EL612 Quality Assurance Lesson 2 Philosophies of Quality Lesson 2 Content • Joseph M. Juran • W. Edward Deming • PDCA/PDSA (Plan-Do-Check-Act, Plan-Do-Study-Act) • Six Sigma • TQM (Total Quality Management) • Kaizen Joseph M. Juran (1904-2008) “Without a standard there is no logical basis for making a decision or taking action.” Juran Major contributions to the quality movement: • First to link Japanese quality practices to the western world • Introduced Pareto analysis • Focused on managing for quality • The Juran trilogy Juran Juran defines quality as consisting of two different, but related concepts: 1. One form of quality is income oriented and consists of those features of the product that meet customer needs and thereby produce income. 2. A second form of quality is cost oriented and consists of freedom from failures and deficiencies. In this sense, higher quality usually costs less. Juran • Juran’s quality planning road map consists of the following steps: Determine quality goals Identify customers Discover customer needs Using customer’s language define products having desired features Develop processes able to produce the product Juran He defined three basic managerial processes required for quality, call Juran Trilogy. Juran • The goal of management should be to achieve what Juran calls self-control in all processes. • Control takes place at all levels from the CEO down to the frontline workers, and all use the same feedback loop: Measure performance Take action if there is a gap Compare performance to the goal Juran Juran’s list of responsibilities that upper managers should not delegate: • Create awareness of the need and opportunity for improvement • Make quality improvement a part of every job description • Create an infrastructure – a quality council who selects projects for improvement and established teams. • Provide training in quality improvement techniques Juran • Regularly review improvement progress • Give recognition to improvement teams • Use the results to spread the word on the power of the efforts • Revise the reward system to enforce the rate of improvement • Maintain momentum by enlarging the business plan to include goals for quality improvement Juran Juran also defines three levels of quality management: 1. Strategic quality management, which concerns itself mostly with policies. 2. Operational quality management, which concerns itself with process management. 3. The workforce, which concerns itself with specifications and work procedures. Juran Juran defines TQM (total quality management) as a collection of certain quality-related activities: • Quality becomes a part of each upper management agenda. • Quality goals enter the business plan. • Stretch goals are derived from benchmarking: focus is on the customer and on meeting competition. • Goals are deployed to the action levels. Juran • Training is done at all levels. • Measurement is established throughout. • Upper managers regularly review progress against goals. • Recognition is given for superior performance. • The reward system is revised W. Edward Deming (1900-1993) Deming saw quality as the primary driver for business and societal success. Deming If one improves quality, then costs will be lowered, and resources better utilized. This increase in productivity will then allow the company to capture market share due to both higher quality and lower price, which will allow the organization to stay in business and to provide more jobs. He is best known for his 14 points to transform Western management: Deming 1. Create constancy of purpose for improvement of product and service. 2. Adopt the new philosophy 3. Cease dependence on mass inspection 4. End the practice of awarding business on the price tag alone. Deming 5. Improve constantly and forever the system of production and service. 6. Institute Training 7. Adopt and institute leadership 8. Drive out fear Deming 9. Break down barriers between staff areas 10. Eliminate slogans, exhortation, and targets for the workforce 11. Eliminate numerical quotas or goals for the workforce and management 12. Remove barriers that rob people of pride of workmanship Deming 13. Encourage education and self-improvement for everyone. 14. Take action to accomplish the transformation. Deming Deming also defined seven deadly diseases that he believed to be the major barriers to business success. 1. Lack of consistency of purpose 2. Emphasis on short-term profits 3. Evaluation be performance, merit rating, or annual review of performance Deming 4. Mobility of Management 5. Running a company on visible figures alone. 6. Excessive medical costs for employees healthcare. 7. Excessive costs of warranty. Deming Deming emphasized that transformation of organizations begins with the individual and that this comes from gaining a different understanding of self and the world in which he or she lives. This will require understanding the system of profound knowledge, which consists of four major components: 1. 2. 3. 4. Appreciation for a system Knowledge about variation Theory of knowledge Psychology Deming Deming was often incorrectly credited for creating the concept of PDCA (Plan-Do-Check-Act). In fact Deming revised PDCA cycle to better reflect the actual actions of this process. Deming’s cycle changed the check to study as in depth analysis is required to understand what has happened in the first two stages of the cycle. PDCA / PDSA Cycle Plan-Do-Check-Act / Plan-Do-Study-Act Cycle PDCA / PDSA Plan: 1. Study the situation 2. Determine what needs to be done 3. Develop a plan and measurement process for what needs to be done Do: 1. Implement the plan PDCA / PDSA Check / Study: 1. Determine whether the plan worked 2. Study the results Act: 1. If it worked, institutionalized/ standardize the change 2. If it didn’t, try something else 3. Continue the cycle PDCA / PDSA The application of the tool is for the following: • Improvements • Driving Actions • Provide Governance PDCA / PDSA Single Cycle Act Plan Check Do PDCA / PDSA Continuous Improvement Cycle nt eme v o r p Act Plan Check Do Act Plan Check Do Performance Im Time Six Sigma Six Sigma Sigma – is a term indicating to what extent a process varies from perfection. Six Sigma – is achieving 3.4 defects per one million opportunities or less. Founded on statistical analysis targets for defect, particularly on the standard deviation or bell curve analysis. Six Sigma • Created by Motorola in 1986 it was developed to increase profits of an organization by: 1. Increasing income through increased customer satisfaction. 2. Reducing expenses through reduction of defects results in scrapped material, reworked products or warranty claims. Six Sigma • Industry did not really take notice until GE adopted this technique in 1995. • To this day it continues to evolve and techniques polished. Six Sigma The evolving Six Sigma principles are: 1. Committed and Strong leadership is absolutely essential – it's a major cultural change. 