QUALITY PHILOSOPHIES AND PRINCIPLES

1
UNIT 3

• QUALITY PHILOSOPHIES AND PRINCIPLES

2
Unit Objectives

• Who are the quality gurus or philosophers that
  have shaped quality thinking and practices?
• What are the characteristics of contemporary
  quality philosophies?
• How has the concept of quality changed and
  evolved over the years?
• How quality principles evolve over the years?

3
The Quality Gurus or Philosophers

• The Quality Gurus can be divided into four main
  periods
• The pioneer (Walter Shewhart)
• The early Americans who took messages of quality
  to the Japanese in the early 1950s (W Edwards
  Deming, Joseph M Juran and Armand V Feigenbaum).
• The Japanese response from the late 1950s onwards
  (Dr Kaoru Ishikawa, Dr Genichi Taguchi and Shigeo
  Shingo).
• The new Western wave concentrating on Quality
  Awareness from the 1970s onwards (Philip Crosby,
  Tom Peters and Claus Moller).

4
The Quality Philosophers/Gurus
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Walter Shewhart (1891-1967)

• Western Electric Bell Telephone Engineer
• Father of Statistical Quality Control (SQC)
• Founder of the Control Chart (e.g. X-bar R chart)
• Originator of PDCA cycle
• ASQC (American Society for Quality) 1st Honorary
  Member 1947

6
William Edwards Deming (1900-1993)

• Studied under Shewhart at Bell Laboratories
  (Awarded a Ph. d in Mathematical Physics in 1928)
• Western Electric Statistician
• Advisor, Author, Teacher Consultant
• ASQC Honorary member in 1970
• Invited to Japan Led the Japanese Quality
  Movement
• Deming introduced the statistical quality-control
  element to Japanese industry in the 1950s.
• Founder, Third Wave of Industrial Revolution
• Bureau of Census Advisor in Population Sampling
• Popularized Shewhart PDCA cycle

7
PDCA CYCLE/DEMING CYCLE
DO
8
Joseph Moses Juran (1904-2008)

• Joined Western Electric as an Industrial Engineer
• Developed the western Electric Statistical
  Quality Control Handbook
• Also well-known for helping improve Japanese
  quality
• Developed the Juran Trilogy for managing quality
• Enlightened the world on the concept of the vital
  few, trivial many which is the foundation of
  pareto charts

9
Pareto Charts
10
Pareto Charts

• The Pareto effect even operates in quality
  improvement 80 of problems usually stem from
  20 of the causes.
• Pareto charts are used to display the Pareto
  principle in action, arranging data so that the
  few vital factors that are causing most of the
  problems reveal themselves.
• Concentrating improvement efforts on these few
  will have a greater impact and be more
  cost-effective than undirected efforts.

11
Philip B. Crosby (1926-2001)

• Vice president, Quality at International
  Telephone Telegraph (ITT)
• Introduced the four absolutes of quality
• Written the book Quality is Free (1979)

12
Armand Vallin Feigenbaum (??)

• President/CEO, General Systems Company
• Founder, International Academy for Quality
• ASQC President (1961-63)
• US Army Material Command Advisor of Quality
  Assurance
• Stressed a systems approach to quality
• Cost of quality may be separated into costs for
  prevention, appraisal, and failures (e.g., scrap,
  warranty)

13
Kaoru Ishikawa (1915-1989)

• Ph. D in Engineering
• A university Professor
• Leader of the Japanese Quality Movement
• Developed the Japanese Quality Strategy
• Developed concept of true and substitute quality
  characteristics
• Advocate the use of the 7 tools (e.g., cause-and
  effect diagram, pareto chart, etc.,)
• Advanced the use of QCC (Quality Control Circle)
• Developed concept of Japanese Total Quality
  Control/Company-wide quality control (CWQC)

14
Genichi Taguchi (1924-?)

• Worked in Electrical Communication Laboratory of
  the Nippon Telephone and Telegraph Co
• A visiting Professor at the Indian Statistical
  Institute Visiting Research Associate at Prince
  University
• A Professor at Aoyama Gakuin U in Tokyo
• Director of the Japanese Academy of Quality
• Advisor at the Japanese Standard Association
• Introduced quality loss function (deviation from
  target is a loss to society)
• Promoted the use of parameter design

15
Shigeo Shingo (1909 -1990)

• Graduated in Mechanical Engineering in 1930
• A professional management consultant, manager,
  advisor and trainer
• President of the Institute of Management
  Improvement
• Worked in Toyota Motor Co, Matsushita Electrical
  Industrial Co
• Advocated the replacement of (SQC) with source
  inspection (controlling at the source rather than
  through sampling inspections)
• Developed Poka-Yoke devices/system (mistake
  proofing devices) such as sensors and monitors to
  identify defects at the point they occur
• Zero defect approach because zero defects is
  the ultimate goal

