Chapter 5 C215

Joseph Juran

***originally worked in the quality program at Western Electric, a former equipment division of AT&T. He became better known in 1951 after the publication of his book Quality Control Handbook. In 1954, he went to Japan to work with manufacturers and teach classes on quality. Though his philosophy is similar to Deming's, there are some differences. Whereas Deming stressed the need for an organizational "transformation, believed that implementing quality initiatives should not require such a dramatic change and that quality management should be embedded in the organization.

Fitness for use

A definition for quality: focuses on how well the product performs its intended function or use.. You can also see that fitness for use is a user-based definition in that it is intended to meet the needs of a specific user group.

Conformance to specification

A definition for quality: measures how well the product or service meets the targets and tolerances determined by its designers As these examples illustrate, conformance to specification is directly measurable, though it may not be directly related to the consumer's idea of quality.

PDSA

A diagram that describes the activities that need to be performed to incorporate continuous improvement into the operation.

Deming

A number of elements of *** philosophy depart from traditional notions of quality. The first is the role management should play in a company's quality improvement effort. Historically, poor quality was blamed on workers—on their lack of productivity, laziness, or carelessness. However, *** pointed out that only 15 percent of quality problems are actually due to worker error. The remaining 85 percent are caused by processes and systems, including poor management. *** said that it is up to management to correct system problems and create an environment that promotes quality and enables workers to achieve their full potential. He believed that managers should drive out any fear employees have of identifying quality problems and that numerical quotas should be eliminated. Proper methods should be taught, and detecting and eliminating poor quality should be everyone's responsibility.

ISO 9000

A set of international quality standards and a certification demonstrating that companies have met all the standards specified

ISO 14000

A set of international standards and a certification focusing on a company's environmental responsibility.

Joseph M. Juran

After W. Edwards Deming, *** is considered to have had the greatest impact on quality management.

Organizational impact of quality

As we have seen, total quality management impacts every aspect of the organization. Every person and every function is responsible for quality and is affected by poor quality. For example, recall that Motorola implemented its Six Sigma concept not only in the production process but also in the accounting, finance, and administrative areas. Similarly, ISO 9000 standards do not apply only to the production process—they apply equally to all departments of the company. A company cannot achieve high quality if its accounting is inaccurate or the marketing department is not working closely with customers. TQM requires the close cooperation of different functions in order to be successful. In this section we look at the involvement of these other functions in TQM.

internal failure costs

Cost of scrap, rework, and (material) losses

Prevention Costs

Costs of preparing an implementing a quality plan

Philip B. Crosby

He worked in the area of quality for many years, first at Martin Marietta and then, in the 1970s, as the vice president for quality at ITT. He developed the phrase "Do it right the first time" and the notion of zero defects, arguing that no amount of defects should be considered acceptable. He scorned the idea that a small number of defects is a normal part of the operating process because systems and workers are imperfect. Instead, he stressed the idea of prevention.

Kaoru Ishikawa

Ishikawa believed that everyone in the company needed to be united with a shared vision and a common goal. He stressed that quality initiatives should be pursued at every level of the organization and that all employees should be involved. was a proponent of implementation of quality circles, which are small teams of employees who volunteer to solve quality problems.

W. Edwards Deming

W. Edwards Deming is often referred to as the "father of quality control." He was a statistics professor at New York University in the 1940s. After World War II, he assisted many Japanese companies in improving quality. The Japanese regarded him so highly that in 1951 they established the *** Prize, an annual award given to firms that demonstrate outstanding quality. It was almost 30 years before American businesses began adopting Deming's philosophy. A number of elements of Deming's philosophy depart from traditional notions of quality. The first is the role management should play in a company's quality improvement effort. Historically, poor quality was blamed on workers—on their lack of productivity, laziness, or carelessness. However, *** pointed out that only 15 percent of quality problems are actually due to worker error. The remaining 85 percent are caused by processes and systems, including poor management. Deming said that it is up to management to correct system problems and create an environment that promotes quality and enables workers to achieve their full potential. He believed that managers should drive out any fear employees have of identifying quality problems and that numerical quotas should be eliminated. Proper methods should be taught, and detecting and eliminating poor quality should be everyone's responsibility.