2. Six Sigma initiatives and other existing initiatives, strategies, measures, and practices must be integrated – Six Sigma must be an integral part of how the organization conducts its business. Six Sigma 3. Quantitative analysis and statistical thinking are key concepts – it’s data-based managing. 4. Constant effort must be applied to learning everything possible about customers and the marketplace – intelligence gathering and analysis is critical. 5. The Six Sigma approach must produce a significant payoff in a reasonable time period – real validated dollar savings is required. Six Sigma 6. A hierarchy of highly trained individuals with verified successes to their credit, often referred to a Master Black Belts, Black Belts, and Green Belts, are needed to extend the leadership to all organizational levels. 7. Performance tracking, measuring, and reporting systems are needed to monitor progress, allow for course corrections as needed, and link the Six Sigma approach to the organizational goals, objectives and plans. Six Sigma 8. The organization’s reward and recognition systems must support continuous reinforcement of the people, at every level, who make the Six Sigma approach viable and successful. 9. The successful organization should internally celebrate successes frequently – success breeds success. 10. To further enhance its image, and the self-esteem of its people and successful organization should widely publicize its Six Sigma accomplishments and to extent feasible, share its principles and practices with other organizations Six Sigma The fundamental practice is similar to PDCA, it is called DMAIC. Control Define Improve Measure Analyze Six Sigma Define – the customer and organizational requirements Measure – what is critical to quality, map the process, establish measurement system, and determine what is unacceptable (defects). Analyze – to develop a baseline (process capability) Improve – the process Control – the system through an established process TQM Total Quality Management TQM Total quality management is a term initially coined by Naval Air Systems Command to describe Japanese-style management approach. TQM in an umbrella methodology drawing on a knowledge of: • Principles and practices of behavior sciences • Analysis of quantitative and non-quantitative data • Economic theories • Process analysis to continuously improve the quality of all processes TQM is broad and systematic approach to managing the entire organizations quality. TQM The philosophy of TQM can be summarized as: • Customer focused • Total employee involvement • Process centered • Integrated system • Strategic and systematic approach • Continual improvement • Fact based decision making • Communications TQM Benefits of TQM Include: Improved Increased Reduced Better Competitive position Productivity Defects and waste Adaptability Customer focus and satisfaction Customer loyalty and retention Costs Market image Employee morale Profits Innovative processes Job Security Shareholder and Stakeholder Value Cost Management TQM The generic model for implementing TQM: 1. Top management learns about and decides to commit to TQM. 2. The organization assesses current culture, customer satisfaction and quality management systems. 3. Top management identifies core values and principles to be used, and communicates them. 4. A TQM master plan is developed on the basis of steps 1,2 and 3 5. The organization identifies and prioritizes customer demands and aligns products and services to meet those demands. TQM 6. Management maps the critical processes though which the organization meets its customers’ needs. 7. Management oversees the formation of teams for process improvement efforts. 8. The momentum of the TQM effort is managed by the steering committee. 9. Managers contribute individually to the effort through hoshin planning, training, coaching, or other methods. 10. Daily process management and standardization take place. 11. Progress is evaluated and the plan is revised if needed. 12. Constant employee awareness and feedback on status are provided and a reward / recognition process is established. TQM 5 Strategies for implementing TQM: TQM Elements– the organization uses tools and methods from any one of the may developed philosophies to foster improvements. The Guru – the organization takes the teachings of one of the leading quality thinkers to guide the organization’s efforts to eliminate defects. The Organizational Model – individuals from an organization visits and observe another leading quality organization to determine the processes and reasons for success. They then adapt and adopt them for their organization’s unique circumstances to achieve success. TQM Japanese Total Quality – Organizations examine the detailed implementation and strategies deployed by Deming prize winning companies and develop a long term master plan to achieve success. The Award Criteria – Using the criteria of awards such as Deming prize, European Quality Award, to the BNQP to identify areas where to focus improvements using quality tools. TQM Common Problems with Implementing TQM: Lack of Management Commitment – Principles and techniques are launched, but then are not supported either through decisions or financially. Changing Organizational Culture – People do not like change, if proper change management techniques are not used it. Preparation – Simply communicating policies, tools and plans are not enough, training, resources and coaching are essential to success Use of Data – to understand what is going on, as much information as possible must be collected and managed in a system that is accessible and can be used to process the analysis needed. The data also has to be accurate, timely and complete to be effective for correct decision making. Kaizen Kai means change or school, zen means good or wisdom Kaizen • Cross functional team members who are directly involved with the targeted process are taken out of their rolls to work together on improvements to that process. • Kaizen events require planning and a lot of work in advance. • Identify and coordinate: • The process being targeted • The scope of the improvements • The people involved • The supporting documents • The data on the process So they are all available for the event Kaizen • Event is lead by a facilitator who is objective and external to the process. • The process is mapped so that bottle necks and waste can be identified and targeted. • The process is observed by the team (Go Gemba) • Changes are brainstormed, designed and tested. • Implementation plans are created for successful changes. • The event is documented and the process monitored for validation.
