The History and Future of Quality Management by

“The History and Future of Quality Management” by Joe De Feo Sponsored by the GLC with the PMI “Quality Specific Interest Group” and the Detroit Chapter of the American Society of Quality

“Dedicated to providing training and consulting services to continuously improve the performance of our clients’ processes, products, people, and profits. ”

TONIGHT’S AGENDA 1. Get Acquainted – wake up it’s been a long day 2. Review the History of Quality – All 2000 years of it! 3. Look at the Present – Why Six Sigma? Because it was planned that way! 4. Look to the Future – Can it be predicted?

WHY? - FORCES OF CHANGE Co Pr ic mp in g Pr tio es su n re s eti THE ORGANIZATION So Co phi ns stic um at er ed Dec linin g Fina ncia l Re sult s Accelerating Technology s n o iti s i qu c A & rs e g n r e o M ti a iz l a b o l G Macro-economic Events? Alters the Strategic Plan

1900’s MACRO-ECONOMICS 4…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1900’s 4. . . i. e. moving from the farms to the cities 4…

1950’s MACRO-ECONOMICS 4…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1950’s 4. . . i. e. end of the war…boon to consumers

BREAKTHROUGH IMPROVEMENT Six Sigma Project Methodology Based on Time Tested Principles Sporadic Spike 1 Sigma Defects 3 Sigma 6 Sigma Quality Control Cost of Poor Quality Chronic Waste Time Quality Improvement Quality Planning New Zone of Quality Control The Juran Trilogy® Lessons Learned

1970’s MACRO-ECONOMICS 4…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1970’s 4. . . i. e. competitive quality, alternative products 4…

EVOLUTION TO GAIN COMPETITIVE ADVANTAGE Financial Results Product Quality Re-engineering NQA Total Quality Six Sigma I C Improvement Teams ISO Quality Circles 1970 1990 Time Process Quality 2001

COMPETITIVE ADVANTAGE ? Financial Results = good Product Quality 3 sigma 2 sigma Process Quality 1 sigma 1900 Time 2000

2000’s MACRO-ECONOMICS 4…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1970’s 4. . . i. e. smart consumers, technology driven 4…

TODAY’S MACRO-ECONOMICS 4 The e-World is driving super fast, effective, defect free processes - e-drugs as commodities! 4 Many companies will experience incredible never seen before customer defections. 4 Quality levels will not slow down - beyond ppb consumers demand it, defects not tolerable! 4 Lessons Learned: Breakthrough Improvement at faster rates is required - if you do not your competition will! 4 Specialists such as Black Belts to drive improvement are a must.

DO WE STILL NEED QI ? 4 Do you have loyal customers and no dissatisfaction? 4 Consistent product & process quality, no rework, no credits and allowances to customers? 4 Lead the competition on price and quality in the marketplace? 4 Healthy margins? 4 Well defined demand planning as demonstrated by successful new product launches? 4 Mergers affecting QUALITY?

EVOLUTION TO GAIN COMPETITIVE ADVANTAGE Financial Results Six Sigma II Product Quality Re-engineering Information Quality NQA Total Quality Six Sigma I C Improvement Teams ISO Quality Circles 1970 1990 Time Process Quality 2001

WHY SIX SIGMA? Focus on Design -Focus on Costs =Focus on Customer Deficiencies Right Features Six Sigma Quality Delights Delighted Customers Deliverables Good Price Mkt. Share Higher Revenue Fast Cycle Time Low Warranty Costs Low Scrap/ Rework Effectiveness and Efficiency Improvement Lower Total Cost Resulting in $

APPLICATION EXPERTS

THE FUTURE OF QUALITY MANAGEMENT “We are headed into the next century which will focus on quality… we are leaving one that has been focused on productivity” Dr. Joseph M. Juran Which Century was he referring to?

WHO SAID THAT? “The problems that exist in the world of today. . . Cannot be solved by the level of thinking that created them. ” Who said this?

THE FUTURE OF QUALITY 4…What do you think will drive us to higher levels of quality? 4 Speed…

THE FUTURE: MY PREDICITON § § § § The speed imperative Fewer fences Making it easy and easier Bye, bye, red tape Quality leaders will lead Do not discount technology – tripling sales! Gimme’ more Remember Einstein’s quote

COMPETITIVE ADVANTAGE ? Financial Results = good 5 -6 sigma…? 4 sigma Product Quality Information Quality 3 sigma 2 sigma Process Quality 1 sigma 1900 Time 2000

THE PURSUIT OF RESULTS “GE’s 1999 double-digit growth increases again demonstrate the benefits of the Company’s continuing emphasis on globalization, growth in services, Six Sigma quality and e-business. ” “GE Medical systems earnings grew 25% in 1999 with strong global acceptance of its Six Sigmadesigned products. In the fourth quarter…” Source: GE Newswire, January 20, 2000

NEW TECHNIQUES/TOOLS § PROJECT MANAGEMENT A WAY OF LIFE FOR QUALITY PROFESSIONALS § QUALITY A WAY OF LIFE FOR PROJECT MANAGERS § I/TRIZ TOOLS TO DRIVE INNOVATION § FASTER WAYS TO DIAGNOSE ROOT CAUSE § DIRECTED EVOLUTION !!!

YOUR NEXT STEPS • Macro-economics drives the customer, the customer drives the macro-economics • Do not stop improving because your competitor may surpass you • Challenge your processes and set tough goals • Stay ahead of the curve keep learning the next tool The End