UNIT 2
History of
Quality Science
Unit Objectives
After reading this unit, the students will
be able:
1. to understand the history of USA
quality science;
2. to understand the history of Japan’s
quality movement; and
3. to understand the history of quality
evolution in Malaysia
HISTORY OF USA QUALITY
SCIENCE
 The 1920’s are widely recognized as
the dawn of quality science.
 Bell Laboratories led the way by
forming a quality department that
emphasized quality, reliability,
testing, and inspection.
Walter Shewhart Contribution
 While with Bell Laboratories Walter
Shewhart introduced the concept of control
charting, and
 H. F. Dodge and H. G. Romig perfected
methods for acceptance sampling.
 The methods developed during those early
years were recognized and adopted by the
War Department and the U.S. Army during
the war effort of the 1940’s.
Control Charts, Sampling & SPC
 Guidelines for the use of control
charts, sampling inspection
standards, and sampling techniques
were adopted to aid manufacturing of
war materials.
 Training courses in statistical quality
control (SQC) also began to emerge.
The Publications & Seminars
 Much of what was learned in the U.S.
during war time manufacturing was
published and taught during the fifteen
year period following WW II.
 J. M. Juran and F. M. Gryna published the
Quality Control Handbook (1957), and
 both Juran and W.E. Deming were invited
to Japan to give seminars on statistical
methods and quality management.
The Japanese engineers and
scientists & The Stagnant ERA
 Japanese engineers and scientists also
began developing methods for quality
improvement such as Taguchi’s methods
for experimental design, and Ishikawa’s
introduction of the cause-and-effectdiagram.
 However, it is interesting to note that after
all that was gained during this time period,
the growth of quality methodology during
the 1960’s and much of the 1970’s was
stagnant.
The Awareness
 Something stalled the course of the quality
movement in U.S. manufacturing between
1960 and 1980 when NBC televised W.
Edwards Deming’s first white paper titled If
Japan Can . . . Why Can’t We.
 Many quality professionals believe that
management gave up on the tools that lead
to the successful advancement of
traditional quality science here and abroad.
The Emergent of a new modern
quality movement
 Instead management concentrated on
productivity and profits, and many
blamed unfair trade practices for loss
of market share.
 However, a new modern quality
movement emerged after Deming’s
famous white paper, and with it came
a new philosophy regarding quality
and continuous improvement.
HISTORY OF JAPAN'S QUALITY
MOVEMENT
 The quality movement in Japan began
in 1946 with the U.S. Occupation
Force's mission to revive and
restructure Japan's communications
equipment industry.
 General Douglas MacArthur was
committed to public education
through radio.
Roles of Homer Sarasohn
 Homer Sarasohn was recruited to
spearhead the effort by
repairing and installing equipment,
making materials and parts available,
restarting factories,
establishing the equipment test
laboratory (ETL), and
 setting rigid quality standards for
products (Tsurumi 1990).
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Sarasohn Recommendations
 Sarasohn recommended individuals for
company presidencies, like Koji Kobayashi
of NEC, and he established education for
Japan's top executives in the management
of quality.
 Furthermore, upon Sarasohn's return to the
United States, he recommended W.
Edwards Deming to provide a seminar in
Japan on statistical quality control (SQC).
Deming’s Contribution
 Deming's 1950 lecture notes provided
the basis for
 a 30-day seminar sponsored by the
Union of Japanese Scientists and
Engineers (JUSE) and
 provided the criteria for Japan's famed
Deming Prize.
 The first Deming Prize was given to Koji
Kobayashi (NEC) in 1952.
JUSE’s Role
 Within a decade, JUSE (Japanese
Scientists and Engineers) had trained
nearly 20,000 engineers in SQC
(statistical quality control) methods.
 Today Japan gives high rating to
companies that win the Deming prize;
 they number about ten large
companies per year.
Impact of Deming's work
Deming's work has impacted industries
such as those for
 radios and parts,
 transistors,
 cameras,
 binoculars, and
 sewing machines.
Deming awarded the Second Order
of the Sacred Treasure
 In 1960, Deming was recognized for
his contribution to Japan's
reindustrialization when the Prime
Minister awarded him the Second
Order of the Sacred Treasure.
Role of Dr. Joseph M. Juran
 In 1954, Dr. Joseph M. Juran of the United
States raised the level of quality
management from the factory to the total
organization.
