Quality Management MNGT 420 Global Supply Chain Quality and International Quality Standards Chapter 3b Dr. Nitin Kumar Upadhye / Dr. Babeet Gupta

Chapter Overview Quality Improvement: The Japanese Way Quality Improvement: The European Way ISO 9000:2000 Are Quality Approaches Influenced by Culture?

Quality Improvement: The Japanese Way Deming Prize Awarded to individuals and groups who have contributed to the field of quality control. Other Japanese Contributions to Quality Thought Juran stated that the genius of the Japanese was in their ability to maintain a focus on the minutia and detail associated with process improvement. There are several uniquely Japanese contributions that are a part of the Japanese approach to production and service.

Deming Prize for Quality Slide 1 of 2 The Deming Prize for quality was established in 1951 by the Japanese Union of Scientists and Engineers (JUSE). Three categories of awards Deming Application Prize for Division Deming Application Prize for Small Business Quality Control Award for Factory There is no limit on the number of companies that can receive the award in a given year. The Deming Prize is much more focused on processes than is the Baldrige. Important

Deming Prize for Quality Slide 2 of 2 Deming Categories Policy Organization and Operations Collecting and Using Information Analysis Planning for the Future Education and Training Quality Assurance Quality Effects Standardization Control

Other Japanese Contributions to Quality Slide 1 of 7 Lean Production Japanese Total Quality Control (TQC) Visibility In-Process Inspection N = 2 Technique Total Involvement of the Workforce The Five Ss Important

Other Japanese Contributions to Quality Slide 2 of 7 Lean Production Two views emerge in the literature that pertain to Lean (a.k.a. just-in-time (JIT) manufacturing). The first view of Lean is a philosophical view of waste reduction. This view asserts that anything in the process that does not add value for the customer should be eliminated. The second view of Lean is a systems view stating the JIT is a group of techniques or systems focused on optimizing quality processes. Important

Other Japanese Contributions to Quality Slide 3 of 7 Japanese Total Quality Control Just as the Japanese Lean approach requires attention to detail in every aspect of the process, so does the TQC approach. This attention to detail runs deep in the Japanese culture.

Other Japanese Contributions to Quality Slide 4 of 7 Visibility Problems must be made visible before they can be addressed. Andon or warning lights Line-stop authority In-Process Inspection All work is inspected at each stage of the process. Workers inspect their own work.

Other Japanese Contributions to Quality Slide 5 of 7 N = 2 Technique The N = 2 technique is an alternative to acceptance sampling. Usually, an acceptance sampling plan involves rules such as: If 2 or fewer defects, accept the lot. If more than 2 defects, reject the lot. Total Involvement of Workforce Horizontal deployment means that all departments are involved in quality. Vertical deployment means that all levels of management and workers are actively involved in quality.

Other Japanese Contributions to Quality Slide 6 of 7 The Five S’s. The five 5s are a sequential process that companies follow to literally “clean up their acts.” The Ss are: Seri (sorting): organizing by getting rid of the unnecessary. Seiton (straightening): neatness that is achieved by straightening offices and work areas. Seiso (shine): cleaning plant and equipment to eliminate dirtiness that can hide or obscure problems. Seiketsu (standardize): standardizing locations for tools, files, equipment, and all other materials. Shetsuke: (sustain) discipline in maintain the prior four Ss. https://www.youtube.com/watch?v=hmZee6QgIsU

Other Japanese Contributions to Quality Slide 7 of 7 Quality Circles Are natural work teams made up of workers that are empowered to improve processes they use. Total Preventive Maintenance (TPM) The idea behind this concept is that the worst condition a machine should ever by is on the day you purchase it.

Quality Improvement: The European Way ISO 9000:2000 Is the European standard for quality that has been expanded worldwide. European Quality Award (EQA) The highest level is the EQA for the most accomplished applicant in a given year. The second level given is the European Quality Prize for other firms that meet the award criteria.

European Quality Award Leadership People management Processes People satisfaction Business results Policy and strategy Customer satisfaction Resources Impact on society Enablers Results Important

ISO 9000:2000 Slide 1 of 4 Worldwide Impact Focus of ISO 9000:2000 ISO On a worldwide basis, ISO 9000:2000 has had a much more significant impact than any of the quality awards in terms of the number of companies that have implemented the approach.. Focus of ISO 9000:2000 The focus of ISO 9000:2000 is for companies to document their quality systems in a series of manuals to facilitate trade through supplier conformance. ISO Organization for International Standards Important

ISO 9000:2000 Slide 2 of 4 Three Standards 1. ISO 9000:2000 - Quality management systems - Fundamentals and vocabulary. 2. ISO 9001:2000 - Quality management systems - Requirements. - These are used for internal implementation, contractual purposes, or for third-party registrations. 3. ISO 9004:2000 - Quality management - Guidelines for Performance Improvement - These include continual improvement and enhancing overall performance. Important

ISO 9000:2000 Slide 3 of 4 Underlying Quality Management Principles Customer Focus Leadership Involvement of People The Process Approach A Systems Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier Relationship

ISO 9000:2000 Slide 4 of 4 ISO 9000:2000 Registration Process Step 1: Inquiry Step 2: Contract with registrar Step 3: Phase 1 audit Step 4: Certification audit Step 5: Process audits (optional) Step 6: Final certification audit Step 7: Rolling certification (surveillance) audits Important

ISO 14000 ISO 14000 A series of standards that provide guidelines and a compliance standard for environmental compliance. ISO 14001 The compliance standard for ISO 14000, Environmental Management Systems. Uses the same basic approach as ISO 9000:2000 with documentation control, management system auditing, operational control, control of records, management policies, audits, training, statistical techniques, and corrective and preventive action.

Are Quality Approaches Influenced By Culture? Quality Approaches are Influence by Culture The US approach has historically been command-and-control oriented. The Japanese approach is based on an ethic of consistency and emphasis on reduction of waste. The Europeans have adopted broad standards that can be adapted to the diverse nation states of the EC.

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