16
Tom Peters

• Educated in engineering business
• Worked as a principal at Mckinsey Co when he
  wrote his book In search of Excellence (1982)
  excellent performance within 43 large American
  Companies
• Identified leadership as being central to
  quality improvement process
• Best known for his customer orientation
• Describe 12 attribute or traits of quality
  revolution

17
Claus Moller

• European a Danish business economist
• Founded Time Manager International (TMI) in 1975
• TMI provide management training in the Soviet
  Union EEC
• TMI also involved with quality management
  training
• His 1st book Personal quality was published in
  1988

18
The Shewhart Philosophy

• Shewhart was the pioneer and visionary of modern
  quality control.
• Shewhart is most widely recognized for his
  control chart development and statistical
  contributions through Bell Laboratories.
• Indeed, the Shewhart charts (e.g., X-bar and R
  charts) have become fundamental tools of quality
  control but, of wider impact, Shewhart
  published, in 1931, Economic Control of Quality
  of Manufactured Product, a landmark book in
  modern quality control.
• His book was used by the Japanese after World War
  II, with the aid of visiting consultants, to help
  shape modern quality practice in Japan.

19
The Shewhart Philosophy

• Shewhart, using a literal definition of quality
  (Latin qualitas, from qualis, meaning "how
  constituted"), defined two common aspects of
  quality
• (1) "objective quality," which deals with the
  quality of a thing as an "objective reality" (of
  the thing) independent of the existence of man
  and
• (2) "subjective quality," which deals with the
  quality of a thing relative to what man thinks,
  feels, or senses as a result of the "objective
  reality."

20
The Shewhart Philosophy

• Shewhart linked the subjective quality property
  with value and concluded "it is impossible to
  think of a thing as having goodness independent
  of some human want."
• This definition has been expanded by Ishikawa to
  include "true" (customer-language based) and
  "substitute" (technical-language-based) quality
  characteristics which form the basis for modem
  quality planning and quality function deployment.

21
The Shewhart Philosophy

• It is of great historical interest to point out
  that the Shewhart postulates (lines of reasoning)
  and general conclusions published in 1931 laid
  the foundation for modern quality theory and
  practice throughout the industrial world.

22
The Shewhart Philosophy

• His general conclusions are stated below
• It seems reasonable to believe that there is an
  objective state of control, making possible the
  prediction of quality within limits even though
  the causes of variability are unknown....It has
  been pointed out that by securing this state of
  control, we can secure the following advantages
• Reduction in the cost of inspection.
• Reduction in the cost of rejection.
• Attainment of maximum benefits from quantity
  production.
• Attainment of uniform quality even though the
  inspection test is destructive.
• Reduction in tolerance limits where quality
  measurement is indirect.

23
The Deming Quality Philosophy

• Deming's 14 points
• Demings seven deadly diseases
• Deming's profound knowledge system

24
Deming's 14 points

• Create constancy of purpose toward improvement of
  product and service, with the aim to become
  competitive and to stay in business, and to
  provide jobs (create vision and commitment).
• Adopt/learn the new philosophy. We are in a new
  economic age. Western management must awaken to
  the challenge must learn their responsibilities,
  and take on leadership for change.
• Cease dependence on inspection to achieve
  quality. Eliminate the need for inspection on a
  mass basis by building quality into the product
  in the first place. (worker must take
  responsibility for their work understand
  variation seek to reduce the common causes)

25
Deming's 14 points

• End the practice of awarding business on the
  basis of price tag. Instead, minimize total cost.
  Move toward a single supplier for any one item,
  on a long-term relationship of loyalty and trust.
  
• Improve constantly and forever the system of
  production and service, to improve quality and
  productivity, and thus constantly decrease costs.
  
• Institute training on the job (both management
  workers require proper tools knowledge).

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Deming's 14 points

1. Institute leadership. The job of management is
   leadership, not supervision leadership means
   providing guidance to help employees do their job
   better with less effort.
2. Drive out fear. Create trust. Create a climate
   for innovation so that everyone may work
   effectively for the company.
3. Break down barriers between departments (optimize
   the efforts of team).

27
Deming's 14 points

1. Eliminate slogans, exhortations, and targets for
   the work force asking for zero defects and new
   levels of productivity (workers become frustrated
   when they cannot improve or are penalized for
   defects) overlook the source the problems the
   system.
2. A. Eliminate work standards on the factory floor
   (Eliminate numerical quotas for production.
   Instead learn and institute methods for
   improvement). b. Eliminate management by
   objective numbers without a method to achieve
   them (Instead, learn the capabilities of
   processes, and how to improve them). Numbers
   have no meaning without a method to achieve them.

