tqm 2

1. 11
Chapter 2Chapter 2
PhilosophiesPhilosophies
andand
FrameworksFrameworks

2. 22
Leaders in the QualityLeaders in the Quality
RevolutionRevolution
 W. Edwards DemingW. Edwards Deming
 Joseph M. JuranJoseph M. Juran
 Philip B. CrosbyPhilip B. Crosby
 Armand V. FeigenbaumArmand V. Feigenbaum
 Kaoru IshikawaKaoru Ishikawa
 Genichi TaguchiGenichi Taguchi

3. Who’s Who?Who’s Who?
a
b
c
Deming ____
Juran ____
Crosby ____

4. 44
Deming Chain ReactionDeming 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. Key IdeaKey Idea
The Deming philosophy focuses on
continual improvements in product and
service quality by reducing uncertainty
and variability in design, manufacturing,
and service processes, driven by the
leadership of top management.

6. 66
Deming’s System ofDeming’s System of
Profound KnowledgeProfound Knowledge
 Appreciation for a systemAppreciation for a system
 Understanding variationUnderstanding variation
 Theory of knowledgeTheory of knowledge
 PsychologyPsychology

7. 77
SystemsSystems
 Most organizational processes areMost organizational processes are
cross-functionalcross-functional
 Parts of a system must workParts of a system must work
togethertogether
 Every system must have a purposeEvery system must have a purpose
 Management must optimize theManagement must optimize the
system as a wholesystem as a whole

8. Key IdeaKey Idea
The aim of any system should be for all
stakeholders—stockholders,
employees, customers, community, and
the environment—to benefit over the
long term.

9. 99
VariationVariation
 Many sources of uncontrollableMany sources of uncontrollable
variation exist in any processvariation exist in any process
 Excessive variation results in productExcessive variation results in product
failures, unhappy customers, andfailures, unhappy customers, and
unnecessary costsunnecessary costs
 Statistical methods can be used toStatistical methods can be used to
identify and quantify variation to helpidentify and quantify variation to help
understand it and lead tounderstand it and lead to
improvementsimprovements

10. 1010
Theory of KnowledgeTheory of Knowledge
 Knowledge is not possible withoutKnowledge is not possible without
theorytheory
 Experience alone does not establishExperience alone does not establish
a theory, it onlya theory, it only describesdescribes
 Theory shows cause-and-effectTheory shows cause-and-effect
relationships that can be used forrelationships that can be used for
predictionprediction

11. 1111
PsychologyPsychology
 People are motivated intrinsically andPeople are motivated intrinsically and
extrinsically; intrinsic motivation is theextrinsically; intrinsic motivation is the
most powerfulmost powerful
 Fear is demotivatingFear is demotivating
 Managers should develop pride andManagers should develop pride and
joy in workjoy in work

12. 1212
Deming’s 14 PointsDeming’s 14 Points (Abridged)(Abridged)
(1 of 2)(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.

13. 1313
Deming’s 14 PointsDeming’s 14 Points (2 of 2)(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.
www.deming.org

14. 1414
Juran’s Quality TrilogyJuran’s Quality Trilogy
 Quality planningQuality planning
 Quality controlQuality control
 Quality improvementQuality improvement
www.juran.com

15. Key IdeaKey Idea
Juran proposed a simple definition of
quality: “fitness for use.” This definition
of quality suggests that it should be
viewed from both external and internal
perspectives; that is, quality is related to
“(1) product performance that results in
customer satisfaction; (2) freedom from
product deficiencies, which avoids
customer dissatisfaction.”

16. Phillip B. Crosby
Quality is free . . .
“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.”

17. 1717
Philip B. CrosbyPhilip B. Crosby
Absolutes of Quality Management:Absolutes of Quality Management:
 Quality means conformance to requirementsQuality means conformance to requirements
 Problems are functional in natureProblems are functional in nature
 There is no optimum level of defectsThere is no optimum level of defects
 Cost of quality is the only usefulCost of quality is the only useful
measurementmeasurement
 Zero defects is the only performanceZero defects is the only performance
standardstandard
www.philipcrosby.com

18. A.V. FeigenbaumA.V. Feigenbaum
 Three Steps to QualityThree Steps to Quality
– Quality Leadership, with a strongQuality Leadership, with a strong
focus on planningfocus on planning
– Modern Quality Technology,Modern Quality Technology,
involving the entire work forceinvolving the entire work force
– Organizational Commitment,Organizational Commitment,
supported by continuous trainingsupported by continuous training
and motivationand motivation

19. Kaoru IshikawaKaoru Ishikawa
 Instrumental in developing JapaneseInstrumental in developing Japanese
quality strategyquality strategy
 Influenced participative approachesInfluenced participative approaches
involving all workersinvolving all workers
 Advocated the use of simple visualAdvocated the use of simple visual
tools and statistical techniquestools and statistical techniques

