OPR

E 63

641

Qua

lity

Man

agem

ent

Syst

ems

OPR

E 63

642

Topi

cs to

cov

er:

Elem

ents

of T

QM

ISO

900

0 fa

mily

of s

tand

ards

(the

n an

d no

w)

QS

9000

The

Bald

rige

and

Dem

ing

Awar

ds

Qua

lity

Man

agem

ent i

n Se

rvic

e In

dust

ries

OPR

E 63

643

Evo

luti

on

of

QA

Meth

od

s…

Insp

ect

ion

Six

Sigm

a…

DO

E

Qu

ality

M

gm

t S

yst

em

s

Tag

uch

i

1930

1

940

…

1

975

1

985

1990

199

520

00

SP

C

OPR

E 63

644

Wha

t doe

s th

e te

rm Quality

real

ly m

ean?

Qual

ityis

the a

bilit

y of

a p

rodu

ct o

r se

rvice

to co

nsist

ently

mee

t or

exce

ed

cust

omer

expe

ctat

ions

.

OPR

E 63

645

His

toric

al S

umm

ary

•Q

ualit

y As

sura

nce

–Ar

tisan

ship

•O

ne p

erso

n / c

omm

on p

urpo

se a

mon

g ta

sks

•C

lose

ness

of p

rodu

cer a

nd c

onsu

mer

–In

dust

rial r

evol

utio

n•

Long

sup

ply

chai

ns•

Uns

kille

d la

bor (

divi

sion

of l

abor

)–

Mas

s pr

oduc

tion

–U

nifo

rm q

ualit

y–

Loss

of u

nder

stan

ding

of p

urpo

se•

Eli W

hitn

ey a

nd H

enry

For

d–

Con

sum

eris

m:

a re

spon

se•

Qua

lity

has

emer

ged

now

as

a bu

sine

ss s

trate

gy

OPR

E 63

646

Tota

l Qua

lity

Tota

l Qua

lity

Man

agem

ent

–W

hat d

oes

tota

lmea

n?•

Entir

e or

gani

zatio

n•

All p

rodu

cts

and

proc

esse

s•

All a

spec

ts (m

anag

emen

t, de

sign

, con

trol)

–N

ot a

flav

or o

f the

mon

th (i

.e.,

typi

cal m

anag

emen

t fad

)•

Long

term

per

spec

tives

•C

onsi

der t

he J

apan

ese

–C

heck

list i

n Su

mm

ary

OPR

E 63

647

Co

sts

of

Qu

ali

ty

•Fa

ilure

Cos

ts -

cost

s in

curre

d by

def

ectiv

e pa

rts/p

rodu

cts

or fa

ulty

ser

vice

s.•

Inte

rnal

Fai

lure

Cos

ts–

Cos

ts in

curre

d to

fix

prob

lem

s th

at a

re d

etec

ted

befo

re th

e pr

oduc

t/ser

vice

is d

eliv

ered

to th

e cu

stom

er.

•Ex

tern

al F

ailu

re C

osts

–Al

l cos

ts in

curre

d to

fix

prob

lem

s th

at a

re d

etec

ted

afte

r the

pro

duct

/ser

vice

is d

eliv

ered

to th

e cu

stom

er.

OPR

E 63

648

Co

sts

of

Qu

ali

ty (

con

td)

•Ap

prai

sal C

osts

–Al

l pro

duct

and

/or s

ervi

ce in

spec

tion

cost

s.•

Prev

entio

n C

osts

–Al

l TQ

trai

ning

, TQ

pla

nnin

g, c

usto

mer

as

sess

men

t, pr

oces

s co

ntro

l, an

d qu

ality

im

prov

emen

t cos

ts to

pre

vent

def

ects

from

oc

curri

ng

OPR

E 63

649

Qua

lity

Cos

t: T

radi

tiona

l Vie

wCost per good unit of product

010

0%Q

ualit

y le

vel (

q)O

ptim

um

qual

ity le

vel

Tota

lqu

ality

cost

sIn

tern

alan

d ex

tern

alfa

ilure

cost

s

Min

imum

tota

l cos

tPr

even

tion

and

appr

aisa

lco

sts

OPR

E 63

6410

Qua

lity

and

Com

petit

iven

ess

Incr

ease

dre

venu

e

Impr

oved

com

petit

ive

posi

tion

Incr

ease

dm

arke

tsh

are

Hig

her

pric

es

Red

uced

cost

of

oper

atio

ns

Incr

ease

dde

fect

-free

outp

ut

Incr

ease

dpr

ofits

Continuous Quality Improvement

or

Cost-Route

Benefits

Market-Route

Benefits

3-7

OPR

E 63

6411

Qua

lity

Cos

t Min

imiz

ed a

t Zer

o D

efec

tsCost per good unit of product

010

0%Q

ualit

y le

vel (

q)O

ptim

um

qual

ity le

vel

Tota

lqu

ality

cost

sIn

tern

alan

d ex

tern

alfa

ilure

cost

s

Min

imum

tota

l cos

t

Prev

entio

nan

d ap

prai

sal

cost

s

OPR

E 63

6412

Tag

uch

i's

Qu

ality

Lo

ss F

un

ctio

n

Targ

etτ

Loss ($)C

usto

mer

's T

oler

ance

Ban

d

Loss

L

Any

devi

atio

n fro

m ta

rget

cau

ses

a lo

ss to

soc

iety

dLo

wer

Spec

Lim

itU

pper

Spec

Lim

it

OPR

E 63

6413

Qua

lity

and

Com

petit

iven

ess

•Va

lue

of Q

ualit

y–

Impa

cts

of q

ualit

y ef

forts

on

perfo

rman

ce•

Mar

ket s

hare

and

pro

fitab

ility

•C

usto

mer

sat

isfa

ctio

n•

Qua

lity

•C

osts

•Em

ploy

ee re

latio

ns–

Dire

ctly

rela

ted

to R

OI

–Si

x Si

gma

prog

ram

s ha

ve p

rove

n th

e va

lue

of

qual

ity

OPR

E 63

6414

To

tal

Qu

ali

ty M

an

ag

em

en

t P

rin

cip

les

1. C

usto

mer

-focu

sed

Org

aniz

atio

n2.

