Quality Management Theory

Frameworks for QualityLecture 3

Clip ArtIn this lecture, we will look at the benefits of quality. We will also discuss quality philosophies that are still used today.1Benefits of QualityHow does quality affectEmployees?

Clip ArtHow does quality affect Employees? Employees have an enhance feeling of accomplishment, it strengthens the security of their position, higher quality means higher prices for products which turns to higher wages, well-document Quality Systems help make an employees job easier and less frustrating, reduce errors, and allow employees to grow, employee involvement in the process is satisfying to see ideas go into place, well-documentation allows unplanned problems to be dealt with quickly and safely, a positive organizational culture is formed, and finally overall satisfaction with ones job.

2Benefits of QualityHow does quality affect the Organization?

Clip ArtHow does quality affect the organization? The organization benefits through lower costs from repair, rework, and warrant actions, repeat orders and customer loyalty, a better reputation, increased production which lowers costs, and the costs of poor quality we find exceeds those of good quality.

3Benefits of QualityHow does quality affect Customers?

Clip ArtHow does quality affect customers? Customers benefit through increased customer satisfaction, less time and money spent on customer complaints can be spent on creating a more cost-effective product, and customer service becomes easier and much less costly due to higher satisfaction this allows us to retain current satisfied customers rather than to bring in new ones.

4Benefits of QualityHow does quality affect Suppliers?

Clip ArtHow does quality affect suppliers? Good supplier-organization partnerships will reduce the cost of inspections, less-frequent customer audits, open sharing of organization and supplier quality information, decreased expenses from cost sharing, and a reduced risk to the organization because of its history.Good supplier-organization partnerships are really important. When we understand our supply chain we can work as a team when problems arise. We also can create a common goal with our suppliers and align our perspectives to be the customers perspective, as theirs is all that matters. With better communication we form a trust and overall a better partnership.

5Benefits of QualityHow does quality affect the Community?

Clip ArtHow does quality affect the community? Successful employees, organizations, and suppliers are all taxpayers, a portion of their wealth becomes the communitys wealth. Also, it provides stabilization for the economy.

6Quality Philosophies - Deming

http://www.1000ventures.com/business_guide/crosscuttings/quotes_deming.htmlWork smarter, not harder.Defects are not free. Somebody makes them, and gets paid for making them.Dr. W. Edward Deming

Now we will discuss the different quality philosophies that exist.First we have Dr. W. Edward Deming. He is known for the statement, Work smarter, not harder. Dr. Deming is actually considered as the father of the modern quality revolution. He also popularized the systematic approach to problem solving, known as the Deming cycle or the PDSA (Plan-Do-Study-Act) Cycle. He later transformed that into the PDCA (Plan-Do-Check-Act) cycle. He stated that Defects are not free. Somebody makes them, and gets paid for making them. He encouraged managers to focus on variability.

7Quality Philosophies - Deming

http://www.1000ventures.com/business_guide/crosscuttings/quotes_deming.html

People work in the system. Management creates the system.Inspection with the aim of finding the bad ones and throwing them out is too late, ineffective, and costly. Dr. W. Edward DemingDr. Deming also stated, People work in the system. Management creates the system. He encouraged senior managers to become actively involved, which is stated in his Chain Reaction Philosophy as well as his 14 Points of Management. He also created the Seven deadly diseases including: focus on short-term profits, management that is too mobile, and excessive medical and legal costs. Dr. Deming also stated, Inspection with the aim of finding the bad ones and throwing them out is too late, ineffective, and costly. He emphasized statistical process control, uniformity, and dependability at low cost.

8Quality Philosophies - DemingDeming Chain Reaction

http://www.qualitydigest.com/IQedit/Images/Articles%20and%20Columns/July%2008/QI-0701Shermanfigure5.pngLets take a look at Demings chain reaction. With each improvement, processes and systems run better and better. Productivity increases as waste goes down. Customers get better products, which ultimately increases market share leading to better return-on-investment.

