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Chapter 2

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What was quality and manufacturing like during these times?

Pre-industrial revolution Post-industrial revolution /

Pre- World War II Post World War II 70’s-80’s Current

“But their labor is so much cheaper, how can we compete?”

History

Show Quality Evolution Video

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Management’s responsibility

All employees

Design and ManufacturingEngineering

QA

Every employee is actively involved in the quality initiative, resulting in

measurable improvements.

Top Management

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All work is part of interconnected processes Variation is always present in a process More than 85% of the problems are due to

variation in the processes Process decisions (quality improvement)

must be based on appropriate data from the process

--think of driving

Statistical thinking

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First, we have to get people to understand why we make decisions based on data

Second, we have to make sure the data isn’t of worthless value

“In God we trust, all others must bring data”

- Deming

Statistical thinking

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How do these fit?

Taken from “Knowledge Based Management,” Air Academy Press

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1900-1993 1891-1967

Deming and Shewhart

Dr. Deming in Japan, circa 1980

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1. Create a constancy of purpose toward the improvement of product and service. Consistently aim to improve the design of your products. Innovation, money spent on research and education, and maintenance of equipment will pay off in the long run. Not a fad.

2. Adopt a new philosophy of rejecting defective products, poor workmanship, and inattentive service. Defective items are a terrible drain on a company; the total cost to produce and dispose of a defective item exceeds the cost to produce a good one, and defective items do not generate revenues. Quality is a must.

3. Do not depend on mass inspection because it is usually too late, too costly, and ineffective. Realize that quality does not come from inspection, but from improvements on the process. Prevention not detection.

4. Do not award business on price tag alone, but consider quality as well. Price is only a meaningful criterion if it is set in relation to a measure of quality. The strategy of awarding work to the lowest bidder has the tendency to drive good vendors and good service out of business. Preference should be given to reliable suppliers that use modern methods of statistical quality control to assess the quality of their production. QDRC

5. Constantly improve the system of production and service. Involve workers in this process, but also use statistical experts who can separate special causes of poor quality from common ones. Continuous improvement.

6. Institute modern training methods. Instructions to employees must be clear and precise. Workers should be well trained. Continual training.

7. Institute modern methods of supervision. Supervision should not be viewed as passive "surveillance," but as active participation aimed at helping the employee make a better product. Leadership not managerial.

Deming’s 14 points

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8. Drive out fear. Great economic loss is usually associated with fear when workers are afraid to ask a question or to take a position. A secure worker will report equipment out of order, will ask for clarifying instructions, and will point to conditions that impair quality and production. Drains the system.

9. Break down the barriers between functional areas. Teamwork among the different departments is needed. Concurrent work, no silos.

10. Eliminate numerical goals for your work force. Eliminate targets and slogans. Setting the goals for other people without providing a plan on how to reach these goals is often counterproductive. It is far better to explain what management is doing to improve the system. Must have a plan.

11. Eliminate work standards and numerical quotas. Work standards are usually without reference to produced quality. Work standards, piece work, and quotas are manifestations of the inability to understand and provide supervision. Quality must be built in.

12. Remove barriers that discourage the hourly worker from doing his or her job. Management should listen to hourly workers and try to understand their complaints, comments, and suggestions. Management should treat their workers as important participants in the production process and not as opponents across a bargaining table. Set up a process to allow success.

13. Institute a vigorous program of training and education. Education in simple, but powerful, statistical techniques should be required of all employees. Statistical quality control charts should be made routinely and they should be displayed in a place where everyone can see them. Such charts document the quality of a process over time. Employees who are aware of the current level of quality are more likely to investigate the reasons for poor quality and find ways of improving the process. Ultimately, such investigations result in better products. Encourage advancement.

14. Create a structure in top management that will vigorously advocate these 13 points. Change the old way of thinking.

Deming’s 14 points

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1. Lack of constancy of purpose, failure to plan ahead

2. Emphasis on short-term profits

3. Evaluation of performance, merit rating, annual review

4. Mobility of management; job hopping

5. Use of visible figures only for management

6. Excessive medical costs

7. Excessive legal cost

Deming’s 7 deadly diseases

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1. The definition of quality is conformance to requirements

2. The system of quality is prevention

3. The performance standard is zero defects

4. The measure of quality is the price of nonconformance

“Quality is free”- Phillip Crosby

Crosby’s Four Absolutes of Quality

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Provides a step-by-step plan for management to follow

1. Management commitment2. The quality improvement team3. Measurement4. The cost of quality5. Quality awareness6. Corrective action7. Zero Defects planning8. Employee education9. ZD Day10. Goal setting11. Error-cause removal12. Recognition of good work in the quality

process13. Quality councils14. Repetition

Crosby’s 14 steps to Quality Improvement

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1. Build awareness of the need and opportunity for improvement.

2. Set goals for improvement.3. Organize to reach the goals (have a

plan and an organizational structure).

4. Provide training.5. Carry out projects to solve problems.6. Report progress.7. Give recognition.8. Communicate results.9. Keep score.10.Maintain momentum by making

annual improvement part of the regular systems and process of the organization.