Lea

ders

hip

3. I

nvol

vem

ent o

f Peo

ple

4. P

roce

ss A

ppro

ach

5. S

yste

m A

ppro

ach

to M

anag

emen

t6.

Con

tinua

l Im

prov

emen

t7.

Fac

tual

App

roac

h to

Dec

isio

n M

akin

g8.

Mut

ually

Ben

efic

ial S

uppl

ier R

elat

ions

hips

OPR

E 63

6415

Ho

w d

o C

ust

om

ers

see Q

uali

ty

•Pe

rform

ance

-mai

n ch

arac

teris

tics

of th

e pr

oduc

t/ser

vice

•Ae

sthe

tics

-app

eara

nce,

feel

, sm

ell,

tast

e•

Spec

ial f

eatu

res

-ext

ra c

hara

cter

istic

s•

Con

form

ance

-how

wel

l pro

duct

/ser

vice

con

form

s to

cu

stom

er’s

exp

ecta

tions

•Sa

fety

-Ris

k of

inju

ry•

Rel

iabi

lity

-con

sist

ency

of p

erfo

rman

ce

OPR

E 63

6416

Dim

en

sio

ns

of

Qu

ali

ty (

Co

nt’

d)

•D

urab

ility

-use

ful l

ife o

f the

pro

duct

/ser

vice

•Pe

rcei

ved

Qua

lity

-ind

irect

eva

luat

ion

of q

ualit

y (e

.g.

repu

tatio

n)

•Se

rvic

e af

ter s

ale

-han

dlin

g of

cus

tom

er c

ompl

aint

s or

che

ckin

g on

cus

tom

er s

atis

fact

ion

OPR

E 63

6417

Dete

rmin

an

ts o

f Q

uali

ty

Serv

ice

Des

ign

Eas

e of

use

Con

form

-an

ceto

de

sign

OPR

E 63

6418

Co

nse

qu

en

ces

of

Po

or

Qu

ali

ty

Rec

all t

hat Q

ualit

y is

…The

abili

ty o

f a

pro

duct

or

serv

ice

to c

onsi

sten

tly

mee

tor

ex

ceed

cust

om

er e

xpec

tations

Not

mee

ting

Qua

lity

is…

Lo

ss o

f b

usi

ness

: Poor

des

igns

or

def

ective

pro

duct

s or

serv

ices

can

re

sults

in loss

of

busi

nes

s

Lia

bilit

y:

Dam

age

or

inju

res

resu

ltin

g f

rom

fau

lty

des

ign

Pro

du

ctiv

ity:

Pro

duct

ivity

and q

ual

ity

are

oft

en c

lose

ly r

elat

ed

Co

sts: Po

or

qual

ity

incr

ease

s ce

rtai

n c

ost

s in

curr

ed b

y th

e org

aniz

atio

n

OPR

E 63

6419

Resp

on

sib

ilit

y f

or

Qu

ali

ty

•To

p m

anag

emen

t•

Des

ign

•Pr

ocur

emen

t•

Prod

uctio

n/op

erat

ions

•Q

ualit

y as

sura

nce

•Pa

ckag

ing

and

ship

ping

•M

arke

ting

and

sale

s•

Cus

tom

er s

ervi

ce

OPR

E 63

6420

Eth

ics

an

d Q

uali

ty

•Su

bsta

ndar

d w

ork

–D

efec

tive

prod

ucts

–Su

bsta

ndar

d se

rvic

e–

Poor

des

igns

–Sh

oddy

wor

kman

ship

–Su

bsta

ndar

d pa

rts a

nd m

ater

ials

Hav

ing

know

ledg

e of

this

and

faili

ng to

cor

rect

and

repo

rt it

in a

tim

ely

man

ner

is u

neth

ical

.

OPR

E 63

6421

Qu

ali

ty G

uru

s

•Ed

war

d D

emin

g–

Plan

-D

o-C

heck

–Ac

t; st

atis

tical

met

hods

–

Four

teen

Poi

nts

for T

rans

form

atio

n M

anag

emen

t•

J. M

Jur

an–

Man

ager

ial P

ract

ices

, Tra

inin

g, C

ost o

f Qua

lity

•A

rman

d Fe

igen

baum

–To

tal Q

ualit

y C

ontro

l, “h

idde

n pl

ant”

•

Kao

ru Is

hika

wa

–Q

ualit

y C

ircle

s, 7

Too

ls•

Phili

p C

rosb

y–

Zero

def

ects

and

Qua

lity

is fr

ee•

Gen

ichi

Tagu

chi

–D

esig

n of

exp

erim

ents

–

Qua

lity

loss

func

tion

–R

obus

t des

ign

OPR

E 63

6422

Qu

ality

Cert

ific

ati

on

•IS

O 9

000,

QS

9000

•Se

t of i

nter

natio

nal s

tand

ards

on

qual

ity

man

agem

ent a

nd Q

ualit

y as

sura

nce,

crit

ical

to

inte

rnat

iona

l Bus

ines

s

•IS

O 9

000

serie

s st

anda

rds,

brie

fly, r

equi

re fi

rms

to d

ocum

ent t

heir

qual

ity-c

ontro

l sys

tem

s at

eve

ry

step

(inc

omin

g ra

w m

ater

ials

, pro

duct

des

ign,

in-

proc

ess

mon

itorin

g an

d so

forth

) so

that

they

’ll be

ab

le to

iden

tify

thos

e ar

eas

that

are

cau

sing

qu

ality

pro

blem

s an

d co

rrect

them

.

OPR

E 63

6423

Th

e I

SO

90

00

Seri

es

Sta

nd

ard

s

•IS

O 9

000

requ

ires

com

pani

es to

doc

umen

t ev

eryt

hing

they

do

that

affe

cts

the

qual

ity o

f go

ods

and

serv

ices

.

–H

iera

rchi

cal a

ppro

ach

to d

ocum

enta

tion

of

the

Qua

lity

Man

agem

ent S

yste

m

OPR

E 63

6424

Inte

rnat

iona

l Org

aniz

atio

n fo

r St

anda

rdiz

atio

n (IS

O)

Tech

nica

lC

omm

ittee

Tech

nica

lC

omm

ittee

ISO

Nat

iona

lB

odie

s

Nat

iona

lB

odie

s

Com

mitt

ees

Trad

e O

rgs

Stds

Org

s

ANSI

176

(Qua

lity)

ASQ

Auto

Z1

Use

r

OPR

E 63

6425

Why

Inte

rnat

ional

Sta

ndar

ds?

