baldrige quality 09c

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Quality Philosophies and Standards Britt Watwood Center for Teaching Excellence VCU

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Page 1: Baldrige Quality 09c

Quality Philosophies and Standards

Britt WatwoodCenter for Teaching Excellence

VCU

Page 2: Baldrige Quality 09c

Still Relevant…in the last year

Page 3: Baldrige Quality 09c

What is meant by the term?

“Quality”

Page 4: Baldrige Quality 09c

Quality’s Foundation

Quality

Philosophy &Practice

Tools

Empowerment

Page 5: Baldrige Quality 09c

Quality Evolution

• 1930’s– Shewart Cycle

• 1950’s– Deming in Japan

• 1980– Productivity / Quality

Circles• 1985

– Deming/Crosby/Juran• Late 1980’s

– Total Quality Mgmt• 1990’s

– Baldrige Criteria• Current

– Six Sigma– Lean Management

Page 6: Baldrige Quality 09c

Quality Overview

QMSMarkets &Customers

VOCLean

6 σ

ProductOperation

StrategyFormulation

ProductSupport

Quality

Page 7: Baldrige Quality 09c

Malcolm Baldrige National

Quality Award

www.quality.nist.gov

Page 8: Baldrige Quality 09c

Malcolm Baldrige NQA

• Twenty years evolving• A Framework and A Tool• Self-Assessment• Promotes Awareness of

Continuous Improvement and Excellence

• Sharing of Best Practices• Presented by the President

of the United States

Page 9: Baldrige Quality 09c

Baldrige is a

“Process”

Page 10: Baldrige Quality 09c

Visionary Leadership

Core Values

Customer Driven

Excellence

Page 11: Baldrige Quality 09c

Organizational Learning

Core Values

Valuing Employees

&Partners

Page 12: Baldrige Quality 09c

Agility

Core Values

Focus on the Future

Page 13: Baldrige Quality 09c

Managing For

Innovation

Core Values

Management By

Fact

Page 14: Baldrige Quality 09c

Social Responsibility

Core Values

Page 15: Baldrige Quality 09c

Results & Value

• Focus on Key Results

• Creating Value for Stakeholders

• Customers• Employees• Stockholders• Suppliers / Partners• The Community

• Both Leading and Lagging Indicators

Page 16: Baldrige Quality 09c
Page 17: Baldrige Quality 09c

Baldrige Criteria

4 Measurement, Analysis & Knowledge Management

1Leadership

Organizational ProfileEnvironment, Relationships, &

Challenges

2StrategicPlanning

3Customer &

Market Focus

6ProcessMgmt

5Workforce

Focus7

BusinessResults

120

90

85 85

85 85

450

Page 18: Baldrige Quality 09c

BalancedScorecard

Model

Page 19: Baldrige Quality 09c
Page 20: Baldrige Quality 09c

Comparison

M B N Q A Balanced Scorecard

ISO 9001:2000

LeadershipStrategic Planning

Vision and Strategy

Quality PolicyQuality objectives

Customer & Market Focus

Workforce Focus

Customer Customer focusCustomer related processesCustomer satisfaction

Process MgmtMeasurement, Analysis & KM

Internal Business Processes

QMS General requirementsProduct Realization

Business Results Organization’s Business Results

Not specifically addressed in the standard.

Page 21: Baldrige Quality 09c
Page 22: Baldrige Quality 09c

Standard Deviation

Sigma is a measure ofvariation

Page 23: Baldrige Quality 09c

Sigma Variation

• The sigma value is a metric that indicates how well a process is performing.

• The higher the sigma value, the better.

• The higher the sigma value, the more the process is defect-free.

Page 24: Baldrige Quality 09c

Example of Sigma Value

Yield DPMO Sigma

30.9%690,000 169.2%308,000 293.3% 66,800 399.94% 6,210

499.98% 320

599.9997% 3.4

6

Page 25: Baldrige Quality 09c

Yield DPMO Sigma

30.9%690,000 169.2%308,000 293.3% 66,800 399.94% 6,210 499.98% 320 599.9997% 3.4 6

Most companies operate at around 4 sigma – the quality standard set by the US Government in WW II

Example of Sigma Value

Page 26: Baldrige Quality 09c

What Does 99% Defect-Free Mean?

Page 27: Baldrige Quality 09c

• 200,000 wrong drug prescriptions each year

What Does 99% Defect-Free Mean?

