quality management and customer relations

Quality Management and Customer Relations

Chapter 1

Text: Quality Management 5th edition

Authors: David Goetsch & Stanley Davis

Chapter One:

The Total Quality Approachto Quality Management

MAJOR TOPICS What is Quality? The Total Quality Approach Defined Two Views of Quality Key Elements of Total Quality Total Quality Pioneers Keys to Total Quality Success Six Sigma Concept How is Six Sigma Achieved? The Future of Quality Management

Quality has been defined in a number of ways by a number of different people and organizations.

Fred Smith,defines quality as”performance to the standard expected by the customer.”

GSA defines quality as”meeting the customer’s needs the first time and every time.

What is Quality?

Boeing defines quality as”providing our customers with products and services that consistently meet their needs and expectations.

DOD defines quality as”doing the right thing right the first time,always striving for improvement,and always satisfying the customer .

What is Quality?

Quality applies to products ,services , people , processes and environments .

Quality is an ever- changing state( What is considered quality today may not be good enough to be considered tomorrow.

Quality is a dynamic state associated with products,services,people,processes,and environments that meets or exceeds expectations.

What is Quality?

The product,services, people,processes,and environments element is critical. It makes the point that quality applies not just to products and sevices provided but to the people and processes that provide them and the environments in which they are provided .

What is Quality?

Total quality is an approach to doing business that attempts to maximize an organization’s competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments.

TQ consists of continuous improvement activities involving everyone in the organization – managers and workers – in a totally integrated effort toward satisfying such cross-functional goals as quality ,cost,schedule ,mission need ,and suitability .TQ integrates fundamental management techniques, existing improvement efforts,and techical tools under a disciplined approach focused on continued process improvement . The activities are ultimately focused on increased customer satisfaction.

What is Total Quality?

Two Views of Quality

Defective parts per hundred Detection of problems Finished product inspection Passive employees who (blindly)

follow orders

Short term profits Productivity & quality in conflict

Meeting customerspecifications

Establishing acceptable levels of nonconformance

Defective parts per million

Prevention of problems

Continual improvement

Employees empowered to think and recommend improvements

Long term profits

Productivity gains are made as a result of Quality improvements

Exceeding customer expectations

Establishing benchmarks for customer satisfaction & continually improving

Traditional

Total Quality

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Two Views of Quality

Quality is inspected in

Defects are to be expected Quality is a separate function

or department

Employees blamed for poor quality

Supplier relationships are short lived & cost driven

Quality is achieved by product & process design & effective control techniques

Defects are to be prevented

Quality should be fully intergrated – it’s everybody’s responsibility

85% of quality problems are management’s fault

Supplier relationships are long term and quality driven

Traditional

Total Quality

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Key Elements of Total Quality

Key characteristics of the total quality approach are as follows: strategically based, customer focus, obsession with quality, scientific approach, long-term commitment, teamwork, employee involvement and empowerment, continual process improvement, bottom-up education and training, freedom through control, and unity of purpose.

The rationale for total quality can be found in the need to compete in the global marketplace. Countries that are competing successfully in the global marketplace are seeing their quality of living improve. Those that cannot are seeing theirs decline.

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Key Elements of Total Quality Strategically based

– Comprehensive strategic plan based on customer focus and continual improvement

Customer focus

– The customer is the driver

Obsession with quality

– All personnel at all levels must constantly be asking “how can we do this better?”

Key Elements of Total Quality Scientific Approach

– Data is used in decision making and problem solving

Long-Term Commitment

– Long term commitment to change

Teamwork

– Breaking down of barriers, rivalries & distrust

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Key Elements of Total Quality Continual process improvement

– To exceed customer expectations, the systems and processes must be continually assessed and improved

Education and training

– It is through education & training that employees who already know how to work hard, learn how to work smart

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Key Elements of Total Quality

Freedom through control

– The more control there is over a process, the more the employees can be empowered and free to spend time eliminating problems.

Unity of purpose.

– Eliminate/reduce the adversarial relationship between labor and management

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Total Quality Pioneers

W. Edward Deming is best known for his Fourteen Points, the Deming Cycle, and the Seven Deadly Diseases.

Joseph M. Juran is best known for Juran’s Three Basic Steps to Progress, Juran’s Ten Steps to Quality Improvement, the Pareto Principle, and the Juran Trilogy.