They

pro

mot

e tra

de a

nd c

oope

ratio

n

Prod

uct s

tand

ards

allo

w c

onsu

mer

s to

pu

rcha

se it

ems

from

diff

eren

t man

ufac

ture

rs

and

know

thos

e ite

ms

will

perfo

rm e

qual

ly

Man

agem

ent s

yste

m s

tand

ards

pro

mot

e co

mm

on a

ppro

ache

s to

man

agin

g qu

ality

and

th

e en

viro

nmen

t. Th

ey p

rom

ote

depe

ndab

ility

and

a co

nsis

tent

use

of s

tatis

tics

OPR

E 63

6426

ISO

9000 C

onse

nsu

s Pr

oce

ss

New

Work

It

em

Proposa

l

Work

ing

Dra

ft

Com

mitte

e D

raft

Publis

hed

Sta

ndar

d

Final

Dra

ft

Int’l

Sta

ndar

d

Dra

ft I

nte

r-nat

ional

Std

Form

al

Bal

lot

Form

al

Bal

lot

Form

al

Bal

lot

Form

al

Bal

lot

Vote

to

Rel

ease

OPR

E 63

6427

ISO

90

00

Seri

es

ISO

900

0 H

elps

com

pani

es d

eter

min

e w

hich

stan

dard

of

ISO

900

1, 9

002,

and

900

3 ap

plie

s IS

O 9

001

Out

lines

gui

delin

es fo

r co

mpa

nies

that

en

gage

d in

des

ign,

dev

elop

men

t, pr

oduc

tion,

in

stal

latio

n, a

nd se

rvic

ing

of p

rodu

cts o

r se

rvic

e IS

O 9

002

Sim

ilar

to 9

001,

but

exc

lude

s com

pani

es

enga

ged

in d

esig

n an

d de

velo

pmen

t IS

O 9

003

Cov

ers c

ompa

nies

eng

aged

in fi

nal i

nspe

ctio

n an

d te

stin

g IS

O 9

004

The

gui

delin

es fo

r ap

plyi

ng th

e el

emen

ts o

f th

e Q

ualit

y M

anag

emen

t Sys

tem

OPR

E 63

6428

ISO

10

00

0 S

eri

es

Qua

lity

syst

em a

uditi

ng g

uide

Qua

lity

man

ual d

evel

opm

ent g

uide

ISO

100

11

ISO

100

13

OPR

E 63

6429

The

ISO

9001:1

994 C

lause

s

Pro

cess

Co

ntr

ol

15

Han

dlin

g,

Sto

rage,

Pac

kagin

g,

Pre

serv

atio

n &

D

eliv

ery

19

Ser

vici

ng

1M

anag

emen

t Res

ponsi

bili

ty

5 D

ocu

men

t &

Dat

a Contr

ol

14 C

orr

ective

&Pr

even

tive

Act

ion

16

Contr

ol of

Qual

ity

Rec

ord

s

17 I

nte

rnal

Qual

ity

Audits

18

Tra

inin

g

20

Sta

tist

ical

Tec

hniq

ues

2 Q

uali

ty S

yst

em

Cu

sto

mer

3Contr

act

Rev

iew

7 C

ontr

ol of

Cust

om

er-

Supplie

d P

roduct

4D

esig

n

Contr

ol

Ven

do

r (S

ub

-Co

ntr

act

or)

6Purc

has

ing

Pro

du

ct C

on

tro

l

10

Insp

ection

& T

esting

12

Insp

ection

& T

est

Sta

tus

8 P

roduct

Id

entifica

tion

& T

race

abili

ty

9 P

roce

ss

Contr

ol

11

Insp

ection,

Mea

suring &

Tes

t Equip

men

t

13

Contr

ol of

Non-C

onfo

rmin

g

Product

OPR

E 63

6430

New

ISO

9001:2

000

•Q

ualit

y m

anag

emen

t sys

tem

–Pu

t stru

ctur

e in

wha

t you

do

•M

anag

emen

t res

pons

ibilit

y–

Put s

omeo

ne in

cha

rge

•R

esou

rce

man

agem

ent

–Pr

ovid

e th

e re

sour

ces

to a

chie

ve g

oals

•Pr

oduc

t rea

lizat

ion

–D

esig

n an

d m

ake

it to

requ

irem

ents

•M

easu

rem

ent,

anal

ysis

and

impr

ovem

ent

–Kn

ow w

here

you

are

and

get

bet

ter

OPR

E 63

6431

The

Gra

nd V

isio

n:

2000

9000

Fundam

enta

ls A

nd V

oca

bula

ry9001

Req

uirem

ents

9004

Guid

elin

es F

or

Perf

orm

ance

Im

pro

vem

ents

10012

Mea

sure

men

t Contr

ol

19011

QM

S/E

MS A

uditin

g

Tech

nica

l Rep

orts

on

Ever

ythi

ng E

lse

Gre

ater

Com

patib

ility

with

Env

iron

men

tal M

anag

emen

t

OPR

E 63

6432

Third p

arty

reg

istr

atio

n

Reg

istr

ar

Acc

red

itati

on

Bo

ard

Reg

istr

ar

Com

pany

Cou

rse

Prov

ider

sA

udito

rs

Cus

tom

ers

hire

assess

certify

accredit

accredit

train

OPR

E 63

6433

Reg

istr

atio

n s

teps

The

Reg

istra

rwill:

•R

eque

st in

form

atio

n fro

m y

ou•

Rev

iew

you

r doc

umen

ts (m

ostly

QA

man

ual)

•R

evie

w y

our a

pplic

atio

n•

Audi

t you

r fac

ility

•Is

sue

your

cer

tific

ate

•C

ondu

ct p

erio

dic

surv

eilla

nce

•R

enew

cer

tific

ate

afte

r thr

ee y

ears

OPR

E 63

6434

ISO

9000 R

egis

trat

ion P

roce

ss

•Th

e fin

al a

udit

begi

ns w

ith a

revi

ew o

f the

co

mpa

ny's

Qua

lity

Man

ual,

whi

ch th

e ac

cred

ited

regi

stra

r or t

hird

par

ty a

udit

team

ty

pica

lly u

ses

as it

s gu

ide.

