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Chapter 1: Introduction to Quality 1 Tuesday, 28 September 2010 This session is: An Introduction to the Philosophy, Evolution & Gurus 2 Tuesday, 28 September 2010 Objectives To investigate the historical development of quality To highlight the meaning of quality and gurus contributions to its development To briefly introduce the basic elements of TQM concept To elaborate on the relevance of the philosophy to modern day competitiveness 3 Tuesday, 28 September 2010 1 Presentation Scenario Understand the various paradigms of quality evolution What is a quality' What is a guru' Who are q y g they' What contributions they have made to quality development What is TQM' What are its basic elements' What are the learned lessons of TQM relevance to today’s competitiveness' 4 Tuesday, 28 September 2010 Quality Paradigms Paradigm is the result of the discipline’s adaptation to environmental contingencies Quality evolution is a discipline, a set of principles and assumed truths that define how the quality of goods and services is to be assessed, managed, delivered and assured. 5 Tuesday, 28 September 2010 6 Tuesday, 28 September 2010 2 What are these Paradigms' PrePre-industrial “Caveat Emptor” The concept of quality was based on the philosophy of “we know it when we see it.” This meant that quality doesn’t have to be defined, it is a direct experience arising from the basic senses (i.e. the quality of baked bricks). The consumer was responsible for assuring the quality of the goods they purchased in essence “let the buyer beware” (i.e. food vendors and shoemakers or coopers). Th b d h k ) The buyer i thi case rely on th skill, in this l the kill honesty and knowledge of the trader in other words “the mystery of trade”. This type of manufacturing science passed down till became a mainstream component of medieval society. No quality control observed but punishment actions were taken against workers who produced poor quality work. Chinese Dynasty began to develop community-based standards for communityquality control followed by Ancient Rome, where measurement system being standardized in basic items used in building design. 28 September 2010 Tuesday, 7 Industrial Revolution “Quality Control” The factory system that literally caused a revolution in how the discipline of quality was practiced. Late 1800s 1800s Operator QC One worker or at least a very small number of workers, was responsible for manufacturing the entire product. Individuals performing a similar task were grouped and directed by a foreman who is responsible for the quality of their work. Early 1900s 1900s Forman QC During World War I Inspection QC More complex manufacturing system. Large number reporting to one foreman was impossible. FullFull-time inspectors was the solution. 8 Tuesday, 28 September 2010 1920s 1920s Statistical QC It was an extension to inspection, But with new statistical thinking and methods in manufacturing. Tools such as sampling and control charts began to be used. Use of statistical thinking outside manufacturing. Develop quality manual, product testing, basic quality planning, paperwork control and process performance data. Quality systems development, advanced quality planning, comprehensive quality manuals, The fourteen points approaches, use of quality costs, involvement of non-production operation, nonfailure mode and effect analysis and SPC. Tuesday, 28 September 2010 1930s/1940 1930s/1940 First Phase of TQC Systems of Improvement 1950s/1960s 1950s/1960s 1970s/late 80s 1970s/late 80s Quality Assurance 9 3 Post Industrial “Total Quality Management” Shift from Control to Improvement Policy deployment, involve suppliers & customers, involve all operations, process management, performance measurement, teamwork and employee involvement. More advanced management concepts, systems and technologies. 1990s 1990s TQM Millennium ITQM Intelligent Era 10 Tuesday, 28 September 2010 Seven Management Diseases Raised the Quest for Quality Lack of constancy of purpose to plan product and service that will have a market and keep the company in business, and provide jobs. Emphasis on short-term profits: short-term thinking (just the shortprofits: shortopposite from constancy of purpose to say in business), fed by fear of unfriendly takeover, and by push from bankers and owners for dividends. Evaluation of performance, merit rating, or annual review. performance, Mobility of top management; job-hopping. management; jobManagement by use only of visible figures, with little or no figures, consideration of figures that are unknown or unknowable. Excessive medical costs (only in the USA). Excessive costs of warranty, fuelled by lawyers that work on warranty, contingency fees (only in the US). 11 Tuesday, 28 September 2010 The Meaning of “Quality” Quality isn’t something you lay on…like tinsel on a Christmas tree. Real quality must be the source…the cone from which the tree must start. Zen and the Art of Motorcycle Maintenance Quality is the fitness for use Joseph Juran 12 Tuesday, 28 September 2010 4 Quality is conformance to requirements Philip Crosby Quality is what makes it possible for a customer to have a love affair with your product or service. Telling lies, decreasing the price or adding features can create a temporary infatuation. It takes quality to sustain a love affaire. Love is always fickle. Therefore, it is necessary to remain close to the person whose loyalty you wish to retain. You must be ever on the alert to understand what pleases the customer, for only customers define what constitutes quality. The wooing of the customer is never done. 13 Myron Tribus, 1990) 1990) Tuesday, 28 September 2010 What is a quality guru' A guru, by definition, is a good person, a wise person and a teacher. A quality guru should be