divided into five stages of maturity
Six management categories form the
experience relations that we must go through
to complete the matrix
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Stages of Maturity
Stage 1: Uncertainty
Management has no knowledge of quality
as a positive management tool.
Stage 2: Awakening
Management begins to realize that quality
management can help but are unwilling to
commit the resources to make it happen
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Stages of Maturity
Stage 3: Enlightenment
Commitment to a quality improvement
program Stage 4: Wisdom
Management has the chance to make qualitymanagement changes permanent
Stage 5: Certainty
Management considers quality management tobe a vital part of company management
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The Grid As a Comparison
Measurement
The Quality Management Maturity Grid:
Is best used to project a view of the
business that everyone can accept
Is valuable for comparing the status of
different companies or divisions
Provides a continual source of direction
concerning what needs to be done next
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Understanding Responsibility
Using the Grid
Attitude is what management understanding is
all about Be prepared to admit that some problems may
be caused by individuals responsible formanagement
Uncertainty
Blames quality problems on the quality dept. Uncertainty lives in the present, focuses on
finding and solving todays problems
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Understanding Responsibility
Wisdom
Concentrating on keeping quality
management going, making it part ofcompany culture
Constantly seeking out areas forimprovement
E.g. Buck- a- day
Certainty Complete defect prevention has been
achieved
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Changing Management
Attitudes
The most important way to changemanagement attitudes is to put them in
contact with someone they will believei.e. their peers
Conduct a pilot program
Get participants to share their experiences
Ask for commitments Recognize all achievements
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Quality Management Function
Quality is something that is rarely definedand directed in formal policies for
companies. These are needed however or else people
will feel as though they can make their own
rules.
A lot of problems can be avoided if you layout a clear policy covering the entire
quality operation.
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Quality Management Function
Reasons why quality organization usually isnot done at companies
Management doesnt trust others to makedecisions about quality
Management doesnt understand the
value of a good quality operation
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Quality Department Functions
Product Acceptance
Supplier Quality
Quality Engineering
Quality Improvement
Consumer Affairs
Engineering
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Quality Department Functions:Product Acceptance
Testing
Measures the performance and
integrity of product at all stagesthroughout production
Has more variables than inspection,more pressure put on testing
Biggest Problem- software used to testproducts (especially electronics) has tobe tested as well
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Quality Department Functions:Supplier Quality
Supplier Quality Engineering
The shortest time lag in the operation is
usually spent searching for the supplierQuality needs to be involved in the
search for suppliers, just as withpurchasing
Quality personnel should get involvedearlier in the decision process for whatto buy
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Quality Department Functions:Quality Engineering
Data Analysis and Status Reporting
Inspection test brings about 2 results
Product is either accepted or rejected
Measurement must be recorded
Measurements should be visible on charts in
the work area (progress charts and reports)
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Quality Department Functions:Quality Engineering
Corrective Action
It isnt what you find, its what you do about
what you find
Learn from the past to make a smoother
future
Best source of info about situations requiring
corrective action:Observation of actual rejections
Actual trends
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Quality Department Functions:Quality Engineering
Planning
Must be a key part of quality engineering
Everything happening in a quality operationshould be a result, not a reaction
Each and every task must be listed and
assigned some sort of action line
Philosophy- GOOD things only happenwhen planned; BAD things happen on their
own.
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Quality Department Functions:Quality Engineering
Qualification of products, processes, andprocedures
Every new product/change of productmust be tested and proven before it canbe used
Test in the environment it is going to beused in
It is better to make the change in productor new product prove itself before sendingit out to fend for itself
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Quality Department Functions:Quality Engineering
Audit
Planned examination of a function
Successful Audits follow these rules: Be specific
Select individuals to perform the audit whoare not interested in the outcome
Brief the audit team and give them time to
write a proper reportDo not tell them the expected results
Real cause of problems lie behind the findings
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Quality Department Functions:Quality Engineering
Quality Education
Three Basic Forms
Orientation to the concepts of quality andthe problems that have a harmful effect onproduct; customer expectations
Direct skill improvement in specific and basicskills- telephone handling, procedure writing
Continual low level, concentrated barrage ofquality idea communications andconditioning
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Quality Department Functions:Quality Improvement
Do not give operation the option of nothaving a quality improvement plan, list it
in your policy History shows once a program begins a
quality improvement plan, they stick withit because they like the positive results
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Quality Department Functions:Product Safety
How can you keep your product fromhurting customers/others?
