quality philosophies - cqia body of knowledge

Benefits of QualityCHAPTER 3: QUALITY BENEFITS AND PHILOSOPHIES

Agenda

Stakeholders Aligning Goals with Stakeholder

Needs Stakeholder Quality Benefits FLASH REVIEW

Baldrige Criteria MBNQA FLASH REVIEW

Quality Gurus and Philosophies Crosby Deming Juran Shewhart Ishikawa FLASH REVIEW

1.Stakeholders

…AND WHY THEY ARE IMPORTANT.

Stakeholder Groups

Stakeholders are anyone who has in interest in the welfare and operation of a company. Examples: stockholders, customers, suppliers, company management,

employees and their families, society, etc.

Internal Company Processes

Socie

ty

Socie

ty

Supp

liers

Cust

omer

s

Stockholders or Owners

Management & Employees

Aligning Goals with Stakeholder Needs

Top management has to worry about more than just increasing stockholder value!

Strategic goals may be determined for: Short term or long term emphasis (Americans vs. the World) Profit (maximum profit = not a thing, because internal interests) Cycle times (competitive advantage!) Marketplace response (performance measure) Resources (performance measure)

Stakeholder Quality Benefits

Supplier BenefitsCommunity Benefits• Job opportunities• Organizations which pay

property taxes, enhance property value of surrounding neighborhoods, engender community pride, practice good business ethics, produce products that protect public health, etc.

• Safe products for the consumer

• Products that are energy efficient

Employee Benefits• Job security• Better likelihood of pay increases• Enhancement of KSAs• More prestige/respect from

management and peers• Predictability in work assignments• Reduced cycle times which

improves workflows• Greater pride of workmanship• Fewer confrontations between

departments• Better communications and

information flow

• Opportunity to build long term relationships

• Mutually beneficial training opportunities

• Greater likelihood of shared beneficial information

• Association w/ end product with a good reputation

• More predictability/certainty of future orders, scheduling, and shipping

• Financially viable customers for products/services

Stakeholder Quality Benefits (Continued)

Customer Benefits• Better reputation in the business

community• Increased market share/stock price• Greater profitability without raising

prices• Ability to charge premium prices

because of superior quality• Greater ability to pay/train employees• Greater capacity/flexibility to handle

change• More pride at all organizational levels• More customer loyalty• Ability to weather tough economic times

Organizational Benefits

• Higher quality products• Products that are easier to

use, more reliable, less expensive and offer a greater value

• A supplier that can respond quickly to needs and offers better service

• Warranties that are honored• Quicker corrective action

responses• Better individual treatment

Stockholder Benefits• Increased stock value• Better ROIs• More widely respected business

investment• Investment stability• More timely, accurate, and

thorough annual reports• Investment in a company with a

greater capacity to handle change• Investment in a company with a

strong focus on the future• An organization with a

demonstrated ability to improve

Sample Question:

Of all of an organization’s stakeholder groups, which would be considered the most removed from internal processes?

a. Societyb. Customersc. Suppliersd. Customers

Sample Question:

The relevant stakeholders in an important project would typically include which of the following?

a. Hourly employees and stockholdersb. Potential competitors and BNQA award winnersc. Potential suppliers and potential competitorsd. Owners and user terrorists

Sample Question:

From an external customer’s standpoint which of the following stakeholders is responsible for poor product quality?

a. The stockholders of the producing companyb. The suppliers of the producing companyc. All employees of the producing companyd. Society taken as a whole

2.Baldrige Criteria

For Performance

Excellence

A TEMPLATE USED BY AMERICAN COMPANIES TO ACHIEVE PERFORMANCE EXCELLENCE

http://rube.asq.org/membership/docs/e1440-with-cd.pdf

A management model; Includes voluntary compliances as well as mandatory compliance requirements.

MBNQA or BNQA may be mentioned in test questions, it’s just an acronym for (Malcolm) Baldrige National Quality Award. No worries.

The Baldrige journey is about learning how to achieve: Effectiveness Sustainability Innovation World-class results

Baldrige Criteria for Performance Excellence

Integrated processes Organizational learning A national network to support and

sustain your organization

Baldrige Criteria

The BQNA eligibility categories include education, health care, manufacturing, nonprofit/government, service, and small business.

Seven Baldrige Criteria Categories: Leadership (120 points) Strategic Planning (85 points) Customer Focus (85 points) Measurement, Analysis, and Knowledge Management (90 points) Workforce Focus (85 points) Operations Focus (85 points) Results (450 points) Total Points: 1000

Sample Question:

The Baldrige National Quality Award application is divided into how many key categories of criteria?

a. 7b. 19c. 20d. 24

Sample Question:

There are seven BNQP criteria areas. Which of the following have the heaviest weighting?

a. Customer Focus & Workplace Focusb. Knowledge Management & Customer Focusc. Results & Operations Focusd. Workplace Focus & Strategic Planning

3. Quality Gurus

CROSBY, DEMING, JURAN, JURAN, SHEWHART, (F)ISHIKAWA

Philip B. Crosby

Contributions to Quality: “Zero Defects” Senior Management Involvement 4 Absolutes of Quality Management Quality Cost Measurements

“Quality is conformance to requirements.”1928 - 2001

Philip B. Crosby

”Do It Right First Time” or “Zero Defects” Manufacturing companies spend approx. 20% of their revenues doing things

wrong and doing them over again. Strong emphasis on the top-down approach: workers aren’t primarily

responsible for poor quality, that responsibility resides with management. The goal is to apply Prevention Management in every area, this is aided by

viewing ALL work as a process or series of actions conducted to produce a desired result.

