Quality Management Gurus: Pioneers and Principles

Quality

• Quality is the ability of a product/service to consistently meet or exceed customer expectations
• Customer is the ultimate judge of quality

Foundations of Modern Quality: The Gurus

• Quality pioneers shaped current thinking and practice
• Here are some quality pioneers and their key contributions

Walter Shewhart

• Father of Statistical Quality Control
• Developed control charts to analyze process outputs for corrective action

W. Edwards Deming

• Assisted Japan in improving quality and productivity post-WWII
• Worked with the Japanese Union of Scientists and Engineers, who established the Deming Prize
• The Deming Prize is awarded annually to firms with quality management programs
• Believed 14 points were needed to achieve quality in an organization

Joseph M. Juran

• Taught Japanese manufacturers how to improve the quality of their goods
• A major force in Japan's success in quality
• Developed Western Electric Statistical Quality Control Handbook
• Quality is fitness-for-use
• Quality management as a trilogy: quality planning, quality control, and quality improvement

Armand Feigenbaum

• Quality is a "total field"
• The customer defines quality
• Advanced the "cost of nonconformance" approach as a reason for management to commit to quality

Philip B. Crosby

• Developed the concept of zero defects
• Popularized the phrase "Do it right the first time"
• Stressed prevention
• Argued against the idea that there will always be some level of defectives

Kaoru Ishikawa

• Influenced by Deming and Juran
• Made significant contributions to quality management
• Developed the cause-and-effect diagram (fishbone diagram) for problem-solving
• Implemented quality circles involving workers in quality management

Genichi Taguchi

• Known for the Taguchi loss function: a formula for determining the cost of poor quality
• The cost to society of poor quality

Taiichi Ohno and Shigeo Shingo

• Developed the philosophy and methods of Kaizen (continuous improvement) at Toyota
• Continuous improvement: a hallmark of successful quality management

Successful Quality Management

• Requires that managers have insights on defining quality in operational terms, understanding costs/benefits of quality, and recognizing consequences of poor quality
• Quality: the degree to which product/service performance meets/exceeds customer expectations

Customer Expectations

• Evaluated in categories/dimensions for judging service/product quality

9 Dimensions of Product Quality

• Performances: main characteristics
• Aesthetics: appearance, feel, smell, taste
• Special Features: extra characteristics
• Conformance: how well the product conforms to design specification
• Reliability: consistency of performance
• Durability: the useful life
• Perceived quality: indirect evaluation
• Serviceability: handling complaints/repairs
• Consistency: quality doesn't vary

9 Dimensions of Service Quality

• Convenience: availability and accessibility
• Reliability: ability to perform dependably, consistently, and accurately
• Responsiveness: willingness to help in unusual situations
• Time: speed of service delivery
• Assurance: knowledge exhibited by personnel and their ability to convey trust/confidence
• Courtesy: how customers are treated
• Tangibles: physical appearance of facilities, equipment, personnel, and communication materials
• Consistency: ability to provide the same level of quality repeatedly
• Expectancy: meet or exceed customer expectations

Determinants of Quality

• Quality of Design: intention to include/exclude features; customer input is considered (e.g., size, shape, location, durability)
• Quality of Conformance: the degree to which goods/services conform to designers' intent (e.g., actual size, actual durability)
• Ease-of-Use and User Instructions: increases likelihood that product is used as intended and continues to function properly/safely
• After-the-Sale Service: taking care of issues/problems

Consequences of Poor Quality

• Loss of Business: poor designs or defective products
• Liability: damages/injuries from faulty design or poor workmanship
• Productivity: poor quality affects productivity; defective parts may need reworking
• Costs: major consideration; fixing problem earlier is cheaper

The Costs of Quality

• Appraisal Costs: costs of activities designed to ensure quality or uncover defects (inspection equipment, testing, labs, inspectors, interruptions)
• Prevention Costs: costs to prevent defects (training, planning, customer assessment, process control, quality improvement, design)
• Internal Failure Costs: costs incurred to fix problems (rework costs)
• External Failure Costs: costs to fix problems detected after product/service is delivered to the customer (returned goods, reworking costs, warranty costs, loss of goodwill, liability claims, penalties)

Total Quality Management (TQM)

• Philosophy involving everyone in an organization in a continual effort to improve quality
• Achieves customer satisfaction

TQM Approach Key Philosophies

• Continuous Improvement: never-ending push to improve
• Involvement of Everyone: in the organization
• Customer Satisfaction: meeting or exceeding expectations
• Expands the traditional view of quality from final products/services to every aspect of the process
• TQM systems are intended to prevent poor quality
• Kaizen (continuous improvement) is a popular managerial approach for continuously improving quality

TQM as an Approach

• Focuses on the customer wants
• Designs product or service to exceed
• Designs processes right the first time
• Keeps track of results
• Extends these concepts to the supply chain
• Requires top management involvement and commitment
• Is built on dedication and combined efforts

