Transcript Chapter 3 Philosophies and Frameworks THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM.

Chapter 3
Philosophies and
Frameworks
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Leaders in the Quality Revolution
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W. Edwards Deming
Joseph M. Juran
Philip B. Crosby
Armand V. Feigenbaum
Kaoru Ishikawa
Genichi Taguchi
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Who’s Who?
b
a
Deming ____
Juran ____
c
Crosby ____
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Deming Chain Reaction
Improve quality
Costs decrease
Productivity improves
Increase market share with better
quality and lower prices
Stay in business
Provide jobs and more jobs
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Deming’s System
of Profound Knowledge
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Appreciation for a system
Understanding variation
Theory of knowledge
Psychology
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Systems
• Most organizational processes are crossfunctional
• Parts of a system must work together
• Every system must have a purpose
• Management must optimize the system
as a whole
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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 improvements
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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
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Psychology
• People are motivated intrinsically and
extrinsically
• Fear is demotivating
• Managers should develop pride and joy
in work
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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.
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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
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Juran’s Quality Trilogy
• Quality planning
• Quality control
• Quality improvement
www.juran.com
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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.”
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Philip B. Crosby
Absolutes of Quality Management:
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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
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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 motivation
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Kaoru Ishikawa
• Instrumental in developing Japanese
quality strategy
• Influenced participative approaches
involving all workers
• Advocated the use of simple visual
tools and statistical techniques
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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:
Loss
No Loss
0.480
0.500
Loss
0.520
Tolerance
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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
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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
U.S. companies
Malcolm Baldrige,
former U.S. Secretary
of Commerce
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Criteria for Performance
Excellence
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Leadership
Strategic Planning
Customer and Market Focus
Information and Analysis
Human Resource Focus
Process Management
Business Results
Baldrige
Award trophy
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The Baldrige Framework –
A Systems Perspective
Organizational Profile:
Environment, Relationships, and
Challenges
2
Strategic
Planning
5
Human
Resource
Focus
7
Business
Results
1
Leadership
3
Customer &
Market
Focus
6
Process
Management
4
Information and Analysis
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Baldrige Award Evaluation Process
Receive Applications
Stage 1
Independent Review
Judges Select for
Consensus Review?
No
Feedback report
to applicant
No
Feedback report
to applicant
Stage 2
Consensus Review
Judges Select for
Site Visit Review?
Stage 3
Site Visit Review
Stage 4
Judges Recommend Award
Recipients to
NIST Director/DOC
Feedback report
to applicant
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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)
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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
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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
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Quality Awards Around the World
Programs in place
No programs
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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.
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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
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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
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Structure of ISO 9000 Standards
• 21 elements organized into four major
sections:
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Management Responsibility
Resource Management
Product Realization
Measurement, Analysis, and Iimprovement
See Table 3.7
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ISO 9000:2000 Quality
Management Principles
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4.
5.
6.
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8.
Customer Focus
Leadership
Involvement of People
Process Approach
System Approach to Management
Continual Improvement
Factual Approach to Decision Making
Mutually Beneficial Supplier Relationships
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