The Quest for Quality & Malcolm Baldrige Quality Award

Quality & Value What is quality? What is quality? What is the goal of quality? What is the goal of quality? Do expectations remain constant? Do expectations remain constant? What is value? What is value?

Deming’s 14 Points Constancy of purpose Constancy of purpose Adopt a new philosophy Adopt a new philosophy Cease dependence on inspection Cease dependence on inspection End practice of awarding business on basis of price tag End practice of awarding business on basis of price tag Improve constantly Improve constantly Institute job training Institute job training Drive out fear Drive out fear Break down barriers Break down barriers Eliminate slogans Eliminate slogans Eliminate quotas Eliminate quotas Don’t rob employees of pride of workmanship Don’t rob employees of pride of workmanship Education Education Everybody all the time Everybody all the time

Juran’s Notions Quality as product features. What are external customers? What are external customers? What are internal customers? What are internal customers? How do you know what your customers want? How do you know what your customers want?

Juran’s Notions Quality as freedom from defects. Is satisfaction created? Is satisfaction created? The importance of service recovery. The importance of service recovery. How good is good enough? How good is good enough?

Is 99.99% Good Enough? 12 newborns will be given to the wrong parents everyday 12 newborns will be given to the wrong parents everyday 114,500 mismatched pairs of shoes will be shipped each year 114,500 mismatched pairs of shoes will be shipped each year 18,322 pieces of mail will be mishandled each hour 18,322 pieces of mail will be mishandled each hour 2,000,000 documents will be lost by the IRS this year 2,000,000 documents will be lost by the IRS this year 2.5 million books will be shipped with the wrong covers this year 2.5 million books will be shipped with the wrong covers this year 315 entries in Webster’s Dictionary will be misspelled 315 entries in Webster’s Dictionary will be misspelled

…still good enough? 20,000 incorrect drug prescriptions will be written this year 20,000 incorrect drug prescriptions will be written this year 5.5 million cases of soft drinks produced this year will be flat 5.5 million cases of soft drinks produced this year will be flat 291 pacemaker operations will be performed incorrectly 291 pacemaker operations will be performed incorrectly 3056 copies of tomorrow’s Wall Street Journal will be missing one of the three sections 3056 copies of tomorrow’s Wall Street Journal will be missing one of the three sections How many customers will walk out of your doors and never come back? How many customers will walk out of your doors and never come back? The “silent ones” don’t stay silent for long - on average they tell six other people about their experience! The “silent ones” don’t stay silent for long - on average they tell six other people about their experience!

Juran’s Notions Quality management. Quality planning and control. Quality planning and control. Quality improvement. Quality improvement.

High Performance Organizations Training and continuous learning Training and continuous learning Information sharing Information sharing New roles for employees New roles for employees New organizational structures New organizational structures New worker-management partnerships New worker-management partnerships Compensation linked to performance skills Compensation linked to performance skills Employment security Employment security Supportive work environments Supportive work environments Putting it all together Putting it all together

Malcolm Baldrige Core Values Visionary leadership Visionary leadership Customer-driven excellence Customer-driven excellence Organizational and personal learning Organizational and personal learning Valuing employees and partners Valuing employees and partners Agility Agility Focus on the future Focus on the future Managing for innovation Managing for innovation Management by fact Management by fact Public responsibility and citizenship Public responsibility and citizenship Focus on results and creating value Focus on results and creating value Systems perspective Systems perspective

Next Week Chapter 4: Quality Service Chapter 4: Quality Service Chapter 5: Continuous Improvement Chapter 5: Continuous Improvement Assignment – Article Report Assignment – Article Report Assignment – “Moments of Truth” Assignment – “Moments of Truth”