Elements of TQM

• Continuous Improvement: improving all factors related to converting inputs to outputs on an ongoing basis (equipment, methods, materials, and people)
• Competitive Benchmarking: identifying best organizations and studying their methods to improve operation
• Employee Empowerment: workers have responsibility for improvements and authority to make changes
• Team Approach: promoting cooperation and shared values
• Decision Based on Fact, Not Opinion: management gathers and analyzes data
• Knowledge of Tools: managers and employees are trained to use quality tools
• Supplier Quality: suppliers must be included in assurance and quality improvement
• Champion: promoting TQM principles
• Quality at the Source: making each worker responsible for their work's quality
• Suppliers as Partners in the Process: long-term supplier relationships

Obstacles to Implementing TQM

• No company-wide quality definition
• No strategic plan for change
• No customer focus
• Poor inter-organizational communication
• Lack of employee empowerment
• Viewing quality as a "quick fix"
• Emphasis on short-term financial results
• Internal politics and issues
• No strong motivation
• No time for quality initiatives
• Lack of leadership

PDSA Cycle

• Problem-solving procedure in TQM, follows a standard approach
• PDSA or Shewhart cycle is a conceptual basis for problem-solving
• Problems are "opportunities for improvement"

Problem Solving Steps

• Define the problem and set an improvement goal
• Develop measures and collect data
• Analyze the problem
• Generate potential solutions
• Choose a solution
• Implement the solution
• Monitor if the goal is reached

Four Basic Steps in the PDSA Cycle

• Plan: set objective/s, making questions/predictions
• Do: execute the plan
• Study: complete data analysis

Using PDSA Internally

• Provides a systematic approach to continuous improvement
• Helps with developing a process and implementation
• Can improve aspects of your life, especially performance at school

Six Sigma

• A business process aimed at improving quality, reducing costs, increasing customer satisfaction by minimizing errors/defects
• A form of TQM, uses statistical and management science tools

Guiding Principles of Six Sigma

• Reduction in variation is key
• Data-driven methodology requiring data validation
• Outputs are determined by inputs
• Only a critical few inputs have an impact

The DMAIC Process of Six Sigma

• Define: set objectives and context
• Measure: determine the baseline performance and capability

DMAIC Process (Cont.)

• Analyze: use data and tools to understand cause-and-effect
• Improve: develop modifications that lead to validated improvements
• Control: establish plans to sustain improvements

Flowcharts

• Visual representation of a process
• Shows sequences of steps performed

Flowchart Elements

• Diamond shapes: decision points
• Rectangular shapes: procedures
• Arrows: indicate the process flow

Flowchart Construction Steps

• List the steps
• Classify steps as procedure or check-point
• Keep it simple and complete

Check Sheets

• A simple tool used for problem identification
• Provides a structured format to record and organize data
• May include simple checkmarks, depending on the aim

Key Questions for Data Collection

• What question are we trying to answer?
• What type of data do we need?
• Where can we find the data?
• Who can provide data?
• How can we collect data?

Histograms

• Graphical tool that represents variations
• Helps visualize: if the distribution is symmetrical or skewed, range of values, and unusual data points/outliers

Pareto Analysis

• Also known as the Pareto Diagram
• Focuses on the most critical problem areas
• Helps prioritize significant issues

Scatter Diagram

• Scatter Diagram - illustrates relationships between causes and effects
• Determines correlation

Correlations

• As one variable increases, the other variable increases: positive
• As one variable increases, the other variable decreases: negative
• No correlation

Control Chart

• Helps identify improvement opportunities
• Verifies improvement leads to desired results

Monitoring a Process

• Determines if variations are random or correctable
• Upper and lower control limits: if the process is within acceptable variation

Cause-and-Effect Diagram

• Also known as fishbone or Ishikawa diagram
• Visually represents causes for a problem

Methods for Generating Ideas

• Brainstorming: a free flow of information and collaboration

Key Brainstorming Features

• No criticism during idea generation
• Everyone contributes freely
• Encourages creativity and diverse perspectives

Quality Circles

• Small group of workers, to improve product and processes
• A more informal team environment
• Focus on continuous improvement

Benchmarking

• Performance compared against industry to establish standards
• Helps measure current performance against leaders
• Identifies best practices for learning and improvement

Standards

• Exist to facilitate international trade
• Seeks to maintain customer safety
• A void was filled between customer and supplier through global understanding

The International Organization for Standardization (ISO)

• Independent, non-governmental organization
• Made up of members from 160 countries
• Sets international product and service standards, impacting nearly every industry
• ISO 9000 series standards are related to quality management

ISO 9000 sets standards that guide quality management systems Goal

• Provide framework to maintain high-quality
• Focuses on products and service
• Drive continuous improvement

ISO (Cont.)

• Facilitates international trade by setting universally agreed upon benchmarks
• Ensures customer safety by preventing substandard products
• Helps businesses maintain consistency from an increasingly globalized market

Seven Quality Management Principles

• Customer focus
• Leadership
• Engagement of people
• Process approach
• Improvement
• Evidence-based decision making
• Relationship management

ISO Certification

• Requirements are within ISO 9001
• Must demonstrate follows guidelines
• Meets own requirements
• Meets customers requirements and statutory
• Maintained documented performance