History of Quality Paradigms

Customer-craft quality paradigm: design and build each product for a particular customer. producer knows the customer directly. Mass production and inspection quality paradigm: focus on designing and building products for mass consumption. larger volumes will reduce costs and increases profits. push products on the customer (limit choices). quality is maintained by inspecting and detecting bad products. TQM or Customer Driven Quality paradigm: potential customers determine what to design and build. higher quality will be obtained by preventing problems
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Need for a New Strategy

Foreign markets have grown
Import barriers and protection are not the answer.

Consumers are offered more choices

They have become more discriminating.

Consumers are more sophisticated

They demand new and better products.

MEM 650 Quality Control

Why Quality Improvement?

Global Competition
Economic and political boundaries are slowly vanishing The 1950s slogan Built by Americans for Americans is very far from reality in the 2000s.

MEM 650 Quality Control

Why Quality Improvement?

On the stroke of midnight on December 31, 1992, the United States will become the second-largest economy in the world for the first time in a century.
Quote from a 1990 Xerox quality conference.

More than corporate profits are at risk; the challenge is to the American standard of living.

MEM 650 Quality Control

Why Quality Improvement?

It pays

Less rework, fewer mistakes, fewer delays, and better use of time and materials In United States today, 15 to 20% of the production costs are incurred in finding and correcting mistakes.
MEM 650 Quality Control 7

How Do Organizations Compete?

Most common competitive measures:
Quality (both real and perceived) Cost Delivery (lead time and accuracy)

Other measures
safety, employee morale, product development (time-to-market, innovative products)

MEM 650 Quality Control

Contrasting Approaches
Passive / Reactive Proactive / Preventive
Setting acceptable Design quality in products quality levels and processes Inspecting to Identify sources of measure variation (processes and compliance materials) Monitor process performance
MEM 650 Quality Control 10

Quality Advocates
U.S. Quality Innovators Walter Shewhart (1920s -1940s) W. Edwards Deming (post WWII through 1980s) Joseph M. Juran (consultant post WWII through 1980s) Philip Crosby (1980s) Japanese Quality Innovators: Kaoru Ishikawa (post WWII - 1980s) Genichi Taguchi (1960s - 1980s)

Quality Advocates

Walter A Shewhart
Pioneer of modern quality control
recognized the need to separate variation into assignable and unassignable causes (defined in control.) founder of the control chart (e.g. X-bar and R chart). originator of the plan-do-check-act cycle. perhaps the first to successfully integrate statistics, engineering, and economics. defined quality in terms of objective and subjective quality objective quality: quality of a thing independent of people. subjective quality: quality is relative to how people perceive it. (value)
Quality Advocates

W. Edwards Deming
Studied under Shewhart at Bell Laboratories Contributions: well known for helping Japanese companies apply Shewharts statistical process control. Main contribution is his Fourteen Points to Quality create constancy of purpose. cease dependence on inspection to improve quality drive out fear and build employee trust. seek long-term supplier relationship eliminate numerical goals; substitute leadership (abolish annual rating or merit system). eliminate slogans, exhortations, and work-force targets
Quality Advocates

Joseph M. Juran
Contributions also well-known for helping improve Japanese quality. directed most of his work at executives and the field of quality management. - developed the Juran Triology for managing quality:
Quality planning, quality control, and quality improvement.
Quality Advocates

Feigenbaum
Developed the concept of Total Quality Control.
System for managing the entire value-chain connecting supplier to customer.

If you want to find out about your quality, go out and ask your customer. Quality control staff = Facilitators.

Quality Advocates

Philip Crosby
Quality management advocate, consultant, and author
Quality is Free

The four absolutes of quality including:

#1- quality is defined by conformance to requirements, not goodness. #2 - system for causing quality is prevention not appraisal. #3 - performance standard is zero defects, not thats close enough. #4 - measurement of quality is the price of nonconformance, not indexes.
Quality Advocates

Kaoru Ishikawa
Contributions
Developed concept of true and substitute quality characteristics true characteristics are the customers view substitute characteristics are the producers view degree of match between true and substitute ultimately determines customer satisfaction. Advocate of the use of the 7 tools (e.g., cause-and-effect diagram) Advanced the use of quality circles (worker quality teams). Respect for humanity as a management philosophy - full participation. Cross-functional management.