Planned design reviews
Product qualification
Quality control
Product safety is not a LEGAL problem, itsan ETHICAL one.
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Handling Problems
Operations that want to handle problemsfor the purpose of solving them must
Create an open society within their wallsthat is imbued with objectivity and integrity
Integrity- we do things right around herebecause it is the right thing to do
Objectivity- placing the blame of problemson the job, not individuals. It could just be amismatch of task and personnel.
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Handling Problems
Over 85% of problems can be solved atthe first level of supervision they encounter
Of the other 15%, 13% can be solved withinthe second level of supervision
The remaining 2% may take as many as
three levels of operation or organization,
BUT THEY CAN BE SOLVED.
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Cost of Quality
Quality is free, but no one is ever going toknow it, if there isnt some sort of agreed-
on system of measurementCosts that should be included in the
measurement
Prevention Costs
Appraisal Costs Failure Costs
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Measuring the Cost of Quality
Prevention Costs
Costs of all activities undertaken to prevent
defects in all aspects of beginning andcreating a product.
Design reviews
Product qualifications
Tool control
Operation training Preventive maintenance
AND MANY MORE!
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Measuring the Cost of Quality
Failure Costs
Associated with thing that have been
found to not conform or perform torequirements
Evaluation, disposition, and consumer
affairs aspects of such failures
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Measuring the Cost of Quality
Appraisal Costs
Costs incurred while conducting inspections,tests, and other planned evaluations used todetermine whether produced hardware,software, or services conform to theirrequirements
Documents that describe conformance:
Prototype inspection and test
Supplier surveillance Product acceptance
Packaging inspection
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Cost of Quality
Once the COQ for the operation iscalculated, the next step must be figuring
out what to do with itCOQ calculation is the only key to help
companies properly implement qualitymanagement
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Quality Improvement ProgramThe Fourteen Steps
ManagementCommitment
Quality Improvement
Team Quality
Measurement
COQ Evaluation
Quality Awareness
Corrective Action Ad Hoc Program
Supervisor Training
Zero Defects Day
Goal Setting Error Cause Removal
Recognition
Quality Council
Do it Over Again
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Quality Improvement Program Step One: Management Commitment Action: discuss the need for quality
improvement with the management people;
emphasize need for defect prevention Accomplishment: Ensures everyones
cooperation so long as there is some progress
Step Two: Quality Improvement Team Action: Bring together representatives from
each department for quality improvementteam
Accomplishment: All tools necessary to do thejob now are together in one team
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Quality Improvement Program Step Three: Quality Measurement Action: quality measurements for each area of
activity must be established where they dont
exist and improved where they do Accomplishment: Strengthens the inspections
and test functions and assures propermanagement
Step Four: Cost of Quality Evaluation Action: Find more accurate figures because
initial estimates are shaky Accomplishment: removes any suspected bias
from the calculation
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Quality Improvement Program Step Five: Quality Awareness Action: share with employees the
measurements of what nonquality is costing-
provide visible evidence of the concern forquality improvement Accomplishment: Gets everyone in the habit of
talking positive about quality
Step Six: Corrective Action Action: Take problems requiring attention to
meetings at each level of supervision Accomplishment: The habit of identifying and
correcting problems begins
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Quality Improvement Program Step Seven: Establish an Ad Hoc Committee for the
Zero Effects Program Action: team is selected to investigate the zero defects
concept and ways to implement the programs Accomplishment: ensures that the goals of the program
will be firmly supported by the companys thoughtleaders
Step Eight: Supervisor Training Action: formal orientation with all the levels of
management; ensure that they can re-teach to their
departments each steps Accomplishment: Supervision becomes tuned into
program and realized its value for themselves; they startconcentrating their action on the program
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Quality Improvement Program Step Nine: Zero Defects Day Action: establish ZD as the performance
standard across the company; should be done
in one day to ensure everyone understands it inthe same way Accomplishment: provides emphasis and a
memory that will be long lasting
Step Ten: Goal Setting Action: At meetings supervisors est. measurable,
specific, 30/60/90 day goals Accomplishment: people begin thinking in terms
of meeting goals as a team
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Quality Improvement Program Step Eleven: Action: each employee writes out problems
that keep them from performing error free work,
should be fixed ASAP Accomplishment: people know now that their
