Transcript Quality Improvement - Head Scratching Notes

Philosophies Regarding Quality –
Juran and Crosby
Prepared by: Bhakti Joshi
Date: December 12, 2012
Brief Characteristics of Deming’s
Quality Principles
• Introduced Statistical Process Control (SPC) to
measure quality
• Introduced “Plan, Do, Study/Check, Act”
(Quality Circle)
– Design the product
– Make it; test it
– Put it on the market
– Test consumption behaviour and underlying
reasons
Origins of Juran’s Philosophy
• Juran’s father was a shoemaker during the preindustrialisation era
• Juran’s father presided over the entire production
process
• Juran considered his father to be a producer and his
own customer
• Father had an assembly line following the concept of
division of labour
• Each artisan controlled every step and understood
every error that was made
• This process changed after industrialisation across
industries
Juran’s Trilogy
Quality
Planning
• Identify Customers
• Determine
Customer needs
• Develop product
features
• Establish quality
goals
• Develop a process
to produce
needed product
features
• Prove process
capabilities that
can meet quality
goals
Quality
Control
• Choose control
subjects
• Choose units of
measurement
• Establish
measurement
• Establish
standards of
performance
• Measure actual
performance
• Interpret the
difference (Actual
vs standard)
• Take action on
difference
Quality
Improvement
• Prove the need for
improvement
• Identify specific
projects for
improvement
• Organise to guide
the projects
• Organize for
diagnoses – for
discovery of
causes
• Provide remedies
• Prove that
remedies are
effective under
current conditions
• Provide for control
to hold gains
Brief Characteristics of Juran’s Trilogy
• Product features that met customer needs
• Quality is always planned
• Introduced the concept of calculating costs of poor
quality
• Encouraged alterations in processes without adding
additional conditions or parameters
• Questioned or debated the need for ‘Customer Care
Services’, ‘Warranties’
• Introduced Quality by Design (QdB), (Example, United
States’ Food and Drug Administration (FDA))
• Introduced the “Pareto Principle” (80% consequences
stem from 20% of the causes)
Differences in Deming’s and Juran’s
Philosophies
• Deming’s philosophy on quality was a comprehensive
theory whereas Juran’s philosophy was an analytical
and practical approach
• Deming focused on description (use of SPC) and
systematic view of a business whereas Juran focused
on managing quality and quality functions
• Deming was a philosopher who provided a different
view or perspective, whereas Juran was a practitioner
who desired to teach business practices
Similarities in Deming’s and Juran’s
Philosophies
• Deming’s argument on variations and Juran’s argument on quality
planning, both focus on improvement in processes. Both
philosophies are related to “Quality Circle”
• Deming and Juran observed that for a business to succeed, quality
management efforts need the long-term commitment and
involvement of top management
• Rejected reliance on slogans to motivate workers mainly because the
performance depended upon the business’ systems and not the
operators
• Both have concerns regarding current practices like incentive pay
that are based on faulty or outmoded premises
• Placed great importance on planning as decisions made “upstream”
or at top management effect the final results
• Both focused on customer-needs and rely heavily on market research
though Juran’s approach is engineering-driven that translated
customers’ vision of quality into what can be produced
Quality Circle
• Dr. Ishikawa of Mushashi Institute of Technology,
Tokyo added a dimension to quality
• Derived from the concept of Plan-Do-Check-Act
developed by Deming
• Also inspired by Juran’s Trilogy especially quality
control
• Basic elements – A group of volunteers trained to
identify, analyse and solve work-related problems
and present solutions to the management to
improve performance of the organisation
Quality circle – Case Study
• Name of the organisation – Workshop at
University Polytechnic, Aligarh Muslim University
(AMU)
• Section where the circle is operating – Machine
and fitting shop
• Number of meetings held – 10
• Problems:
– Material wastes
– Losses in savings and finances
– Constrained relationship between workers and
managers
Quality circle – Case Study (contd…)
• Issues related to individuals, machines, material and
methods
• Material consumption – Iron & Steel products
• Problem solving techniques:
– Team work or brainstorming
– Data collection
– Pareto principle (80/20 rule: 20% of defects caused 80% of the
problems or 80% of stock comes from 20% of your suppliers or
20% of the staff will cause 80% of problems or 20% of workers
will generate 80% of your production – to focus on the 20%)
– Ishikawa diagram (Fishbone diagram) – causal diagrams
– Cumulative line diagram
Quality circle – Case Study (contd…)
• Causes related to individuals - lack of knowledge about
materials; no proper instructions; materials cut more than
required; lack of knowledge on operations or handling tools
• Causes related to machines – machines not operating at
optimum conditions; frictional wear of machine parts;
problems with misalignment of machine components; no
implementation of new and automatic machines
• Causes related to methods – no inspection of shop after
materials used; no proper storage of materials; lack of
knowledge for improving existing methods of production
• Causes related to material – no proper inspection of
material dimension before cutting; materials did not have
required composition
Quality circle – Case Study (contd…)
• Results:
– Improvement in inter-personal relationship
– Self-confidence was developed in solving more
complex problems related to production
– Building teamwork
– Material wastes were reduced with regular
inspections
– Overall decrease in wastes and increase in
finances and savings
About Philip Crosby
• Employed as a quality control engineer at Martin Company’s (now
Lockheed Martin) missile production plant
• Function was to determine whether intensified inspection would
result in ability to ship missiles completely free of defects
• Coined the concept of Zero-Defects (Z-D)
• Current system allowed less defects to reach customers with huge
amount of inspection company wished NO defects
• Crosby persuaded workers in his department to sign “no defects”
pledges.