•

The

audi

t tea

m c

heck

s to

see

that

the

docu

men

ted

qual

ity s

yste

m m

eets

the

requ

irem

ent o

f ISO

900

0 an

d th

at th

e or

gani

zatio

n is

pra

ctic

ing

wha

t is

docu

men

ted.

OPR

E 63

6435

ISO

9000 R

egis

trat

ion P

roce

ss

•W

hen

an o

rgan

izat

ion

feel

s th

at it

s qu

ality

sys

tem

is g

ood

enou

gh, i

t may

as

k an

acc

redi

ted

regi

stra

r or o

ther

th

ird p

arty

aud

it te

am fo

r pre

-as

sess

men

t.

OPR

E 63

6436

Tim

elin

e fo

r re

gis

trat

ion

0.0

Dec

ide

to g

o fo

r reg

istra

tion

Form

a s

teer

ing

com

mitt

ee0.

5W

rite

your

QA

Man

ual

Writ

e pr

oces

s pr

oced

ures

1.0

Con

duct

inte

rnal

revi

ews

Ref

ine

your

pro

cess

es1.

5C

ondu

ct s

yste

m a

udits

Und

ergo

a “m

ock”

aud

it2.

0R

ecei

ve re

gist

ratio

n

OPR

E 63

6437

Wher

e to

Insp

ect

the

Pro

cess

•R

aw m

ater

ials

and

pur

chas

ed p

arts

•Fi

nish

ed p

rodu

cts

•Be

fore

a c

ostly

ope

ratio

n

•Be

fore

an

irrev

ersi

ble

proc

ess

•Be

fore

a c

over

ing

proc

ess

OPR

E 63

6438

Exam

ple

s o

f In

spect

ion

Po

ints

Type

of

busi

ness

Insp

ectio

npo

ints

Cha

ract

eris

tics

Fast

Foo

dC

ashi

erC

ount

er a

rea

Eatin

g ar

eaBu

ildin

gKi

tche

n

Accu

racy

Appe

aran

ce, p

rodu

ctiv

ityC

lean

lines

sAp

pear

ance

Hea

lth re

gula

tions

Hot

el/m

otel

Park

ing

lot

Acco

untin

gBu

ildin

gM

ain

desk

Safe

, wel

l lig

hted

Accu

racy

, tim

elin

ess

Appe

aran

ce, s

afet

yW

aitin

g tim

esSu

perm

arke

tC

ashi

ers

Del

iver

ies

Accu

racy

, cou

rtesy

Qua

lity,

qua

ntity

OPR

E 63

6439

ISO

9000 R

egis

trat

ion P

roce

ss

•W

hen

the

regi

stra

r is

satis

fied

with

the

favo

rabl

e re

com

men

datio

n of

the

audi

t te

am, i

t gra

nts

regi

stra

tion

and

issu

es a

re

gist

ratio

n do

cum

ent t

o th

e co

mpa

ny.

OPR

E 63

6440

Inte

rnat

ional

iss

ues

•En

viro

nmen

tal m

anag

emen

t sys

tem

s•

Occ

upat

iona

l hea

lth &

saf

ety

•R

egul

ated

indu

strie

s–

med

ical

dev

ices

–ph

arm

aceu

tical

–he

alth

car

e•

Sect

or-s

peci

fic a

pplic

atio

ns–

auto

mot

ive

(QS-

9000

and

TS-

1694

9)–

aero

spac

e (A

S-90

00 /

AS-9

100)

–te

leco

mm

unic

atio

ns (T

L-90

00)

OPR

E 63

6441

ISO

14000

•IS

O 1

4000

-A

set o

f int

erna

tiona

l sta

ndar

ds

for a

sses

sing

a c

ompa

ny’s

env

ironm

enta

l pe

rform

ance

•St

anda

rds

in th

ree

maj

or a

reas

–M

anag

emen

t sys

tem

s–

Ope

ratio

ns–

Envi

ronm

enta

l sys

tem

s

OPR

E 63

6442

ISO

14000

•M

anag

emen

t sys

tem

s–

Syst

ems

deve

lopm

ent a

nd in

tegr

atio

n of

en

viro

nmen

tal r

espo

nsib

ilitie

s in

to b

usin

ess

plan

ning

•O

pera

tions

–C

onsu

mpt

ion

of n

atur

al re

sour

ces

and

ener

gy•

Envi

ronm

enta

l sys

tem

s–

Mea

surin

g, a

sses

sing

and

man

agin

g em

issi

ons,

effl

uent

s, a

nd o

ther

was

te

OPR

E 63

6443

QS 9

000

●C

omm

on S

uppl

ier Q

ualit

y St

anda

rd e

stab

lishe

d by

the

Big

Thre

e au

tom

aker

s: C

hrys

ler,

For

d, G

M.

●Fi

rst i

ntro

duce

d in

Nor

th A

mer

ica

in A

ug 1

994

●C

onsi

sts

of :

Se

ctio

n I

ISO

900

0 ba

sed

requ

irem

ents

Se

ctio

n II

Cus

tom

er-s

peci

fic re

quire

men

ts●

Mee

ting

man

dato

ry re

quire

men

ts fo

r the

aut

o in

dust

ry●

Emph

asis

on

Con

tinuo

us Im

prov

emen

t and

Def

ect

Prev

entio

n●

Mov

ing

clos

er to

TQ

M

OPR

E 63

6444

* Im

plem

ent

Failu

re M

ode

and

Effe

ct A

naly

sis (

FM

EA )

* A

dvan

ce P

rodu

ct Q

ualit

y Pl

anni

ng (A

PQP)

Con

trol P

lan

(CP)

APQ

P is

requ

ired

for n

ew a

nd c

hang

ed p

rodu

cts.