problems can be heard and answered
Step Twelve: Recognition Action: non financial award programs
established to reward those who meet goals or
perform outstanding acts Accomplishment: forms appreciation by all and
gains support for the program
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Quality Improvement Program Step Thirteen: Quality Councils Action: quality professionals and team
chairpersons brought together regularly to
discuss ways of improving quality program Accomplishment: best source of info for status
of programs and plan of action
Step Fourteen: Do it over again Action: set up team of representatives and start
the quality program all over again Accomplishment: repetition makes quality a
part of the woodwork and if quality isntengrained in a company, it wont happen
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Management Style Listening- you can convey no greater honor than to actually
hear what someone has to say
Cooperating You dont just cause plays to be executed, you
protect others in the process
Helping Let someone lean on you without expecting to
lean back
Transmitting How you come across to others shouldnt be left to
chance
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Management StyleCreating
Original solutions are a result in uncovering
unoriginal problems Implementing
Someone has to actually get the job done
Learning
When you have an answer for everything,youve stopped learning
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Management Style Leading
Leaders start to fail when they begin believing
their own material Following
You never reach a point when youre notworking for someone so learn to be good at it
Pretending
If you are going to be an actor, be a good onebut stay out of management
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Part Two: TheDoingThe HPA Corporation
Quality ImprovementProgram
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The biggest problem
managers face in QualityPolicy is:
Accomplishing all the things they said
could be accomplished.
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HPA Corporation After 3 years of attempting to increase
profitability, HPA was met with problems.
Productivity was dropping & rejections wererising
All team members were to blame, but no onewas responsible
Dealers were furious of the increasingly poorquality of HPA products
Corrective actions were making sure theproblem didnt get worse, but nothing wasgetting better
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HPA Corporation HPA knew it was time to establish
understandable quality performance
standards with: Easy communication
Recognition of a measurable goal
Re-usable application for all quality issues
within their group
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Step 1: Management
Commitment
Purpose:Make it clear wheremanagement stands on quality.
HPAs first action was to understand whatwas needed for their group to improve.
Their quality policy was crafted from
company leaders expectations of how well
the group should be doing their jobs.
HPA established a formal policy for
personnel not have to draft their their own.
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Step 1: Management
Commitment
HPA made sure their policy was NOT:
Economics-driven
Numerical
Unavailable to view by all members.
Indicative to deviation from it
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Step 2: The Quality
Improvement Team
Purpose: Run the quality improvementprogram.
HPA established a fulltime Chairperson tomanage the Quality team that was:
A mature member of management whounderstood the need for quality improvement
Confided in by the rest of management
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Step 2: The Quality
Improvement Team
HPA quality improvement team members:
Helped lay out the quality improvement
program Represented all departments on the team
Represented the team to all departments
Made sure quality team decisions were
executed by their own department Contributed to the implementation of the
improvement
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Step 2: The Quality
Improvement Team
Team expectations were set with firmdates for each step of accomplishment
Progress was reviewed at each staffmeeting
Constant emphasis ensured expectationsuccess
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Step 3: Quality Measurement Purpose: To provide a display of current and
potential nonconformance problems in a mannerthat permits objective evaluation and correctiveaction.
HPAs quality chairperson made sure measurement
standards were:
Created from inspection and test reports
Straightforward and understandable by all who usedthem
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Step 3: Quality Measurement HPA took advantage of using trend charts and
problem identification to establish and exposeimprovement goals and hurdles
HPA focused on quality reporting that included:
Part name, number, date, inspector and operator
name
Amount of parts checked
Amount of parts found defective
Specific description of the defect
Operation and area where detected
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Step 3: Quality Measurement HPA also worked on reporting service improvement
performance through:
Recognizing all existing situations where performance
service issues existed Establishing a method of measuring current status
Establishing a program for correcting service problems
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Step 4: The Cost of Quality Purpose: to define the ingredients of the cost of
quality, and explain its use as a management tool.
