The Juran TrilogyDr. Pham Huynh TramDepartment of ISE, HCMIURA2-602, phtram@hcmiu.edu.vn

ContextThe need of quality management (the crisis, managers lack of experience & training, urgency) Non-uniformity and belief in uniqueness are obstacles to unity of directionRequirement of a universal way for quality management that can applied for any functions, levels, product lines of a company

Deal with the crisis in qualtiyUpper managers have extensive experience in management of business and finance but not in managing for qualityDesign a basis for mangement of quality that can readily be implanted into the companys strategyc business planning. Financial processes: budgeting; Cost control, expense control; Cost reduction, profit improvement

Quality trilogyThree primary managerial functions:Quality planningQuality controlQuality improvementJoseph M.Juran

After Edwards Deming, Dr Joseph Juran is considered to have had the greatest impact on quality managementDefine quality as fitness for use rather than simpky conformance to specificationConcept of cost of qualityWhat is trilogy? group of three related things:Process imrpovement involves planning. One of the best approaches is the one developed by Dr. Juran. It has three components: planning, control, and improvement and is called the Juran Trilogy

A Real World Example of the Juran- Healthcare Organizations Quality planning is about building quality into a process right from the start.

As an example of quality planning, Baton Rouge General Health Center in Baton Rouge, LA, used the quality planning process to design its new health center, which opened with a new and innovative physical plant, patient centered processes and a trained and effective staff

A Real World Example of the Juran- Healthcare Organizations Quality control is about maintaining the performance of a process. As an example of quality control, many emergency departments now monitor waiting times with control charts and spreadsheets, enabling them to identify delays earlier so they can restore process capability and implement service recovery with patients immediately.

A Real World Example of the Juran- Healthcare Organizations Quality improvement is about changing a process to improve its performance.

OSF Medical Center in Bloomington, IL, for example, reduced the number of adverse drug events per 1,000 doses by more than 50% primarily by implementing processes to reconcile medications and by improving the dispensing process, decreasing harm from anticoagulants and developing a culture of safety. OSF also used control charts to monitor these core processes and its improvement progress over time. .

Quality planningCreating a process that will be able to meet established goals and do so under operating conditions." (Juran)

Discovering customer needs and opportunities for reduction of waste and developing products and processes that would meet those needs and attain to those opportunities.

Subject matter- An office process for producing documents- An engineering process for designing products- A factory process for producing goods- A service process for responding to customers requests

Brainstorming ExerciseEach class member to identify a deficient process/product in the organization (write it down)

Unsatisfied customer needs (internal or external customer)Opportunity for reducing waste (re-work, stock-out, delayed deliveries, etc.)

Quality planningWho are the customers?What are the customers needs?Develop productsDevelop systems & processesDeploy the plan to operational levelTrainingProcess validation

Market researchRegular contacts with customers/ systematic making inquiriesComplaint analysisAnalysis of the activities of the competitorsQuestioning own employeesSales statistics--> specifications, cost, delivery, serviceExternalInternalQuality Function Deployment (QFD)

Example: What the customer needs?

Defining Quality ParametersGroup the expectations in large classesProductivity- CostService- Speed/ FlexibiltySecurity/ Environmental concerns Set prioritiesQuality parameters for each department, service/ individualAnnual adjustments when necessary

Define quality parametersExample: Purchasing department

QFD-House of quality

QFD-House of quality

Quality controlEvaluate actual quality performanceCompare actual performance to goalsTake actions on the differencesQuality control keeps a planned process in its planned state in order to continue to meet the set standards. Although quality planning may have designed a stable process, quality control recognizes a number of factors which may affect the processStatistical Process Control (SPC) toolsPareto diagrams, flow diagrams, cause & effect diagrams, check sheets, histograms, control charts, scatter diagramsChoose subject of measurementChoose units of measurementEstablish measurementHistorical dataExpectation of customersCompetitorsNorms are challenging, but attainable

