4650 Spring/ chapt.
3
Philosophies and
Frameworks
Leaders in the Quality
Revolution
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W. Edwards Deming
Joseph M. Juran
Philip B. Crosby
Armand V. Feigenbaum
Kaoru Ishikawa
Genichi Taguchi
Who’s Who?
b
a
Deming ____
Juran ____
Crosby ____
c
Deming Chain Reaction
Improve 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
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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. Crosby
Absolutes of Quality Management:
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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
standard
www.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:
Loss
No Loss
0.480
0.500
Tolerance
Loss
0.520
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
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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
Organizational Profile:
Environment, Relationships, and
Challenges
2
Strategic
Planning
5
Human
Resource
Focus
7
Business
Results
1
Leadership
3
Customer &
Market
Focus
6
Process
Management
4
Information and Analysis
Baldrige Award Evaluation
Process
Receive Applications
Stage 1
Independent Review
Judges Select for
Consensus Review?
No
Feedback report
to applicant
No
Feedback report
to applicant
Stage 2
Consensus Review
Judges Select for
Site Visit Review?
Stage 3
Site Visit Review
Stage 4
Judges Recommend Award
Recipients to
NIST Director/DOC
Feedback report
to applicant
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
Baldrige
National 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:
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Management Responsibility
Resource Management
Product Realization
Measurement, Analysis, and
Iimprovement
See Table 3.7
ISO 9000:2000 Quality
Management Principles
1.
2.
3.
4.
5.
6.
7.
8.
Customer Focus
Leadership
Involvement of People
Process Approach
System Approach to Management
Continual Improvement
Factual Approach to Decision Making
Mutually Beneficial Supplier
Relationships