20. Genichi TaguchiGenichi Taguchi
 Pioneered a new perspective on quality basedPioneered a new perspective on quality based
on the economic value of being on target andon the economic value of being on target and
reducing variation and dispelling thereducing variation and dispelling the
traditional view of conformance totraditional view of conformance to
specifications:specifications:
No Loss LossLoss
Tolerance
0.500 0.5200.480

21. 2121
Malcolm Baldrige NationalMalcolm Baldrige National
Quality AwardQuality Award
 Help improve quality inHelp improve quality in
U.S. companiesU.S. companies
 Recognize achievementsRecognize achievements
of excellent firms andof excellent firms and
provide examples to othersprovide examples to others
 Establish criteria forEstablish criteria for
evaluating quality effortsevaluating quality efforts
 Provide guidance for otherProvide guidance for other
American companiesAmerican companies
Malcolm Baldrige,
former U.S. Secretary
of Commerce

22. 2222
Criteria for PerformanceCriteria for Performance
ExcellenceExcellence
 LeadershipLeadership
 Strategic PlanningStrategic Planning
 Customer and Market FocusCustomer and Market Focus
 Measurement, Analysis, andMeasurement, Analysis, and
Knowledge ManagementKnowledge Management
 Human Resource FocusHuman Resource Focus
 Process ManagementProcess Management
 Business ResultsBusiness Results
Baldrige
Award trophy

23. The Baldrige Framework –The Baldrige Framework –
A Systems PerspectiveA Systems Perspective
4
Measurement, Analysis, and Knowledge Management
5
Human
Resource
Focus
3
Customer &
Market
Focus
7
Business
Results
7
Business
Results
2
Strategic
Planning
1
Leadership
6
Process
Management
Organizational Profile:
Environment, Relationships, and
Challenges

24. Key IdeaKey Idea
The Baldrige criteria define both an
integrated infrastructure and a set of
fundamental practices for a high-
performance management system.

25. Criteria EvolutionCriteria Evolution (1 of 2)(1 of 2)
 From quality assurance and strategicFrom quality assurance and strategic
quality planning to a focus on processquality planning to a focus on process
management and overall strategic planningmanagement and overall strategic planning
 From a focus on current customers to aFrom a focus on current customers to a
focus on current and future customers andfocus on current and future customers and
marketsmarkets
 From human resource utilization to humanFrom human resource utilization to human
resource development and managementresource development and management
 From supplier quality to supplierFrom supplier quality to supplier
partnershipspartnerships

26. Criteria EvolutionCriteria Evolution (2 of 2)(2 of 2)
 From individual quality improvement activitiesFrom individual quality improvement activities
to cycles of evaluation and improvement in allto cycles of evaluation and improvement in all
key areaskey areas
 From data analysis of quality efforts to anFrom data analysis of quality efforts to an
aggregate, integrated organizational levelaggregate, integrated organizational level
review of key company datareview of key company data
 From results that focus on limited financialFrom results that focus on limited financial
performance to a focus on a composite ofperformance to a focus on a composite of
business results, including customerbusiness results, including customer
satisfaction and financial, product, service,satisfaction and financial, product, service,
and strategic performanceand strategic performance

27. Key IdeaKey Idea
Approaches that organizations use to
address the Baldrige criteria
requirements need not be formal or
complex, and can easily be implemented
by small businesses.

28. Receive Applications
Judges Select for
Consensus Review?
Judges Select for
Site Visit Review?
Stage 1
Independent Review
Stage 2
Consensus Review
Stage 3
Site Visit Review
Stage 4
Judges Recommend Award
Recipients to
NIST Director/DOC
Feedback report
to applicant
Feedback report
to applicant
Feedback report
to applicant
No
No
Baldrige Award EvaluationBaldrige Award Evaluation
ProcessProcess

29. Self AssessmentSelf Assessment
A primary goal of the Baldrige 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.
Boeing Airlift & Tanker
Programs – 1998 winner

30. 3030
Deming PrizeDeming Prize
 Instituted 1951 by Union of JapaneseInstituted 1951 by Union of Japanese
Scientists and Engineers (JUSE)Scientists and Engineers (JUSE)
 Several categories including prizes forSeveral categories including prizes for
individuals, factories, small companies, andindividuals, factories, small companies, and
Deming application prizeDeming application prize
 American company winners include FloridaAmerican company winners include Florida
Power & Light and AT&T Power SystemsPower & Light and AT&T Power Systems
DivisionDivision