HPA established their cost of quality (2.5 percent) tounderstand their opportunities to decrease the cost.
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Step 5: Quality Awareness Purpose: To provide a method of raising the
personal concern felt by all personnel in the
company toward the conformance of the productor service and the quality reputation of thecompany.
HPA made sure to understand the expense of dealing
with the quality problems their group faced.
HPA managed quality awareness through:
Regular meetings with management
Communicating quality issues with the general staff
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Step 6: Corrective Action Purpose: To provide a systematic method of
resolving forever the problems that are identifiedthrough previous action steps.
HPA took corrective action in identifying quality
problems by establishing constant communication of
expectations with group members.
Corrective action communication helped reduce quality
issues.
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Step 7: Zero Defects Planning
Purpose: To examine the various activities that mustbe conducted in preparation for formally launchingthe Zero Defects Program
HPA established a list of action steps that built up to ZD
day, including: Explaining the concept and program for management
Determining the necessary materials to ensure programpreparation
Deciding what method of launching the program best
suits the group Spelling out the functions that will be accomplished
Establishing recognition for success
Identifying the program and making plans for itsexecution
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Step 8: Supervisor Training Purpose: To define the type of training that
supervisors need in order to actively carry out their
part of the quality improvement program HPA ensured supervisors understood the goal of
reaching Zero Defects and how to reach it
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Step 9: Realizing Zero Defect
Day
Purpose: To create an event that will let allemployees realize that there has been change
HPA ensured all group members involved in the effortwere informed when ZD day was reached.
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Step 10: Goal Setting
Purpose: To turn pledges and commitments intoaction by encouraging individuals to establishimprovement goals for themselves and their groups
HPA encouraged each department within their groupto establish two personal achievable goals within their
department to go past the already-reached Zero
Defects goal.
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Step 11: Error Cause Removal Purpose: To give individual employees a method of
communicating to management the situations thatmake it difficult for them to meet their personalgoals
HPA kept a line of communications open with
departments to assess the practicality and necessity of
reaching their new goals.
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Step 12: Recognition Purpose: To appreciate those who participate
HPA continued appreciation and celebration for all
department groups following the quality
improvement.
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Step 13: Quality Councils
Purpose: To bring together professional quality
people for planned communication on a regularbasis.
HPA kept meeting with quality control professionals to
expose them to new methods and goals for
improvement.
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Step 14: Do it Over Again
Purpose: To emphasize that the qualityimprovement program never ends
HPA understood that at the end of one qualityprocess, another begins to fix new rising issues.
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PART THREE
The Tools
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Make Certain The last chapter comprises of a complete
step by step description of the eventsnecessary in running a complete Make
Certain program.Make Certain is a person-to-person, white-
collar-oriented, improvement programthat gets everyones attentionimmediately.
Make Certain programs focuses onhelping employees learn more about theirpersonal responsibility toward quality.
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Publications by Phillip B. Crosby1967. Cutting the cost of quality. Boston, Industrial Education Institute.
1969. The strategy of situation management. Boston, Industrial Education Institute.
1979. Quality is Free. New York: McGraw-Hill.
1981. The Art of Getting Your Own Sweet Way. McGraw-Hill.
1984. Quality Without Tears. New York: McGraw-Hill.1986. Running things. New York: McGraw-Hill.
1988. The Eternally Successful Organization. New York: McGraw-Hill.
1989. Let's talk quality. New York: McGraw-Hill.
1990. Leading, the art of becoming an executive. New York: McGraw-Hill.
1994. Completeness: Quality for the 21st Century. Plume.
1995. Philip Crosby's Reflections on Quality. McGraw-Hill.
1996. Quality is still free: Making Quality Certain in Uncertain Times. McGraw-Hill.
1997. The Absolutes of Leadership (Warren Bennis Executive Briefing). Jossey-Bass.
1999. Quality and Me: Lessons from an Evolving Life. Jossey-Bass.