Juran’s 10 Steps

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1. Study quality improvement ahead of anyone else in your company and understand the issues involved.

2. Establish the policies towards promoting quality improvement efforts--what the general attitudes will be.

3. Specify the priorities for implementing quality improvement and the short and long term goals.

4. Assume a leadership role in making quality improvement happen.

5. Provide a means for educating the people.6. Check to see if quality improvement is

implemented as planned.7. Make clear the responsibility of top

management.8. Establish a system of cross functional

management.9. Drive home the notion that the outputs from

your process are inputs to your customers.10. Provide leadership towards making a

"breakthrough" happen.

Ishikawa - What must top management do?

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1. Instant results2. Lack of commitment by

management3. Lack of long term planning4. Limited application5. Overdependence on

computerized QC6. No market research7. Lack of funds committed to the

quality process8. Underestimating the workforce9. Failure to acquire a

statistician/consultant10.Failure to involve the suppliers

Pitfalls in the quest for quality

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TQM is management and control activities based on the leadership of top management and based on the involvement of all employees and all departments from planning and development to sales and service.

These management and control activities focus on quality assurance by which those qualities which satisfy the customer are built into products and services during the above processes and then offered to consumers.

Total organization using  Quality principles for the Management of its processes.

Total Quality Management

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Malcolm Baldrige was Secretary of Commerce from 1981 until his death in 1987

Baldrige was a proponent of quality management

Is given by the President of the United States to businesses and to education and health care organizations

Judged to be outstanding in seven areas

Congress established the award program in 1987 to recognize U.S. organizations for their achievements in quality and performance and to raise awareness about the importance of quality and performance excellence as a competitive edge.

MBNQA

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The award is not given for specific products or services.

Three awards may be given annually in each of these categories: manufacturing and service, small business, education and health care.

The National Institute of Standards and Technology (NIST) manages the Baldrige National Quality Program in close cooperation with the private sector.

MBNQA

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http://www.quality.nist.gov/

MBNQA business criteria

From NIST “2009-2010 Criteria for Performance Excellence”

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Seven areas of business assessment

Leadership Results

Information

From NIST “2009-2010 Criteria for Performance Excellence”

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How it works

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ISO is short for the International Organization for Standardization

The United States’ representative to ISO is the American National Standards Institute (ANSI)

The ISO 9000 family addresses "Quality Management.” This means what the organization does to fulfill:◦ the customer's quality requirements, and ◦ applicable regulatory requirements, while aiming to ◦ enhance customer satisfaction, and ◦ achieve continual improvement of its performance in

pursuit of these objectives. Not specific to any particular product. Following the ISO 9000 standards does not

indicate that every product or service meets the customers’ requirements, only that the quality system in use is capable of meeting them.

ISO 9000

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The first step is to put together a quality management system that refers to the activities you carry out within your organization to satisfy the quality-related expectations of your customers.

To ensure this, customers or regulatory agencies insist that your organization demonstrate that your quality management system conforms to the ISO 9000 quality system models.

The customer “second party,” or an independent “third party” registrar comes into your organization to “audit,” or verify, that you have such a system in place.

When a registrar finds your organization fulfills the requirements of the ISO 9000 standards, your organization becomes “registered” and receives a certificate that is accepted by many of your customers.

How it works

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ISO 9000:1994: This standard provides guidelines and basic definitions that describe what the series is about and helps in the selection and use of the appropriate ISO standard (ISO 9001, 9002, or 9003) for any organization.

ISO 9001:1994: This standard is a model for use by organizations (both manufacturing and service) to certify their quality system from initial design and development of a desired product or service through production, installation, and servicing.

ISO 9002:1994: This standard is identical to ISO 9001 except it omits the requirement of documenting the design/development process.

ISO 9003:1994: This standard is for use by organizations that need only to show, through inspection and testing, that they are delivering the desired product or service.

ISO 9004:1994: This standard is a basic set of guidelines that organizations can use to help them develop and implement their quality management system.

The ISO 9000:1994

ISO9000:1994 Dead, 15 December 2003ISO9000:1994 Dead, 15 December 2003

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ISO 9000:2005: Quality management systems – Fundamentals and vocabulary

ISO 9001:2008: Quality management systems – Requirements

ISO 9004:2009: Managing for the sustained success of an organization – A quality management approach

ISO 19011:2002: Guidelines for quality and/or environmental management systems auditing

ISO 9001:2008

The 1994 editions of ISO 9001, ISO 9002 and ISO 9003 standards are consolidated into the single ISO 9001:2008 standard.

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Break into two groups Review the major points of the

quality initiatives we talked about in class and what was in your reading assignment

Use Deming’s 14 points and state for each point how you could be successful in this class

Example1. Constancy of purpose

A. Ultimate goal is to graduateB. Long term planning

1. Stay in school2. Extra reading

C. Investigate job opportunities

Class Exercise

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Lack of management commitment Inability to change culture Improper planning Lack of continuous education Incompatible organizational

structure - isolated individuals or departments

Ineffective measurement technique and lack of access to data and results

Paying inadequate attention to internal and external customers

Inadequate use of empowerment and teamwork

Successful ways to fail at SPC implementation