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Deming's 14 points

• A. Remove barriers that rob the hourly worker of
  his right to pride of workmanship. b. Remove
  barriers that rob people in management and in
  engineering of their right to pride of
  workmanship (Performance appraisal destroys
  teamwork by promoting competition).
• Institute a vigorous program of continuing
  education and self-improvement.
• Take action to accomplish the transformation. Put
  everybody in the company to work to accomplish
  the transformation. The transformation is
  everyone's job. A major cultural change

29
The seven deadly diseases that obstruct the quest
for quality

1. Lack of constancy of purpose to plan product and
   service that will have a market and keep the
   company in business, and provide jobs.
2. Emphasis on short term profits invest in
   research development.
3. Evaluation of performance, merit rating, or
   annual review (annual appraisal) destroy
   teamwork.
4. Mobility of management job hopping (personal
   career advancement is placed ahead of welfare of
   the organization).
5. Management by use only of visible figures, with
   little or no consideration of figures that are
   unknown or unknowable.
6. Excessive medical costs bad for long-term
   competitiveness.
7. Excessive costs of liability/warranty, fueled by
   lawyers who work on the basis of contingency
   fees. proliferation of lawsuits and
   multimillion dollars judgments.

30
The System of Profound Knowledge

• The system of profound knowledge is made up of
  four areas
• (1) appreciation for a system,
• (2) knowledge about variation,
• (3) theory of knowledge, and
• (4) psychology.

31
System of Profound Knowledge Appreciation of a
system

• A system is a set of functions or activities
  within an organization that work together for the
  aim of the organization.
• A production system is composed of many smaller,
  interacting subsystems.
• These subsystems are linked together as internal
  customers and suppliers.
• The components of any system must work together
  if the system is to be effective.

32
System of Profound Knowledge Appreciation of a
system

• Management's job is to optimize the system.
• Sub-optimization results in losses to everybody
  in the system.
• All the people who work within a system can
  contribute to improvement, which will enhance
  their joy in work.

33
System of Profound Knowledge knowledge about
variation

• The second part of Profound Knowledge is a basic
  understanding of statistical theory and
  variation.
• We see variation everywhere variation exists in
  production processes.
• Actually, a production process contains many
  sources of variation

34
System of Profound Knowledge Causes of Variation

• Product manufacturing was measured and where
  variations occurred in manufacture the cause was
  traced back to either (1) special causes or (2)
  common causes.
• (1) Special causes are easily identifiable and
  solvable at a local level - for example a change
  in operator, shift of procedure.
• (2) A common cause is due to the design or
  process of the system and is the responsibility
  of management to solve.

35
System of Profound Knowledge Proportion of
Variation

• Common causes of variation generally account for
  about 80 to 90 percent of the observed variation
  in a production process.
• The remaining 10 to 20 percent are the result of
  special causes of variation, often called
  assignable causes.

36
System of Profound Knowledge Theory of knowledge

• The third part of profound knowledge is the
  theory of knowledge, the branch of philosophy
  concerned with the nature and scope of knowledge,
  its presupposition and basis, and the general
  reliability of claims to knowledge

37
System of Profound Knowledge Theory of knowledge

• Deming emphasized that knowledge is not possible
  without theory, and experience alone does not
  establish a theory.
• Any rational plan, however simple, requires
  prediction concerning conditions, behavior, and
  comparison of performance.

38
System of Profound Knowledge Theory of knowledge

• A statement devoid of prediction or explanation
  of past events conveys no knowledge.
• Experience only describes-it cannot be tested or
  validated-and alone is no help in management.
• Theory , on the other hand, shows a cause and
  effect relationship that can be used for
  prediction.

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System of Profound Knowledge PSYCHOLOGY

• Psychology helps us understand
• people,
• interactions between people and circumstances,
• interactions between leaders and employees, and
• any system of management.

40
system of Profound Knowledge PSYCHOLOGY

• Much of Deming's philosophy is based on
  understanding human behavior and treating people
  fairly.
• People differ from one another.
• A leader must be aware of these differences and
  work toward optimizing everybody's abilities and
  preferences.
• Most managers operate under the assumption that
  all people are alike.
• However, a true leader understands that people
  learn in different ways and at different speeds,
  and manages the system accordingly.

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Concluding remark on the system of profound
knowledge

• A leader of transformation, and managers
  involved, need to learn the psychology of
  individuals, the psychology of a group, the
  psychology of society, and the psychology of
  change.
• Some understanding of variation
• Including appreciation of a stable system, and
  some understanding of special causes and common
  causes of variation, are essential for management
  of a system, including management of people.

42
The Juran Philosophy

• Juran defined quality as (I) product performance
  that results in customer satisfaction (2)
  freedom from product deficiencies, which avoids
  customer dissatisfaction-- simply summarized as
  "fitness for use."

43
The Juran Philosophy

• This definition can be broken down into four
  categories
• (1) quality of design,
• (2) quality of conformance,
• (3) availability and
• (4) field service.

44
The Juran Philosophy

• Quality of design concentrates on market
  research, the product concept, and design
  specifications.
• Quality of conformance includes technology,
  manpower, and management.
• Availability focuses on reliability,
  maintainability, and logistical support.
• Field service quality comprises promptness,
  competence, and integrity.

45
The Juran Philosophy

• The pursuit of quality is viewed on two levels
• (l) The mission of the firm as a whole is to
  achieve high product quality and
• (2) The mission of each department in the firm is
  to achieve high production quality.

