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Baldrige Quality 09c

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  • 1. Quality Philosophies and Standards Britt Watwood Center for Teaching Excellence VCU
  • 2. Still Relevant…in the last year
  • 3. What is meant by the term? “Quality”
  • 4. Quality’s Foundation Quality Philosophy & Empowerment Practice Tools
  • 5. • 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
  • 6. Quality Overview QMS Product Markets & Support Customers Lean Quality VOC Product Strategy Operation Formulation 6 σ
  • 7. Malcolm Baldrige National Quality Award www.quality.nist.gov
  • 8. 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
  • 9. Baldrige is a “Process”
  • 10. Core Values Visionary Leadership Customer Driven Excellence
  • 11. Core Values Organizational Learning Valuing Employees & Partners
  • 12. Core Values Agility Focus on the Future
  • 13. Core Values Managing For Innovation Management By Fact
  • 14. Core Values Social Responsibility
  • 15. Results & Value • Focus on Key Results • Creating Value for Stakeholders • Customers • Employees • Stockholders • Suppliers / Partners • The Community • Both Leading and Lagging Indicators
  • 16. 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
  • 17. Balanced Scorecard Model
  • 18. 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.
  • 19. Standard Deviation Sigma is a measure of variation
  • 20. 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.
  • 21. 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
  • 22. 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
  • 23. What Does 99% Defect-Free Mean?
  • 24. What Does 99% Defect-Free Mean? • 200,000 wrong drug prescriptions each year
  • 25. What Does 99% Defect-Free Mean? • Two short or long landings at major airports each day
  • 26. What Does 99% Defect-Free Mean? • 5,000 incorrect surgical procedures every week
  • 27. What Does 99% Defect-Free Mean? • 20,000 lost articles of mail every hour
  • 28. What Does 99% Defect-Free Mean? • Unsafe Drinking Water for 15 minutes each day
  • 29. What Does 99% Defect-Free Mean? • No electricity for 7 hours each month
  • 30. What Does 99% Defect-Free Mean? • 50 dropped newborns at the hospital each day
  • 31. 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
  • 32. As a nation, we seem to be obsessed with LEAN…
  • 33. Effectiveness vs Efficiency Six Sigma = Effectiveness 6σ 6σ 6σ VOC Selection Control Improvement Process Lean Lean Lean Metrics Metrics Workload Process Lean Mgmt = Efficiency
  • 34. 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
  • 35. 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
  • 36. Key Elements: • Stability • Quality • Continuous Flow • Kaizen • Pull System • Workload Balancing
  • 37. Waste “Anything that adds Cost to the product without adding Value”
  • 38. 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
  • 39. 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.
  • 40. 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
  • 41. KAI ZEN To modify / + To make good / Change better = KAIZEN Gradual and orderly, continuous improvement.
  • 42. Differences in Emphasis • Six Sigma – Process Improvement – Reduced Defect Rate • Lean – Efficiency Improvement – Reduce Waste • Baldrige Criteria – Performance Excellence across Entire System – Results Oriented
  • 43. What Makes Sense For YOUR Company ???
  • 44. Questions???

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