Quality is Free(1)-1

8/2/2019 Quality is Free(1)-1

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Quality is freeThe Art of Making Quality

Certain

Philip B. Crosby


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Part 1The Understanding


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Making Quality Certain

Making quality certain saves businessesmoney by doing things properly the first

time and so avoiding rework.

Concentrating on making quality certaincan increase profits by up to 5%-10% ofsales.


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Making Quality Certain

Making quality certain starts with:

getting top management to see quality as

just as important as other functions.

Explaining quality in a way everyone can

understand

Establishing a position where you can be a

champion of quality Reiterating that quality is achievable,

measurable & profitable


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The ITT Case: Quality Program

Objectives

Establish a competent qualitymanagement program in every

operation, both manufacturing andservice.

Reduce the cost of quality

Cost of quality: the expense of doing thingsincorrectly

Make ITT the standard for qualityworldwide


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Quality Control Programs

Quality controlReliability

Quality

engineeringSupplier quality

Inspection

ProductqualificationTrainingTesting

Consumer affairsQuality

improvementsMetrology

A complete quality control program is

a table of integrity systems:


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Integrity Systems

Integrity systems should be supported by 4pillars:

1. Management Participation:management must be active when itcomes to quality.

a. 1st struggle: overcoming the conventionalwisdom regarding quality

2. Professional Quality Members: hiring,training and empowering qualityprofessionals to do their jobs


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Integrity Systems (contd)3. Original Programs: quality control programs

should involve activities that can beimplemented at all levels.

a. Stressing quality improvement throughdefect prevention

b. Should be implemented on a unit by unitbasis

4. Recognition: providing effective recognitionfor individuals who support quality the

program over time.a. Cash/ financial rewards are not personal

enough


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Erroneous Assumptions About

Quality

1. Quality signifies the relative worth ofthings

The Truth:

Quality must be defined as conformance

to requirements

Requirements must be clearly defined so

they can be clearly understood Measurement must be ongoing to

determine conformance to requirements


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Quality

2. Quality is intangible and therefore notmeasurable

The Truth:

Quality is measured by the cost of non-

conformance

Costs are divided into prevention,

appraisal and failure categories Measurements should be displayed for

everyone to see


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Quality

3. There is an economics of quality

The Truth:

It is always cheaper to do things right the

first time

Finding the least expensive way to do a job

requires getting into process certification

and product qualification.


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Quality

4. Quality programs start with workers

The Truth:

People in manufacturing contribute little to

the prevention of problems; planning and

creation is done elsewhere (up top).


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Quality

Quality originates in the quality department

The truth:

Quality problems should be called by thenames of those who caused them

The quality department should measureconformance using available means

Results should be reported clearly and

objectively

Drive to develop a positive attitude towardquality improvement.


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The Benefit of Quality

Management

Quality Management is a systematic wayof guaranteeing that organized activities

happen the way they are planned Quality management is needed because

nothing is simple anymore

People at the lower level can do very little

to improve products or services.


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The Quality Management

Maturity Grid

Management: the function responsible forestablishing the organizations purpose,

setting measurable objectives, taking therequired action to achieve objectives

Quality management is too important to

leave to chance

Management must have a way ofmeasuring and controlling quality


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The Quality Management

Maturity Grid

The Quality Management Maturity Grid allows

everyone (regardless of quality training) to

determine where their operations stand froma quality standpoint.

The grid is divided into five stages of maturity

Six management categories form the

experience relations that we must go through

to complete the matrix


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Stages of Maturity

Stage 1: Uncertainty

Management has no knowledge of quality

as a positive management tool.