 He stressed the importance of systems
thinking that begins with
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product designs,
prototype testing,
proper equipment operations, and
accurate process feedback.
From SQC to TQC (total quality
control)
 Juran's seminar also became a part of
JUSE's educational programs.
 Juran provided the move from SQC to
TQC (total quality control) in Japan.
 This included company-wide activities
and education in quality control (QC),
QC circles and audits, and promotion
of quality management principles.
The elements of TQC management:
By 1968, Kaoru Ishikawa, one of the
fathers of TQC in Japan, had outlined
the elements of TQC management:
 quality comes first, not short-term
profits
 the customer comes first, not the
producer
 customers are the next process with no
organizational barriers
 decisions are based on facts and data
The elements of TQC management:
 management is participatory and
respectful of all employees
 management is driven by crossfunctional committees covering product
planning, product design, production
planning, purchasing, manufacturing,
sales, and distribution (Ishikawa 1985)
JUSE and QCC
 By 1991, JUSE (Japanese Scientists
and Engineers) had registered over
331,000 quality circles with over 2.5
million participants in its activities.
 Today, JUSE continues to provide
over 200 courses per year, including
five executive management courses,
ten management courses, and a full
range of technical training programs.
"Ishikawa" or "cause-and-effect"
(Fishbone) diagram
 One of the innovative TQC
methodologies developed in Japan is
referred to as the "Ishikawa" or
"cause-and-effect" diagram
(Fishbone).
 After collecting statistical data,
Ishikawa found that dispersion came
from four common causes, as shown
in Figure 1.
Figure 1. Cause-and-effect diagram
(Ishikawa 1982, 13).
Materials & Machines
 Materials often differ when sources
of supply or size requirements vary.
 Equipment or machines also
function differently depending on
variations in their own parts, and
they operate optimally for only part of
the time.
Process (Method) and
measurement
 Processes or work methods have even
greater variations.
 Finally, measurement also varies.
 All of these variations affect a product's
quality.
 Ishikawa's diagram has lead Japanese firms
to focus quality control attention on the
improvement of materials, equipment,
processes and measurement.
JTEC (Japanese Technology
Evaluation Center) Observation
 JTEC panelists observed statistical process
control (SPC) charts, often with goal lines
extending into 1995, in a few of the
factories they visited in 1993.
 For example, at Ibiden, process control
was apparent in its laminated process
board manufacture, where there was
extensive use of drawings and descriptions
of the processes necessary to do the job.
JTEC Observation
 Companies that were competing for
the Deming Prize made extensive use
of such charts, and companies that
had received ISO 9000 certification
also posted the process information
required for each machine.
 However, the panel was surprised at
the relatively limited use of SPC
charts within the factories visited.
JTEC Observation
 The Japanese believe that the
greatest benefit occurs when defect
detection is implemented within the
manufacturing sequence,
 thus minimizing the time required for
detection, maximizing return on
investment, and indirectly improving
product reliability.
ISO 9000 Standards
Certification
 The concept of certification and standards,
however, breaks down when global
competitiveness is at stake.
 Most recently, ISO 9000 certification has
become a requirement for exports to
Europe, and
 Japan has been forced to obtain ISO
certification, not because it is a quality
issue, but because it is a way of increasing
market share.
Company product standards VS
QML (Qualified Manufacturers List)
 The Japanese companies provide
some of the highest-quality products,
typically
 using company product standards (best
commercial practices)
 rather than external standards like QML
(Qualified Manufacturers List) or any
U.S. military standards.
Role of The Japan Quality
Association (JQA)
 The Japan Quality Association (JQA)
is responsible for ISO certification.
 It was established in 1958 as the
Japan Management Institute (JMI)
under Japan's Ministry of
International Trade and Industry
(MITI) for the purpose of export
inspection.
From JMI to JQA
 In 1960, JMI moved from inspection
to process certification,
 and in October 1993, JMI was
renamed JQA to more aptly identify
its mission.
JQA & ISO 9000 Certification
 JQA has provided ISO 9000
certification in Japan since 1990 after
receiving training from the British
Standards Institution's (BSI) quality
assurance division, and
 it has memoranda of understanding
with both BSI and Underwriters
Laboratory (UL) in the United States
for reciprocal certification acceptance.
JQA & ISO 9000 Certification
 By October of 1993, JQA had ISOcertified 300 firms in Japan, about
80% of which were electronics firms;
the rest were chemical firms.
 JQA expected to have about 540
companies certified by the end of
1994.
