Sponsored by the GLC with the PMI

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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
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(No Transcript)
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TONIGHTS AGENDA

1. Get Acquainted wake up its 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?

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WHY? - FORCES OF CHANGE
Macro-economic Events?
Competition
Pricing Pressures
Declining Financial Results
Plan
Mergers Acquisitions
Sophisticated Consumer
Globalization
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1900s MACRO-ECONOMICS

• Make a list of the macroeconomic issues that
  were impacting society (the customer) in the
  early 1900s
• ...i.e. moving from the farms to the cities

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1950s MACRO-ECONOMICS

• Make a list of the macroeconomic issues that
  were impacting society (the customer) in the
  early 1950s
• ...i.e. end of the warboon to consumers

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BREAKTHROUGH IMPROVEMENT
Six Sigma Project Methodology Based on Time
Tested Principles
Quality Control
Quality Planning
Quality Control
Sporadic Spike
1 Sigma
Improvement
Quality
3 Sigma
New Zone of
Cost of Poor Quality Chronic Waste
Quality Control
Defects
6 Sigma
Time
The Juran Trilogy
Lessons Learned
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1970s MACRO-ECONOMICS

• Make a list of the macroeconomic issues that
  were impacting society (the customer) in the
  early 1970s
• ...i.e. competitive quality, alternative products

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EVOLUTION TO GAIN COMPETITIVE ADVANTAGE
Financial Results
Product Quality
Re-engineering
NQA
Total Quality
Six Sigma I
C Improvement Teams
ISO
Process Quality
Quality Circles
1970
1990
2001
Time
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COMPETITIVE ADVANTAGE ?
Financial
Results good
Product Quality
3 sigma
2 sigma
Process Quality
1 sigma
1900
2000
Time
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2000s MACRO-ECONOMICS

• Make a list of the macroeconomic issues that
  were impacting society (the customer) in the
  early 1970s
• ...i.e. smart consumers, technology driven

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TODAYS MACRO-ECONOMICS

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

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DO WE STILL NEED QI ?

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

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EVOLUTION TO GAIN COMPETITIVE ADVANTAGE
Financial Results
Six Sigma II
Product Quality
Information Quality
Re-engineering
NQA
Total Quality
Six Sigma I
C Improvement Teams
ISO
Process Quality
Quality Circles
1970
1990
2001
Time
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WHY SIX SIGMA?
Focus on Design -Focus on Costs Focus on
Customer
Right Features
Deficiencies
Six Sigma Quality
Delights
DelightedCustomers
Customers
Deliverables
Effectiveness and Efficiency Improvement
Good Price
Mkt. Share
Fast Cycle Time
Low Warranty Costs
Low Scrap/ Rework
Higher Revenue
Lower Total Cost
Resultingin

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APPLICATION EXPERTS
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THE FUTURE OFQUALITY 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?
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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?
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THE FUTURE OF QUALITY

• What do you think will drive us to higher levels
  of quality?
• Speed

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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 Einsteins quote

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COMPETITIVE ADVANTAGE ?
Financial
Results good
5-6 sigma?
4 sigma
Product Quality
Information Quality
3 sigma
2 sigma
Process Quality
1 sigma
1900
2000
Time
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THE PURSUIT OF RESULTS
GEs 1999 double-digit growth increases again
demonstrate the benefits of the Companys
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
Sigma-designed products. In the fourth
quarter Source GE Newswire, January 20, 2000
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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 !!!

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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