Quality Advocates

Genichi Taguchi
Contributions: Taguchi methods emphasize consistency of performance and reduced variation Quality loss function (deviation from target is a loss to society). Parameter design (robust engineering) which is an application of Design of Experiments.
Identify key variables Reduce variation on the important variables Open up tolerances on unimportant variables
Quality Advocates

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

Contributions also well-known for helping improve Japanese quality. directed most of his work at executives and the field of quality management. - developed the Juran Triology for managing quality: Quality planning, quality control, and quality improvement.

Juran
Quality Planning Quality Control

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Cost of Poor Quality

20

0
Time
Quality Advocates

Quality management advocate, consultant, and author: - Quality is Free The four absolutes of quality including:

#1- quality is defined by conformance to requirements, not goodness. #2 - system for causing quality is prevention not appraisal. #3 - performance standard is zero defects, not thats close enough. #4 - measurement of quality is the price of nonconformance, not indexes.

Six Sigma

MALCOLM BALDRIGE AWARD RECIPIENTS

. . . . . . . . . . . . 1998 MOTOROLA INC., GLOBE METALLURGICAL INC. 1989 XEROX CORP. 1990 CADILLAC MOTOR CAR, IBM, FEDEX. 1991 SOLECTRON CORP. 1992 AT&T NETWORK SYSTEMS, TEXAS INST. 1993 EASTMAN CHEMICAL 1994 WAINWRIGHT CORP. 1995 ARMSTRONG WORLD, CORNING TELECOM 1996 ADAC LABS 1997 3M DENTAL PRODUCTS 1998 BOEING 1999 STMICROELECTRONICS 2000 DANA CORP

Discover ISO
ISO's name
Because "International Organization for Standardization" would have different acronyms in different languages ("IOS" in English, "OIN" in French for Organisation internationale de normalisation), its founders decided to give it also a short, all-purpose name. They chose "ISO", derived from the Greek isos, meaning "equal". Whatever the country, whatever the language, the short form of the organization's name is always ISO.

Why standards matter

Standards make an enormous and positive contribution to most aspects of our lives. Standards ensure desirable characteristics of products and services such as quality, environmental friendliness, safety, reliability, efficiency and interchangeability - and at an economical cost. When products and services meet our expectations, we tend to take this for granted and be unaware of the role of standards. However, when standards are absent, we soon notice. We soon care when products turn out to be of poor quality, do not fit, are incompatible with equipment that we already have, are unreliable or dangerous. When products, systems, machinery and devices work well and safely, it is often because they meet standards. And the organization responsible for many thousands of the standards which benefit the world is ISO.

What standards do
ISO standards: - make the development, manufacturing and supply of products and services more efficient, safer and cleaner - facilitate trade between countries and make it fairer - provide governments with a technical base for health, safety and environmental legislation, and conformity assessment - share technological advances and good management practice - disseminate innovation - safeguard consumers, and users in general, of products and services - make life simpler by providing solutions to common problems

Who standards benefit

ISO standards provide technological, economic and societal benefits. For businesses, the widespread adoption of International Standards means that suppliers can develop and offer products and services meeting specifications that have wide international acceptance in their sectors. Therefore, businesses using International Standards can compete on many more markets around the world. For innovators of new technologies, International Standards on aspects like terminology, compatibility and safety speed up the dissemination of innovations and their development into manufacturable and marketable products. For customers, the worldwide compatibility of technology which is achieved when products and services are based on International Standards gives them a broad choice of offers. They also benefit from the effects of competition among suppliers.

