4650 Spring chapt 3 Philosophies and Frameworks Leaders

4650 Spring/ chapt. 3 Philosophies and Frameworks

Leaders in the Quality Revolution • • • 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 • • 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 2) (Abridged) (1 of 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: • • 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 • • 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 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: – – 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