Example: Quality of purchased goods

Example: Quality of invoicing

Quality improvementEstablish the necessary infrastructure Identify the specific projects for improvementEstablish a team for each projectProvide the resources, motivation and training for the teamQuality improvement aims to attain levels of performance that are significantly higher than current levelsTool: Problem solving method (Assignment)

Identify problemWhat is a problem?Problem sensitivity an company cultureAcute problemsChronic problems

What is a problem?A problem can be described as any deviation, large or small, from the desired or expected outcomeIn every company, and even in every family, problems keep coming up. Some are never really discovered, while others have become almost so self-evident that we barely even react to them. In this latter case, we accept a normal situation, even though it is not always the desired situation Every problem and every mistake is, however, disadvantageous for the functioning of the company or the organization

Problem sensitivity & company cultureBeing able to see problemsNeed to be clear about the processes, responsibility, objectives and desired outcomeBeing permitted to see problemsWanting to see problemsCompany culture Open/ protective/ authorization?

Acute vs. Chronic problems

Acute problemsChronic problemSuddenly occurring deviation from the desiredContinuous or frequently reoccurring deviationRequire quick actionSystematic approach

How the Juran Trilogy Tool May be Used?- The Customer Mail Example: A Bank CaseProblem defined:At times (spike), there is a lot of mail return that is intended for private customers of the bank.The mail does not reach customers on time.Usual corrective measures:A fire team is called (several employees from other areas are called in) to call the customers and check the addresses.When the addresses are checked, then the mail is re-mailed.

How the Juran Trilogy Tool May be Used?- The Customer Mail Example: A Bank Case, cont.Using the Trilogy approach: Quality PlanningIdentify the customersExternalInternal:Determine customer needs: Develop product features: Develop adequate processes: Bring to operation:

How the Juran Trilogy Tool May be Used?- The Customer Mail Example: A Bank Case, cont.Using the Trilogy approach: Quality PlanningIdentify the customersExternalInternal: officers directly working with customersDetermine customer needs: Receive the mail promptlyDevelop product features: Address on mail should match customer addressDevelop adequate processes: Establishing a periodic verification of customer addresses.Bring to operation:The relationship managers and IT are instructed and trained how to perform periodic verification of addresses.

How the Juran Trilogy Tool May be Used?- The Customer Mail Example: A Bank Case, cont.Quality ControlDefine control are period verification calls made?Measurement unit: number of calls.The standard -- one call per year. Measure actual operating performance Record each call in a databaseThe system tracks actual versus planned calls. Act on the difference(s)The relationship managers are informed of the differenceThey make up the missing callsInformation is sent for analysis to an improvement team

How the Juran Trilogy Tool May be Used?- The Customer Mail Example, cont. Quality ImprovementProve the need for improvement: After analysis, further review of the process for capturing customer addresses is identified. It turns out one additional department is involved in maintaining correct customer information.Identify improvement project: To identify all possible functions and people involved in maintaining relationship with the customers and design a full coordination and eliminate redundancies.Select project team (interfunctional): mail department, IT, relationship managers, and customer service

How the Juran Trilogy Tool May be Used?- The Customer Mail Example, cont.Charter the project team activitiesFlowchartsIdentifies the reason for failure to capture all necessary customer informationRecommends that only one department be responsible for collecting dataCommunicate the results and cost savings and improved customer serviceReward the participantsEstablish an appropriate monitoring system

ExerciseBreak into groups of five-sevenThe group discusses the identified items from the brainstorming session (10 -12 min)Pick one selection criteria (e.g. greatest number of people affected)Select one of the identified deficiencies (by voting)Then the group determinesThe constituents (e.g. functions, positions, organizations, etc.)Quality planning: One major activity to design a better process/productQuality control: One way to ensure the activity is being carried out as plannedQuality improvement: One function/person/position to be included in carrying out a subsequent improvement processDiscuss as a class

Quality Process Performance in reality (ratings from upper managers)--> very strong!--> very weak!--> weak!

Trilogy processesGoodPassingNot passingQuality planning13%40%47%Quality control443620Quality improvement63955

Investment for Quality improvementQuality improvement projects provide a higher return on investment than any other investment activity, but many companies did not provide the needed resources.