CP

cov

ers P

roto

type

, Pre

-laun

ch &

Pro

duct

ion

* F

easi

bilit

y R

evie

wC

onfir

m m

anuf

actu

ring

feas

ibili

ty

* P

rodu

ctio

n Pa

rt A

ppro

val P

roce

ss (P

PAP)

Com

pila

tion

of d

ata

for n

ew o

r cha

nged

pro

duct

( Cpk

, FM

EA,

Test

Res

ults

etc

)

OPR

E 63

6445

QS

9000

in S

umm

ary

•Q

S 90

00 e

mph

asiz

es o

n m

eetin

g cu

stom

er re

quire

men

ts.

In lo

ng ru

n, th

is w

ill im

prov

e co

mpe

titiv

enes

s.

•Q

S 90

00 p

ut fo

cus o

n •

* C

ontin

uous

Impr

ovem

ent

* D

efec

t Pre

vent

ion

* R

educ

tion

of v

aria

tion

and

was

te

The

stan

dard

pos

sess

es tr

emen

dous

pot

entia

l in

term

of B

usin

ess E

xcel

lent

.45

OPR

E 63

6446

Rec

ogni

zing

Qua

lity

•Be

nchm

arki

ng–

Def

initi

on:

Iden

tifyi

ng a

nd d

ocum

entin

g best

prac

tices

•C

ompe

titor

s (O

M P

rinci

ple

4)•

Oth

er in

dust

ries

–St

art

by s

elec

ting

and

benc

hmar

king

ow

npr

oces

s•

Met

rics:

com

paris

ons

(e.g

., LT

:Con

tent

ratio

)•

Prac

tices

: st

eps,

erro

rs, d

elay

s, e

tc.

–Ty

pica

l ste

ps s

umm

ariz

ed in

the

next

slid

e–

Con

cept

and

met

hods

are

evo

lvin

g

OPR

E 63

6447

The

Ben

chm

arki

ng P

roce

ss:

Com

mon

Ste

ps

GET

TIN

G

STAR

TED

Plan

ning

, O

rgan

izin

g,

and

Man

agin

gfo

r be

nchm

arki

ng PREP

ARIN

GTO

BEN

CH

MAR

KId

entif

y ke

y pr

oces

s.Fo

rm te

am.

Und

erst

and

your

ow

n pr

oces

ses.

CO

ND

UC

TIN

GR

ESEA

RC

HC

olle

ct

info

rmat

ion:

Who

's th

e be

st?

Wha

t to

ask?

SELE

CTI

NG

WH

OM

TO

BEN

CH

MAR

KEs

tabl

ish

rela

tions

hip.

Plan

to c

olle

ct

and

shar

e in

form

atio

n.

CO

LLEC

TIN

GAN

D S

HAR

ING

IN

FOR

MAT

ION

Surv

eys

Site

vis

itsD

eter

min

e an

y th

ird

parti

es

ANAL

YZIN

GAD

APTI

NG

AN

D

IMPR

OVI

NG

Com

pare

dat

a.Pl

an to

sur

pass

.Im

plem

ent a

nd

mon

itor.

Impr

ove.

Con

tinuo

us Im

prov

emen

t

OPR

E 63

6448

Rec

ogni

zing

Qua

lity

•Q

ualit

y Aw

ards

–In

clud

e:•

Dem

ing

Priz

e (fi

rst m

ajor

aw

ard)

•Ba

ldrig

eAw

ard

(est

ablis

hed

by C

ongr

ess)

•St

atew

ide

awar

ds

–Pr

ovid

e•

Rec

ogni

tion

(sho

uldn

’t be

prim

ary

goal

)•

Path

to im

prov

ed q

ualit

y

–Ba

ldrig

eAw

ard

crite

ria

•Ju

ran:

crit

eria

sum

mar

ize

TQM

OPR

E 63

6449

Qu

ali

ty A

ward

s

Bald

rige

Awar

dD

emin

g Pr

ize

OPR

E 63

6450

Mal

colm

Bal

drige

Nat

ional

Qual

ity

Aw

ard

1.0

Lead

ersh

ip2.

0 St

rate

gic

Plan

ning

3.0

Cus

tom

er a

nd M

arke

t Foc

us4.

0 In

form

atio

n an

d An

alys

is5.

0 H

uman

Res

ourc

e D

evel

opm

ent a

ndM

anag

emen

t6.

0 Pr

oces

s M

anag

emen

t7.

0 Bu

sine

ss R

esul

ts

OPR

E 63

6451

Bal

drige

Aw

ard d

etai

ls

A U

S N

atio

nal Q

ualit

y Aw

ard

Star

ted

in 1

987

Awar

ds in

thre

e ca

tego

ries

–m

anuf

actu

ring,

ser

vice

, sm

all b

usin

ess

–no

mor

e th

an tw

o aw

ards

per

ca

tego

ry p

er y

ear

Stre

sses

‘man

agem

ent b

y fa

ct’

