Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Quality Philosophies and Standards




               Britt Watwood
       Center for Teaching Excellence
                ...
Still Relevant…in the last year
What is meant by the term?



“Quality”
Quality’s
                         Foundation

               Quality

Philosophy &
                           Empowerment...
• 1930’s
               – Shewart Cycle
            • 1950’s
               – Deming in Japan
            • 1980
 Quality ...
Quality
                          Overview

                QMS
  Product                 Markets &
  Support             ...
Malcolm
      Baldrige
      National
    Quality Award




www.quality.nist.gov
Malcolm
                         Baldrige NQA
• Twenty years evolving
• A Framework and A Tool
• Self-Assessment
• Promote...
Baldrige
   is a
“Process”
Core
         Values

 Visionary
Leadership

    Customer
      Driven
    Excellence
Core
             Values

Organizational
  Learning

           Valuing
          Employees
              &
           Par...
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
    •   Customer...
Baldrige
                                                     Criteria
                   Organizational Profile
         ...
Balanced
Scorecard
  Model
Comparison
M B N Q A            Balanced Scorecard    ISO 9001:2000

Leadership           Vision and Strategy   Quality Po...
Standard
Deviation




  Sigma is a
  measure of
   variation
Sigma
                            Variation

• The sigma value is a metric
  that indicates how well a
  process is perfor...
Example of
        Sigma Value

Yield    DPMO        Sigma

30.9%    690,000         1
69.2%    308,000         2
93.3%   ...
Example of
                               Sigma Value
Most companies
operate at around 4
sigma – the quality   Yield    DP...
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%
    • 6,21...
As a nation,
we seem to be obsessed
     with LEAN…
Effectiveness vs Efficiency
                      Six Sigma = Effectiveness

             6σ             6σ              6...
Definition

• The term “lean” is used because
  lean manufacturing uses “less”…

   Labor in the factory
   Manufacturin...
Lean Mgmt Comparison

                Traditional                Lean

Production   Based on forecast     Based on orders
...
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
           ...
7 Types
                                                                 of Muda
                         CORRECTION

    ...
Workplace
                                            Organization

Maintain through       Get rid of clutter
 empowerment...
KAI                            ZEN
To modify /        +         To make good /
 Change                          better



...
Differences in
                               Emphasis
• Six Sigma
  – Process Improvement
  – Reduced Defect Rate

• Lean...
What Makes
 Sense For
   YOUR
Company ???
Questions???
Baldrige Quality 09c
Baldrige Quality 09c
Baldrige Quality 09c
Baldrige Quality 09c
Baldrige Quality 09c
Baldrige Quality 09c
Baldrige Quality 09c
Baldrige Quality 09c
Upcoming SlideShare
Loading in …5
×

Baldrige Quality 09c

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all
  • Be the first to comment

Baldrige Quality 09c

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

×