Page 28: Baldrige Quality 09c

• Two short or long landings at major airports each day

What Does 99% Defect-Free Mean?

Page 29: Baldrige Quality 09c

• 5,000 incorrect surgical procedures every week

What Does 99% Defect-Free Mean?

Page 30: Baldrige Quality 09c

• 20,000 lost articles of mail every hour

What Does 99% Defect-Free Mean?

Page 31: Baldrige Quality 09c

• Unsafe Drinking Water for 15 minutes each day

What Does 99% Defect-Free Mean?

Page 32: Baldrige Quality 09c

• No electricity for 7 hours each month

What Does 99% Defect-Free Mean?

Page 33: Baldrige Quality 09c

• 50 dropped newborns at the hospital each day

What Does 99% Defect-Free Mean?

Page 34: Baldrige Quality 09c
Page 35: Baldrige Quality 09c
Page 36: Baldrige Quality 09c

Defects Effect Costs• The Cost of Quality

– 4 Sigma: 99.4%• 6,210 defects• Industry Average• Lose 15-20% of sales

– 5 Sigma: 99.98%• 233 defects• Lose 5-10% of sales

– 6 Sigma: 99.9997%• 3.4 defects• Lose Less than 1% of

sales

Page 37: Baldrige Quality 09c
Page 38: Baldrige Quality 09c
Page 39: Baldrige Quality 09c

As a nation,we seem to be obsessed

with LEAN…

Page 40: Baldrige Quality 09c

Effectiveness vs Efficiency

V O C6 σ

Selection6 σ

Control6 σ

Improvement

ProcessMetrics

LeanMetrics

LeanWorkload

LeanProcess

Six Sigma = Effectiveness

Lean Mgmt = Efficiency

Page 41: Baldrige Quality 09c

• The term “lean” is used because lean manufacturing uses “less”…

Labor in the factoryManufacturing spaceCapital investmentMaterialsTime between the customer order and the product shipment

Definition

Page 42: Baldrige Quality 09c

Continuous flow

Batch size

Production

Layout

Processing

Quality

Based on forecast

Based on function / department

Large

Batch & queue

Lot sampling

Based on orders

Based on product flow

Small

Assured during processing

Traditional Lean

Lean Mgmt Comparison

Page 43: Baldrige Quality 09c

Key Elements:

• Stability• Quality• Continuous Flow• Kaizen• Pull System• Workload Balancing

Page 44: Baldrige Quality 09c

Waste

“Anything that adds Cost

to the product without adding Value”

“Anything that adds Cost

to the product without adding Value”

Page 45: Baldrige Quality 09c

Non - Value Added: 95%

Value Added: 5%

Waste

• Overproduction• Excess Inventory• Product Defects• Non-value added

processing• Wait time• Underutilized

labor• Excess motion• Unnecessary

Transportation

Page 46: Baldrige Quality 09c

7 Types of Muda

Typesof

Waste

CORRECTION

WAITING

PROCESSING

MOTION

INVENTORYCONVEYANCE

OVERPRODUCTION

Repair orRework Any wasted motion

to pick up parts or stack parts. Also wasted walking

Wasted effort to transportmaterials, parts, or finished goods into or out of storage, or between processes.

Producing morethan is needed before it is needed

Maintaining excessinventory of raw mat’ls,parts in process, orfinished goods.

Doing more work thanis necessary

Any non-work timewaiting for tools, supplies, parts, etc..

Page 47: Baldrige Quality 09c

Workplace

Organization

Maintain through empowerment,

commitment, and discipline

Sort

Sustain Set In Order

ShineStandardize

Keep machines and workareas clean

Use standard methods to keep Sort, Set In Order,

and Shine to a condition

Organize the work area

5 S

Get rid of clutter

Page 48: Baldrige Quality 09c
Page 49: Baldrige Quality 09c

KAITo modify /

Change

ZENTo make good /

better+

= KAIZEN

Gradual and orderly, continuous improvement.

Page 50: Baldrige Quality 09c

Differences in Emphasis

• Six Sigma– Process Improvement– Reduced Defect Rate

• Lean– Efficiency Improvement– Reduce Waste

• Baldrige Criteria– Performance Excellence

across Entire System– Results Oriented

Page 51: Baldrige Quality 09c

What MakesSense For

YOURCompany ???

Page 52: Baldrige Quality 09c

Questions???