quality philosophies - cqia body of knowledge
TRANSCRIPT
Benefits of QualityCHAPTER 3: QUALITY BENEFITS AND PHILOSOPHIES
Agenda
Stakeholders Aligning Goals with Stakeholder
Needs Stakeholder Quality Benefits FLASH REVIEW
Baldrige Criteria MBNQA FLASH REVIEW
Quality Gurus and Philosophies Crosby Deming Juran Shewhart Ishikawa FLASH REVIEW
1.Stakeholders
…AND WHY THEY ARE IMPORTANT.
Stakeholder Groups
Stakeholders are anyone who has in interest in the welfare and operation of a company. Examples: stockholders, customers, suppliers, company management,
employees and their families, society, etc.
Internal Company Processes
Socie
ty
Socie
ty
Supp
liers
Cust
omer
s
Stockholders or Owners
Management & Employees
Aligning Goals with Stakeholder Needs
Top management has to worry about more than just increasing stockholder value!
Strategic goals may be determined for: Short term or long term emphasis (Americans vs. the World) Profit (maximum profit = not a thing, because internal interests) Cycle times (competitive advantage!) Marketplace response (performance measure) Resources (performance measure)
Stakeholder Quality Benefits
Supplier BenefitsCommunity Benefits• Job opportunities• Organizations which pay
property taxes, enhance property value of surrounding neighborhoods, engender community pride, practice good business ethics, produce products that protect public health, etc.
• Safe products for the consumer
• Products that are energy efficient
Employee Benefits• Job security• Better likelihood of pay increases• Enhancement of KSAs• More prestige/respect from
management and peers• Predictability in work assignments• Reduced cycle times which
improves workflows• Greater pride of workmanship• Fewer confrontations between
departments• Better communications and
information flow
• Opportunity to build long term relationships
• Mutually beneficial training opportunities
• Greater likelihood of shared beneficial information
• Association w/ end product with a good reputation
• More predictability/certainty of future orders, scheduling, and shipping
• Financially viable customers for products/services
Stakeholder Quality Benefits (Continued)
Customer Benefits• Better reputation in the business
community• Increased market share/stock price• Greater profitability without raising
prices• Ability to charge premium prices
because of superior quality• Greater ability to pay/train employees• Greater capacity/flexibility to handle
change• More pride at all organizational levels• More customer loyalty• Ability to weather tough economic times
Organizational Benefits
• Higher quality products• Products that are easier to
use, more reliable, less expensive and offer a greater value
• A supplier that can respond quickly to needs and offers better service
• Warranties that are honored• Quicker corrective action
responses• Better individual treatment
Stockholder Benefits• Increased stock value• Better ROIs• More widely respected business
investment• Investment stability• More timely, accurate, and
thorough annual reports• Investment in a company with a
greater capacity to handle change• Investment in a company with a
strong focus on the future• An organization with a
demonstrated ability to improve
Sample Question:
Of all of an organization’s stakeholder groups, which would be considered the most removed from internal processes?
a. Societyb. Customersc. Suppliersd. Customers
Sample Question:
The relevant stakeholders in an important project would typically include which of the following?
a. Hourly employees and stockholdersb. Potential competitors and BNQA award winnersc. Potential suppliers and potential competitorsd. Owners and user terrorists
Sample Question:
From an external customer’s standpoint which of the following stakeholders is responsible for poor product quality?
a. The stockholders of the producing companyb. The suppliers of the producing companyc. All employees of the producing companyd. Society taken as a whole
2.Baldrige Criteria
For Performance
Excellence
A TEMPLATE USED BY AMERICAN COMPANIES TO ACHIEVE PERFORMANCE EXCELLENCE
http://rube.asq.org/membership/docs/e1440-with-cd.pdf
A management model; Includes voluntary compliances as well as mandatory compliance requirements.
MBNQA or BNQA may be mentioned in test questions, it’s just an acronym for (Malcolm) Baldrige National Quality Award. No worries.
The Baldrige journey is about learning how to achieve: Effectiveness Sustainability Innovation World-class results
Baldrige Criteria for Performance Excellence
Integrated processes Organizational learning A national network to support and
sustain your organization
Baldrige Criteria
The BQNA eligibility categories include education, health care, manufacturing, nonprofit/government, service, and small business.
Seven Baldrige Criteria Categories: Leadership (120 points) Strategic Planning (85 points) Customer Focus (85 points) Measurement, Analysis, and Knowledge Management (90 points) Workforce Focus (85 points) Operations Focus (85 points) Results (450 points) Total Points: 1000
Sample Question:
The Baldrige National Quality Award application is divided into how many key categories of criteria?
a. 7b. 19c. 20d. 24
Sample Question:
There are seven BNQP criteria areas. Which of the following have the heaviest weighting?
a. Customer Focus & Workplace Focusb. Knowledge Management & Customer Focusc. Results & Operations Focusd. Workplace Focus & Strategic Planning
3. Quality Gurus
CROSBY, DEMING, JURAN, JURAN, SHEWHART, (F)ISHIKAWA
Philip B. Crosby
Contributions to Quality: “Zero Defects” Senior Management Involvement 4 Absolutes of Quality Management Quality Cost Measurements
“Quality is conformance to requirements.”1928 - 2001
Philip B. Crosby
”Do It Right First Time” or “Zero Defects” Manufacturing companies spend approx. 20% of their revenues doing things
wrong and doing them over again. Strong emphasis on the top-down approach: workers aren’t primarily
responsible for poor quality, that responsibility resides with management. The goal is to apply Prevention Management in every area, this is aided by
viewing ALL work as a process or series of actions conducted to produce a desired result.