Contd
For governments, International Standards provide the technological and scientific bases underpinning health, safety and environmental legislation. For trade officials, International Standards create "a level playing field" for all competitors on those markets. The existence of divergent national or regional standards can create technical barriers to trade. International Standards are the technical means by which political trade agreements can be put into practice. For developing countries, International Standards that represent an international consensus on the state of the art are an important source of technological know-how. By defining the characteristics that products and services will be expected to meet on export markets, International Standards give developing countries a basis for making the right decisions when investing their scarce resources and thus avoid squandering them.

Contd

For consumers, conformity of products and services to International Standards provides assurance about their quality, safety and reliability. For everyone, International Standards contribute to the quality of life in general by ensuring that the transport, machinery and tools we use are safe.

For the planet we inhabit, International Standards on air, water and soil quality, on emissions of gases and radiation and environmental aspects of products can contribute to efforts to preserve the environment.

ISO 9000 defines quality system standards, based on the premise that certain generic characteristics of management practices can be standardised, and that a well designed, well implemented and carefully managed quality system provides confidence that the output will meet customer requirements and expectations.

OBJECTIVES OF STANDARDS:
1. Achieve, maintain and seek to continuously improve product quality (including services) in relationship to requirements. 2. Improve the 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 stakeholders that quality requirements are being achieved in the delivered product. 5. Provide confidence that quality system requirements are fulfilled.

SIX SIGMA
Six Sigma is a business management strategy originally developed by Motorola, USA in 1981.[1] As of 2010[, it enjoys widespread application in many sectors of industry, although its application is not without controversy. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified targets. These targets can be financial (cost reduction or profit increase) or whatever is critical to the customer of that process (cycle time, safety, delivery, etc.).

The term six sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modelling of manufacturing processes. Originally, it referred to the ability of manufacturing processes to produce a very high proportion of output within specification. The maturity of a manufacturing process can be described by a sigma rating indicating its yield, or the percentage of defect-free products it creates. A six-sigma process is one in which 99.99966% of the products manufactured are free of defects, compared to a one-sigma process in which only 31% are free of defects. Motorola set a goal of "six sigmas" for all of its manufacturing operations and this goal became a byword for the management and engineering practices used to achieve it.

Six Sigma is a registered service mark and trademark of Motorola Inc.[9] As of 2006 Motorola reported over US$17 billion in savings from Six Sigma. Other early adopters of Six Sigma who achieved well-publicized success include Honeywell (previously known as AlliedSignal) and General Electric, where Jack Welch introduced the method. By the late 1990s, about two-thirds of the Fortune 500 organizations had begun Six Sigma initiatives with the aim of reducing costs and improving quality. In recent years, some practitioners have combined Six Sigma ideas with lean manufacturing to yield a methodology named Lean Six Sigma.

Methods
Six Sigma projects follow two project methodologies inspired by Deming's Plan-Do-Check-Act Cycle. These methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV. DMAIC is used for projects aimed at improving an existing business process. DMADV is used for projects aimed at creating new product or process designs.

DMAIC
The DMAIC project methodology has five phases: Define the problem, the voice of the customer, and the project goals, specifically. Measure key aspects of the current process and collect relevant data.

Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.
Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability. Control the future state process to ensure that any deviations from target are corrected before they result in defects. Control systems are implemented such as statistical process control, production boards, and visual workplaces and the process is continuously monitored.

DMADV
The DMADV project methodology, also known as DFSS ("Design For Six Sigma"), features five phases: Define design goals that are consistent with customer demands and the enterprise strategy. Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks. Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design. Design details, optimize the design, and plan for design verification. This phase may require simulations. Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).

COMPARING BALDRIDGE, ISO 9000 AND SIX SIGMA

Although each of these frameworks are process-focused, data-based and management-led, each offers a different emphasis in helping organisations improve performance and increase customer satisfaction.
Baldridge focuses on performance excellence for the entire organisation in an overall management framework, identifying and tracking important organisational results. ISO focuses on product and service conformity for guranteeing equity in the marketplace and concentrates on fixing quality system problems and product and service nonconformities. Six Sigma concentrates on measuring product quality and driving process improvement and cost savings throughout the organisation.