9Quality Philosophies - DemingPDSA Cycle:

http://www.scotland.gov.uk/Resource/Img/209291/0061564.gifHere is an example of the PDSA Cycle.10Quality Philosophies Deming

http://asq.org/learn-about-quality/total-quality-management/overview/deming-points.htmlClick here to read more about the Demings 14 Points http://www.1000advices.com/guru/quality_tqm_14points_deming.htmlDemings 14 points for Total Quality Management are listed here:Create constancy of purpose for improving products and services.Adopt the new philosophy.Cease dependence on inspection to achieve quality.End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier.Improve constantly and forever every process for planning, production and service.Institute training on the job.Adopt and institute leadership.Drive out fear.Break down barriers between staff areas.Eliminate slogans, exhortations and targets for the workforce.Eliminate numerical quotas for the workforce and numerical goals for management.Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system.Institute a vigorous program of education and self-improvement for everyone.Put everybody in the company to work accomplishing the transformation.People want to be involved, unfortunately even today some companies have still not implemented these points. 11Quality Philosophies - Juranhttp://3.bp.blogspot.com/-wNsFhqCa1AA/UZfLMrmh1QI/AAAAAAAAAIg/GixIFEYIwL4/s1600/juran2.jpg

Quality does not happen by accident; it must be planned.Dr. Joseph M. Juran

Dr. Joseph M. Juran stated, Quality does not happen by accident; it must be planned. He emphasized companywide quality planning as well as project-by-project problem-solving through a team method of quality improvement in which upper management is involved. He is also recognized for being the first to incorporate the human aspect of quality management, which is now embraced with the concept of total quality management. His main focuses were communication, organization, planning, control, and coordination. He also developed the Quality Trilogy: Quality Planning, Quality Control, and Quality Improvement.

12Quality Philosophies - Juranhttp://3.bp.blogspot.com/-wNsFhqCa1AA/UZfLMrmh1QI/AAAAAAAAAIg/GixIFEYIwL4/s1600/juran2.jpg

Big Q and little qDr. Joseph M. JuranQuality is fitness for use.

Dr. Juran stated that the majority of problems are the fault of poor management rather than poor workmanship on the floor. Dr. Juran stated Big Q are business concerns for quality improvement of all organizational processes and little q were technological matters that dealt with product quality or functionality. Dr. Juran stated that Quality is fitness for Use. He differed from Deming somewhat in focusing on the customer and defining quality as fitness for use, not necessarily just the technical written specifications.

13Quality Philosophies - Crosby

http://3.bp.blogspot.com/-yX7hcGCIK6I/TrQTb-GZigI/AAAAAAAAAEg/S2ScPGMwB9U/s320/PhilipCrosby.jpegQuality is FreeCost of QualityPhilip B. CrosbyCost of poor quality is understated

Philip B. Crosby stated that Quality is Free. The concept that we should strive for zero defects, everything should be done right the first time that there is no excuse for failures or defects. By doing things wrong and then doing them over again costs organizations in fact 20% of revenues for manufacturing and 35% of revenues for service organizations go to poor quality. He believed that quality is conformance to requirements, and it can only be measured by the price of nonconformance. In summary, the only standard of performance is zero defects.He also talked about the Cost of Quality, which seems contradictory to his quality is free statement. His point is that all costs involved in the prevention of defects, assessment of process performance, and measurement have financial consequences. He said that the Cost of poor quality is understated. There is always a trade-off between the cost of improving quality and the cost of poor quality. Management can use the cost of quality to document variations against expectations to measure efficiency and productivity. Tracking the cost of quality takes the business of quality of the abstract and brings it sharply into cold hard cash.

14Quality Philosophies - Crosby

Quality Vaccine

Ingredients: Determination, Education, and Implementation

Clip ArtCrosby had a quality Vaccine to prevent nonconformance and save money, the ingredients are determination, education, and implementation. He also developed management tools with points or steps to quality improvement. They consisted of management commitment, education and training, measurement, cost of quality, quality awareness, corrective action, zero defects, goal setting, and recognition.15Quality Philosophies - CrosbyFour Absolutes of quality management Conformance to requirements is the only definition of qualityWhat causes quality is prevention, not appraisalZero defects is the only acceptable performance standardThe price of nonconformance is how quality should be measured

http://info.ibs-us.com/Portals/14010/images/CrosbyZero%20Defects.jpg

Crosby believed in Four Absolutes of quality management Conformance to requirements is the only definition of qualityWhat causes quality is prevention, not appraisalZero defects is the only acceptable performance standardThe price of nonconformance is how quality should be measured