Philip Crosby is best known for his Four Absolutes of Quality Management

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Deming Cycle

W. Edwards Deming in the 1950's proposed that business processes should be analyzed and measured to identify sources of variations that cause products to deviate from customer requirements. He recommended that business processes be placed in a continuous feedback loop so that managers can identify and change the parts of the process that need improvements. Deming created a diagram to illustrate this continuous process, commonly known as the PDCA cycle for Plan, Do, Check, Act*:

PLAN: Design or revise business process components to improve results

DO: Implement the plan and measure its performance CHECK: Assess the measurements and report the results to

decision makers ACT: Decide on changes needed to improve the process

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W. Edward Deming Fourteen Points

The 14 points may at first seem to be a collection of radical ideas, but the key to understanding most of them lies in Deming's focus on variation. Variation was seen by Deming as the disease that threatened US manufacturing. The more variation - in part dimensions, delivery times, prices, work practices, etc. - the more waste.


1."Create constancy of purpose towards improvement".

Replace short-term reaction with long-term planning.

2."Adopt the new philosophy".

The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so.

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3."Cease dependence on inspection".

If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any.

4."Move towards a single supplier for any one item."

Multiple suppliers mean variation between feedstocks.


5."Improve constantly and forever".

Constantly strive to reduce variation.

6."Institute training on the job".

If people are inadequately trained, they will not all work the same way, and this will introduce variation.

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20


7."Institute leadership".

Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based.

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W. Edward Deming Fourteen Points 8."Drive out fear".

Deming sees management by fear as counter- productive in the long term, because it prevents workers from acting in the organization's best interests.

9."Break down barriers between departments".

Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs.

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10."Eliminate slogans".

Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive.

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11."Eliminate management by objectives".

Deming saw production targets as encouraging the delivery of poor-quality goods.

12."Remove barriers to pride of workmanship".

Many of the other problems outlined reduce worker satisfaction.

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13."Institute education and self-improvement".

14."The transformation is everyone's job".

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DEMING'S SEVEN DEADLY DISEASES 1. Lack of constancy of purpose to plan product

and service that will have a market and keep the company in business, and provide jobs.

2. Emphasis on short-term profits: short-term thinking (just the opposite of constancy of purpose to stay in business), fed by fear of unfriendly takeover, and by push from bankers and owners for dividends.

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DEMING'S SEVEN DEADLY DISEASES

3. Personal review systems, or evaluation of performance, merit rating, annual review, or annual appraisal, by whatever name, for people in management, the effects of which are devastating. Management by objective, on a go, no-go basis, without a method for accomplishment of the objective, is the same thing by another name. Management by fear would still be better.

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DEMING'S SEVEN DEADLY DISEASES 4. Mobility of management; job hopping.

5. Use of visible figures only for management, with little or no consideration of figures that are unknown or unknowable.

6. Excessive medical costs.

7. Excessive costs of liability.

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JuranJoseph M. Juran ranks close to Deming in

terms of significant contributions to the quality movement. Juran has been most recognized as the person who added the human dimension to quality, broadening it from its statistical origins.

Juran’s Three Basic Steps to Progress

The Three Basic Steps to Progress are broad steps that Juran feels companies must take if they are to achieve world-class quality. The Three Basic Steps are as follows:

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Juran’s Three Basic Steps to Progress

1. Achieve structured improvements on a continual basis with dedication and a sense of urgency.

2. Establish an extensive training program.

3. Establish commitment and leadership on the part of higher management.

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Juran’s Ten Steps to Quality Improvement

1. Build awareness of both the need for improvement and opportunities for improvement.

2. Set goals for improvement.

3. Organize to meet the goals that have been set.

4. Provide training.

5. Implement projects aimed at solving problems.

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Juran’s Ten Steps to Quality Improvement

6. Report progress.

7. Give recognition.

8. Communicate results.

9. Keep score.

10. Maintain momentum by building improvement into the company’s regular systems.

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Juran Trilogy

The Juran Trilogy summarizes the three primary functions of managers: quality planning, quality control, and quality improvement. Each primary function has several steps.

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Juran Trilogy

1. Quality planning:

– Determine who the customers are.

– Identity customer needs.

– Develop products with features that respond to customer needs.

– Develop systems and processes that allow the organization to produce these features.

– Deploy the plans to operational levels.

Juran Trilogy

2. Quality control:

– Assess actual quality performance.

– Compare performance with goals.

– Act on differences between performance and goals.

