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