31. Other Quality AwardsOther Quality Awards
 European Quality AwardEuropean Quality Award
 Canadian Awards for BusinessCanadian Awards for Business
ExcellenceExcellence
 Australian Business Excellence AwardAustralian Business Excellence Award

32. Quality Awards AroundQuality Awards Around
the Worldthe World
Programs in place
No programs

33. 3333
ISO 9000:2000ISO 9000:2000
 Quality system standards adopted byQuality system standards adopted by
International Organization forInternational Organization for
Standardization in 1987; revised in 1994Standardization in 1987; revised in 1994
and 2000and 2000
 Technical specifications and criteria to beTechnical specifications and criteria to be
used as rules, guidelines, or definitions ofused as rules, guidelines, or definitions of
characteristics to ensure that materials,characteristics to ensure that materials,
products, processes, and services are fitproducts, processes, and services are fit
for their purpose.for their purpose.

34. Key IdeaKey Idea
ISO 9000 defines quality system
standards, based on the premise that
certain generic characteristics of
management practices can be
standardized, and that a well-designed,
well-implemented, and carefully managed
quality system provides confidence that
the out-puts will meet customer
expectations and requirements.

35. 3535
Objectives of ISOObjectives of ISO
StandardsStandards (1 of 2)(1 of 2)
 Achieve, maintain, and continuouslyAchieve, maintain, and continuously
improve product qualityimprove product quality
 Improve quality of operations to continuallyImprove quality of operations to continually
meet customers’ and stakeholders’ needsmeet customers’ and stakeholders’ needs
 Provide confidence to internalProvide confidence to internal
management and other employees thatmanagement and other employees that
quality requirements are being fulfilledquality requirements are being fulfilled

36. 3636
Objectives of ISOObjectives of ISO
StandardsStandards (2 of 2)(2 of 2)
 Provide confidence to customers andProvide confidence to customers and
other stakeholders that qualityother stakeholders that quality
requirements are being achievedrequirements are being achieved
 Provide confidence that quality systemProvide confidence that quality system
requirements are fulfilledrequirements are fulfilled

37. 3737
Structure of ISO 9000Structure of ISO 9000
StandardsStandards
 21 elements organized into four major21 elements organized into four major
sections:sections:
– Management ResponsibilityManagement Responsibility
– Resource ManagementResource Management
– Product RealizationProduct Realization
– Measurement, Analysis, andMeasurement, Analysis, and
IimprovementIimprovement

38. ISO 9000:2000 QualityISO 9000:2000 Quality
Management PrinciplesManagement Principles
1.1. Customer FocusCustomer Focus
2.2. LeadershipLeadership
3.3. Involvement of PeopleInvolvement of People
4.4. Process ApproachProcess Approach
5.5. System Approach to ManagementSystem Approach to Management
6.6. Continual ImprovementContinual Improvement
7.7. Factual Approach to Decision MakingFactual Approach to Decision Making
8.8. Mutually Beneficial Supplier RelationshipsMutually Beneficial Supplier Relationships

39. Key IdeaKey Idea
ISO 9000 provides a set of good basic
practices for initiating a quality system,
and is an excellent starting point for
companies with no formal quality
assurance program.

40. Six SigmaSix Sigma
 Based on a statistical measure thatBased on a statistical measure that
equates to 3.4 or fewer errors orequates to 3.4 or fewer errors or
defects per million opportunitiesdefects per million opportunities
 Pioneered by Motorola in the mid-Pioneered by Motorola in the mid-
1980s and popularized by the success1980s and popularized by the success
of General Electricof General Electric

41. Key IdeaKey Idea
Six Sigma can be described as a
business improvement approach that
seeks to find and eliminate causes of
defects and errors in manufacturing and
service processes by focusing on outputs
that are critical to customers and a clear
financial return for the organization.

42. Key Concepts of Six SigmaKey Concepts of Six Sigma
(1 of 2)(1 of 2)
 Think in terms of key business processes,
customer requirements, and overall strategic
objectives.
 Focus on corporate sponsors responsible for
championing projects, support team activities,
help to overcome resistance to change, and
obtaining resources.
 Emphasize such quantifiable measures as
defects per million opportunities (dpmo) that
can be applied to all parts of an organization

43. Key Concepts of Six SigmaKey Concepts of Six Sigma
(2 of 2)(2 of 2)
 Ensure that appropriate metrics are identified early
and focus on business results, thereby providing
incentives and accountability.
 Provide extensive training followed by project team
deployment
 Create highly qualified process improvement
experts (“green belts,” “black belts,” and “master
black belts”) who can apply improvement tools and
lead teams.
 Set stretch objectives for improvement.

44. Key IdeaKey Idea
Although different, Baldrige and Six
Sigma are highly compatible and can
each have a place in the management
system of a successful organization.