46
The Juran Philosophy

• Juran's prescriptions focus on three major
  quality processes, called the Quality Trilogy
• (1) quality planning --the process of preparing
  to meet quality goals
• (2) quality control-- the process of meeting
  quality goals during operations and
• (3) quality improvement --the process of breaking
  through to unprecedented levels of performance.

47
The Juran Quality Trilogy Diagram
48
Quality planning begins with

• (1) identifying customers, both external and
  internal,
• (2) determining their needs and
• (3) developing product features that respond to
  those needs at a minimum combined cost.
• (4) the process that can produce the product to
  satisfy customers' needs and meet quality goals
  under operating conditions must be designed.
• (5) compares results with previous plans, and
  meshes the plans with other corporate strategic
  objectives.

49
The Quality Planning Process
50
The Quality Planning Process
51
Quality control involves

• (1) determining what to control,
• (2) establishing units of measurement to evaluate
  data objectively,
• (3) establishing standards of performance,
• (4) measuring actual performance,
• (5) interpreting the difference between actual
  performance and the standard and
• (6)taking action on the difference.

52
Quality improvement program involves

• (1) proving the need for improvement,
• (2) identifying specific projects for
  improvement,
• (3) organizing support for the projects,
• (4) diagnosing the causes,
• (5) providing remedies for the causes,
• (6) proving that the remedies are effective under
  operating conditions and
• (7) providing control to maintain

53
The Feigenbaum Philosophy

• Traditionally (pre-1970s) in the United States,
  quality assurance was widely associated with
  establishing and measuring conformance to
  technical specifications on the shop floor and in
  inspection departments.
• The evolution which has occurred in transforming
  this narrow, reactive view of quality to its
  current broad companywide, approach in the United
  States can be credited to Feigenbaum.
• He has had a great impact on this transformation
  through his total quality control concept and
  strategies

54
The Feigenbaum Philosophy

• Feigenbaum define total quality control as an
  effective system for integrating the
  quality-development, quality-maintenance, and
  quality-improvement efforts of various groups in
  an organization so as to enable marketing,
  engineering, production, and service at the most
  economical levels which allow for full customer
  satisfaction

55
Feigenbaum's horizontal scope of total quality
control
56
The Feigenbaum Philosophy

• Feigenbaum stresses a systems approach to quality
  through the definition of a quality system

57
The Feigenbaum Philosophy

• A quality system is the agreed on, company-wide
  and plant-wide operating work structure,
  documented in effective, integrated technical and
  managerial procedures, for guiding the
  coordinated actions of the work force, the
  machines, and the information of the company and
  plant in the best and most practical ways to
  assure customer quality satisfaction and
  economical costs of quality.

58
The Feigenbaum Philosophy

• Feigenbaum's philosophy is summarized in his
  Three Steps to Quality
• Quality Leadership
• Modern Quality Technology
• Organizational Commitment

59
Quality Leadership

• A continuous management emphasis is grounded on
  sound planning rather than reaction to failures.
  Management must maintain a constant focus and
  lead the quality effort.

60
Modern Quality Technology

• The traditional quality department cannot resolve
  80 to 90 percent of quality problems.
• This task requires the integration of office
  staff as well as engineers and shop- floor
  workers in the process who continually evaluate
  and implement new techniques to satisfy customers
  in the future.

61
Organizational Commitment

• Continuous training and motivation of the entire
  workforce as well as an integration of quality in
  business planning indicate the importance of
  quality and provide the means for including it in
  all aspects of the firm's activities.
• The Japanese latched on to this concept of total
  quality control as the foundation for their
  practice called Company- Wide Quality Control
  (CWQC), which began in the 1960s.
• Feigenbaum's ideas also have become important
  elements of the Malcolm Baldrige National Quality
  Award Criteria.

62
Ishikawa Philosophy

• Ishikawa provided a great deal of leadership in
  shaping the Japanese quality movement through his
  vision and activities associated with the Union
  of Japanese Scientists and Engineers (JUSE).
• By 1967 Japanese quality control could, be
  distinguished from that practiced in the West

63
Six characteristics of Japanese Quality Control

1. Company-wide quality control participation by
   all members of the organization in quality
   control.
2. Education and training in quality control.
3. Quality control circle activities.
4. Quality control audits (for effectiveness).
5. Utilization of statistical methods.
6. Nationwide quality control promotion (including
   training) activities.

64

• Ishikawa's impact on quality control practices
  has been extensive.
• Ishikawa developed the concept of true and of
  substitute quality characteristics.

65
True VS Substitute quality characteristics

• The "true" quality characteristics are the
  customer's view of product performance, expressed
  in the customer's vocabulary.
• "Substitute" quality characteristics are the
  producer's view of product performance expressed
  in the producer's technical vocabulary.
• The degree of match between true and substitute
  quality characteristics ultimately determines
  customer satisfaction.

