ENGM 620: Quality Management

Session Three – 11 September 2010

• Quality Standards

We ain’t in Kansas Anymore

And Toto is Nervous

1950 60 70 80 90 20001950 60 70 80 90 2000

Qualit

y

Time

United States

Japan

But We can Compete

Quality Standards and Awards

• Vary by country/region

• Major standards and awards include:– Baldrige Award– Deming Prize– ISO registration

• Caveat emptor!

Global Factors

• Physical Environment – Proximity to labor, supply chains, resources– Seldom driven to labor costs alone

• Task Environment – Regulatory environment– Manufacturing flexibility

• Social Environment– Breakfast meetings in Spain?

Easing Global Operations

• Licensing

• Partnering – NCS had 44 international freight forwarders

and 18 different air carriers, partnered with business logistics to simplify

• Globalization – physically establish production and marketing in foreign countries

The Malcolm Baldridge National Quality Award

Seven Categories1. Leadership

2. Strategic Planning

3. Customer and Market Focus

4. Measurement, Analysis and Knowledge Management

5. Human Resource Focus

6. Process Management

7. Business Results

Baldrige the Man

• Secretary of Commerce 1980-1987

• Graduate of Yale

• Passion for quality led to leader in quality and subsequent appointment to secretary

Deming Award

• Established in 1951 by the Japanese Union of Scientists and Engineers (JUSE)

• Baldrige focus is on leadership and planning whereas Deming is focused on processes

Deming Prize

• Categories– Policy– Organization and operations– Collecting useful Information– Analysis– Planning for the Future – Education and training– Quality assurance– Quality effects– Standardization– Control

Japanese TQC

• Deming’s 14 points +

• + visibility

• + in-process inspection

• + involvement of workforce

• + preventive maintenance

ISO Certification

• ISO = Organization for International Standards

• Documentation of quality systems in a series of manuals and then adhere to the quality system

• ISO 9000s – Quality Management

• ISO 14000s - Environmental