Stage 2: Awakening

Management begins to realize that quality

management can help but are unwilling to

commit the resources to make it happen


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Stages of Maturity

Stage 3: Enlightenment

Commitment to a quality improvement

program Stage 4: Wisdom

Management has the chance to make qualitymanagement changes permanent

Stage 5: Certainty

Management considers quality management tobe a vital part of company management


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The Grid As a Comparison

Measurement

The Quality Management Maturity Grid:

Is best used to project a view of the

business that everyone can accept

Is valuable for comparing the status of

different companies or divisions

Provides a continual source of direction

concerning what needs to be done next


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Understanding Responsibility

Using the Grid

Attitude is what management understanding is

all about Be prepared to admit that some problems may

be caused by individuals responsible formanagement

Uncertainty

Blames quality problems on the quality dept. Uncertainty lives in the present, focuses on

finding and solving todays problems


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Understanding Responsibility

Wisdom

Concentrating on keeping quality

management going, making it part ofcompany culture

Constantly seeking out areas forimprovement

E.g. Buck- a- day

Certainty Complete defect prevention has been

achieved


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Changing Management

Attitudes

The most important way to changemanagement attitudes is to put them in

contact with someone they will believei.e. their peers

Conduct a pilot program

Get participants to share their experiences

Ask for commitments Recognize all achievements


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Quality Management Function

Quality is something that is rarely definedand directed in formal policies for

companies. These are needed however or else people

will feel as though they can make their own

rules.

A lot of problems can be avoided if you layout a clear policy covering the entire

quality operation.


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Quality Management Function

Reasons why quality organization usually isnot done at companies

Management doesnt trust others to makedecisions about quality

Management doesnt understand the

value of a good quality operation


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Quality Department Functions

Product Acceptance

Supplier Quality

Quality Engineering

Quality Improvement

Consumer Affairs

Engineering


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Quality Department Functions:Product Acceptance

Testing

Measures the performance and

integrity of product at all stagesthroughout production

Has more variables than inspection,more pressure put on testing

Biggest Problem- software used to testproducts (especially electronics) has tobe tested as well


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Quality Department Functions:Supplier Quality

Supplier Quality Engineering

The shortest time lag in the operation is

usually spent searching for the supplierQuality needs to be involved in the

search for suppliers, just as withpurchasing

Quality personnel should get involvedearlier in the decision process for whatto buy


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Quality Department Functions:Quality Engineering

Data Analysis and Status Reporting

Inspection test brings about 2 results

Product is either accepted or rejected

Measurement must be recorded

Measurements should be visible on charts in

the work area (progress charts and reports)


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Corrective Action

It isnt what you find, its what you do about

what you find

Learn from the past to make a smoother

future

Best source of info about situations requiring

corrective action:Observation of actual rejections

Actual trends


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Planning

Must be a key part of quality engineering

Everything happening in a quality operationshould be a result, not a reaction

Each and every task must be listed and

assigned some sort of action line

Philosophy- GOOD things only happenwhen planned; BAD things happen on their

own.


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Qualification of products, processes, andprocedures

Every new product/change of productmust be tested and proven before it canbe used

Test in the environment it is going to beused in

It is better to make the change in productor new product prove itself before sendingit out to fend for itself


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Audit

Planned examination of a function

Successful Audits follow these rules: Be specific

Select individuals to perform the audit whoare not interested in the outcome

Brief the audit team and give them time to

write a proper reportDo not tell them the expected results

Real cause of problems lie behind the findings


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Quality Education

Three Basic Forms

Orientation to the concepts of quality andthe problems that have a harmful effect onproduct; customer expectations

Direct skill improvement in specific and basicskills- telephone handling, procedure writing

Continual low level, concentrated barrage ofquality idea communications andconditioning


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Quality Department Functions:Quality Improvement

Do not give operation the option of nothaving a quality improvement plan, list it

in your policy History shows once a program begins a

quality improvement plan, they stick withit because they like the positive results


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Quality Department Functions:Product Safety

How can you keep your product fromhurting customers/others?

Planned design reviews

Product qualification

Quality control

Product safety is not a LEGAL problem, itsan ETHICAL one.


