Frameworks for Quality Clip Art Frameworks for Quality Lecture 3 In this lecture, we will look at the benefits of quality. We will also discuss quality philosophies that are still used today.

Benefits of Quality How does quality affect…Employees? Clip Art Benefits of Quality How 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 employee’s 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 one’s job. How does quality affect…Employees?

How does quality affect… the Organization? Clip Art Benefits of Quality How 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. How does quality affect… the Organization?

How does quality affect… Customers? Clip Art Benefits of Quality How 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. How does quality affect… Customers?

Benefits of Quality How does quality affect… Suppliers? Clip Art Benefits of Quality How does quality affect… Suppliers? How 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 customer’s perspective, as theirs is all that matters. With better communication we form a trust and overall a better partnership.

Clip Art Benefits of Quality How does quality affect the community? Successful employees, organizations, and suppliers are all taxpayers, a portion of their wealth becomes the community’s wealth. Also, it provides stabilization for the economy. How does quality affect… the Community?

Quality Philosophies - Deming http://www.1000ventures.com/business_guide/crosscuttings/quotes_deming.html Quality Philosophies - Deming “Work smarter, not harder.” “Defects are not free. Somebody makes them, and gets paid for making them.” 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. Dr. W. Edward Deming

Quality Philosophies - Deming http://www.1000ventures.com/business_guide/crosscuttings/quotes_deming.html Quality Philosophies - Deming “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. 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. Dr. W. Edward Deming

Quality Philosophies - Deming http://www.qualitydigest.com/IQedit/Images/Articles%20and%20Columns/July%2008/QI-0701Shermanfigure5.png Quality Philosophies - Deming Deming Chain Reaction Let’s take a look at Deming’s 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.

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

Quality Philosophies – Deming http://asq.org/learn-about-quality/total-quality-management/overview/deming-points.html http://www.1000advices.com/guru/quality_tqm_14points_deming.html Quality Philosophies – Deming Deming’s 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. Click here to read more about the Deming’s 14 Points

Quality Philosophies - Juran http://3.bp.blogspot.com/-wNsFhqCa1AA/UZfLMrmh1QI/AAAAAAAAAIg/GixIFEYIwL4/s1600/juran2.jpg Quality Philosophies - Juran “Quality does not happen by accident; it must be planned.” 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. Dr. Joseph M. Juran

Quality Philosophies - Juran http://3.bp.blogspot.com/-wNsFhqCa1AA/UZfLMrmh1QI/AAAAAAAAAIg/GixIFEYIwL4/s1600/juran2.jpg Quality Philosophies - Juran “Big Q” and “little q” Dr. Joseph M. Juran 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. “Quality is fitness for use.”

Quality Philosophies - Crosby http://3.bp.blogspot.com/-yX7hcGCIK6I/TrQTb-GZigI/AAAAAAAAAEg/S2ScPGMwB9U/s320/PhilipCrosby.jpeg Quality Philosophies - Crosby “Quality is Free” “Cost of Quality” “Cost 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. Philip B. Crosby

Quality Philosophies - Crosby Clip Art Quality Philosophies - Crosby Quality “Vaccine” Ingredients: Determination, Education, and Implementation Crosby 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.

Quality Philosophies - Crosby http://info.ibs-us.com/Portals/14010/images/CrosbyZero%20Defects.jpg Quality Philosophies - Crosby Four Absolutes of quality management Conformance to requirements is the only definition of quality What causes quality is prevention, not appraisal Zero defects is the only acceptable performance standard The price of nonconformance is how quality should be measured Crosby believed in Four Absolutes of quality management Conformance to requirements is the only definition of quality What causes quality is prevention, not appraisal Zero defects is the only acceptable performance standard The price of nonconformance is how quality should be measured

Click on the picture to watch a video: http://education-portal.com/academy/lesson/deming-juran-crosby-contributors-to-tqm.html#lesson Click on the picture to watch a video:

Quality Philosophies - Feigenbaum http://3.bp.blogspot.com/-ROF52VEhkY8/UZfJQjCkfFI/AAAAAAAAAIM/flAYQD2tWPM/s1600/feigenbaum2.jpg Quality Philosophies - Feigenbaum Total Quality Control Armand V. Feigenbaum “Quality 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’”

Quality Philosophies - Ishikawa http://www.littlecrowd.com/sites/default/files/styles/l_220/public/LittleCrowd-Kaoru-Ishikawa_0.jpg Quality Philosophies - Ishikawa Quality Circles and lunch… I mean fishbone diagrams. 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. Dr. Kaoru Ishikawa

Quality Philosophies - Taguchi http://blog.bpir.com/wp-content/uploads/2012/11/genichi_taguchi.jpg Quality Philosophies - Taguchi “Concepts of quality and reliability are pushed back to the design phase, where they belong.” Quality Loss 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. Dr. Genichi Taguchi

Quality Philosophies - Shewhart http://www.qualitymag.com/ext/resources/QUAL/Home/Images/qm0309-webx-pWalter-Shewhart.jpg Quality Philosophies - Shewhart Sampling and probability statistics need to be applied to quality Creator of the Plan-Do-Check-Act Cycle Quality Control Charts 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. Dr. Walter A. Shewhart

Review of philosophies Deming “Work 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 management Popularized the PDSA cycle Juran Quality is fitness for use Project-by-project and team method to solving problems Human aspects of quality Crosby Quality is free – do it right the first time and zero defects Prevention is the best quality management technique Cost of quality - Trade-off between the cost of improving quality and the cost of poor quality, the cost of poor quality is understated. Feigenbaum Total Quality Control Ishikawa Quality Circle Tools for problem solving – Pareto Chart, Fishbone diagram Taguchi Quality and reliability belong in the design phase Shewhart Control charts and creator of PDSA Cycle Here is a quick review of the philosophers and their key contributions to quality.