unit 1 quality gurus

8/8/2019 Unit 1 Quality Gurus

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Managing for Quality

Dr. Ron Tibben-Lembke


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The Big Man

W. Edwards Demingy Ph.D. in Physics

y Western Electric in 1920s, 30s.

y WWII taught Quality Control for war efforty Ignored after the war

y Japan wanted to learn from the US

y Deming went to help with census

y Started teaching them quality controly 1951 Deming Prize for high level of achievement in quality

practices

y 1980 NBC If Japan CanWhy Cant We? US discovers


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Quality Philosophyy A product or service possesses quality if it helps

somebody and enjoys a good and sustainable market.

y

Variation is th

e cause of poor qualityy The Process

y Product/service design

y Manufacture/service delivery

y Test

y Sales

y Market surveys

y Redesign and improvement


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Chain Reaction

Improve Quality

Provide jobs andmore jobs

Costs decrease because of lessrework, fewer mistakes, delays,better use of time & materials

ProductivityImproves

Stay in business

Capture market with betterquality and price


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System of Profound Knowledge1. Systems

1. Buying at lowest cost ignores everything else

2. Dont suboptimize performance of one part at the expenseof total performance

2. Understanding variation1. Variability is inherent in everything

2. Variation from human behavior hurts quality

3. Theory of Knowledge1. Experience is not enough. You need a theory

4. Psychology1. Fear and pay are not motivators


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If you dont get ity Systems:

y See symptoms, not causes

y

Dont see effects of one part on th

e oth

ersyVariability

y See trends where there are none, miss others

y Psychologyy

Create cynicism, demoralization, guilt, resentment,burnout, craziness, and turnover

y Theory of Knowledgey Problems remain unsolved, despite best efforts


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Demings 14 Points1. Create a vision and demonstrate commitment

1. Long-term vision

2. Companies purpose is to serve their customers andemployees, not simply for profit

3. Invest in innovation, training, research

4. Improve competitive position

5. Top management is responsible for this6. Effective leadership begins with commitment


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14 Points2. Learn the New Philosophy

1. Quota-driven, adversarial management wont work

2. Th

at ignores importance of quality improvement3. Labor and management have to cooperate to improvethe customers satisfaction

4. Keep training people turnover does exist

3. Understand Inspection1. Routine inspection let someone else fix it

2. Increases costs in the end (no rework in services)

3. Inspect your own work and fix it


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4. Dont Buy on the Cost per Part

Basisy Dont buy from several for competition

y Increases variability

y

Work with suppliers in long-term relationshipsy Improve quality with your suppliers

y Also get volume discounts, fewer setups

y Supplier-customer bond


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5. Improve Constantly and Forevery Reduce causes of variation

y Engage all employees

y How to do jobs more efficientlyy More effectivelye

y ContinuousProcess Improvement now is mandatory


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6. Institute Trainingy People are a valuable resource and want to do a good

job

yThey need training to know how to do a good job

y Invest in their future

y Training should include tools for

y Diagnosing

y Analyzing

y Solving quality problems

y Identify improvement opportunities


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7. Institute Leadershipy The job of management is leadership, not supervision.

y If supervisors dont know the job, they cant lead

y Focus on getting product out the doory Good supervisors are coaches, not prison guards


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8. Drive Out Feary Managers and workers must have mutual respect

y Pointing out quality problems will miss quotas

y Deming story about not fixing a machineyAuto plant: workers knew more than the experts


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9. Optimize the Efforts of Teamsy People have to understand what customers want

y Union vs. Management

y Management trying to exploit workersy Unions keeping to piece-rate known systems

y Hillerich & Bradsby


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10. Eliminate Exhortationsy Do you work better with a poster on the wall?

y Slogans assume quality problems caused by people

y Deming thinks the system is responsible for problemsyWorkers demoralized when they cannot fix defects,

and yet are held accountable

yWorkers attempts to fix problems only cause more

variation


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11. Eliminate Numeric Quotasy They do not encourage improvement

y If you do improve it, theyll just raise the quota

y Risk of missing quotasy Once you meet the standard, why tryharder?

yArbitrary goals are demoralizing without a plan ofhowyou can reach those goals

yVariability in system year-to-year


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12. Remove Barriers to Pride in

Workmanshipy People are treated like a commodity

yWork nights to make up for cut positions

y Dont make your people compete against each othery Behavior driven by what boss wants, not Quality


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13 Education & Self-Improvementy Not job-specific

y Many benefits, some specific to job, others broader


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14. Take ActionyAccomplish the Transformation

y Start the cultural change with top management

y People will be skeptical until they start to see change


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Joseph JuranyJoined Western Electric in 1920s.

y 1951 Quality contol handbook

y Taught quality principles to Japanese in 1950sy Quality directed by senior management

y Train whole mgt hierarchy in quality

y Strive for evolutionary changes in Quality

y Report progress to executive levels

y Involve the workforce in quality

y Quality part of reward/recognition structure


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Difference in Jurany Not a major cultural shift

y Top management understands money

y

Workers understand partsy Middle management has to translate

y Eliminate defects through statistical study


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Views ofQuality Fitness for Usey Quality is related to:

y Product performance that results in customer

satisfactiony Freedom from product deficiencies, which avoids

customer dissatisfaction

y The mission of the firm is to:

y

Achieve high design qualityy The mission of each department is to:

y Achieve high conformance quality


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Quality Trilogyy QualityPlanning

y Preparing to meet quality goals

y Quality controly Meeting quality goals during operations

y Quality improvement

y Breaking through to unprecedented levels of

performance


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Jurans Detailed Programy Prove the need for improvement

y Identify projects for improvement

y Organize support for the projectsy Diagnose the causes

y Provide remedies for the causes

y Prove remedies are effective under operatingconditions

y Provide control to maintain improvements


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Philip Crosbyy Corporate VP for Quality at International Telephone

and Telegraph, ITT for 14 years.

y

Quality is Free 1 million copies sold


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Philip Crosbyy Quality means conformance to requirements, not

elegance

y

Eith

er you meet th

e requirements or noty Determine requirements up front, and very carefully

y There is no such thing as a quality problem

y There are accounting, mfg, design problems

y Quality originates in those depts., not in QCy There is no economics of quality


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Crosby Philosophyy Only quality cost is non-conformance

y 15-20% of sales on quality costs

y Well-run, it can be 2.5%

y Measure & publicize cost of poor quality

y Provides visible signs of improvement

y Zero Defectsy Do it right the first time, prevent defects, dont fix them

y Human errors from lack of attention, because weassume errors are inevitable

y Deming: what are you talking about?


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Basic Elements ofImprovementy Determination top management must take Q

seriously

y

Education everyone knows the absolutesy Implementation everyone in managementhas to

understand the implementation process


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Similarities & Differencesy Quality is imperative for competitiveness

y Top management must lead the way

y Quality efforts save, not cost, moneyy Continuous, never-ending improvement

y Importance of understanding the customers needs

yWorker / management partnership

unit 1 quality gurus

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