• Resulted into delivery of a Pershing missile two weeks ahead of
schedule with no detectable defects among its 25,000 parts
• Crosby’s name became synonymous with the term ‘zero defects’
Philip B. Crosby’s Principles of Quality
• Crosby worked for Martin Company which became
currently Lockheed Martin, representing the aerospace
industry
• DIRFT – “do it right first time”
• Coined the concept of “Zero Defects” based on 4
underlying principles
1.
2.
3.
4.
•
Quality is conformance to requirements
Defect prevention is preferable to quality inspection and
correction
Zero defects is the quality standard
Quality is measured as the Price of Nonconformance (PONC)
Argued that mistakes are caused by two things – lack of
knowledge or lack of attention
Philip B. Crosby’s 14 Step Quality
Improvement Program
1. Management Commitment
Communication instead of motivation to management regarding
quality
2. Quality Improvement Team
Each department’s representative forms a team and appoint one of
them to head the team
3. Quality Measurement
Standardized measurements that reflect possibility of defects
4. Cost of Quality Evaluation (COQ)
Indication of corrective action towards reducing costs leading to profits
Philip B. Crosby’s 14 Step Quality
Improvement Program
5. Quality Awareness
Communication about quality to workforce
6. Corrective Action
Encourage everyone to highlight any issues, problems, concerns, etc
that can be rectified immediately
7. Establish an Ad hoc committee for the Zero Defects Program
Everyone understands and practices ‘zero defects’
8. Supervisor Training
Conducting orientation with all levels of management
Philip B. Crosby’s 14 Step Quality
Improvement Program
9. Zero Defects Day
Emphasis on the commitment
10. Goal Setting
Determining tasks for the team for a 30, 60 or 90 day time period
11. Error Cause Removal
Providing inputs on errors
12. Recognition
Establish award programs for individuals meeting goals or performing
acts ensuring quality
Philip B. Crosby’s 14 Step Quality
Improvement Program
13. Quality councils
Bring quality professionals and team together to regularly
communicate, determine actions and improve quality program
14. Do it Over Again
Set up a new team after 18 months and repeat the program all over
Costs of Quality (COQ)
• Prevention costs – costs incurred in preventing poor
quality or defects from occurring; Related to quality
control
• Appraisal costs – Costs incurred in the process of
uncovering defects; related to costs of inspections,
testing, audits etc.
• Internal failure costs – costs associated with discovering
poor product quality before reaching the customer. For
e.g. rework, wastes, machine downtime, etc
• External failure costs – Costs associated with quality
problems that occur at the customer site that damages
customer faith and loyalty
Crosby’s measurement in nonmanufacturing units
Accounting
Percentage of late
reports
Computer input
incorrect
Errors in specific
reports as audited
Engineering
Change orders due
to errors
Drafting errors
found by checkers
Late releases
Finance
Billing errors (check
accounts
receivables
overdues)
Payroll errors
Account payable
deduction missed
Hotel front desk
Guests taken to
unmade rooms
Reservations not
honoured
Marketing
Contract errors
Order description
errors
Purchasing
Purchase order
changes due to
error
Late receipt of
material
Rejections due to
incomplete
description
Quality Assurance
• Two Principles:
– Juran’s principle of “Fit for purpose”
– Crosby’s principle of “Do it Right First Time”
• Systematic monitoring and evaluation of
various aspects of a project, service or facility
to maximise probability that standards of
quality are being attained by the production
process
Quality Assurance and Total Quality
Management
• An integrated organizational effort designed to
improve quality at every level
• Value for price paid – assumes quality is price sensitive.
For example, a personal finance seminar conducted in
two different schools but at different fees - Greater
value for the price
• Support services – quality also associated with people,
processes and organizational environment –
• Psychological criteria – Focuses on judgmental
evaluation of what constitutes product or service
quality – Reputation of Rolex or Mercedes-Benz
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