Juran Trilogy

3. Quality improvement: The improvement of quality should be ongoing and continual.– Develop the infrastructure necessary to make

annual quality improvements. – Identify specific areas in need of

improvement, and implement improvement projects.

– Establish a project team with responsibility for completing each improvement project.

– Provide teams with what they need to be able to diagnose problems to determine root causes, develop solutions, and establish controls that will maintain gains made.

Philip Crosby’s Four Absolutes of Quality Management

Phillip Crosby, PhD, former president of the American Society for Quality established four absolutes for quality performance.

1. Definition of quality is conformance to requirements, not goodness

2. System for causing quality is prevention, not appraisal

Philip Crosby’s Four Absolutes of Quality Management

3. Performance standard is zero defects, not “that’s close enough”

4. Measurement of quality is the cost of nonconformance, not indexes

Although "zero defects" may seem animpractical goal, it worthy ideal parameter. The broader point is to know what you are measuring and what the proper standard of measurement should be.

Philip Crosby’s Fourteen steps to Quality management

1."Create constancy of purpose towards improvement".

Replace short-term reaction with long-term planning.

2."Adopt the new philosophy".

The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so.

3."Cease dependence on inspection".

If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any.

4."Move towards a single supplier for any one item."

Multiple suppliers mean variation between feedstocks.

5."Improve constantly and forever".

Constantly strive to reduce variation.

6."Institute training on the job".

If people are inadequately trained, they will not all work the same way, and this will introduce variation.

7."Institute leadership".

Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based.

Philip Crosby’s Fourteen steps to Quality management

8."Drive out fear"Deming sees management by fear as counter- productive in the long term, because it prevents workers from acting in the organization's best interests.

9."Break down barriers between departments".

Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs.

10."Eliminate slogans".

Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter- productive.

11."Eliminate management by objectives".

Deming saw production targets as encouraging the delivery of poor- quality goods.

12."Remove barriers to pride of workmanship".

Many of the other problems outlined reduce worker satisfaction.

13."Institute education and self-improvement".

14."The transformation is everyone's job".

Keys to Total Quality Success

The organization has to view Total Quality as a new way of doing business, and facilitate the cultural change which is necessary.

Never view it as a current or new management innovation, or a “quick fix” to production woes.

Common errors made when starting quality initiatives

Senior management delegation & poor leadership

– Can not delegate leadership to the Quality department or an outside consultant.

Team mania

– Teams will need to be established, but the approach needs to be learned. Teams will only be effective when a cultural change takes place


The deployment process– It can not be a directive from “the top”.

Plan must be made for integration of the TQ principals into the organization and for the necessary cultural change.

A narrow, dogmatic approach– Organizations need to tailor TQ to their

individual needs. They can not simply take the Demming approach or the Juran approach, they need to take from all the models and get the best fit for their organization.


Confusion about the differences among education, awareness, inspiration, and skill building

– Training and skill building are two different things. Training can be done over a short period of time; skill building takes not only time but a cultural change to foster that growth.

Six Sigma Concept

Six Sigma is a concept introduced by Motorola in the mid-1980s that seeks to improve processes to the point that the defect rate is just 3.4 per million or less.

Six Sigma Concept

It involves a 6 step protocol

1. Identify characteristics wanted by customers

2. Classify the characteristics in terms of criticality

Six Sigma Concept

3. Determine if the characteristics are controlled

4. Determine the max allowable tolerances for each

Six Sigma Concept

5. Determine the process variation for each.

6. Change the product design or process to achieve a 6 sigma output.

Six Sigma Concept

The Six Sigma Concept is a subset of the broader concept of Total Quality

It is a strategy within the context of TQ that moves the target to a much higher level.

It is not a concept that replaces TQ, rather it is an innovative way to pursue a higher level of Quality under the TQ umbrella.

How is Six Sigma Achieved? Improve process performance

Robust Design– Design products that maintain their reliability & performance

even when the component parts of the whole product of great variability of critical characteristics.

Design for Manufacture– Eliminate the possibility of manufacturing errors by

simplifying and “error-proofing” the steps required to manufacture the product.

Improving processes and rendering the process more efficient & foolproof are essential elements of TQM. Motorola set and achieved a previously thought impossible target.

The Future of Quality Management

Trends affecting the future of quality management

include demanding global customers, shifting

customer expectations, opposing economic

pressures, and new approaches to management.

To succeed in the global market for now and in the

future, organizations need to operate according to

TQM principals.

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