The average quality improvement project yields about $100,000 of cost reduction. To complete the project requires from $5,000 to $20,000 in resources

Review

What are the Trilogy Components?Method can be used in quality planning?Method can be used in quality control?Method can be used in quality improvement?Which quality component that is usually underperformance?

March 29, 2006

Juran Trilogy A Training Tool*

By Marious TcherpokovReferencesGibbons, Steve (Oct/Nov 1994). Three paths, one journey, The Journal for Quality and Participation. Cincinnati:Vol.17, Iss. 6; pg. 36Juran, J. M. (August 1986). The quality trilogy: A universal approach to managing for quality. Quality Progress,19(8), 19-24Juran, J. M. (Joseph M.), 1988, Juran on planning for quality , New York : Free Press ; London : Collier Macmillan, 341p.Juran, J. M., & Gryna, F. M. (Eds.). (1988).The quality control handbook (4th ed.). New York: McGraw-Hill.Maureen Bisognano, (Sep 2004), What Juran Says, Quality Progress. Milwaukee: Vol.37, Iss. 9; pg. 33, 2 pgs Juran, J. M. (1945). Management of inspection and quality control. Harper and Brothers.Juran, J. M. (1955). Case studies in industrial management. New York: McGraw-Hill.Juran, J. M. (1964). Managerial breakthrough. New York: McGraw-Hill.Juran, J. M. (1981). Management of Quality (course materials). Wilton , CT: Juran Institute, Inc.Juran, J. M. (1988). Juran on planning for quality. New York: Free Press.Juran, J. M. (1989). Juran on leadership for quality. New York: Free Press.

Juran Trilogy A Training Tool

Deal with the crisis in qualtiyUpper managers have extensive experience in management of business and finance but not in managing for qualityDesign a basis for mangement of quality that can readily be implanted into the companys strategyc business planning. Financial processes: budgeting; Cost control, expense control; Cost reduction, profit improvement

*After Edwards Deming, Dr Joseph Juran is considered to have had the greatest impact on quality managementDefine quality as fitness for use rather than simpky conformance to specificationConcept of cost of qualityWhat is trilogy? group of three related things:Process imrpovement involves planning. One of the best approaches is the one developed by Dr. Juran. It has three components: planning, control, and improvement and is called the Juran Trilogy

****Quality improvement is about changing a process to improve its performance. Hundreds of healthcare organizations work with the Institute for Healthcare Improvement (IHI) every year to accomplish this.OSF Medical Center in Bloomington, IL, for example, reduced the number of adverse drug events per 1,000 doses by more than 50% primarily by implementing processes to reconcile medications and by improving the dispensing process, decreasing harm from anticoagulants and developing a culture of safety. OSF also used control charts to monitor these core processes and its improvement progress over time. What Juran Says[i] [i] Maureen Bisognano, (Sep 2004), What Juran Says, Quality Progress. Milwaukee: Vol.37, Iss. 9; pg. 33, 2 pgs

*Every one works aloneWhen finished, hold on for a later group exersise

Quality planning involves designing quality into the processes and the products quality in terms of freedom from deficiencies and desirability of products features

Eg. Mua hang gia re.com who are customers? Their needs?

Method to collect voice of customerProcess validation: necessary to ensure that a process will consistently produce a product or service meeting requirements

Tools for process validation: positrol, process certification

Managers must:Determine who the customers areIdentify customers needsDevelop products with features that respond to customer needsDevelop systems & processes that allow the organization to produce these features.Deploy the plans to operation levels*Measure what is important and easy, meaningful, easy to understand

Establish the necessary infrastructure such as the quality council. Quality council is the driver that ensures that improvement is continuous and never ending.A quality council: Composition -- upper management or the senior leadership groupTopics -- policies, measures of performance, project and team selection, resources, follow-up, recognition & rewards

Provide the resources, motivation and training for the team to diagnose the causes, implement solutions, and establish controls to hold the gains

