THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 1 Chapter 3 Philosophies and Frameworks

1 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

Chapter 3Chapter 3

Philosophies and Frameworks


Leaders in the Quality Revolution

• W. Edwards Deming

• Joseph M. Juran

• Philip B. Crosby

• Armand V. Feigenbaum

• Kaoru Ishikawa

• Genichi Taguchi


Who’s Who?

ab

c

Deming ____

Juran ____

Crosby ____


Deming Chain ReactionImprove quality

Costs decrease

Productivity improves

Increase market share with better quality and lower prices

Stay in business

Provide jobs and more jobs


Deming’s System of Profound Knowledge

• Appreciation for a system

• Understanding variation

• Theory of knowledge

• Psychology


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


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 improvements


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


Psychology

• People are motivated intrinsically and extrinsically

• Fear is demotivating

• Managers should develop pride and joy in work


Deming’s 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.


Deming’s 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.org


Juran’s Quality Trilogy

• Quality planning

• Quality control

• Quality improvement

www.juran.com


Phillip B. Crosby

Quality is free . . . :“Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”


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 standard

www.philipcrosby.com


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 motivation


Kaoru Ishikawa

• Instrumental in developing Japanese quality strategy

• Influenced participative approaches involving all workers

• Advocated the use of simple visual tools and statistical techniques


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:

No Loss LossLoss

Tolerance

0.500 0.5200.480


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


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 U.S. companies

Malcolm Baldrige, former U.S. Secretary

of Commerce


Criteria for Performance Excellence

• Leadership

• Strategic Planning

• Customer and Market Focus

• Information and Analysis

• Human Resource Focus

• Process Management

• Business ResultsBaldrige

Award trophy


The Baldrige Framework –A Systems Perspective

4Information and Analysis

5Human

Resource Focus

3Customer &

Market Focus

7Business Results

7Business Results

2Strategic Planning

1Leadership

6Process

Management

Organizational Profile:

Environment, Relationships, and Challenges


Receive Applications

Judges Select for Consensus Review?

Judges Select forSite Visit Review?

Stage 1Independent Review

Stage 2Consensus Review

Stage 3Site Visit Review

Stage 4Judges Recommend Award

Recipients to NIST Director/DOC

Feedback report to applicant



No

No

Baldrige Award Evaluation Process


The Baldrige Award Scoring System

• Three evaluation dimensions - Approach, Deployment, and Results

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

• Scoring guidelines (Table 3.5)


Feedback Report

• Strengths - approaches or results that demonstrate effective response to the Criteria

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


Self Assessment and the Baldrige National Quality Program

A primary goal of the 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 winner


Quality Awards Around the World

Programs in place

No programs


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.


Objectives of ISO Standards (1 of 2)

• 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 requirements are being fulfilled


Objectives of ISO Standards (2 of 2)

• Provide confidence to customers and other stakeholders that quality requirements are being achieved

• Provide confidence that quality system requirements are fulfilled


Structure of ISO 9000 Standards

• 21 elements organized into four major sections:– Management Responsibility– Resource Management– Product Realization– Measurement, Analysis, and Iimprovement

See Table 3.7


ISO 9000:2000 Quality Management Principles

1. Customer Focus

2. Leadership

3. Involvement of People

4. Process Approach

5. System Approach to Management

6. Continual Improvement

7. Factual Approach to Decision Making

8. Mutually Beneficial Supplier Relationships

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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 1 Chapter 3 Philosophies and Frameworks