Quality Philosophies and Standards
Britt Watwood
Center for Teaching Excellence
VCU

Still Relevant…in the last year

What is meant by the term?
“Quality”

Quality’s
Foundation
Quality
Philosophy &
Empowerment
Practice
Tools

• 1930’s
– Shewart Cycle
• 1950’s
– Deming in Japan
• 1980
Quality – Productivity / Quality Circles
Evolution • 1985
– Deming/Crosby/Juran
• Late 1980’s
– Total Quality Mgmt
• 1990’s
– Baldrige Criteria
• Current
– Six Sigma
– Lean Management

Quality
Overview
QMS
Product Markets &
Support Customers
Lean Quality VOC
Product Strategy
Operation Formulation
6 σ

Malcolm
Baldrige
National
Quality Award
www.quality.nist.gov

Malcolm
Baldrige NQA
• Twenty years evolving
• A Framework and A Tool
• Self-Assessment
• Promotes Awareness of
Continuous Improvement and
Excellence
• Sharing of Best Practices
• Presented by the President
of the United States

Baldrige
is a
“Process”

Core
Values
Visionary
Leadership
Customer
Driven
Excellence

Core
Values
Organizational
Learning
Valuing
Employees
&
Partners

Core
Values
Agility
Focus
on the
Future

Core
Values
Managing
For
Innovation
Management
By
Fact

Core
Values
Social Responsibility

Results
& Value
• Focus on Key Results
• Creating Value for
Stakeholders
• Customers
• Employees
• Stockholders
• Suppliers / Partners
• The Community
• Both Leading and
Lagging Indicators

Baldrige
Criteria
Organizational Profile
Environment, Relationships, & Challenges
2 5
Strategic Workforce
Planning Focus
85 7
85
1 Business
Leadership 3 6 Results
Customer & Process 450
120 Market Focus Mgmt
85 85
4 Measurement, Analysis & Knowledge Management
90

Balanced
Scorecard
Model

Comparison
M B N Q A Balanced Scorecard ISO 9001:2000
Leadership Vision and Strategy Quality Policy
Strategic Planning Quality objectives
Customer & Market Customer Customer focus
Focus Customer related
processes
Workforce Focus Customer satisfaction
Process Mgmt Internal QMS General
Measurement, Business Processes requirements
Analysis & KM Product Realization
Business Results Organization’s Not specifically
Business Results addressed in the
standard.

Standard
Deviation
Sigma is a
measure of
variation

Sigma
Variation
• The sigma value is a metric
that indicates how well a
process is performing.
• The higher the sigma
value, the better.
• The higher the sigma
value, the more the
process is defect-free.

Example of
Sigma Value
Yield DPMO Sigma
30.9% 690,000 1
69.2% 308,000 2
93.3% 66,800 3
99.94% 6,210 4
99.98% 320 5
99.9997% 3.4 6

Example of
Sigma Value
Most companies
operate at around 4
sigma – the quality Yield DPMO Sigma
standard set by the
US Government in
WW II 30.9% 690,000 1
69.2% 308,000 2
93.3% 66,800 3
99.94% 6,210 4
99.98% 320 5
99.9997% 3.4 6

What Does 99% Defect-Free Mean?

What Does 99% Defect-Free Mean?
• 200,000 wrong
drug prescriptions
each year

What Does 99% Defect-Free Mean?
• Two short or
long landings at
major airports
each day

What Does 99% Defect-Free Mean?
• 5,000 incorrect
surgical
procedures every
week

What Does 99% Defect-Free Mean?
• 20,000 lost
articles of
mail every
hour

What Does 99% Defect-Free Mean?
• Unsafe Drinking
Water for 15
minutes each
day

What Does 99% Defect-Free Mean?
• No electricity
for 7 hours
each month

What Does 99% Defect-Free Mean?
• 50 dropped
newborns at
the hospital
each day

Defects
Effect
• The Cost of Quality Costs
– 4 Sigma: 99.4%
• 6,210 defects
• Industry Average
• Lose 15-20% of sales
– 5 Sigma: 99.98%
• 233 defects
• Lose 5-10% of sales
– 6 Sigma: 99.9997%
• 3.4 defects
• Lose Less than 1% of sales

As a nation,
we seem to be obsessed
with LEAN…

Effectiveness vs Efficiency
Six Sigma = Effectiveness
6σ 6σ 6σ
VOC
Selection Control Improvement
Process Lean Lean Lean
Metrics Metrics Workload Process
Lean Mgmt = Efficiency

Definition
• The term “lean” is used because
lean manufacturing uses “less”…
Labor in the factory
Manufacturing space
Capital investment
Materials
Time between the customer
order and the product shipment

Lean Mgmt Comparison
Traditional Lean
Production Based on forecast Based on orders
Based on function /
Layout Based on product flow
department
Batch size Large Small
Processing Batch & queue Continuous flow
Assured during
Quality Lot sampling
processing

Key Elements:
• Stability
• Quality
• Continuous Flow
• Kaizen
• Pull System
• Workload Balancing

Waste
“Anything that adds Cost
to the product
without adding Value”

Waste
Value Added: 5%
• Overproduction
• Excess Inventory
• Product Defects
• Non-value added
processing
• Wait time
• Underutilized
labor
• Excess motion
Non - Value Added: 95%
• Unnecessary
Transportation

7 Types
of Muda
CORRECTION
Repair or MOTION
WAITING
Rework Any wasted motion
Any non-work time to pick up parts or
waiting for tools, stack parts. Also
supplies, parts, etc.. wasted walking
Types
PROCESSING of OVERPRODUCTION
Producing more
Doing more work than Waste than is needed
is necessary
before it is needed
INVENTORY
Maintaining excess CONVEYANCE
inventory of raw mat’ls, Wasted effort to transport
parts in process, or materials, parts, or
finished goods. finished goods into or
out of storage, or
between
processes.

Workplace
Organization
Maintain through Get rid of clutter
empowerment,
commitment, and Sort
discipline Organize the work area
Sustain Set In Order
5S
Standardize Shine
Use standard methods to Keep machines and work
keep Sort, Set In Order, areas clean
and Shine to a condition

KAI ZEN
To modify / + To make good /
Change better
= KAIZEN
Gradual and orderly, continuous improvement.

Differences in
Emphasis
• Six Sigma
– Process Improvement
– Reduced Defect Rate
• Lean
– Efficiency Improvement
– Reduce Waste
• Baldrige Criteria
– Performance Excellence
across Entire System
– Results Oriented

What Makes
Sense For
YOUR
Company ???

Questions???