Philip B. Crosby

Four Absolutes of Quality Management:1. Quality means conformance to requirements.2. Quality comes from prevention.3. Quality performance standard is Zero Defects.4. Quality measurement is the price of nonconformance.

Philip B. Crosby

Crosby’s 14 Steps to Quality Improvement:

1. Management Commitment2. Quality Improvement Team3. Measurement4. Cost of Quality 5. Quality Awareness6. Corrective Action7. Zero Defects Planning

8. Employee Education9. ”ZD” Day10. Goal Setting11. Error Cause Removal12. Recognition of Good Work in the

Quality Process13. Establish Quality Councils14. Repetition

Dr. W. Edwards Deming

Contributions to Quality: PDCA Deming’s Chain Reaction 14 Points 7 Deadly Diseases

1900 - 1993


Plan-Do-Check-Act Linear perceptions of work vs. cyclical perceptions of work

Deming’s Chain Reaction


The 14 Points of Top Management:1. Create constancy of purpose toward

improvement of product and service.2. Adopt the new philosophy.3. Cease dependence on inspection to achieve

quality.4. End the practice of awarding business on

basis of price tag.5. Improve constantly and forever the system

of production and service.6. Institute training on the job.7. Institute leadership.

8. Drive out fear, so that everyone may work effectively for the company.

9. Break down barriers between departments.10. Eliminate slogans, exhortations, and targets

for the workforce.*11. Eliminate work standards (quotas) on the

factory floor.12. Remove barriers to pride of workmanship.13. Institute a vigorous program of education

and self-improvement.14. Put everybody in the company to work to

accomplish the transformation.


Seven Deadly Diseases that Management Must Cure:1. Lack of constancy of purpose.2. Emphasis on short-term profits.3. Evaluation by performance, merit rating, or annual review of performance.4. Mobility of management.5. Running a company on visible figures alone.6. Excessive medical costs.7. Excessive warranty costs.

Intermission

We friggin deserve a break.

Dr. Joseph M. Juran

Contributions to Quality: Quality Trilogy Quality Cost Measurement Pareto Analysis

1904 - 2008

Dr. Joseph M. Juran

Cost

of P

oor Q

ualit

y

Time

Quality Planning Quality Control

QualityImprovement

Chronic Waste

New Zone of Quality Control

Original Zone of Quality Control

Sporadic Spike

Oper

atio

ns B

egin

Lessons Learned

Dr. Joseph M. Juran

Part I of the Trilogy: 6 Steps of Quality Planning1. Verify the Goal.2. Identify Customers.3. Determine Customer Needs.4. Develop Product.5. Develop Process. 6. Transfer to Operations. M

easu

re

Verify the Goal

Identify Customers

Determine Customer Needs

Develop Product

Develop Process

Transfer to Operations

Dr. Joseph M. Juran

Part II of the Trilogy: Quality Control Feedback Loop

OK

Not OK

Measure Actual Performance

Compare to

Standard

Regulate Process

Establish Standard

Dr. Joseph M. Juran

Part III of the Trilogy: Quality Improvement Projects The Six Steps of Quality Improvement:

1. Identify a Project.2. Establish the Project.3. Diagnose the Cause.4. Remedy the Cause5. Hold the Gains.6. Replicate Results and Nominate New Projects.

Dr. Joseph M. Juran

Deming, Juran, and Crosby

Dr. Walter A. Shewhart

Contributions to Quality: Assignable Cause vs. Chance Cause Control Charts Use of Statistics for Improvement

1891 - 1967

Dr. Kaoru Ishikawa

Contributions to Quality: Fishbone (Cause and Effect Diagram) Companywide Quality Control (CWQC)

Involves the participation of workers from the top to the bottom of an organization from the start to the finish of the product life cycle.

1915 - 1989

Fishbone Diagram

Sample Question:

When Deming encouraged the elimination of numerical quotas, he was emphasizing which of the following?

a. Good workers already know what is expected.b. Not to sacrifice quality for quantity.c. That zero defects are unrealistic.d. A detection system adds to rework.

Sample Question:

Crosby defines quality as ”conformance to requirements” and Juran defines quality as “fitness for use.” Which of the following statements is correct?

a. Juran means that a product does not have to conform to requirements.b. If a product conforms to requirements it will always be fit for use.c. Fitness for use is almost always a tougher standard than conformance to

requirements.d. These are good examples of beauty lying in the eye of the beholder.

Sample Question:

Why does Juran suggest that chronic waste in an organization will often go unnoticed by management?

a. Management is so engrossed in long term planning they lose touch with basics.

b. These wastes are built into the standards and become accepted.c. Management is so concerned with control they fail to implement

breakthrough projects.d. Quality planning focuses on control items to the exclusion of improvement

ideas.

Sample Question:

The quality management perspective, user perspective, and manufacturer’s perspective are respectively associated with:

a. Juran, Deming, and Crosbyb. Deming, Crosby, and Juranc. Deming, Juran, and Crosbyd. Crosby, Deming, and Juran

Sample Question:

Which of the following quality gurus align with their corresponding basic orientation toward quality?

a. Crosby: Technicalb. Deming: Motivationalc. Crosby: Process orientedd. Juran: Process driven

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