1. TM 620: Quality Management
Session Two – September 4, 2012
Quality Philosophies
Quality Standards

2. If you are a ENGM student:
Dr. Kellogg to confirm that he has the correct address for you.
If you believe you are graduating this semester and you have not discussed this with Dr. Kellogg, do so ASAP.

3. Question
What are the contributions of Deming? Why might some believe he is the most influential quality expert? Would you agree?

4. Deming System Design and Consumer redesign Research Distribution
Production,
assembly, inspection
Suppliers A B C
Tests of processes
machines, methods,
costs
G. Edwards Deming
He never defined or described quality precisely
Philosophy – not an algorithm or set of tools

5.       Deming System Improve Quality Cost decrease due
to less rework, fewer
delays  
Productivity
Increases
Capture
Market   
Stay in
Business
Provide jobs
and more jobs
The Deming “Chain Reaction”

6. Deming’s 14 points
Create constancy of purpose toward improvement of product and service.
Adopt the new philosophy.
Cease dependence on inspection to achieve quality.
End the practice of awarding business on the basis of a price tag.
Improve constantly and forever the system of production and service.
Create a vision and demonstrate commitment (we are all in this together)
All through the organization
Inspection = expectation of defects
Price vs. cost
Kaizen; incremental and radical; do not sub-optimize

7. Deming’s 14 points Institute training on the job.
Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job.
Drive out fear, so that everyone may work effectively for the company.
Break down barriers between departments.
Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity.
6. Everyone must understand basic business
7. Everyone includes management at all levels
8. Fear of losing power, reprisal, change, failure, the unknown
9. True team work
10. What does it say about people if these things work?

9. Deming’s 14 points
Eliminate work standards (quotas) on the factory floor.
Eliminate management by objectives
Remove barriers that rob the hourly worker of his right to pride of workmanship
Abolishment of annual or merit rating
Institute a vigorous program of education and self-improvement
Put everybody in the company to work to accomplish the transformation.
11. Arbitrary nature; no reason to be better; cutting corners to achieve; (long term) goals good – (short term) quotas bad
12. Morale issue; merit rating = competition for limited resources, quotas
13. self-improvement = the value of the individual
14. action, we are all in this together
14 points confused some people, so Deming synthesized them into a “system of profound knowledge”

10. Profound Knowledge Appreciation for a system
Understanding of variation
Theory of knowledge
experience
theory
Psychology
System – integrated, do no sub-optimize
Variation – the root of all evil -> predictable (systemic) and not predictable (random)
Theory of knowledge – matches learning org definition
Experience – not theory by itself but experience only describes, cannot be tested or validated
Theory – must exist for knowledge
Psychology – understand human behavior, treat people fairly, fear does not motivate, pay does not motivate
Discussion question: how do the 14 points relate to profound knowledge?

11. 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

12. 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

13. 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

14. Psychology
People are motivated intrinsically and extrinsically; intrinsic motivation is the most powerful
Fear is demotivating
Managers should develop pride and joy in work

15. Video – Deming on Profound Knowledge

16. 7 Deadly Diseases Lack of constancy of purpose
Emphasis on short-term profits
Evaluation of performance, merit rating, or annual review of performance
Mobility of management
Running a company on visible figures alone
Excessive medical costs for employee
Excessive costs of warranty, fueled by lawyers who work on the basis of contingency fees
Will kill efforts to live by the 14 points.

17. Question
Deming believed poor quality rested with management rather than the worker. Would you agree? Why or why not?

18. Question
What was Joseph Juran’s primary contribution to quality thinking in America? Describe his three step process to improving quality.

19. Juran Trilogy 1. Quality Planning 2. Quality Control
3. Quality Improvement
Joseph Juran
Contemporary of Deming
Programs designed to fit into current business strategy
Defined quality as “fitness for use”
Trilogy:
Planning – the process of preparing to meet quality goals
Control – the process of meeting quality goals during operations
Improvement – process of breaking through to unprecedented levels of performance
Discussion question: explain the quality trilogy in your own words/experiences

20. Juran Cast in traditional organizational structure
Breakthrough thinking
1. proof of need
2. project identification
3. organization for breakthrough
4. diagnostic journey (data, statistics)
5. remedial journey
6. holding the gains
Programs for Quality Improvement
Proof of customer need
6. Holding gains = standardize
Juran used Pareto principle to categorize quality problems into two groups: “vital few” and “trivial, but useful, many”

21. Juran 1. Build awareness of the need and opportunity for improvement.
2. Set goals for improvement.
3. Organize to teach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators).
4. Provide training.
5. Carry out projects to solve problems.
Note that this philosophy is very similar to Deming

22. Juran 6. Report progress. 7. Give recognition. 8. Communicate results.
9. Keep score.
10. Maintain momentum by making annual improvement part of the regular systems and processes of the company.