Walter A. Shewhart

Walter A. Shewhart was a statistician at Bell Labs during the 1920s and 1930s. Shewhart studied randomness and recognized that variability existed in all manufacturing processes. He developed quality control charts that are used to identify whether the variability in the process is random or due to an assignable cause, such as poor workers or miscalibrated machinery. He stressed that eliminating variability improves quality. His work created the foundation for today's statistical process control, and he is often referred to as the "grandfather of quality control."

Total Quality Management (TQM)

You can see that the old concept is reactive, designed to correct quality problems after they occur. The new concept is proactive, designed to build quality into the product and process design. Next, we look at the individuals who have shaped our understanding of quality.

external failure costs

cost of failure at customer site, including returns, repairs and recalls

appraisal costs

costs of the inspection and testing to ensure that the product or process is acceptable

Armand V. Feigenbaum

introduced the concept of total quality control. In his 1961 book Total Quality Control, he outlined his quality principles in 40 steps. *** took a total system approach to quality. He promoted the idea of a work environment where quality developments are integrated throughout the entire organization, where management and employees have a total commitment to improve quality, and where people learn from each other's successes. This philosophy was adapted by the Japanese and termed "company-wide quality control."

Genichi Taguchi

is a Japanese quality expert known for his work in the area of product design. He estimates that as much as 80 percent of all defective items are caused by poor product design.

Value for price paid

is a definition of quality that consumers often use for product or service usefulness.. If you take the less expensive seminar, you will feel that you have received greater value for the price.

Psychological criteria

is a subjective definition that focuses on the judgmental evaluation of what constitutes product or service quality. Different factors contribute to the evaluation, such as the atmosphere of the environment or the perceived prestige of the product.

Genichi Taguchi

is known for applying a concept called design of experiment to product design. This method is an engineering approach based on developing robust design, a design that results in products that can perform over a wide range of conditions

Genichi Taguchi

noted that from the customer's view there is little difference whether a product falls just outside or just inside the control limits. He pointed out that there is a much greater difference in the quality of the product between making the target and being near the control limit. He also stated that the smaller the variation around the target, the better the quality. Based on this, he proposed the following: as conformance values move away from the target, loss increases as a quadratic function.

Deming

outlined his philosophy on quality in his famous "14 Points." These points are principles that help guide companies in achieving quality improvement. The principles are founded on the idea that upper management must develop a commitment to quality and provide a system to support this commitment that involves all employees and suppliers. Deming stressed that quality improvements cannot happen without the organizational change that comes from upper management.

Support services

provided are often how the quality of a product or service is judged. Quality does not apply only to the product or service itself; it also applies to the people, processes, and organizational environment associated with it.

Joseph Juran

well known for originating the idea of the quality trilogy: quality planning, quality control, and quality improvement. The first part of the trilogy, quality planning, is necessary so that companies identify their customers, product requirements, and overriding business goals. Processes should be set up to ensure that the quality standards can be met. The second part of the trilogy, quality control, stresses the regular use of statistical control methods to ensure that quality standards are met and to identify variations from the standards. The third part of the quality trilogy is quality improvement. According to ***, quality improvements should not be just breakthroughs, but continuous as well. Together with Deming,*** stressed that to implement continuous improvement, workers need to have training in proper methods on a regular basis.

Philip B. Crosby

wrote a book titled Quality Is Free, which was published in 1979. He became famous for coining the phrase "quality is free" and for pointing out the many costs of quality, which include not only the costs of wasted labor, equipment time, scrap, rework, and lost sales but also organizational costs that are hard to quantify. Crosby stressed that efforts to improve quality more than pay for themselves because these costs are prevented. Therefore, quality is free. stressed the role of management in the quality improvement effort and the use of statistical control tools in measuring and monitoring quality.