The document discusses the relationship between culture and quality in companies. It argues that quality spawns the development of culture as employees work together, and that culture then cultivates further improvements in quality. It notes that historically manufacturing has evolved from individual craftsmanship to more collaborative team-based work, and that companies need both a quality-focused culture and high quality to adapt to changing markets.

1. Culture or QualityWhat does your company need?

2. Fred LevkoBSEE Oakland University, MBA DePaul UniversityProduct Design Engineer with Eleven PatentsFord Motor Company Lean CertifiedLean Six Sigma Black Belt30 years experience in product development, manufacturing, and process improvementLean Consulting Clients in Healthcare, Non-Profit, Medical Devices, Automotive Parts, Computer Peripherals2

3. Statement of FactIf there is more than one, you have a culture.You prefer good over bad.3

4. Can your Company survive without Quality?Quality—The perceived value the customer receives for their expense.Cost of Quality—The resources expended by the company to assure the attainment or maintenance of the value developed, produced, and/or delivered to the customer.Real Cost—Inspectors, scrap, rework, supplier validation, excess inventory, training, field serviceHidden Cost—Lost reputation, future market-share, customer loyalty, goodwill, audits4

5. Can your Company survive without Culture?Leadership—Establish an environment of values that define expected behavior and results.Relationships—People react to the work demands by creating norms to attain successful outcomes.Communications—Context and belief of the message distributed among the group about activities to perform work.Reward—Leadership’s encouragement to complete work demands that will benefit the participants.5

6. What comes first?6ORQuality Culture

7. Historical Reference"Time was when a man could order a pair of shoes directly from the cobbler. By measuring the foot himself and personally handling all aspects of manufacturing, the cobbler could assure the customer would be satisfied."

8. Pre-industrial 1890Mass 1920Lean 1980§Craftsman perform all§Employees contribute§Clusters ofaspects of taskminimally to totalemployees working§Self-taught orproductin teamapprenticeship§Training for limited§Extensivetrainingskillscontinuing trainingPeople§Management makesdecisions§Customized, non-§Standardized, focused§Focus on internal/standard productson volume not qualityexternal customerProduct§Variation in quality§Independence,§Obey mgmnt.§Some discretion,discretion§Repetitive, mind-group effectiveness,§Variety of skillsnumbing workempowerment, teamEnvironmentWorkaccountability, work§responsibility§Limited skills,knowledge, littlecellsdiscretion, simplifiedtasksHistory of ManufacturingQuality of Individual’s work valued by Customer

9. Pre-industrial 1890Mass 1920Lean 1980§Craftsman perform all§Employees contribute§Clusters ofaspects of taskminimally to totalemployees working§Self-taught orproductin teamapprenticeship§Training for limited§Extensivetrainingskillscontinuing trainingPeople§Management makesdecisions§Customized, non-§Standardized, focused§Focus on internal/standard productson volume not qualityexternal customerProduct§Variation in quality§Independence,§Obey mgmnt.§Some discretion,discretion§Repetitive, mind-group effectiveness,§Variety of skillsnumbing workempowerment, teamEnvironmentWorkaccountability, work§responsibility§Limited skills,knowledge, littlecellsdiscretion, simplifiedtasksHistory of ManufacturingGroup Individuals to do work through company culture

10. Pre-industrial 1890Mass 1920Lean 1980§Craftsman perform all§Employees contribute§Clusters ofaspects of taskminimally to totalemployees working§Self-taught orproductin teamapprenticeship§Training for limited§Extensivetrainingskillscontinuing trainingPeople§Management makesdecisions§Customized, non-§Standardized, focused§Focus on internal/standard productson volume not qualityexternal customerProduct§Variation in quality§Independence,§Obey mgmnt.§Some discretion,discretion§Repetitive, mind-group effectiveness,§Variety of skillsnumbing workempowerment, teamEnvironmentWorkaccountability, work§responsibility§Limited skills,knowledge, littlecellsdiscretion, simplifiedtasksHistory of ManufacturingAffordable Products differential by Quality available from customer value driven companyCurrent

11. The RealityQuality spawns the development of Culture as people team to do work.Culture evolves from ‘separation-of-labor’ to collaboration among internal customers (up stream & down stream from work process)Leadership’s relation to workers changes from “. . .do your work as you are told” to “. . .how can I help you improve your work”.Culture cultivates QualityCustomer buying habits change from ‘whatever-is-available’ to competitive selection.11

12. The RealityExtinct High Quality CompaniesMercury, Oldsmobile, Singer, DigitalExtinct Deep CulturesIBM, Pan-Am, Arthur-AndersonAdaptive Culture for High QualityGoogle, Toyota, Wal-martEmerging sectors of Adaptive Culture with High QualityHealthcare, Energy Management, Social Network12

13. Market DrivenEvery morning in Africa, a Gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death.It doesn’t matter whether you are a lion or a gazelle - when the sun comes up, you had better be running.

14. Requirements to Transition from Traditional to AdaptiveAgile to shifting market demandsDeliver value to the customerShort lead-time to satisfy customer ordersRapid implementation of innovationCustomization for niche market14

15. Strategy to Leverage Culture and Quality to AdaptCreate a ‘burning-platform’ for changeIdentify gaps of skills and knowledge that hinder changeImprove cost basis for products and servicesKnow your customerTake advantage of speed15

16. Methods to changeCulture and QualitySix Sigma specific to QualityLean Enterprise through CulturePolicy Deployment align work effort to change16

17. What is Six Sigma ?Achieve 3.4 defects per million opportunities Lead by Six Sigma BeltsStrong emphasis on statistical analysis

18. What is Lean?Employee engagement philosophyCollection of process improvement tools Eliminate waste

19. Are they mutually exclusive ?19LeanCulture6σ Quality

20. What they shareLeanCulture6σ Quality20Customer Focus

21. Leadership

22. Discipline

23. Data driven

24. Teamwork

25. Process Improvement

26. TrainingHow they coexist 21Engage Senior Leadership & Recognize Value Stream to CustomerLeanLean LeadersIdentify Gaps in Process Performance as leading indicators to achieve prosperityTrainingTrainingTrainingTrainingLean EmployeesEngage Employees to Stabilize Process and Reduce WasteSix Sigma BeltsIdentify Six Sigma Projects to Reduce Process Variation6σBlendedSustain and Continuously Improve Process