Philip B. Crosby
Four Absolutes of Quality Management:1. Quality means conformance to requirements.2. Quality comes from prevention.3. Quality performance standard is Zero Defects.4. Quality measurement is the price of nonconformance.
Philip B. Crosby
Crosby’s 14 Steps to Quality Improvement:
1. Management Commitment2. Quality Improvement Team3. Measurement4. Cost of Quality 5. Quality Awareness6. Corrective Action7. Zero Defects Planning
8. Employee Education9. ”ZD” Day10. Goal Setting11. Error Cause Removal12. Recognition of Good Work in the
Quality Process13. Establish Quality Councils14. Repetition
Dr. W. Edwards Deming
Contributions to Quality: PDCA Deming’s Chain Reaction 14 Points 7 Deadly Diseases
1900 - 1993
Dr. W. Edwards Deming
Plan-Do-Check-Act Linear perceptions of work vs. cyclical perceptions of work
Deming’s Chain Reaction
Dr. W. Edwards Deming
The 14 Points of Top Management:1. Create constancy of purpose toward
improvement of product and service.2. Adopt the new philosophy.3. Cease dependence on inspection to achieve
quality.4. End the practice of awarding business on
basis of price tag.5. Improve constantly and forever the system
of production and service.6. Institute training on the job.7. Institute leadership.
8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments.10. Eliminate slogans, exhortations, and targets
for the workforce.*11. Eliminate work standards (quotas) on the
factory floor.12. Remove barriers to pride of workmanship.13. Institute a vigorous program of education
and self-improvement.14. Put everybody in the company to work to
accomplish the transformation.
Dr. W. Edwards Deming
Seven Deadly Diseases that Management Must Cure:1. Lack of constancy of purpose.2. Emphasis on short-term profits.3. Evaluation by performance, merit rating, or annual review of performance.4. Mobility of management.5. Running a company on visible figures alone.6. Excessive medical costs.7. Excessive warranty costs.
Intermission
We friggin deserve a break.
Dr. Joseph M. Juran
Contributions to Quality: Quality Trilogy Quality Cost Measurement Pareto Analysis
1904 - 2008
Dr. Joseph M. Juran
Cost
of P
oor Q
ualit
y
Time
Quality Planning Quality Control
QualityImprovement
Chronic Waste
New Zone of Quality Control
Original Zone of Quality Control
Sporadic Spike
Oper
atio
ns B
egin
Lessons Learned
Dr. Joseph M. Juran
Part I of the Trilogy: 6 Steps of Quality Planning1. Verify the Goal.2. Identify Customers.3. Determine Customer Needs.4. Develop Product.5. Develop Process. 6. Transfer to Operations. M
easu
re
Verify the Goal
Identify Customers
Determine Customer Needs
Develop Product
Develop Process
Transfer to Operations
Dr. Joseph M. Juran
Part II of the Trilogy: Quality Control Feedback Loop
OK
Not OK
Measure Actual Performance
Compare to
Standard
Regulate Process
Establish Standard
Dr. Joseph M. Juran
Part III of the Trilogy: Quality Improvement Projects The Six Steps of Quality Improvement:
1. Identify a Project.2. Establish the Project.3. Diagnose the Cause.4. Remedy the Cause5. Hold the Gains.6. Replicate Results and Nominate New Projects.
Dr. Joseph M. Juran
Deming, Juran, and Crosby
Dr. Walter A. Shewhart
Contributions to Quality: Assignable Cause vs. Chance Cause Control Charts Use of Statistics for Improvement
1891 - 1967
Dr. Kaoru Ishikawa
Contributions to Quality: Fishbone (Cause and Effect Diagram) Companywide Quality Control (CWQC)
Involves the participation of workers from the top to the bottom of an organization from the start to the finish of the product life cycle.
1915 - 1989
Fishbone Diagram
Sample Question:
When Deming encouraged the elimination of numerical quotas, he was emphasizing which of the following?
a. Good workers already know what is expected.b. Not to sacrifice quality for quantity.c. That zero defects are unrealistic.d. A detection system adds to rework.
Sample Question:
Crosby defines quality as ”conformance to requirements” and Juran defines quality as “fitness for use.” Which of the following statements is correct?
a. Juran means that a product does not have to conform to requirements.b. If a product conforms to requirements it will always be fit for use.c. Fitness for use is almost always a tougher standard than conformance to
requirements.d. These are good examples of beauty lying in the eye of the beholder.
Sample Question:
Why does Juran suggest that chronic waste in an organization will often go unnoticed by management?
a. Management is so engrossed in long term planning they lose touch with basics.
b. These wastes are built into the standards and become accepted.c. Management is so concerned with control they fail to implement
breakthrough projects.d. Quality planning focuses on control items to the exclusion of improvement
ideas.
Sample Question:
The quality management perspective, user perspective, and manufacturer’s perspective are respectively associated with:
a. Juran, Deming, and Crosbyb. Deming, Crosby, and Juranc. Deming, Juran, and Crosbyd. Crosby, Deming, and Juran
Sample Question:
Which of the following quality gurus align with their corresponding basic orientation toward quality?
a. Crosby: Technicalb. Deming: Motivationalc. Crosby: Process orientedd. Juran: Process driven
WE DID IT!