Con

sist

s of

a th

ree

leve

l jud

ging

pro

cess

Is a

sev

en-c

ateg

ory,

100

0-po

int s

corin

g sy

stem

•Le

ader

ship

, inf

orm

atio

n an

d an

alys

is, s

trate

gic

qual

ity p

lann

ing,

hum

an re

sour

ce u

tiliz

atio

n,

qual

ity a

ssur

ance

of p

rodu

cts

and

serv

ices

, qua

lity

resu

lts, c

usto

mer

sat

isfa

ctio

n

OPR

E 63

6452

Lead

ersh

ip

•C

ontri

bute

s 10

0 po

ints

–Se

nior

exe

cutiv

e le

ader

ship

–Q

ualit

y va

lues

–M

anag

emen

t for

qua

lity

–Pu

blic

resp

onsi

bilit

y•

Sym

bolis

m a

nd A

ctiv

e in

volv

emen

t•

Intim

ate

know

ledg

e of

how

the

wor

k ac

tual

ly g

ets

done

•Im

pres

sive

list

enin

g sk

ills–

Skip

-leve

l com

mun

icat

ion

OPR

E 63

6453

Info

rmat

ion a

nd a

nal

ysis

•C

ontri

bute

s 70

poi

nts

–Sc

ope

and

man

agem

ent o

f qua

lity

data

and

in

form

atio

n–

Com

petit

ive

com

paris

ons

and

benc

hmar

ks–

Anal

ysis

of q

ualit

y da

ta a

nd in

form

atio

n•

Mus

t dem

onst

rate

fact

-bas

ed m

anag

emen

t•

Info

rmat

ion

base

mus

t be

com

preh

ensi

ve,

acce

ssib

le, a

nd w

ell v

alid

ated

.•

Use

ben

chm

arki

ng a

s a

enab

ler o

f cha

nge,

a le

arni

ng

proc

ess

OPR

E 63

6454

Str

ateg

ic Q

ual

ity

Pla

nnin

g

•C

ontri

bute

s 60

poi

nts

–St

rate

gic

qual

ity p

lann

ing

proc

ess

–Q

ualit

y go

als

and

plan

s

OPR

E 63

6455

Hum

an R

esourc

e U

tiliz

atio

n

•C

ontri

bute

s 15

0 po

ints

–H

uman

reso

urce

man

agem

ent

–Em

ploy

ee in

volv

emen

t–

Qua

lity

educ

atio

n an

d tra

inin

g–

Empl

oyee

reco

gniti

on a

nd p

erfo

rman

ce

mea

sure

men

t–

Empl

oyee

wel

l-bei

ng a

nd m

oral

e•

Empo

wer

the

empl

oyee

s an

d un

leas

h th

e fu

ll po

tent

ial o

f the

wor

k fo

rce

•Q

ualit

y tra

inin

g in

volv

es in

crea

sed

awar

enes

s,

prob

lem

-sol

ving

tool

s, g

roup

pro

cess

ski

lls, a

nd jo

b-sp

ecifi

c sk

ills•

“Em

pow

erm

ent i

s in

the

eyes

of t

he e

mpo

wer

ed.”

OPR

E 63

6456

Qual

ity

Ass

ura

nce

of Pr

oduct

s &

Ser

vice

s

•C

ontri

bute

s 14

0 po

ints

–D

esig

n an

d in

trodu

ctio

n of

qua

lity

prod

ucts

and

se

rvic

es–

Proc

ess

qual

ity c

ontro

l–

Con

tinuo

us im

prov

emen

t of p

roce

sses

–Q

ualit

y as

sess

men

t–

Doc

umen

tatio

n–

Busi

ness

pro

cess

and

sup

port

serv

ice

qual

ity–

Supp

lier q

ualit

y•

Inst

ead

of fu

nctio

nal l

ines

, em

phas

ize

on p

roce

ss

OPR

E 63

6457

Qual

ity

Res

ults

•C

ontri

bute

s 18

0 po

ints

–Pr

oduc

t and

Ser

vice

Qua

lity

resu

lts–

Busi

ness

pro

cess

, ope

ratio

nal,

and

supp

ort

serv

ice

qual

ity re

sults

–Su

pplie

r qua

lity

resu

lts•

Look

for ‘

mea

ning

tren

ds’

•Su

stai

ned

impr

ovem

ents

on

criti

cal m

easu

res

over

a

perio

d of

at l

east

thre

e ye

ars

•U

se s

tatis

tical

met

hods

to c

orre

late

obj

ectiv

e qu

ality

re

sults

with

mea

sure

s of

cus

tom

er s

atis

fact

ion

OPR

E 63

6458

Cust

om

er S

atis

fact

ion

•C

ontri

bute

s 30

0 po

ints

–D

eter

min

ing

cust

omer

requ

irem

ents

and

exp

ecta

tions

–C

usto

mer

rela

tions

hip

man

agem

ent

–C

usto

mer

ser

vice

sta

ndar

ds–

Com

mitm

ent t

o cu

stom

ers

–C

ompl

aint

reso

lutio

n fo

r qua

lity

impr

ovem

ent

–D

eter

min

ing

cust

omer

sat

isfa

ctio

n–

Cus

tom

er s

atis

fact

ion

resu

lts–

Cus

tom

er s

atis

fact

ion

com

paris

on•

Cus

tom

er in

form

atio

n fro

m a

wid

e ra

nge

of s

ourc

es –

focu

s gr

oups

, sur

veys

, one

-to-o

ne m

eetin

gs, s

ales

vis

its e

tc.

•M

easu

res

are

obje

ctiv

e an

d va

lidat

ed, n

ot a

necd

otal

OPR

E 63

6459

Th

e D

em

ing

Pri

ze

•H

onor

ing

W. E

dwar

ds D

emin

g

•Ja

pan’

s hi

ghly

cov

eted

aw

ard

•M

ain

focu

s on

sta

tistic

al q

ualit

y co

ntro

l

OPR

E 63

6460

Empl

oyee

-Driv

en Q

ualit

y

•Tr

aini

ng (a

nd e

duca

tion)

–In

volv

es•

Basi

c jo

b sk

ills•

Tool

s fo

r con

tinuo

us im

prov

emen

t, SP

C, e

tc.

•C

ross

-trai

ning

(OM

Prin

cipl

e 7)

–M

ust b

e co

nsid

ered

as

inve

stm

ent,

not e

xpen

se!

–O

ld (a

nd s

till p

reva

lent

) app

roac

h•

Expl

oit d

ivis

ion

of la

bor (

hire

uns

kille

d)•

Inhi

bits

prid

e in

wor

kman

ship

–C

ross

-trai

ning

can

bui

ld b

ette

r und

erst

andi

ng

OPR

E 63

6461

Empl

oyee

-Driv

en Q

ualit

y

•O

rgan

izat

ion

–In

volv

es•

Clo

se s

uppl

ier/c

usto

mer

(nex

t pro

cess

) con

tact

•M

ulti-

func

tiona

l tea

ms,

etc

.–

Uni

ting

wor

kers

for c

onst

ancy

of p

urpo

se•

Typi

cal f

orm

ats

–Q

ualit

y ci

rcle

s–

Cel

ls a

nd te

ams

(pio

neer

ed in

man

ufac

turin

g)–

Proj

ect t

eam

s: w

hen

wor

k flo

ws

are

sepa

rate

d•

Gan

gsve

rsus

team

s–

Team

trai

ning

: te

am d

ynam

ics;

pro

blem

-sol

ving

; qu

ality

tool

s

OPR

E 63

6462

Dem

ing’

s 14

Poi

nts

(I)

