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Philosophies and Frameworks

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Presentation on theme: "Philosophies and Frameworks"— Presentation transcript:

1 Philosophies and Frameworks
Chapter 3 Philosophies and Frameworks

2 Leaders in the Quality Revolution
W. Edwards Deming Joseph M. Juran Philip B. Crosby Armand V. Feigenbaum Kaoru Ishikawa Genichi Taguchi

3 Who’s Who? b a Deming ____ Juran ____ Crosby ____ c

4 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

5 Deming’s System of Profound Knowledge
Appreciation for a system Understanding variation Theory of knowledge Psychology

6 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

7 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

8 Sources of Variation in Production Processes
Materials Tools Operators Methods Measurement Instruments Human Inspection Performance Environment Machines INPUTS PROCESS OUTPUTS

9 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

10 Psychology People are motivated intrinsically and extrinsically
Fear is demotivating Managers should develop pride and joy in work

11 Deming’s 14 Points (Abridged) (1 of 2)
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.

12 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.

13 Joseph Juran Quality Control Handbook
Proposed working within the system Quality cost accounting “Fitness for use” Quality Trilogy Quality planning Quality control Quality improvement

14 Quality is free . . . : Phillip B. Crosby (1 of 2)
“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.”

15 Philip B. Crosby (2 of 2) 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

16 A.V. Feigenbaum Total Quality Control 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

17 Kaoru Ishikawa Instrumental in developing Japanese quality strategy
Influenced participative approaches involving all workers Advocated the use of simple visual tools and statistical techniques Cause-and-effect (fishbone) chart

18 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: No Loss Loss Tolerance 0.500 0.520 0.480

19 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 AT&T Power Systems Division

20 Malcolm Baldrige National Quality Award (1 of 2)
Help improve quality in U.S. companies in 1987 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

21 Malcolm Baldrige National Quality Award (2 of 2)
In a year, as many as two awards may be given in each category Manufacturing Small business Service Education Health care Tennessee winners Baldrige Award trophy

22 2002 MBNQA Categories and Scoring System
1.0 Leadership 2.0 Strategic Planning 3.0 Customer and Market Focus 85 4.0 Information and Analysis 90 5.0 Human Resource Focus 85 6.0 Process Management 7.0 Business Results 450 8.0 Global Market Development and Competitiveness (optional) 100

23 The Baldrige Framework – A Systems Perspective
Organizational Profile: Environment, Relationships, and Challenges 2 Strategic Planning 5 Human Resource Focus 1 Leadership 7 Business Results The framework is the 30,000 foot view of the Criteria. [Note: Education and Health Care Criteria have slightly different nomenclature.] The building blocks, or Categories, are essential -- performance in the Baldrige categories is the cost of entry -- but excellence in the linkages will be the mark of competitive leadership. The arrows point to excellence. The umbrella over strategy and action plans: It is the set of customer and market focused company-level requirements. These are derived from short- and long-term planning. They are the things that must be done well for the strategy to succeed. The action plans “bring the strategy to life.” They guide overall resource decisions. They drive the alignment of measures for all work units to ensure customer satisfaction and market success. The system: The leadership triad -- leadership, strategic planning, customer & market focus -- emphasizes the importance of a leadership focus on strategy and customers. The results triad is HR focus, process management, and business results. Its focus is on the employees and key processes that accomplish the work of the organization that yields results. ALL company actions point toward results. The large arrow in the center connects the leadership and results triads -- a critical linkage for company success -- and shows the role leaders must play in driving results improvement. Information and analysis are critical to a fact-based system; they are the foundation for the performance management system. 3 Customer & Market Focus 6 Process Management 4 Information and Analysis

24 Evaluation Process Receive applications Site visit First stage review
(5-8 examiners) Select for consensus review? Consensus review (6-8 examiners) for site visit ? Site visit Recommend winners (judges) Feedback report no yes

25 Scoring System Approach: methods used to achieve requirements in criteria Deployment: extent to which approaches are applied to all relevant areas and activities Results: outcomes and effects in achieving purposes addressed in criteria

26 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

27 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. The Baldrige National Quality Program is more than an Award program. A major purpose of the Criteria is to provide a framework organizations can use for self-assessment. To encourage self-assessment, the Program makes available the materials to accomplish Baldrige assessments in-house. Materials include the Criteria, scoring guidelines, a structure for identifying organizational strengths and opportunities for improvement, and a case study packet that demonstrates the complete process. Boeing Airlift & Tanker Programs – 1998 winner

28 Growth of State Award Programs Based on the Baldrige

29 Tennessee Quality Award
Any organization in the state is eligible to apply An organization may be recognized at one of four levels quality interest quality commitment quality achievement Governor’s quality award Basically the same criteria, scoring and procedures used for the current MBNQA

30 Quality Awards Around the World
In addition to the state and local network, an international network has now evolved as well. Over 40 programs exist across the world, and many are Baldrige based. There is even a Baldrige-based Award in Japan, in addition to the Deming prize. Baldrige has truly become a global benchmark and the Criteria have become accepted as a world-wide standard for performance excellence. Programs in place No programs

31 ISO 9000:2000 Standards Original version adopted by International Organization for Standardization in 1987 Quality system standards that guide a company’s performance of specified requirements Covers design/development, production, installation, and service

32 Objectives of Standards (1 of 2)
Achieve, maintain, and seek to 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

33 Objectives of 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

34 ISO 9000:2000 Quality Management Principles
Customer Focus Leadership Involvement of People Process Approach System Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier Relationships

35 Structure of ISO 9000:2000 ISO 9000 ISO 9001 ISO 9004 ISO 19011
Definitions of key terms ISO 9001 A set of requirements for a quality management system Demonstrate compliance with recognized quality principles to customers ISO 9004 Improving system beyond minimum requirements ISO 19011 Guidelines on quality and environmental auditing

36 Registration (Certification) Process
Performed by a third-party auditor (registrar) at the applicant’s expense Steps review of quality system documents or manuals preassessment identifies potential noncompliance assessment by a team of auditors surveillance to verify conformity Recertification required every three years

37 ISO 9000:2000 Revisions (1 of 2) Have a process to determine customer needs and expectations, interpret them and measure satisfaction Managers must communicate the importance of meeting customer and regulatory requirements, integrate ISO 9000 into business plans, set measurable objectives, and conduct reviews

38 ISO 9000:2000 Revisions (2 of 2) View work as a process and manage a system of interrelated processes Analysis to provide information about customer satisfaction, products, and processes with a focus on improvement Evaluation of training effectiveness Planned process for improvement

39 QS 9000 Standards (1 of 3) Created in 1994 by the American automobile industry Interpretation and extension of ISO 9000 for suppliers Develop fundamental quality systems that provide for continuous improvement emphasizing defect prevention reduction of variation and waste in the supply chain

40 QS 9000 Standards (2 of 3) Supplier requirements include
formal, documented, comprehensive business plan short- and long-term goals and plans based on the analysis of competitive and benchmarking information revise and review the plan appropriately methods to determine current and future customer expectations

41 QS 9000 Standards (3 of 3) Supplier requirements include (continued)
a process for determining customer satisfaction document trends in quality, customer satisfaction, operational performance, efficiency, effectiveness, and current quality levels compare to competitors and/or appropriate benchmarks to measure progress toward overall objectives

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