Quality Chapter 2

Feigenbaum also popularized the term __ ___

hidden factory which described the portion ofplant capacity wasted due to poor quality.

Deming Chain Reaction

theory that improvements in quality lead to lower costs because they result in less rework, fewer mistakes, fewer delays/snags, and better use of time and materials. lower costs lead to productivity improvements with better quality and lower prices a firm can get higher market share and stay in business providing more jobs

Juran focused on increasing conformance to

specifications through elimination of defects, supported by statistical tools and analysis

Deming proposed that every employee in a firm be familiar with

statistical techniques and other problem solving tools

The aim of any system should be for all

stockholders to benefit over the long term

work to reduce variation through improvements in

technology, process design, and training

Theory of knowledge

the branch of philosophy concerned with nature and scope of knowledge, its presupposition and basis and the general reliability of claims to knowledge

Quality improvement

the process of breaking through to unprecedented levels of performance

Deming preached the importance of ___,____, and ___

top management leadership customer/supplier partnerships continuous improvement in product development and manufacturing processes

Psychology helps us

understand people and their interactions

Juran: pursuit of quality is viewed on 2 levels

(1) mission of the firm as a whole to achieve high design quality (2) mission of each department in teh firm is to achieve high conformance quality

read ISO 9000 on D2L

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ISO 9000 5 Objectives

1. Achieve maintain and seek to continuously improvement product quality in relationship to requirements 2. Improve quality of operations to continually meet customers and stakeholders stated and implied needs 3. Provide confidence to internal management and other employees that quality requirements are being fulfilled and that improvement is taking place 4. Provide confidence to customers and other stakeholders that quality requirements are being achieved in the delivered product 5. Provide confidence that quality system requirements are being fulfilled

Deming System of Profound Knowledge

1. Appreciation for a system 2. Understanding variations 3. Theory of knowledge 4. Psychology

Deming Chain Reaction Steps

1. Improve Quality 2. Costs decrease because of fewer mistakes, better use of time and materials 3. Productivity Improves 4. Capture market with better quality and lower prices 5. Stay in business 6. Provide jobs and more jobs

ISO 9000 3 principal benefits

1. It provides discipline: The ISO 9001 requirement for audits forces an organization toreview its quality system on a routine basis. If it fails to maintain the quality system,audits should recognize this and call for corrective action. 2. It contains basics of a good quality system: ISO 9001 includes basic requirementsfor any sound quality system, such as understanding customer requirements, ensuringthe ability to meet them, ensuring people resources capable of doing the work thataffects quality, ensuring physical resources and support services needed to meet prod-uct requirements, and ensuring that problems are identified and corrected. 3. It offers a marketing program: ISO certified organizations can use their status to dif-ferentiate themselves in the eyes of customers.

Operational Problems created by variation (5)

1. Variation increases unpredictability: if we don't understand variation in a system we can't predict future 2. Variation reduces capacity utilization: if a process has little variability, then mangers can increase the load on the process because they'd o not have to incorporate slack into their production plans 3. Variation contributes to "bullwhip" effect: small changes in demand occur, the variation in production and inventory levels becomes increasingly amplified upstream at distribution centers, factories, and suppliers, resulting in unnecessary costs and difficulties in managing material flow. 4. Variation makes it difficult to find root causes: Process variation makes it difficultto determine whether problems are due to external factors such as raw materials orreside within the processes themselves. 5. Variation makes it difficult to detect potential problems early: Unusual variation isa signal that problems exist; if a process has little inherent variation, then it is easierto detect when a problem actually does occur.

Deming most notable for ___

14 points

2 similarities between Juran and Deming

Both wanted employees to know who uses their product whether in the next department or another organization Never ending spiral of activities that includes market research, product development, design, planning etc. followed by customer feedback

Crosby Definition of Quality

Conformance to requirements **requirements are ironclad and must be clearly stated so not misunderstood

7 principles of quality management

Customer Focus Leadership Engagement of People Process Approach Improvement Evidence based decision making Relationship management

Deming Point 1: Create a vision and demonstrate commitment

Deming believed that businesses should not exist simply forprofit; they are social entities whose basic purpose is to serve their customers andemployees. To fulfill this purpose, they must take a long-term view, invest in innovation,education, and training, and take responsibility for providing jobs and improving afirm's competitive position. This responsibility lies with top management. Effective lead-ership begins with commitment, but making a commitment to quality and performanceexcellence is still difficult for managers. Even when managers have conducted a thoroughassessment of their organization and know what they need to change, many do not effec-tively follow up on opportunities.