16Click on the picture to watch a video:

http://education-portal.com/academy/lesson/deming-juran-crosby-contributors-to-tqm.html#lessonQuality Philosophies - Feigenbaumhttp://3.bp.blogspot.com/-ROF52VEhkY8/UZfJQjCkfFI/AAAAAAAAAIM/flAYQD2tWPM/s1600/feigenbaum2.jpg

Armand V. FeigenbaumTotal Quality ControlQuality does not mean Best but best for the customer use and selling price

Armand V. Feigenbaum is the originator of Total Quality Control which included 40 steps to quality improvement processes. Emphasizing that we need to build quality in at an early stage rather than inspecting and controlling quality after the fact. We need to move from the technical aspects to quality control as a business method. He emphasized the administrative viewpoint and considered human relations to be a basic issue in quality control activities. He also led to the field of cross-functional teamwork. Feigenbaum defined quality control as an effective system for coordinating the quality maintenance and quality improvement efforts of the various groups in an organization. He also felt that the term control represents a management tool that includes setting quality standards appraising conformance to the standards, acting when standards are violated, and planning for improvements in the standards. Finally, he stated, Quality does not mean best but best for the customer use and selling price

18Quality Philosophies - Ishikawahttp://www.littlecrowd.com/sites/default/files/styles/l_220/public/LittleCrowd-Kaoru-Ishikawa_0.jpg

Quality Circles and lunch I mean fishbone diagrams.Dr. Kaoru Ishikawa

Dr. Ishikawa is the pioneer of the quality circle. A quality circle is a group of employees who meet regularly to solve work-related problems. To assist groups or quality circles in quality improvement requires good data collection and presentation. Quality tools are needed for finding, sorting out, and documenting the causes of variation of quality and organizing mutual relationships between them. He emphasized the used of the Pareto diagram to prioritize quality improvements and the cause-and-effect (Ishikawa or fishbone) diagram. He also encouraged companywide participation.

19Quality Philosophies - Taguchi

http://blog.bpir.com/wp-content/uploads/2012/11/genichi_taguchi.jpgConcepts of quality and reliability are pushed back to the design phase, where they belong.Quality LossDr. Genichi Taguchi

Dr. Genichi Taguchi stated, Concepts of quality and reliability are pushed back to the design phase, where they belong. He developed the principles of Quality Robustness, quality loss function, and target-oriented quality. He also popularized the concept of quality loss, which is loss that not only includes the loss to the company through costs of rework or scrap, maintenance cost, downtime due to equipment failure, and warranty claims, but also the costs to the customer through poor product performance and reliability, leading to further losses to the manufacturer as its market share falls.

20Quality Philosophies - Shewharthttp://www.qualitymag.com/ext/resources/QUAL/Home/Images/qm0309-webx-pWalter-Shewhart.jpg

Sampling and probability statistics need to be applied to qualityQuality Control ChartsCreator of the Plan-Do-Check-Act CycleDr. Walter A. Shewhart

Dr. Walter A. Shewhart applied sampling and probability statistics to quality. He also popularized using control charts. This allowed work processes to be brought under control by determination of when a process should be left alone and when intervention was necessary. He developed methods to track performance over time, providing workers the ability to monitor their work and predict when they were about to exceed limits and possibly produce scrap. He also is the creator of the Plan-Do-Check-Act (PDCA) cycle, popularized by Deming.

21Review of philosophiesDemingWork smarter, not harder. Statistical Process Control, Uniformity, and Dependability at low cost.Emphasized that management needs to accept responsibility for building good systems 14 points of managementPopularized the PDSA cycle JuranQuality is fitness for use Project-by-project and team method to solving problemsHuman aspects of qualityCrosbyQuality is free do it right the first time and zero defectsPrevention is the best quality management techniqueCost of quality - Trade-off between the cost of improving quality and the cost of poor quality, the cost of poor quality is understated. FeigenbaumTotal Quality Control IshikawaQuality CircleTools for problem solving Pareto Chart, Fishbone diagramTaguchiQuality and reliability belong in the design phaseShewhartControl charts and creator of PDSA Cycle

Here is a quick review of the philosophers and their key contributions to quality.22