OM 456 Lecture 2A Foundations of Quality Management

Deming's 14 Points (Abridged)

1. Create and publish a company mission statement and commit to it. 2. Learn the new philosophy. 3. Understand the purpose of inspection. 4. End business practices driven by price alone. 5. Constantly improve system of production and service. 6. Institute training. 7. Teach and institute leadership. 8. Drive out fear and create trust. 9. Optimize team and individual efforts. 10. Eliminate exhortations for work force. 11. Eliminate numerical quotas and M.B.O. Focus on improvement. 12. Remove barriers that rob people of pride of workmanship. 13. Encourage education and self-improvement. 14. Take action to accomplish the transformation.

Quality Manual

A permanent reference for implementing and maintaining the system. Typical records -inspection reports -test data -audit reports -calibration data

Statistical Thinking

All work occurs in a system of interconnected processes Variation exists in all processes Understanding and reducing variation are the keys to success

Deming's System of Profound Knowledge

Appreciation for a system Understanding variation Theory of knowledge Psychology

Core Quality Management Principles

Customer focus Teamwork Continuous improvement

Objectives of QMS

Higher product conformity and less variation. Fewer defects, waste, rework, and human error. Improved productivity, efficiency, and effectiveness.

Deming Chain Reaction

Improve quality > Costs decrease > productivity improves > increase market share with better quality and lower prices > stay in business > provide jobs and more jobs

Kaoru Ishikawa

Instrumental in developing Japanese quality strategy Influenced participative approaches involving all workers Advocated the use of simple visual tools and statistical techniques

Theory of Knowledge

Knowledge is not possible without theory Experience alone does not establish a theory, it only describes Theory shows cause-and-effect relationships that can be used for prediction

Variation

Many sources of uncontrollable variation exist in any process Excessive variation results in product failures, unhappy customers, and unnecessary costs Statistical methods can be used to identify and quantify variation to help understand it and lead to improvements

Systems

Most organizational processes are cross-functional Parts of a system must work together Every system must have a purpose Management must optimize the system as a whole

Psychology

People are motivated intrinsically and extrinsically; intrinsic motivation is the most powerful Fear is demotivating Managers should develop pride and joy in work

Total Quality

Principles Practices Techniques

Juran's Breakthrough Sequence

Proof of the Need Project Identification Organization for Breakthrough Diagnostic Journey Remedial Journey Holding the Gains

Three Steps to Quality

Quality Leadership, with a strong focus on planning Modern Quality Technology, involving the entire work force Organizational Commitment, supported by continuous training and motivation

Crosby Philosophy

Quality is free . . . ... It's not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time."

Lessons Learned

Quality is made at the top. Rigid procedures are not enough. People are not always the main source of variability. Numerical goals are often meaningless. Inspection is expensive and does not improve quality.

Crosby's Absolutes of Quality Management

Quality means conformance to requirements Problems are functional in nature There is no optimum level of defects Cost of quality is the only useful measurement Zero defects is the only performance standard

Juran's Quality Trilogy

Quality planning Quality control Quality improvement

TQ Techniques

Statistical methods Visual aids for problem solving, such as flowcharts Techniques specific to quality assurance activities, such as control charts, measurement systems analysis, reliability models, and so on.

A.V. Feigenbaum

Three Steps to Quality

Two Fundamental Management Mistakes

Treating as a special cause any fault, complaint, mistake, breakdown, accident or shortage when it actually is due to common causes Attributing to common causes any fault, complaint, mistake, breakdown, accident or shortage when it actually is due to a special cause

Types of Variation

Uncontrollable variation (common causes) are a natural part of a process Special (assignable) causes of variation can be recognized and controlled Failure to understand these differences can increase variation in a system

Problems Created by Variation

Variation increases unpredictability. Variation reduces capacity utilization. Variation contributes to a "bullwhip" effect. Variation makes it difficult to find root causes. Variation makes it difficult to detect potential problems early.

Leaders in the Quality Revolution

W. Edwards Deming Joseph M. Juran Philip B. Crosby Armand V. Feigenbaum Kaoru Ishikawa

Quality Management System (QMS) -

a mechanism for managing and continuously improving core processes to "achieve maximum customer satisfaction at the lowest overall cost to the organization."

Practices -

activities by which principles are implemented

Deming Philosophy

focuses on continual improvements in product and service quality by reducing uncertainty and variability in design, manufacturing, and service processes, driven by the leadership of top management.

Principles -

foundation of the philosophy

Juran Philosophy

proposed a simple definition of quality: "fitness for use." This definition of quality suggests that it should be viewed from both external and internal perspectives; that is, quality is related to: (1) product performance that results in customer satisfaction; (2) freedom from product deficiencies, which avoids customer dissatisfaction.

Techniques -

tools and approaches to make practices effective