66
True VS Substitute quality characteristics

• Ishikawa proposes three steps which are the basis
  of quality-planning and quality
  function-deployment techniques.
• Understand true quality characteristics.
• Determine methods of measuring and testing true
  quality characteristics.
• Discover substitute quality characteristics, and
  have a correct understanding of the relationship
  between true quality characteristics and
  substitute quality characteristics.

67
Seven Quality Tools

• Ishikawa has been associated with the development
  and advocacy of universal education in the seven
  "indispensable" or fundamental tools (of quality
  control)
• Cause-effect (Ishikawa) diagram.
• Stratification.
• Check sheet.
• Histogram.
• Scatter diagram.
• Pareto chart (vital few, trivial many).
• Graphs and statistical control charts.

68
Seven Tools of Quality
69
Some key elements of his philosophy are
summarized here

• 1. Quality begins with education and ends with
  education.
• 2. The first step in quality is to know the
  requirements of customers.
• 3. The ideal state of quality control occurs when
  inspection is no longer necessary.
• 4. Remove the root cause, not the symptoms.
• 5. Quality control is the responsibility of all
  workers and all divisions.

70
Some key elements of his philosophy are
summarized here

• 6. Do not confuse the means with the objectives.
• 7. Put quality first and set your sights on
  long-term profits.
• 8. Marketing is the entrance and exit of quality.
• 9. Top management must not show anger when facts
  are presented by subordinates.
• 10. Ninety-five percent of problems in a company
  can be solved with simple tools for analysis and
  problem solving.
• 11. Data without dispersion information (i.e.,
  variability) is false data.

71
Genichi Taguchi

• Taguchi emphasizes an engineering approach to
  quality.
• He stresses producing to target goals or
  requirements with minimal product performance
  variation in the customer's environment.
• Variation is termed noise (interference).

72
Taguchi identifies three distinct types of noise

1. External noise - variables in the environment or
   conditions of use that disturb product functions
   (e.g., temperature, humidity, and dust).
2. Deterioration noise or internal noise - changes
   that occur as a result of wear or storage.
3. Unit-to-unit noise - differences between
   individual products that are manufactured to the
   same specifications.

73
Taguchi focuses on design for quality by defining
three design levels

1. System design (primary) - functional design
   focused on pertinent technology or architectures.
2. Parameter design (secondary) - a means of both
   reducing cost and improving performance without
   removing causes of variation.
3. Tolerance design (tertiary) - a means of reducing
   variation by controlling causes, but at an
   increased cost.

74
Taguchis Loss Function

• Genichi Taguchi developed a "loss function" based
  on the idea that loss to society occurs whenever
  there is a deviation from the most desirable
  value
• Taguchi believes that the customer becomes
  increasingly dissatisfied as performance departs
  farther away from the target.

75
Taguchi Loss Function

• He suggests a quadratic curve to represent a
  customer's dissatisfaction with a product's
  performance.
• The curve is centered on the target value, which
  provides the best performance in the eyes of the
  customer.
• Identifying the best value is not an easy task.  
• Targets are sometimes the designer's best guess.

76
Taguchi Loss Function
77
Taguchi Loss Function
78
Taguchi Loss Function

• LCT represents lower consumer tolerance and UCT
  represents upper consumer tolerance.  
• This is a customer- driven design rather than an
  engineers specification.  
• Experts often define the consumer tolerance as
  the performance level where 50 of the consumers
  are dissatisfied.  
• Your organization's particular circumstance will
  shape how you define consumer tolerance for a
  product.

79
Taguchis Loss Function

• The larger the deviation from the desired value
  the greater the loss to society.
• These losses occur regardless of whether or not
  the specifications have been met.
• Any reduction in variation will lead to a
  corresponding reduction in loss.

80
Shingo Philosophy

• A true "zero defects" level of quality is the
  ultimate level of conformance to specification.
• Zero defects (ZD) implies that each and every
  item built conforms to specification.
• Shingo maintains that statistical-based quality
  control is not conducive to zero defects.
• He states that statistical quality control can
  lower, but not eliminate, defects. Shingo
  proposes the poka-yoke (mistake-proofing) system
  to totally eliminate defects.

81
Shingo Philosophy

• The mistake-proofing concept is a human- or
  machine-sensor-based series of 100 percent
• source inspections,
• self-checks, or
• successive checks
• to detect abnormalities when or as they occur and
  to correct them on the current unit of production
  as well as system wide.

82
The Shingo Zero Quality Control System consists
of four fundamental principles

1. Use source inspection the application of control
   functions at the stages where defects originate.
2. Always use 100 percent source inspections (rather
   than sampling inspections).
3. Minimize the time to carry out corrective action
   when abnormalities appear.
4. Set up poka-yoke (mistake-proofing) devices, such
   as sensors and monitors, according to product and
   process requirements.

83
Crosby Philosophy

• Crosby, in his classic book Quality Is Free,
  provides a high level of public visibility for
  quality issues.
• The Crosby "Quality Management Maturity Grid,"
  traces corporate quality awareness and a quality
  maturation from a level of uncertainty to one of
  certainty.
• His grid addresses quality understanding,
  organization, problem handling, cost, and
  improvement.