Deming Point 7: Institute Leadership

Deming recognized that one of biggest impedimentsto improvement was a lack of leadership. The job of management is leadership, notsupervision. Supervision is simply overseeing and directing work; leadership means pro-viding guidance to help employees perform better. Leadership can help to eliminate theelement of fear from the job and encourage teamwork. Leadership was, is, and will con-tinue to be, a challenging issue in every organization, particularly as new generations ofmanagers replace those who have learned to lead. Thus, this Point of Deming's willalways be relevant to organizations.

Kaoru Ishikawa Quality Ideas

Dr. Ishikawa influenced the development of aparticipative, bottom-up view of quality, which became the trademark of the Japaneseapproach to quality management. Ishikawa built on Feigenbaum's concept of total quality and promoted greater involve-ment by all employees, from the top management to the front-line staff, by reducing relianceon quality professionals and quality departments. He advocated collecting and analyzing factual data using simple visual tools, statistical techniques, and teamwork as the foundations for implementing total quality. Like others, Ishikawa believed that quality begins with the customerand therefore, understanding customers' needs is the basis for improvement, and that com-plaints should be actively sough

Deming Point 5: Improve constantly and forever

Improvements are necessary in bothdesign and operations. Improved design of goods and services comes from understand-ing customer needs and continual market surveys and other sources of feedback, andfrom understanding the manufacturing and service delivery process. Improvements inoperations are achieved by reducing the causes and impacts of variation, and engagingall employees to innovate and seek ways of doing their jobs more efficiently and effec-tively. When quality improves, productivity improves and costs decrease, as the Demingchain reaction (Figure 2.1) suggests. Today, continuous improvement is recognized as anecessary means for survival in a highly competitive and global business environment.The tools for improvement are constantly evolving, and organizations need to ensurethat their employees understand and apply them effectively, which requires training,

Juran suggested that quality should be viewed from ___ and ___ perspectives

Internal and external quality is related to: (1) product performance that results in customer satisfaction (2) freedom from product deficiencies, which avoids customer dissatisfaction

Demings Funnel Experiments

Its purpose is to show that people can and do affect the outcomes of many processes and create unwanted variation by "tampering" with the process, or indiscriminately trying to remove common causes of variation. In this experiment, a funnel is suspended above a table with a target drawn ona tablecloth. The goal is to hit the target. Participants drop a marble through the funneland mark the place where the marble eventually lands. Rarely will the marble rest on thetarget. This variation is due to common causes in the process. One strategy is to simplyleave the funnel alone, which creates some variation of points around the target, this may be called Rule 1

2 differences between Juran and Deming

Juran did not propose a major cultural change in organization but sought to improve quality by working within the system familiar to managers (different "languages") Juran provided a detailed program for quality improvement. According to Juran all breakthrough follow a commonsense sequence of discovery, organization, diagnosis, corrective action, and control Juran believed fear could bring out the best in people

Comparing Deming, Juran, Crosby

Juran/deming point out that despite worker good intentions, majority of quality problems stem from poorly designed systems that are the responsibility of management each views quality as imperative o competition, continuous improvement, customer and strong management partnerships, management responsible for quality

Deming Point 11: Eliminate Numerical Quotas and Management by Objective (MBO)

Many organizations manage by goals and arbitrary objectives. Standards and quotas do notencourage improvement, particularly if rewards or performance appraisals are tied to meet-ing quotas. Workers may short-cut quality to reach the goal, and this still happens morethan you might think. Then once a goal is reached, little incentive remains for workers tocontinue; they will often do no more than they are asked to do. Arbitrary goals, such asincreasing sales by 5 percent next year or decreasing costs next quarter by 10 percent,have no meaning without a method to achieve them. Deming acknowledged that goals areuseful, but numerical goals set for others without incorporating a method to reach the goalgenerate frustration and resentment. Management must understand the system and contin-ually try to improve it, rather than focus on short-term goals.