23. Crosby formal, company-wide program with emphasis on motivation
Absolutes
quality = conformance to standards
no such thing as quality problem
no such thing as economics of quality
only performance measure is cost of non-conformance
only standard is “Zero Defects”
14 step program
Philip Crosby
Started as podiatrist, became a line inspector, worked his way up (and across different firms) to VP of quality (highly influenced by this background)
Wrote book “Quality is Free”
Philip Crosby’s approach to quality is summarized in his Absolutes of Quality Management. He places more emphasis on behavioral change rather than on the use of statistical techniques as advocated by Deming and Juran.
Quality = variation in output
No such thing as a quality problem because the problem actually lies in a functional department
No economics of quality because doing it right the first time is cheaper
Zero defects really means “prevent defects from the get go”

24. Crosby (14 steps)
1. Make it clear that management is committed to quality.
2. Form quality-improvement teams with representatives from each department.
3. Determine where current and potential quality problems lie.
4. Evaluate the cost of quality and explain its use as a management tool.
5. Raise the quality awareness and personal concern of all employees.

25. Crosby (14 steps)
6. Take actions to correct problems identified through previous steps.
7. Establish a committee for the zero-defects program.
8. Train supervisors to actively carry out their part of the quality-improvement program.
9. Hold a “zero-defects day” to make all employees aware that there has been a change.
10. Encourage individuals to establish improvement goals for themselves and their groups.

26. Crosby (14 steps)
11. Encourage employees to communicate to management the obstacles they face in attaining their improvement goals.
12. Recognize and appreciate those who participate.
13. Establish quality councils to communicate on a regular basis.
14. Do it all over again to emphasize that the quality-improvement program never ends.

27. Feigenbaum Honorary member ASQC 1986 3 contributions
1. International promotion of the quality ethic
2. Concept of Total Quality Control
3. Quality cost classification
3 steps to quality
1. Quality Leadership
2. Modern Quality Technology
3. Organizational Commitment
Armand V. Feigenbaum wrote seminal text “Total Quality Control” which looks at quality in the framework of the organization
A.V. Feigenbaum coined the term “total quality control” and was responsible for developing cost quality approaches.
3 Steps:
Leadership – management leads
Technology – everyone involved
Commitment – continuous training and motivation; quality integral to business plan
19 steps to improve quality (see text)

28. Feigenbaum Four Deadly Sins Hothouse quality Wishful thinking
Producing overseas
Confining quality to the factory
Hothouse quality – management by coffee mug
Wishful thinking – protectionism to keep American firms from having to compete on quality
Producing overseas – move quality problems out of sight and they will go away
Confining quality to the factory – quality is only a shop floor problem

29. Ishikawa Quality begins & ends with education.
The first step in quality is to know the requirements of the customer.
The ideal state of quality control occurs when inspection is no longer necessary.
Remove the root cause, not the symptoms.
Quality control is the responsibility of all workers and all divisions.
Do not confuse the means with the objectives.
Kaoru Ishikawa, founder of JUSE (Japanese Union of Scientists and Engineers)
Kaoru Ishikawa was instrumental in the Japanese quality movement, particularly in advocating a company-wide quality control approach, the use of quality circles, and problem-solving tools such as cause and effect diagrams.

30. Ishikawa Put quality first and set your sights on long-term profits.
Marketing is the entrance and exit of quality.
Top management must not show anger when facts are presented by subordinates.
95% of problems in a company can be solved with simple tools for analysis and problem-solving.
Data without dispersion information (variability) is false data.
Simple tools such as CE diagram

31. Cause & Effect
Effect
People
Methods
Handling
Design
Tools

32. Cause & Effect Too Few Chips Mix Chips in Dry Automate Fold Longer
Place Chips on
by hand
Drop Liquid
Chips

33. Harrington cross approach of major 3
urgent need is in business process; not production processes
business process reengineering
5-step process
1. organize for improvement
2. understand the process
3. streamlining
4. measurement and control
5. continuous improvement

34. Question
Describe Taguchi’s perspective of quality. What practical applications does it have? If you were a manager would you adopt Taguchi’s approach to quality?

35. Taguchi T T x x LSL USL Genichi Taguchi
Builds from Shewhart (SPC) and Deming
Ideal quality = reference point (target value) for determining level of quality (T on chart)
Economic value of reducing variation
Upper graph – center group is samples falling within spec
Lower graph – shaded = cost of quality
Will come back to Taguchi method and cover Taguchi loss function later in course x T

36. Process Capability C USL LSL   6  x p x LSL USL
We will come back to this when we talk about SPC.
Taguchi says the lower curve is more capable, less variation, less cost, higher quality
Discussion question: Does Taguchi support Deming? If so, how? C
USL
LSL p x   6 

37. OK, Now What? Foster distills these variables from all of the gurus.
Don’t forget people! (see Hammer and Champy in textbook)