JQA & ISO 9000 Certification
 Most firms seeking certification were
electronics firms that depended on
exports to Europe.
 At the time of the JTEC visit, JQA was
limited to about thirty assessments
per month.
JQA & ISO 9000 Certification
 It typically took companies one year
to eighteen months to gain
certification; most had little difficulty
in obtaining ISO certification.
 In addition to JQA certification, there
were an equal number of firms
obtaining ISO certification from nonJapanese auditors.
JTEC (Japanese Technology
Evaluation Center) Panel Observation
 When the JTEC panel visited Japan, Fujitsu,
NEC, and Hitachi had the largest number of
certified factories.
 Yamagata Fujitsu became ISO 9002certified in February 1993 and was applying
for ISO 9001 certification for early 1994.
 Fujitsu had over ten certified factories by
the end of 1993.
 Most of the factories visited by the panel
had either received ISO certification or
were in the process of certification.
QUALITY AND RELIABILITY
REQUIREMENTS IN JAPAN
 Quality is associated with the degree of
conformance of the product to customer
requirements, and thus, in a sense, with
the degree of customer satisfaction.
 Implicit in Japanese quality products is an
acceptable amount of reliability; that is,
the product performs its intended function
over its intended life under normal
environmental and operating conditions.
Reliability Assurance
 Reliability assurance tasks such as
qualification are conducted
 (1) during the product design phase
using analytical simulation methods and
design-for-assembly software, and
 (2) during development using prototype
or pilot hardware.
Quality conformance
 Quality conformance for qualified
products is accomplished through
monitoring and control of critical
parameters within the acceptable
variations already established,
perhaps during qualification.
 Quality conformance, therefore, helps
to increase product yield and
consequently to lower product cost.
Automation and its impact on
quality
 The Japanese have determined that manual
labor leads to poor-quality output and that
automation leads to higher-quality output.
 Quality has, therefore, become a key driver
for factory automation in Japan.
 In addition, factory automation also adds
the benefits of improving productivity and
improving flexibility in scheduling the
production or changeover of product types.
Inspection and screening
 Incoming inspection was negligible
at most of the companies that the
JTEC panel visited, because of the
view that the quality of suppliers'
products could be trusted.
 Since the 1950s, the Japanese
government has set quality
requirements for any company that
exports products from Japan.
 Suppliers have progressed in status
from being fully inspected by their
customers to being fully accepted.
 Qualified suppliers (Qualified
Manufacturers List) are now the
standard for Japan, and most problems
come from non-Japanese suppliers
Dealing with Reliability Problems in
Electronic Sector (JTEC Observation)
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Assessment methods
Infrastructure
Training
The factory
Assessment methods for
improvement
 Japanese firms identify the areas that
need improvement for competitive
reasons and target those areas for
improvement.
 They don't try to fix everything; they
are very specific (very focus).
Assessment methods
 They continuously design products for
reduced size and cost and use new
technologies only when performance
problems arise.
 As a result, most known technologies
have predictable reliability
characteristics.
Infrastructure
 The incorporation of suppliers and
customers early in the product
development cycle
 This has given Japanese companies
an advantage in rapid development of
components and in effective design of
products.
Training
 The Japanese view of training is best
exemplified by Nippondenso.
 The company runs its own two-year
college to train production workers.
Training
 Managers tend to hold four-year
degrees from university engineering
programs.
 Practical training in areas such as
equipment design takes place almost
entirely within the company.
The factory
 Japanese factories pay attention
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to
to
to
to
running equipment well,
continuous improvement,
cost reduction, and
waste elimination.
Total preventive maintenance
(TPM)
 TPM is a methodology to ensure that
 equipment operates at its most
efficient level, and
 that facilities are kept clean
 so as not to contribute to reliability
problems.
Total preventive maintenance
(TPM)
 In fact, the Japan Management Association
gives annual TPM (Total preventive
maintenance) awards with prestige similar
to the Deming Prize.
 receipt of those awards is considered a
required step for companies that wish to
attain the Japan Quality Prize. [Similar to
Malaysian Quality Management
Excellence Award (QMEA)]
Quality Improvement through
Comprehensive Waste Reduction
 Fundamental improvement means working
to eliminate wastes that can negatively
affect product quality, cost, and delivery
time.