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Handling Problems

Operations that want to handle problemsfor the purpose of solving them must

Create an open society within their wallsthat is imbued with objectivity and integrity

Integrity- we do things right around herebecause it is the right thing to do

Objectivity- placing the blame of problemson the job, not individuals. It could just be amismatch of task and personnel.


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Handling Problems

Over 85% of problems can be solved atthe first level of supervision they encounter

Of the other 15%, 13% can be solved withinthe second level of supervision

The remaining 2% may take as many as

three levels of operation or organization,

BUT THEY CAN BE SOLVED.


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Cost of Quality

Quality is free, but no one is ever going toknow it, if there isnt some sort of agreed-

on system of measurementCosts that should be included in the

measurement

Prevention Costs

Appraisal Costs Failure Costs


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Measuring the Cost of Quality

Prevention Costs

Costs of all activities undertaken to prevent

defects in all aspects of beginning andcreating a product.

Design reviews

Product qualifications

Tool control

Operation training Preventive maintenance

AND MANY MORE!


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Failure Costs

Associated with thing that have been

found to not conform or perform torequirements

Evaluation, disposition, and consumer

affairs aspects of such failures


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Appraisal Costs

Costs incurred while conducting inspections,tests, and other planned evaluations used todetermine whether produced hardware,software, or services conform to theirrequirements

Documents that describe conformance:

Prototype inspection and test

Supplier surveillance Product acceptance

Packaging inspection


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Cost of Quality

Once the COQ for the operation iscalculated, the next step must be figuring

out what to do with itCOQ calculation is the only key to help

companies properly implement qualitymanagement


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Quality Improvement ProgramThe Fourteen Steps

ManagementCommitment

Quality Improvement

Team Quality

Measurement

COQ Evaluation

Quality Awareness

Corrective Action Ad Hoc Program

Supervisor Training

Zero Defects Day

Goal Setting Error Cause Removal

Recognition

Quality Council

Do it Over Again


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Quality Improvement Program Step One: Management Commitment Action: discuss the need for quality

improvement with the management people;

emphasize need for defect prevention Accomplishment: Ensures everyones

cooperation so long as there is some progress

Step Two: Quality Improvement Team Action: Bring together representatives from

each department for quality improvementteam

Accomplishment: All tools necessary to do thejob now are together in one team


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Quality Improvement Program Step Three: Quality Measurement Action: quality measurements for each area of

activity must be established where they dont

exist and improved where they do Accomplishment: Strengthens the inspections

and test functions and assures propermanagement

Step Four: Cost of Quality Evaluation Action: Find more accurate figures because

initial estimates are shaky Accomplishment: removes any suspected bias

from the calculation


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Quality Improvement Program Step Five: Quality Awareness Action: share with employees the

measurements of what nonquality is costing-

provide visible evidence of the concern forquality improvement Accomplishment: Gets everyone in the habit of

talking positive about quality

Step Six: Corrective Action Action: Take problems requiring attention to

meetings at each level of supervision Accomplishment: The habit of identifying and

correcting problems begins


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Quality Improvement Program Step Seven: Establish an Ad Hoc Committee for the

Zero Effects Program Action: team is selected to investigate the zero defects

concept and ways to implement the programs Accomplishment: ensures that the goals of the program

will be firmly supported by the companys thoughtleaders

Step Eight: Supervisor Training Action: formal orientation with all the levels of

management; ensure that they can re-teach to their

departments each steps Accomplishment: Supervision becomes tuned into

program and realized its value for themselves; they startconcentrating their action on the program