•Fo

cus

On

Man

agem

ent

–Q

ualit

y pr

oble

ms

lie w

ith th

e sy

stem

–Th

e sy

stem

is u

nder

the

cont

rol o

f man

agem

ent

•Th

e 14

Poi

nts

--N

ot a

Men

u!–

Con

stan

cy o

f pur

pose

–N

ew p

hilo

soph

y–

Mas

s in

spec

tion

–Pr

ice

tag

–C

ontin

uous

impr

ovem

ent

–Tr

aini

ng

OPR

E 63

6463

Dem

ing’

s 14

Poi

nts

(II)

•Th

e 14

Poi

nts

(Con

tinue

d)–

Supe

rvis

ion

(lead

ersh

ip)

–Fe

ar–

Barri

ers

–Sl

ogan

s–

Quo

tas

–Pr

ide

in w

orkm

ansh

ip•

Man

agem

ent

•Fr

ont-l

ine

–Ed

ucat

ion

–O

rgan

izat

iona

l stru

ctur

e/cu

lture

; top

man

agem

ent

OPR

E 63

6464

Softw

are

Qua

lity

•Pr

oces

s Q

ualit

y–

Ensu

ring

conf

orm

ance

with

use

r req

uire

men

ts–

Iden

tifyi

ng d

efec

ts–

Mon

itorin

g th

e pr

oduc

t thr

ough

its

phas

es o

f de

velo

pmen

t•

Prod

uct Q

ualit

y–

Iden

tifyi

ng u

ser s

peci

fied

qual

ity n

eeds

–Pr

iorit

izin

g qu

ality

nee

ds–

Res

olvi

ng q

ualit

y co

nflic

ts, i

f any

–Bu

ildin

g th

em in

to th

e de

velo

pmen

t pro

cess

–Al

loca

ting

effo

rt an

d tim

e fo

r the

m

OPR

E 63

6465

A S

tep

in

Ass

uri

ng

So

ftw

are

Qu

ali

ty

An

aly

ze n

eed

for

qu

ali

ty

Co

nvert

qu

ali

tyn

eed

s to

req

uir

em

en

ts

Docu

men

t S

WQ

uali

tyre

qu

irem

en

ts

Use

r opi

nion

s

Crit

eria

for g

ood

requ

irem

ents

Req

spec

Der

ived

req’

s

Qua

lity

fact

ors

Nee

ds d

ata

base

Qua

lity

conf

licts

Cos

t of q

ualit

y

Fact

or a

nd c

riter

ia d

efin

ition

s

Leve

l of q

ualit

y m

atrix

Qua

lity

need

s dat

a ba

se

Engi

neer

ing

crite

ria

Trac

eabi

lity

mat

rix

Softw

are

qrs

Qua

lity

spec

ifica

tion

guid

elin

e

OPR

E 63

6466

Ap

pro

ach

es

to A

ttain

Qu

ali

ty

Trad

ition

al A

ppro

ach

to Q

ualit

y

Con

trol

the

qual

ity o

f the

pro

duct

by

insp

ectio

n.A

ccep

tabl

e qu

ality

leve

ls (

AQ

L).

Som

e de

fect

s w

ill s

lip th

roug

h.

Wor

ld-C

lass

App

roac

h to

Qua

lity

The

prod

uct i

s on

ly th

e re

sult

of th

e pr

oces

s w

hich

mak

es it

.If

the

proc

ess

is c

orre

ct, t

he p

rodu

ct w

ill b

e go

od.

No

need

to in

spec

t.

5-6

OPR

E 63

6467

Qual

ity

Contr

ol M

odes

a C

om

pan

y ca

n b

e in

•Hea

vy u

se o

f ins

pect

ion

• Man

ufac

turin

g &

QC

are

adv

ersa

ries

• Fire

fight

ing

• Man

agem

ent b

y cr

isis

• Hig

h co

sts

• Los

t sal

es• L

oss

of c

ompe

titiv

e po

sitio

n

Det

ectio

nM

ode

•Ver

y lit

tle in

spec

tion

• QC

is a

reso

urce

of M

anuf

actu

ring

-tea

mw

ork

• Pro

blem

elim

inat

ion

• Sm

ooth

ope

ratio

ns -

cont

inua

l im

prov

emen

t• D

ecre

asin

g co

sts

• Inc

reas

ed s

ales

• Mor

e co

mpe

titiv

e

Prev

entio

nM

ode

5-7

OPR

E 63

6468

Op

era

tio

ns

are

a T

ran

sfo

rmati

on

Pro

cess

Inpu

ts

Peop

le

Cap

ital

Ener

gy

Mat

eria

ls

Tech

nolo

gy

Mar

ket a

ndEn

viro

nmen

tal

Forc

es

Tran

sfor

mat

ion

Proc

esse

s

Goo

ds

Serv

ices

Out

puts

OPR

E 63

6469

The

Proc

ess

Focu

s•

Ope

ratio

n =

Tran

sfor

mat

ion

Proc

ess

–Pr

oces

s in

puts

•M

anag

emen

t•

Met

hods

•M

ater

ials

•M

achi

nes

•M

aint

enan

ce•

Pers

onne

l•

Info

rmat

ion

•En

ergy

–Tr

ansf

orm

atio

n (m

acro

/mic

ro v

iew

s)–

Out

puts

(com

pone

nts

/ fin

ishe

d go

ods

/ ser

vice

s)

OPR

E 63

6470

The

Pro

cess

Foc

us: C

ontr

ibut

ing

Var

iabl

es

Manag

emen

t Mainten

ance Mea

surem

ent

Machin

esMeth

ods

Manpo

wer Materia

ls

Materia

ls

Leng

th

Proc

ess

perfo

rman

ce:

Qua

lity

char

acte

ristic

s

PRO

CES

S: 3

-inch

mac

hine

bol

t

THE

NEX

TPR

OC

ESS

Dis

tribu

tion

of b

olt l

engt

hs

(Inch

es)

OPR

E 63

6471

Man

agin

g th

e Pr

oces

s

•Pr

oble

ms

–R

esul

t fro

m s

erie

s of

act

iviti

es (p

roce

ss)

–N

ot fr

om s

ingl

e as

pect

(e.g

., ph

ysic

ian)

–Th

eref

ore,

for e

ach

prod

uct,

entir

e pr

oces

s ne

eds

stud

y fo

r im

prov

emen

t•

Proc

ess

–R

ecal

l Inp

ut/P

roce

ss/O

utpu

t mod

el:

–In

put c

ompo

nent

s ch

ange

ove

r tim

e

inst

abilit

y

OPR

E 63

6472

Proc

ess

Impr

ovem

ent a

nd C

ontro

l in

a n

utsh

ell

•Ap

ply

Scie

ntifi

c M

etho

d •

Inco

rpor

ate

Tool

s –

Gen

eral

tool

s–

Coa

rse

grai

ned

tool

s–

Fine

gra

ined

tool

s

OPR

E 63

6473

Sci

entific

Met

hod for

Proce

ss I

mpro

vem

ent

1. I

dent

ify a

nd d

efin

e th

e pr

oble

m.