 The Japan Management Association
published a book describing the activities of
Canon Corporation, Canon Production
System: Creative Involvement of the Total
Workforce, that outlined a number of
approaches to improve quality and
reliability through "waste reduction"
strategies (JMA 1987, 19-22).
Comprehensive Waste Reduction
 These include the elimination of waste
associated with
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defective products,
systems planning,
work-in-process,
human resources,
equipment,
expenses, and
excessive startup time for new products.
 Most Japanese electronics firms now
incorporate waste reduction as a central
part of their TQM programs.
HISTORY OF QUALITY
EVOLUTION IN MALAYSIA
Several crucial historical
events played very important
roles in the history of quality
evolution in Malaysia.
The first one was the
launching of the Malaysian
look east policy in the early
1980’s, and
PMQA and QMEA
 the second event happened
very much later in the early
1990’s when two quality awards
namely
 Prime Minister Quality Award
(PMQA) and
 Quality Management Excellence
Award (QMEA)
PMQA and QMEA
 These two awards were
introduced to encourage quality
excellence among the public and
private sector.
The Look East Policy (LEP)
 In July 1981, Prime Minister Dato'
Seri Dr. Mahathir bin Mohamad
became the Prime Minister of
Malaysia.
 After six months in his office, he
announced an initiative to learn from
the experiences of Japan (and Korea)
in the nation-building of Malaysia.
The Look East Policy (LEP)
 He considered that the secret
of Japanese success and its
remarkable development lies in
its
 labor ethics,
 morale, and
 management capability
The LEP
 He felt a program enabling the young
Malaysians to learn in Japan would
contribute to the economic and social
development of Malaysia.
 For this purpose, Malaysia decided to
dispatch their students to Japan, to study
not only academics and technical know-how
but also to learn labor ethics and discipline
of the Japanese people.
LEP Programs
 This initiative is called "Look East
Policy." The program consists of two
parts.
1. The first is to send Malaysian students
to Japanese universities and institutes
of technology.
2. The second is to send trainees to
Japanese industries and training
institutes.
LEP Programs
 These programs are funded by
 the Government of Malaysia, and
 the Government of Japan
supports these programs by
sending Japanese teachers to
Malaysia and also by sharing a
part of its costs.
Rationale of LEP
 This policy is designed to emulate the
ways of the developed countries in
the East such as Japan, and South
Korea.
 Dr. Mahathir bin Mohamad considered
that the secret of the Japanese
success and its remarkable
development lies in its labor ethics,
morale, and management capability.
Rationale of LEP
 The ‘Look East’ was a framework for
learning from successful Japanese
and South Koreans, and adapting
some of the applicable values into
Malaysian needs.
Objective of LEP
 The main objective of this policy is to
increase the quality of management
among the workers as well as
 creating a community with good
value and positive working ethics with
the aim of accelerating Malaysia’s
development.
Implementation of LEP
 The programs arranged can be divided into three
categories.
1. Change in Structure – Advocate in the use of punch
cards, nametags, table files, and manual on work
procedures among workers and also implementing
counter service.
2. Change in Behaviors – Implementation of ‘Clean,
Efficient, and Trustworthy’ concept, ‘Leadership
through Example’ slogan, and the establishment of
Quality Control Circle (QCC).
3. Courses and Trainings – Programs such as technical
and academic studies and intensive training for the
executive staff and entrepreneur.
The details of the Look East Policy
programs are as follows:
1. ACADEMIC EDUCATION PROGRAM (AEP)
2. TECHNICAL EDUCATION PROGRAM (TEP)
3. JAPANESE LANGUAGE PROGRAM FOR
MALAYSIAN TEACHERS (JLPMT)
4. INDUSTRIAL AND TECHNICAL (IN-PLANT)
TRAINING PROGRAM (ITTP)
5. SHORT TERM TRAINING FOR MALAYSIAN
EXECUTIVES (STME)
6. BUSINESS MANAGEMENT TRAINING AND
ATTACHMENT PROGRAMME WITH
JAPANESE COMPANIES (BMT)
Continuity of LEP
 At the Twelfth Annual Meeting on the
Look East Policy held in May 1995,
Malaysia reaffirmed that the Program
will continue until the year 2000.
 In January 1997, when Prime Minister
Mr. Hashimoto visited Malaysia, Prime
Minister Dato' Seri Dr. Mahathir bin
Mohamad stated that the Program
will continue beyond the year 2000.
