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Quality Philosophies and Standards: Baldrige to Six Sigma
 

Quality Philosophies and Standards: Baldrige to Six Sigma

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An overview of quality management with emphasis on the Malcolm Baldrige Quality Criteria

An overview of quality management with emphasis on the Malcolm Baldrige Quality Criteria

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Quality Philosophies and Standards: Baldrige to Six Sigma Quality Philosophies and Standards: Baldrige to Six Sigma Presentation Transcript

  • Quality Philosophies and Standards Britt Watwood Center for Teaching Excellence VCU (Baldrige, Six Sigma and Lean Mgmt)
  • What is meant by the term?
    • “ Quality”
  • Quality’s Foundation Philosophy & Practice Tools Empowerment Quality
  • Quality Evolution
    • 1930’s
      • Shewart Cycle
    • 1950’s
      • Deming in Japan
    • 1980
      • Productivity / Quality Circles
    • 1985
      • Deming/Crosby/Juran
    • Late 1980’s
      • Total Quality Mgmt
    • 1990’s
      • Baldrige Criteria
    • Current
      • Six Sigma
      • Lean Management
  • Quality Overview QMS Markets & Customers VOC Lean 6 σ Product Operation Strategy Formulation Product Support Quality
  • 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”
    • A systems perspective
    • Built around core values
    • Linkages within the framework
  • Core Values
    • Visionary Leadership
    • Customer Driven Excellence
    • A Learning Organization
    • Valued Employees and Partners
    • Agility
    • Focus on the Future
  • Core Values
    • Managing for Innovation
    • Management By Fact
    • Social Responsibility
    • Results and Value Driven
    • Overall Systems Perspective
  • Visionary Leadership
    • Senior leadership has vision
    • Senior leadership communicates that vision
    • Values and expectations align with vision
    • Leaders are role models
  • Customer Driven Excellence
    • Quality and Performance are Judged by the Customers
    • Customer Satisfaction tracked and used to improve processes
    • Customer Satisfaction of Competitors Known and Used to Improve Own Offerings
  • Organizational Learning
    • Learning directed at improved products…and improved people
    • Embedded in all processes
    • Continuous
    • Results in Positive Change
  • Valuing Employees & Partners
    • Committed to satisfaction, development, and well-being of employees
    • Recognition Systems
    • Risk-Taking Encouraged
    • Strategic Alliances with Suppliers
  • Agility
    • The ability to thrive in the White-water Rapids of Change
    • Cycle Time
    • Responsiveness
  • Focus on the Future
    • Long-Term Viewpoint
    • Long-Term Commitment to Key Stakeholders
    • Strategic Focus on Resources, Employee and Product Development
  • Managing For Innovation
    • Innovation Part of the Culture
    • More than Sustainability
    • Meaningful Change to Products and Services
  • Management By Fact
    • Measurement AND Analysis of Performance
    • Key Processes Identified
    • Outputs Known
      • Yours and Competitors!
    • Comparison with Benchmarks
    • Use of Trend Data
  • Social Responsibility
    • Safe Work Environment
    • Legal Work Environment
    • Good Corporate Citizen
  • Results & Value
    • Focus on Key Results
    • Creating Value for Stakeholders
        • Customers
        • Employees
        • Stockholders
        • Suppliers / Partners
        • The Community
    • Both Leading and Lagging Indicators
  • Systems Perspective
    • Linkage and Alignment between the Baldrige Categories
      • Leadership
      • Strategic Planning
      • Customer & Market Focus
      • Measurement, Analysis, & KM
      • Workforce Focus
      • Process Management
      • Business Results
  • Baldrige Criteria 4 Measurement, Analysis & Knowledge Management 1 Leadership Organizational Profile Environment, Relationships, & Challenges 2 Strategic Planning 3 Customer & Market Focus 6 Process Mgmt 5 Workforce Focus 7 Business Results
  • ISO 9000
    • Commitment to Customer Requirements
    • Documentation Requirements
    • Resource Allocation
    • Measurement and Analysis
  • 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
    • 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 standard set by the US Government in WW II
  • 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
    What Does 99% Defect-Free Mean?
  • Defects Effect Costs
    • The Cost of Quality
      • 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
  • DMAIC Design Measure Analyze Improve Control
  • As a nation, we seem to be obsessed with LEAN…
  • Effectiveness vs Efficiency V O C 6 σ Selection 6 σ Control 6 σ Improvement Process Metrics Lean Metrics Lean Workload Lean Process Six Sigma = Effectiveness Lean Mgmt = Efficiency
    • 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
    Definition
  • Continuous flow Batch size Production Layout Processing Quality Based on forecast Based on function / department Large Batch & queue Lot sampling Based on orders Based on product flow Small Assured during processing Traditional Lean Lean Mgmt Comparison
    • Key Elements :
      • Stability
      • Quality
      • Continuous Flow
      • Kaizen
      • Pull System
      • Workload Balancing
  • Waste
    • “ Anything that adds Cost
    • to the product
    • without adding Value”
  • Non - Value Added: 95% Value Added: 5% Waste
    • Overproduction
    • Excess Inventory
    • Product Defects
    • Non-value added processing
    • Wait time
    • Underutilized labor
    • Excess motion
    • Unnecessary Transportation
  • 7 Types of Muda Types of Waste CORRECTION WAITING PROCESSING MOTION INVENTORY CONVEYANCE OVERPRODUCTION Repair or Rework Any wasted motion to pick up parts or stack parts. Also wasted walking Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes. Producing more than is needed before it is needed Maintaining excess inventory of raw mat’ls, parts in process, or finished goods. Doing more work than is necessary Any non-work time waiting for tools, supplies, parts, etc..
  • Workplace Organization Maintain through empowerment, commitment, and discipline Sort Sustain Set In Order Shine Standardize Keep machines and work areas clean Use standard methods to keep Sort, Set In Order, and Shine to a condition Organize the work area 5 S Get rid of clutter
  • KAI To modify / Change ZEN To make good / 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???