84
Crosby's quality management maturity grid
QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________ QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________ QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________ QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________ QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________ QUALITY MANAGEMENT MATURITY GRID Rater__________________________ Unit_________________________________
Measurement Categories Stage I Uncertainty Stage 11 Awakening Stage III Enlightenment Stage IV Wisdom Stage V Certainty
Management understanding and attitude No comprehension of quality as a management tool. Tend to blame quality department for "quality problems." Recognizing that quality management may be of value but not willing to provide money or time to make it all happen. While going through quality improvement program learn more about quality management becoming supportive and helpful. Participating. Understand absolutes of quality management. Recognize their personal role in continuing emphasis. Consider quality management as essential part of company system.
Quality organization status Quality is hidden in manufacturing of engineering departments. Inspection probably not part of organization. Emphasis on appraisal and sorting. A stronger quality leader is appointed but main emphasis is still on appraisal and moving the product. Still part of manufacturing or other. Quality department reports to top management, all appraisal is incorporated and manager has role in management of company. Quality manager is an officer of company effective status reporting and preventive action. Involved with consumer affairs and special assignments. Quality manager on board of directors. Prevention is main concern. Quality is a thought leader.
85
Crosby's quality management maturity grid
Measurement Categories Stage I Uncertainty Stage 11 Awakening Stage III Enlightenment Stage IV Wisdom Stage V Certainty
Problem Handling Problems are fought as they occur no resolution inadequate definition lots of yelling and accusations. Teams are set up to attack major problems. Long-range solutions are not solicited. Corrective action communication established. Problems are faced openly and resolved in an orderly way. Problems are identified early in their development. All functions are open to suggestion and improvement. Except in the most unusual cases, problems are prevented.
Cost of quality as of sales Reported unknown Actual 20 Reported 3 Actual 18 Reported 8 Actual 12 Reported 6.5 Actual 8 Reported 2.5 Actual 2.5
86
Crosby's quality management maturity grid
Measurement Categories Stage I Uncertainty Stage 11 Awakening Stage III Enlightenment Stage IV Wisdom Stage V Certainty
Quality improvement actions No organized activities. No understanding of such activities Trying obvious "motivational" short-range efforts. Implementation of the 14-step program with thorough understanding and establishment of each step. Continuing the14-step program and starting Make Certain. Quality improvement is a normal and continued activity.
Summation of company quality posture "We don't know why we have problems with quality." "Is it absolutely necessary to always have problems with quality?" "Through management commitment and quality improvement we are identifying and resolving our problems." "Defect prevention is a routine part of our operation." "We know why we do not have problems with quality."
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Crosby Philosophy

• Crosby is best known for the concepts Do It Right
  First Time and Zero Defects.
• He does not believe workers are responsible for
  poor quality - you have to get the management
  straight.

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The essence of Crosby's quality philosophy

• The essence of Crosby's quality philosophy is
  embodied in what he calls
• (l) the "Absolutes of Quality Management" and
• (2) the "Basic Elements of Improvement."

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The Crosby four absolutes of Quality Management
are

1. Quality is defined as conformance to
   requirements, not as 'goodness' or 'elegance'.
2. The system for causing quality is prevention, not
   appraisal.
3. The performance standard must be Zero Defects,
   not 'that's close enough'.
4. The measurement of quality is the Price of
   Non-conformance, not indices.

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The fourteen basic elements of Quality
Improvement are

1. Make it clear that management is committed to
   quality.
2. Form quality improvement teams with senior
   representatives from each department.
3. Measure processes to determine where current and
   potential quality problems lie.
4. Evaluate the cost of quality and explain its use
   as a management tool.

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The fourteen basic elements to Quality
Improvement are

• Raise the quality awareness and personal concern
  of all employees.
• Take actions to correct problems identified
  through previous steps.
• Establish process monitoring for the improvement
  process.
• Train supervisors to actively carry out their
  part of the quality improvement program.

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The fourteen basic elements to Quality
Improvement are

1. Hold a Zero Defect Day to let everyone realize
   that there has been a change and reaffirm
   management commitment.
2. Encourage individuals to establish improvement
   goals for themselves and their groups.
3. Encourage employees to communicate to management
   the obstacles they face in attaining their
   improvement goals.

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The fourteen basic elements to Quality
Improvement are

• Recognize and appreciate those who participate.
• Establish quality councils to communicate on a
  regular basis.
• Do it all over again to emphasize that the
  quality improvement program never ends.

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Tom Peters Philosophy

• Peters' identified leadership as being central to
  the Quality Improvement Process.
• He considered that 'management' should be
  discarded in favor of 'leadership' - the new role
  being that of a cheerleader and facilitator.