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Quality Improvement Program Step Nine: Zero Defects Day Action: establish ZD as the performance

standard across the company; should be done

in one day to ensure everyone understands it inthe same way Accomplishment: provides emphasis and a

memory that will be long lasting

Step Ten: Goal Setting Action: At meetings supervisors est. measurable,

specific, 30/60/90 day goals Accomplishment: people begin thinking in terms

of meeting goals as a team


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Quality Improvement Program Step Eleven: Action: each employee writes out problems

that keep them from performing error free work,

should be fixed ASAP Accomplishment: people know now that their

problems can be heard and answered

Step Twelve: Recognition Action: non financial award programs

established to reward those who meet goals or

perform outstanding acts Accomplishment: forms appreciation by all and

gains support for the program


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Quality Improvement Program Step Thirteen: Quality Councils Action: quality professionals and team

chairpersons brought together regularly to

discuss ways of improving quality program Accomplishment: best source of info for status

of programs and plan of action

Step Fourteen: Do it over again Action: set up team of representatives and start

the quality program all over again Accomplishment: repetition makes quality a

part of the woodwork and if quality isntengrained in a company, it wont happen


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Management Style Listening- you can convey no greater honor than to actually

hear what someone has to say

Cooperating You dont just cause plays to be executed, you

protect others in the process

Helping Let someone lean on you without expecting to

lean back

Transmitting How you come across to others shouldnt be left to

chance


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Management StyleCreating

Original solutions are a result in uncovering

unoriginal problems Implementing

Someone has to actually get the job done

Learning

When you have an answer for everything,youve stopped learning


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Management Style Leading

Leaders start to fail when they begin believing

their own material Following

You never reach a point when youre notworking for someone so learn to be good at it

Pretending

If you are going to be an actor, be a good onebut stay out of management


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Part Two: TheDoingThe HPA Corporation

Quality ImprovementProgram


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The biggest problem

managers face in QualityPolicy is:

Accomplishing all the things they said

could be accomplished.


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HPA Corporation After 3 years of attempting to increase

profitability, HPA was met with problems.

Productivity was dropping & rejections wererising

All team members were to blame, but no onewas responsible

Dealers were furious of the increasingly poorquality of HPA products

Corrective actions were making sure theproblem didnt get worse, but nothing wasgetting better


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HPA Corporation HPA knew it was time to establish

understandable quality performance

standards with: Easy communication

Recognition of a measurable goal

Re-usable application for all quality issues

within their group


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Step 1: Management

Commitment

Purpose:Make it clear wheremanagement stands on quality.

HPAs first action was to understand whatwas needed for their group to improve.

Their quality policy was crafted from

company leaders expectations of how well

the group should be doing their jobs.

HPA established a formal policy for

personnel not have to draft their their own.


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Step 1: Management

Commitment

HPA made sure their policy was NOT:

Economics-driven

Numerical

Unavailable to view by all members.

Indicative to deviation from it


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Step 2: The Quality

Improvement Team

Purpose: Run the quality improvementprogram.

HPA established a fulltime Chairperson tomanage the Quality team that was:

A mature member of management whounderstood the need for quality improvement

Confided in by the rest of management


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Step 2: The Quality

Improvement Team

HPA quality improvement team members:

Helped lay out the quality improvement

program Represented all departments on the team

Represented the team to all departments

Made sure quality team decisions were

executed by their own department Contributed to the implementation of the

improvement


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Step 2: The Quality

Improvement Team

Team expectations were set with firmdates for each step of accomplishment

Progress was reviewed at each staffmeeting

Constant emphasis ensured expectationsuccess


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Step 3: Quality Measurement Purpose: To provide a display of current and

potential nonconformance problems in a mannerthat permits objective evaluation and correctiveaction.

HPAs quality chairperson made sure measurement

standards were:

Created from inspection and test reports

Straightforward and understandable by all who usedthem


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Step 3: Quality Measurement HPA took advantage of using trend charts and

problem identification to establish and exposeimprovement goals and hurdles

HPA focused on quality reporting that included:

Part name, number, date, inspector and operator

name

Amount of parts checked

Amount of parts found defective

Specific description of the defect

Operation and area where detected


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Step 3: Quality Measurement HPA also worked on reporting service improvement

performance through:

Recognizing all existing situations where performance

service issues existed Establishing a method of measuring current status

Establishing a program for correcting service problems


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Step 4: The Cost of Quality Purpose: to define the ingredients of the cost of

quality, and explain its use as a management tool.

