98370548 Chapter 3 Philosophies Framework Uploaded Ppt

Chapter 3Philosophies and Frameworks

MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

1

Leaders in the Quality Revolution W.

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


2

Whos Who?

b a

Deming ____

Juran ____c

Crosby ____MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

3

Deming Chain ReactionImprove quality Costs decrease Productivity improves Increase market share with better quality and lower prices Stay in business Provide jobs and more jobsMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

4

Key IdeaThe 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.


5

Demings System of Profound Knowledge Appreciation

for a system Understanding variation Theory of knowledge Psychology


6

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


7

Key IdeaThe aim of any system should be for all stakeholdersstockholders, employees, customers, community, and the environmentto benefit over the long term.


8

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 improvementsMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

9

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


10

Psychology People

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


11

Demings 14 Points (Abridged)(1 of 2)

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.


12

Demings 14 Points (2 of 2)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.www.deming.org13


Jurans Quality Trilogy Quality

planning Quality control Quality improvement

www.juran.comMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

14

Key IdeaJuran 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.MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

15

Phillip B. Crosby

Quality is free . . .Quality is free. Its 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.


16

Philip B. CrosbyAbsolutes 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 standardwww.philipcrosby.comMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

17

A.V. Feigenbaum 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 motivation18


Kaoru Ishikawa Instrumental

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


19

Genichi Taguchi

Pioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications:

Loss0.480

No Loss0.500 0.520

Loss

ToleranceMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

20

Malcolm Baldrige National Quality Award Help

improve quality in U.S. companies Recognize achievements of excellent firms and provide examples to others Establish criteria for evaluating quality efforts Provide guidance for other American companies

Malcolm Baldrige, former U.S. Secretary of Commerce


21

Criteria for Performance Excellence Leadership Strategic

Planning Customer and Market Focus Measurement, Analysis, and Knowledge Management Human Resource Focus Process Management Business ResultsMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

Baldrige Award trophy

22

The Baldrige Framework A Systems PerspectiveOrganizational Profile: Environment, Relationships, and Challenges

2 Strategic Planning

5 Human Resource Focus

1 Leadership 3 Customer & Market Focus 6 Process Management

7 Business Results

4 Measurement, Analysis, and Knowledge ManagementMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

23

Key IdeaThe Baldrige criteria define both an integrated infrastructure and a set of fundamental practices for a highperformance management system.


24

Criteria Evolution (1 of 2) From

quality assurance and strategic quality planning to a focus on process management and overall strategic planning From a focus on current customers to a focus on current and future customers and markets From human resource utilization to human resource development and management From supplier quality to supplier partnershipsMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

25

Criteria Evolution (2 of 2)

From individual quality improvement activities to cycles of evaluation and improvement in all key areas From data analysis of quality efforts to an aggregate, integrated organizational level review of key company data From results that focus on limited financial performance to a focus on a composite of business results, including customer satisfaction and financial, product, service, and strategic performanceMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

26

Key IdeaApproaches that organizations use to address the Baldrige criteria requirements need not be formal or complex, and can easily be implemented by small businesses.


27

Baldrige Award Evaluation ProcessReceive ApplicationsStage 1 Independent Review

Judges Select for Consensus Review?

No

Feedback report to applicant

Stage 2 Consensus Review

Judges Select for Site Visit Review?

No

Feedback report to applicant

Stage 3 Site Visit ReviewStage 4 Judges Recommend Award Recipients to NIST Director/DOCMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

Feedback report to applicant28

Self AssessmentA primary goal of the Baldrige program is to encourage many organizations to improve on their own by equipping them with a standard template for measuring their performance and their progress toward performance excellence.Boeing Airlift & Tanker Programs 1998 recipient


29

Deming Prize

Instituted 1951 by Union of Japanese Scientists and Engineers (JUSE) Several categories including prizes for individuals, factories, small companies, and Deming application prize American company winners include Florida Power & Light and AT&T Power Systems Division


30

Other Quality Awards European

Quality Award Canadian Awards for Business Excellence Australian Business Excellence Award Chinese National Quality Award (New)


31

ISO 9000:2000 Quality

system standards adopted by International Organization for Standardization in 1987; revised in 1994 and 2000 Technical specifications and criteria to be used as rules, guidelines, or definitions of characteristics to ensure that materials, products, processes, and services are fit for their purpose.32


Key IdeaISO 9000 defines quality system standards, based on the premise that certain generic characteristics of management practices can be standardized, and that a well-designed, well-implemented, and carefully managed quality system provides confidence that the out-puts will meet customer expectations and requirements.MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

33

Objectives of ISO Standards

Achieve, maintain, and continuously improve product quality Improve quality of operations to continually meet customers and stakeholders needs Provide confidence to internal management and other employees that quality system requirements are being fulfilled Provide confidence to customers and other stakeholders that quality requirements are being achieved


34

Structure of ISO 9000 Standards 21

elements organized into four major sections: Management

Responsibility Resource Management Product Realization Measurement, Analysis, and Improvement


35

ISO 9000:2000 Quality Management Principles1.2. 3.

4.5. 6.

7.8.

Customer Focus Leadership Involvement of People Process Approach System Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier RelationshipsMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

36

Key IdeaISO 9000 provides a set of good basic practices for initiating a quality system, and is an excellent starting point for companies with no formal quality assurance program.


37

Six Sigma Based

on a statistical measure that equates to 3.4 or fewer errors or defects per million opportunities Pioneered by Motorola in the mid-1980s and popularized by the success of General Electric


38

Key IdeaSix Sigma can be described as a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and a clear financial return for the organization.


39

Key Concepts of Six Sigma(1 of 2)

Think in terms of key business processes, customer requirements, and overall strategic objectives. Focus on corporate sponsors responsible for championing projects, support team activities, help to overcome resistance to change, and obtaining resources. Emphasize such quantifiable measures as defects per million opportunities (dpmo) that can be applied to all parts of an organizationMANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

40

Key Concepts of Six Sigma(2 of 2)

Ensure that appropriate metrics are identified early and focus on business results, thereby providing incentives and accountability. Provide extensive training followed by project team deployment Create highly qualified process improvement experts (green belts, black belts, and master black belts) who can apply improvement tools and lead teams. Set stretch objectives for improvement.MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing

41

Key IdeaAlthough different, Baldrige and Six Sigma are highly compatible and can each have a place in the management system of a successful organization.


42

98370548 Chapter 3 Philosophies Framework Uploaded Ppt

Documents

Transcript of 98370548 Chapter 3 Philosophies Framework Uploaded Ppt