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According to Tom Peters

• Leadership is the centre of
• Care of Customers
• Constant Innovation
• People

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The twelve traits of a quality revolution are

• Management obsession with quality
• Passionate systems
• Measurement of quality
• Quality is rewarded
• Everyone is trained for quality
• Multi-function teams

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The twelve traits of a quality revolution are

1. Small is beautiful
2. Create endless 'Hawthorne' effects
3. Parallel organizational structure devoted to
   quality improvement
4. Everyone is involved
5. When quality goes up, costs go down
6. Quality improvement is a never-ending journey

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Claus Moller Philosophy

• Moller sees Personal Quality as the basis of all
  other types of quality.
• It is the people who produce the goods who must
  be inspired to do their best, and this will only
  be mastered by improving the personal development
  of the individual.
• This will lead to increased competence in
  Productivity, Relations and Quality.

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The Moller twelve golden philosophies to improve
personal quality are

1. Set personal quality goals
2. Establish your own personal quality account
3. Check how satisfied others are with your efforts
4. Regard the next link as a valued customer
5. Avoid errors
6. Perform tasks more efficiently

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The Moller twelve golden philosophies to improve
personal quality are

• Utilize resources well
• Be committed
• Learn to finish what you start - strengthen your
  self-discipline
• Control your stress
• Be ethical - maintain your integrity
• Demand quality

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Moller two simple techniques for raising personal
quality

• In addition Moller has developed two simple
  techniques for raising personal quality
• To do/check system (continuous self-checking the
  quality of performance)
• The quality business card (devise a card which is
  a personal guarantee of quality of work).

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Concerning company quality Moller lists 17
hallmarks of a quality company

1. Focus on quality development
2. Management participation in the quality process
3. Satisfied customers/users
4. Committed employees
5. Long-term quality development

103
Concerning company quality Moller lists 17
hallmarks of a quality company

1. Clearly-defined quality goals
2. Quality performance rewarded
3. Quality control perceived positively
4. Next person in work process is a valued customer
5. Investments in personnel training and development
   
6. Prevention/reduction of mistakes

104
Concerning company quality Moller lists 17
hallmarks of a quality company

1. Appropriate decision level
2. Direct route to end users
3. Emphasis on both technical and human quality
4. Company actions directed towards customer needs
5. Ongoing value analysis
6. Company recognition of its role in society

105
Evolution of Quality Principles (Summers, 1997,
P8)
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Artisan

• Up until the advent of mass production, artisans
  completed individual products and inspected the
  quality of their own work or that of an
  apprentice before providing the product to the
  customer.
• If the customers experienced any dissatisfaction
  with the product, he or she dealt directly with
  the artisan.

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Inspection

• As the variety of items being mass-produced grew,
  so did the need for monitoring the quality of the
  parts produced by these processes.
• Industries saw a need to ensure that the customer
  received a quality product
• At 1st, inspection was the primary method of
  ensuring quality product or services

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Inspection

• Refers to those activities designed to detect or
  find nonconformances existing in already
  completed products and services.
• Inspection, the detection of defects, is a
  regulatory process.

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Inspection

• It involves the measuring, examining, testing, or
  gauging of one or more characteristics of a
  product or service.
• This result is compared with established
  standards to determine whether or not the product
  or service conforms

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Inspection

• Inspection occurring only after the part or
  assembly has been completed can be costly.
• If a large number of defective products has been
  produced and the problem has gone unnoticed, then
  scarp or rework costs will be high.

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Inspection

• The same is true in a service environment.
• If the service has been incorrectly provided, the
  customer receiving the service must spend
  additional time in the system having the problem
  corrected.

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Quality Control (QC)

• QC refers to the use of specifications and
  inspection of completed parts, subassemblies, and
  products to design, produce, review, sustain, and
  improve the quality of a product or service.

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Quality control goes beyond inspection by

• 1. Establishing standards for the product or
  service, based on the customer needs,
  requirement, and expectations.
• 2. Ensuring conformance to these standards. Poor
  quality is evaluated to determine the reasons why
  the parts or services provided are incorrect.

114
Quality control goes beyond inspection by

• 3. Taking action if there is a lack of
  conformance to the standards. These actions may
  include sorting the product to find the
  defectives. In service industries, actions may
  include contacting the customer and correcting
  the situation.
• 4. Implementing plans to prevent future
  nonconformance. These plans may include design or
  manufacturing changes in a service industry they
  may include procedural changes

115
Statistical Quality Control (SQC)

• Building on the four tenets of QC, statistics
  were added to map the results of part inspection.
• The use of statistical methods of production
  monitoring and part inspection became known as
  statistical quality control (SQC), wherein
  statistical data are collected, analyzed, and
  interpreted to solve quality problems.

116
Statistical Quality Control (SQC)

• The primary concern of individuals involved in
  quality is monitoring and control of variation in
  the product being produced or service being
  provided.

117
Statistical Process Control (SPC)

• The prevention of defects by applying statistical
  methods to control the process is known as
  statistical process control (SPC).