2. S

tudy

the

exis

ting

situ

atio

n;co

llect

nec

essa

ry d

ata.

3. G

ener

ate

poss

ible

sol

utio

n al

tern

ativ

es.

4. E

valu

ate

alte

rnat

ives

and

cho

ose

the

pref

erre

d on

e.

5. Im

plem

ent t

he im

prov

emen

t and

mea

sure

resu

lts.

6. E

valu

ate

and

revi

se if

requ

ired.

7. O

ther

wis

e, re

turn

to s

tep

1 an

d st

art a

gain

with

ane

w p

robl

em.

OPR

E 63

6474

Tools

for

Proce

ss I

mpro

vem

ent

3. P

roce

ss fl

owch

art.

4. C

heck

she

ets

and

hist

ogra

ms.

5. P

aret

o an

alys

is.

6. F

ishb

one

char

ts.

Coa

rse-

grai

ned

Tool

s

Gen

eral

Too

ls

Fine

-gra

ined

Too

ls7.

Fai

l-saf

ing

(Pok

ayok

e).

8. D

esig

n of

Exp

erim

ents

(DO

E)9.

Sca

tterg

ram

s.

1. T

eam

-bui

ldin

g an

d gr

oup-

inte

ract

ion

tool

s.2.

Spe

cific

pro

cess

/tech

nolo

gy to

ols.

10.

Run

dia

gram

.11

. Pr

oces

s co

ntro

l cha

rt.

OPR

E 63

6475

The

Six

Sigm

a M

etho

dolo

gyA

4-S

tep

Met

hodo

logy

for P

roce

ss Im

prov

emen

t

Proc

ess

Cha

ract

eriz

atio

n

1)M

easu

re•

Iden

tify

Proj

ect S

cope

/ G

oal

•D

efin

e Ke

y Pr

oces

s El

emen

ts•

Esta

blis

h Pr

oces

s C

apab

ility

•Va

lidat

e M

easu

rem

ent S

yste

m

2)Ev

alua

te•

Benc

hmar

k Pr

oces

sEn

title

men

t •

Dat

a An

alys

is

•D

eter

min

e C

ritic

al

Fact

ors

Proc

ess

Opt

imiz

atio

n

3)Im

prov

emen

t•

Dev

elop

Impr

ovem

ent P

lan

•U

nder

stan

d/O

ptim

ize

Vita

l Pr

oces

s El

emen

ts•

Red

uce

Varia

tion

/ Def

ects

•Ve

rify

Impa

ct

4)C

ontr

ol•

Impl

emen

t Lon

g Te

rm

Con

trol P

lan

•Le

vera

ge to

Sim

ilar

Prod

ucts

/Pro

cess

es•

Doc

umen

t & S

tand

ardi

ze

Measure

Measure

Evaluate Evaluate

Improvement

Improvement

ControlControl

OPR

E 63

6476

TQM

•Top m

anag

emen

t’s

direc

t in

volv

emen

t•

Str

ong c

ust

om

er o

rien

tation

•Com

pan

ywid

epar

tici

pat

ion t

o m

eet

or

exce

ed

cust

om

er e

xpec

tations;

em

pow

erm

ent

•Sys

tem

atic

pro

ble

m s

olv

ing

•A p

hilo

sophy

of

Continuous

Impro

vem

ent:

N

ever

-endin

g p

ush

to im

pro

ve

OPR

E 63

6477

Obstacles

to I

mple

men

ting T

QM

Lack

of

–C

ompa

nyw

ide

defin

ition

of q

ualit

y–

Stra

tegi

c pl

an fo

r cha

nge

–C

usto

mer

focu

s–

Rea

l em

ploy

ee e

mpo

wer

men

t–

Stro

ng s

trong

mot

ivat

ion

–Ti

me

to d

evot

e to

qua

lity

initi

ativ

es–

Lead

ersh

ip

OPR

E 63

6478

Obst

acle

s to

Im

ple

men

ting T

QM

•Po

or in

traor

gani

zatio

nalc

omm

unic

atio

n•

View

of q

ualit

y as

a “q

uick

fix”

•Em

phas

is o

n sh

ort-t

erm

fina

ncia

l res

ults

•In

tern

al p

oliti

cal a

nd “t

urf”

war

s

OPR

E 63

6479

Sum

mar

y

TQM

requ

ires

Top

man

agem

ent’s

dire

ct in

volv

emen

tSt

rong

cus

tom

er o

rient

atio

nEv

eryo

ne p

artic

ipat

es:

empo

wer

men

tSy

stem

atic

pro

blem

sol

ving

Con

tinuo

us im

prov

emen

t

TQM

is a

gre

at fo

unda

tion,

but

TQ

M d

oes

not

dire

ctly

rela

te to

bus

ines

s re

sults

Six

Sigm

a is

the

late

st q

ualit

y m

anag

emen

t in

nova

tion:

It i

s a

focu

sed

met

hod

+ a

philo

soph

y

OPR

E 63

6480

Use

ful lin

ks

http

://w

ww

.min

dtoo

ls.c

om/s

wot

.htm

lSW

OT

anal

ysis

for s

trate

gy d

evel

opm

ent

http

://w

ww

.iqs.

com

/Pre

sent

atio

ns/S

ALE6

108_

files

/fram

e.ht

mO

verv

iew

of Q

S 90

00

http

://ho

me.

att.n

et/~

iso9

k1/tq

m/tq

m.h

tml

An o

verv

iew

of T

QM