HPA established their cost of quality (2.5 percent) tounderstand their opportunities to decrease the cost.


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Step 5: Quality Awareness Purpose: To provide a method of raising the

personal concern felt by all personnel in the

company toward the conformance of the productor service and the quality reputation of thecompany.

HPA made sure to understand the expense of dealing

with the quality problems their group faced.

HPA managed quality awareness through:

Regular meetings with management

Communicating quality issues with the general staff


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Step 6: Corrective Action Purpose: To provide a systematic method of

resolving forever the problems that are identifiedthrough previous action steps.

HPA took corrective action in identifying quality

problems by establishing constant communication of

expectations with group members.

Corrective action communication helped reduce quality

issues.


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Step 7: Zero Defects Planning

Purpose: To examine the various activities that mustbe conducted in preparation for formally launchingthe Zero Defects Program

HPA established a list of action steps that built up to ZD

day, including: Explaining the concept and program for management

Determining the necessary materials to ensure programpreparation

Deciding what method of launching the program best

suits the group Spelling out the functions that will be accomplished

Establishing recognition for success

Identifying the program and making plans for itsexecution


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Step 8: Supervisor Training Purpose: To define the type of training that

supervisors need in order to actively carry out their

part of the quality improvement program HPA ensured supervisors understood the goal of

reaching Zero Defects and how to reach it


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Step 9: Realizing Zero Defect

Day

Purpose: To create an event that will let allemployees realize that there has been change

HPA ensured all group members involved in the effortwere informed when ZD day was reached.


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Step 10: Goal Setting

Purpose: To turn pledges and commitments intoaction by encouraging individuals to establishimprovement goals for themselves and their groups

HPA encouraged each department within their groupto establish two personal achievable goals within their

department to go past the already-reached Zero

Defects goal.


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Step 11: Error Cause Removal Purpose: To give individual employees a method of

communicating to management the situations thatmake it difficult for them to meet their personalgoals

HPA kept a line of communications open with

departments to assess the practicality and necessity of

reaching their new goals.


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Step 12: Recognition Purpose: To appreciate those who participate

HPA continued appreciation and celebration for all

department groups following the quality

improvement.


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Step 13: Quality Councils

Purpose: To bring together professional quality

people for planned communication on a regularbasis.

HPA kept meeting with quality control professionals to

expose them to new methods and goals for

improvement.


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Step 14: Do it Over Again

Purpose: To emphasize that the qualityimprovement program never ends

HPA understood that at the end of one qualityprocess, another begins to fix new rising issues.


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PART THREE

The Tools


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Make Certain The last chapter comprises of a complete

step by step description of the eventsnecessary in running a complete Make

Certain program.Make Certain is a person-to-person, white-

collar-oriented, improvement programthat gets everyones attentionimmediately.

Make Certain programs focuses onhelping employees learn more about theirpersonal responsibility toward quality.


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Publications by Phillip B. Crosby1967. Cutting the cost of quality. Boston, Industrial Education Institute.

1969. The strategy of situation management. Boston, Industrial Education Institute.

1979. Quality is Free. New York: McGraw-Hill.

1981. The Art of Getting Your Own Sweet Way. McGraw-Hill.

1984. Quality Without Tears. New York: McGraw-Hill.1986. Running things. New York: McGraw-Hill.

1988. The Eternally Successful Organization. New York: McGraw-Hill.

1989. Let's talk quality. New York: McGraw-Hill.

1990. Leading, the art of becoming an executive. New York: McGraw-Hill.

1994. Completeness: Quality for the 21st Century. Plume.

1995. Philip Crosby's Reflections on Quality. McGraw-Hill.

1996. Quality is still free: Making Quality Certain in Uncertain Times. McGraw-Hill.

1997. The Absolutes of Leadership (Warren Bennis Executive Briefing). Jossey-Bass.

1999. Quality and Me: Lessons from an Evolving Life. Jossey-Bass.

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