118
Statistical Quality Control (SQC)

• To manufacture products within specifications,
  the processes producing the parts need to be
  stable and predictable.
• A process is considered to be under control, when
  the variability from one part to another or from
  one service to another is stable and predictable.

119
Predictions Based on Stable and Unstable Processes
120
Statistical Process Control (SPC)

• Statistical process control emphasizes the
  prevention of defects.
• Prevention refers to those activities designed to
  prevent defects, defectives, and nonconformance
  in products and services.

121
Statistical Process Control (SPC)

• The most significant difference between
  prevention and inspection is that with
  prevention, the process rather than solely the
  product- is monitored, controlled, and adjusted
  to ensure correct performance.
• By using key indicators of product performance
  and statistical methods, those monitoring the
  process are able to identify changes that affect
  the quality of the product and adjust the process
  accordingly.

122
Statistical Process Control (SPC)

• Emphasis shifts away from inspecting quality into
  a completed product or service toward designing
  and manufacturing quality into the product or
  service.
• The responsibility for quality moves from the
  inspectors to the design and manufacturing
  departments.

123
Statistical Process Control (SPC)

• Statistical process control also seeks to limit
  the variation present in the item being produced
  or the service being provided.
• While it once was considered acceptable to
  produce parts that fell somewhere between the
  specification limits,
• statistical process control seeks to produce
  parts as close to the nominal dimension as
  possible and to provide services of consistent
  quality from customer to customer.

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Statistical process control can be used to help a
company meet the following goals

• To create products and services that will
  consistently meet customer expectations and
  product specifications
• To reduce the variability between products or
  services so that the results match the desired
  design quality
• To achieve process stability that allows
  predictions to be made about future products or
  services

125
Statistical process control can be used to help a
company meet the following goals

• To allow for experimentation to improve the
  process and to know the results of changes to the
  process quickly and reliably
• To further the long-term philosophy of continual
  improvement
• To minimize production costs by eliminating the
  costs associated with scrapping or reworking
  out-of-specification products
• To place the emphasis on problem solving and
  statistics

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Statistical process control can be used to help a
company meet the following goals

• To support decisions with statistical information
  concerning the process
• To give those closest to the process immediate
  feedback concerning current production
• To assist with the problem-solving process
• To increase profits
• To increase productivity

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Positive Results of Statistical Process Control

• Uniformity of Output
• Reduced Rework
• Fewer Defective Products
• Increased Output
• Increased Profit
• Lower Average Cost
• Fewer Errors

128
Positive Results of Statistical Process Control

• Predictable, Consistent Quality Output
• Less Scrap
• Less Machine Downtime
• Less Waste in Production Labor Hours
• Increased Job Satisfaction
• Improved Competitive Position

129
Positive Results of Statistical Process Control

• More Jobs
• Factual Information for Decision Making
• Increased Customer Satisfaction
• Increased Understanding of the Process
• Future Design Improvements

130
Total Quality Management (TQM)

• What is TQM?

131
Total quality management (TQM)

• TQM is a management approach that places emphasis
  on continuous process and system improvement as a
  means of achieving customer satisfaction to
  ensure long-term company success.

132
Total quality management (TQM)

• TQM utilizes the strengths and expertise of all
  the employees of a company as well as the
  statistical problem-solving and charting methods
  of statistical process control (SPC).

133
Total quality management (TQM)

• TQM is based on and relies on the participation
  of all members of an organization to continuously
  improve the processes, products, and services
  their company provides as well as the culture
  they work in.

134
The Objective, and Principles TQM
135
Objective of TQM Continual Improvement

• the notion that the performance standard to reach
  is
• perfection
• or zero defect to coin Phillip Crosby
• or picking the last grain of rice in Japanese
• involves incremental improvement breakthroughs

136
Principles of TQM Customer Focus

• the notion that all work is performed for a
  customer and
• it is the customer who determines its value

137
Principles of TQM Process Improvement

• The concept of continuous improvement is built on
  the premise that work is a result of a series of
  interrelated steps and activities that result in
  an output.
• Continuous attention to each of these steps in
  the work process is necessary to reduce the
  variability of the output and improve the
  reliability of the process

138
Principles of TQM Process Improvement

• The 1st goal of continuous improvement is
  processes that are reliable reliable in the
  sense that they produce the desired output each
  time with no variation.
• If variability has been minimized and the results
  are still unacceptable, the second goal of
  process improvement is to redesign the process to
  produce an output that is better able to meet the
  customers requirement.

139
Principles of TQM Total Participation (TP)

• the idea that work has an additional dimension
• In traditional organization, the worker expects
  to be told what to do and how satisfactory
  performance will be measured

140
Principles of TQM Total Participation (TP)

• TP implies that the person closest to the task is
  most qualified to suggest improved ways of doing
  the job
• He/she suggests ways to make improvements aimed
  at enhancing productivity value to the customer

141
Implication for Managers

• Managers need to understand the differences and
  similarities in the leading quality philosophies
  and develop a quality management approach
  tailored to their organization.

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