*SCRA (Symptom, Cause, Remedy, Action.)Problem is a potential goldmine for improvementIts not important to make a mistake, but try to find the solutions togetherAssuming our responsibility, be willing to tackle our own mistakes or problemFirst put your own house in order

*Here is a small example of how the tool may be used in the case of problems with current addresses of bank customers.Problem defined: At times (spike), there is a lot of mail return that is intended for private customers of the bank. The mail does not reach customers on time.Usual corrective measures: when the incident occurs, the operations manager of the bank calls a fire team (several employees from other areas are called in) to call the customers and check the addresses. When the addresses are checked, then the mail is re-mailed.

**Using the Trilogy approach:Quality Planning:Identify the customers Internal officers directly working with the customers (e.g. relationship managers)External the actual customers (focus on these for this example). A Pareto analysis separates the customers into several groups. The appropriate group to start with is the one where customers keep above $100,000 dollars with the bank.Determine customer needs the customers need to receive their mail promptly. Develop product features that optimally respond to customer needs and that meet certain quality goals the address on the mail should match the current customer address; It turns out that there is no systematic verification of customer addresses. Thus, when customers move, the bank does not have a good way to capture the changed information.Develop processes that can adequately produce the product features, cost effectively for both the supplier and the customer the team then recommends establishing a periodic verification of customer addresses. This step is assigned to the relationship managers, who are to make period calls to the customers. Also the team recommends a periodic email reminder of the obligation of the customer to keep her/his address current.Prove the process can meet the quality goals under operating conditions and transfer the process to the operational area the operating people (e.g. relationship managers, IT) are instructed and trained how to perform periodic verification of addresses.

*Quality ControlDefine control are period verification calls made?. The unit is number of calls. The standard is one call per year. Measure actual operating performance after each call, the relationship manager records in a database the result of the call. The system then tracks actual versus planned calls. Compare actual performance to goals the system compares actual vs. planned calls and produces respective reports.Act on the difference(s) based on regular (e.g. monthly) system reports, the relationship managers are informed of the difference. Then they make up the missing calls. Information is also communicated for further analysis to an improvement team.

*Quality ImprovementProve the need for improvement based on control analysis, the need to further review the process for capturing correct customer addresses is identified. After a more careful analysis, it turns out that there is one additional department that is involved in maintaining correct customer information. A possible outcome based on this need is for the upper management to identify an inter-functional team to work on the issue.Identify specific projects for improvement A project is defined: identify all possible functions and people involved in maintaining relationship with the customers and design a full coordination and eliminate redundancies.Select appropriate project team then an inter-functional team consisting of mail department, IT, relationship managers, and customer service is formed.Charter the project team activities First, the team needs to produce a flowchart to identify all functions and steps in obtaining information from the customers. Then, the team identifies the reason for failure to capture all necessary customer information (i.e. address information). The team actually in this case determines that there are at least two departments responsible for collecting data from the customers: the relationship managers and the customer service department. Whereas the relationship managers are charged to enter systematically the collected, into the system, the customer service department is not charged with such a responsibility. As a result, data captured by the customer service department is not always reflected in the system. The team then recommends that only one department is responsible for collecting data from the customer and the same department is in charge of capturing the data into the system.Provide recognition for the team the results and cost savings and improved customer service are then communicated throughout the bank.Provide rewards for quality and quality improvement team participants are also recognized through some kind of reward. Track and follow-up with improvements An appropriate monitoring system is then establish to track whether there will be spikes and the reasons for those spikes.*Number of imrpovement projects carried out by JP every year is exceeding that of the westHave to change priority with regards to the 3 quality processes

These resources are needed to diagnose the cause of the problem and to provide remedy. The return on investment is obviously attractive. Nevertheless, many compnaies-too many- have faild to provide the resources and hence have failed to get the results

**What are the Trilogy Components?Quality Planning discover customer needs and deficiencies and design adequate processes Quality Control -- compare actual performance to goals and take action on the differencesQuality Improvement -- the attainment of unprecedented levels of performance

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