The Prime Minister Quality Award (PMQA)
and Quality Management Excellence Award
(QMEA)
 There are two awards of
quality excellence in Malaysia:
1. The awards are the Prime
Minister Quality Award (PMQA)
and
2. Quality Management Excellence
Award (QMEA).
The Prime Minister Quality Award (PMQA)
and Quality Management Excellence Award
(QMEA)
These two awards have one thing
in common:
 they emphasize quality
excellence among the public
and private sector.
The Prime Minister Quality
Award (PMQA)
 The Prime Minister Quality Award (Private
Sector) was first introduced on 9th
November 1990.
 This annual national quality award is given
to organizations in private sector in
recognition for their excellent achievement
in quality management.
 Winning the award is a prestigious
accomplishment, as the Prime Minister
Quality Award is a proof of Organizational
Excellence.
Objectives of PMQA
1. Promote Quality Awareness among various
organizations in the private sector
category.
2. Promote the adoption of Quality values in
organizations.
3. Encourage healthy competition among
organizations towards continuous
improvement of quality.
4. Encourage Information Sharing on
successful performance strategies and the
benefits derived from using these
strategies.
The PMQA Recipient's Responsibilities
and Contributions
 The Award recipient is required to
share information of its successful
performance and quality strategies
with other Malaysian organizations.
 However, the recipient is not required
to share proprietary information even
if such information is part of the
award application.
Incentives of PMQA
 The recipient of the Award will receive and
enjoy the following benefits:
1. The Prime Minister Quality Award (PMQA)
Trophy.
2. Cash prize of RM 30,000.
3. Certificate of Appreciation.
4. Eligible to use the Q Symbol for publicity
purposes for three years from the date of
receiving the award.
Past Winners of Prime Minister
Quality Award (PMQA)
2004
Tioxide (Malaysia) Sdn Bhd Teluk Kalung, Terengganu
2003
Subang Jaya Medical Centre Sdn. Bhd. - Petaling Jaya, Selangor
2002
Infineon Technologies (M) Sdn. Bhd - Melaka
2001
Samsung SDI(M) Bhd. – Seremban, Negeri Sembilan
2000
Intel Technology Sdn. Bhd. - Bayan Lepas, Pulau Pinang
1999
Asean Bintulu Fertilizer Sdn. Bhd. - Petaling Jaya, Selangor
1998
Subang Jaya Medical Centre Sdn. Bhd. - Petaling Jaya, Selangor
1997
Shangri-La Hotel Kuala Lumpur - Kuala Lumpur
1996
Selectron Technology Sdn. Bhd. – Prai, Pulau Pinang
1995
Projek Lebuhraya Utara Selatan Bhd. (PLUS) - Kuala Lumpur
1994
Siemens Semiconductor Sdn. Bhd. – Bayan Lepas, Pulau Pinang
1993
SGS-Thompson Micro Electronics Sdn. Bhd. – Muar, Johor
1992
Matsushita Industrial Corporation Sdn. Bhd. - Petaling Jaya, Selangor
1991
Motorola Malaysia Sdn. Bhd. - Petaling Jaya, Selangor
1990
Intel Technology Sdn. Bhd. - Bayan Lepas, Pulau Pinang
Quality Management Excellent
Award (QMEA)
 Ministry of International and Industry
(MITI), Malaysia, has introduced the
Industry Excellence Award in 1990.
 NPC (National Productivity
Corporation) is appointed by MITI as
the secretariat for the QMEA.
Objectives of QMEA
1. To give due recognition to excellent
organizations.
2. To enhance quality awareness and
practices in management of excellence.
3. To encourage the production of quality
products or services.
4. To promote information sharing on
successful performance strategies and
strategy implementation benefits.
Categories of Participation in
QMEA
The QMEA Recipient's Responsibilities
and Contributions
 The Award recipient is required to
share information of its successful
performance and quality strategies
with other Malaysian organizations.
 However, the recipient is not required
to share proprietary information even
if such information is part of the
award application.
Incentives of QMEA
 A trophy and a certificate
 Eligible to use the logo of the Award for
publicity purposes for three (3) years from the
date of receiving the award.
 To be featured in MATRADE's Publication and
given space to advertise company
product/services in MATRADE's export
directory.
 To be nominated for the Prime Minister's
Quality Award (PMQA) (with exception of the
Export Excellence Award Services).
 20% discount on any program organized by
NPC;
Past Winners of QMEA
THE END
OF UNIT 2
THANK YOU
FOR YOUR ATTENTION