Breakthrough Sequence

Proof of need project identification organization for breakthrough diagnostic journey remedial journey holding the gains

Armand Feigenbaum Three Steps to Quality

Quality Leadership: management emphasis on sound planning rather than reaction to failure Modern Quality Technology: traditional quality department cannot resolve majority of quality problems. Requires integration fo office staff, engineers, and workers in process to evaluate/satisfy techniques to satisfy customer in the future Organizational Commitment: Continuous training and motivation of the entire work-force as well as an integration of quality in business planning indicate the importanceof quality and provide the means for including it in all aspects of the firm's activities.

Crosby absolutes of quality management

Quality means meeting requirements no such thing as quality problem no such things as the economic of quality, joint the job right the first time is cheaper only performance measurement is cost of quality (expense of nonconformance) only performance standard is zero defects (prevent rather than fix defects)

Common causes of variation

These factors arepresent as a natural part of a process

Juran stated that top management speaks in ___

dollars workers speak in language of things and middle managers must do both

Quality Policy

a formal document thatdemonstrates a commitment to achieving high quality and meeting customer expecta-tions.

Quality Management System

amechanism for managing and continuously improving core processes to "achieve maximumcustomer satisfaction at the lowest overall cost to the organization." It applies and synthe-sizes standards, methods, and tools to achieve quality-related goals. Thus a quality manage-ment system represents a specific implementation of quality concepts, standards, methods,and tools, and is unique to an organization.

Armand Feigenbaum phrase "total quality control"

an effective system for integrating the quality development, quality mainte-nance, and quality improvement efforts of the various groups in an organization so as toenable production and service at the most economical levels which allow full customer satisfaction, quality as a strategic business tool that requires involvement from everyone inthe organization, and promoted the use of quality costs as a measurement and evaluationtool.

Unlike other management gurus Deming never __ __

defined/described quality precisely

Crosby's basi elements of improvement (3)

determination- top management must take quality improvement seriously education- everyone should understand the absolutes implementation- every member of management team must understand implementation process

Variation

differences in *pg 73

Deming Point 3: Understand Inspection

inspection had been theprincipal means for quality control; companies employed dozens or even hundreds ofinspectors, sometimes as many as regular production workers. Routine inspectionacknowledges that defects are present, encourages a lack of attention to quality by pro-duction workers, and does not add value to the product. The rework and disposition ofdefective material decreases productivity and increases costs. Deming encouraged workersto take responsibility for their work, rather than leave the problems for someone elsedown the production line. He advocated more in-process inspection and the use of statis-tical tools that would help to eliminate post-production inspection. Thus, inspectionshould be used as an information-gathering tool for improvement, not as a means of"assuring" quality. Today, this new role of inspection has been integrated into the qualitymanagement practices of most companies. However, few managers truly understand varia-tion in production and how to leverage in-process data for improvement. By understand-ing and seeking to reduce variation, managers can eliminate many sources of unnecessaryinspection, thus reducing non-value-added costs associated with operations.

Kaoru Ishikawa

instrumental in the development of the broadoutlines of Japanese quality strategy, and without his leadership,the Japanese quality movement would not enjoy the worldwideacclaim and success that it has today.

Deming emphasized that ____ is not possible without ____

knowledge is not possible without theory *experience alone does not establish a theory

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Quality control

process of meeting quality goals during operations

Quality planning

process of preparing to meet quality goals

Excessive variation results in

products that fail or perform erratically and inconsistent service

Juran Quality Trilogy

quality planning quality control quality improvement

The Deming philosophy focuses on continues improvements in product/service quality by

reducing uncertainty and variability in design, manufacturing, and service processes, driven by the leadership of top management

Quality Manual

serves as a permanent reference for implementing and maintain-ing the system. A quality manual need not be complex; a small company might needonly a dozen pages while a large organization might need manuals for all key functions.

System

set of functions or activities within an organization that worktogether for the aim of the organization.

remaining variation in a product process is the result of

special causes *assignable causes of variation

What is ISO 9000?

which are a set of standards and guidelines for quality management systems that represents an international consensus on good quality management practices. They provide a comprehensive framework for designing and man-aging a quality management system and help organizations establish a process orientation and the discipline to document and control key processes.