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Philosophies and Philosophies and FrameworksFrameworks

Leaders in the Quality Revolution

• W. Edwards Deming• Joseph M. Juran• Philip B. Crosby• Armand V. Feigenbaum• Kaoru Ishikawa• Genichi Taguchi

Who’s Who?

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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

standardwww.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 Results

Baldrige 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

Feedback report to applicant

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 Self Assessment and the Baldrige Baldrige

National Quality ProgramNational Quality Program

Self Assessment and the Self Assessment and the Baldrige Baldrige

National Quality ProgramNational 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 Principles1. Customer Focus2. Leadership3. Involvement of People4. Process Approach5. System Approach to Management6. Continual Improvement7. Factual Approach to Decision Making8. Mutually Beneficial Supplier Relationships