all of these, plus have a concept and approach to quality within business that has made a major and lasting impact. Who are they' y 14 Tuesday, 28 September 2010 There have been three groups of gurus since the 1940: 1940: Early 1950’s 1950’s Americans who took the messages of quality to Japan Late 1950’s 1950’s Japanese who developed new concepts in response to the Americans 1970s 1980s 1970s – 1980s Western gurus who followed the Japanese industrial success 15 Tuesday, 28 September 2010 5 The Americans who went to Japan He placed great importance and responsibility on management, at both the individual and company level, believing management to be responsible for 94% of 94% quality problems. W Edwards Deming Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured. Implement the change on a small scale and measure the effects. Study the results to learn what effect the change had, if any Adopt the change as a permanent modification to the process, or abandon it. Tuesday, 28 September 2010 Plan Do Study Act 16 Deming Cycle Logic 4. ACT 1. PLAN Identify Permanently implement improvements improvements and develop plan 3. CHECK Evaluate plan to see if it works 2. DO Try plan on a test basis 17 Tuesday, 28 September 2010 Deming Cycle Logic Improve Quality Provide jobs and more jobs Cost decreases because of less work, fewer mistakes, fewer delays, snags, better use of machine time and materials Stay in business Capture the market with better quality and lower price. Productivity Improves 18 Tuesday, 28 September 2010 6 Deming 14 Points 1. Create constancy of purpose towards improvement of product and service. 2. Adopt the new philosophy. We can no longer live with commonly accepted levels of delay, mistakes and defective workmanship. 3. Cease dependence on mass inspection. Instead, require statistical evidence that quality is built in. 4. End awarding business on the basis of price Instead minimise total cost price. and move towards single suppliers for items. 5. Find problems. It is management’s job to work continually on the system to improve quality and productivity and to decrease costs. 6. Institute modern methods of training on the job. 7. Institute modern methods of supervision of production workers. The responsibility of foreman must be changed from numbers to quality. 8. Drive out fear, so that everyone may work effectively for the organisation. Tuesday, 28 September 2010 19 9. Break down barriers between departments such as research, design, sales and production. They must work together to foresee problems in production and use. 10. 10. Eliminate slogans, exhortations and numerical targets for the workforce, such as 'zero defects' or new productivity levels. Such exhortations are diversify as the bulk of the problems belong to the system and are beyond the power of the workforce. 11. 11. Eliminate quotas or work standards, and management by objectives or standards substitute leadership. 12. 12. Remove barriers that stand between the hourly worker and their right to pride of workmanship. 13. 13. Institute a vigorous programme of education, self-improvement and selfretraining. 14. 14. Create a structure in top management that will push on the above points every day. 20 Tuesday, 28 September 2010 The Americans who went to Japan He developed the quality trilogy – quality planning, quality control and quality improvement. Juran believed quality is associated with customer satisfaction and dissatisfaction with the product, and emphasised the necessity for ongoing quality improvement through a succession of small improvement projects carried out throughout the organisation. Holding the gains Quality Planning Joseph M Juran Quality Control Breakthrough Quality Improvement Pareto Analysis project-byproject-by-project SUPPLIER 21 PROCESS CUSTOMER Tuesday, 28 September 2010 7 Juran’s Trilogy Diagram Quality Planning • Establish quality goals • Identify customer needs • Translate needs into our language • Develop a product for these needs • Optimise product features for these needs Quality Control • Prove the process can produce under operating conditions • Transfer process to operation Quality Improvement • Seek to optimise the process via tools of diagnosis 22 Tuesday, 28 September 2010 Juran’s Quality Planning Roadmap 1. Identify who are the customers. 2. Determine the customer’s needs. 3. Translate those needs into you organisation’s language. 4. Develop the product to meet those needs. 5. Optimise the product to your organisation’s needs s well. 6. Develop a process, which is able to produce the product. 7. Optimise the process. 8. Prove the process can make the product under operating conditions. 23 Tuesday, 28 September 2010 Juran and the cost of quality Costs Avoidable costs Unavoidable costs Total Costs • Scrapped Materials • Labour for re-work re• Complaint processing • Lose of sale from unhappy customers • Inspection • Sampling • Sorting • QC 100% 100% 24 defective Point of “Enough quality” Tuesday, 28 September 2010 8 Juran 10 Points 1. Build awareness of the need and opportunity for improvement. 2. Set goals for improvement. 3. Organise to reach the goals. 4. Provide training. 5. Carry out projects to solve problems. 6. Report progress. 7. Give recognition. 8. Communicate results. 9. Keep score of improvements achieved. 25 10. 10. Maintain momentum. Tuesday, 28 September 2010 The Japanese who developed new concepts in response to Americans Kaoru Ishikawa He made many contributions to quality, the most noteworthy being his total quality viewpoint, company wide quality control and his emphasis on the human side of quality. Pareto analysis Cause & Effect analysis Which are the big problems' What causes the problems' How is the data made up' How often it occurs or is done' What do overall variations look like' What are the relationships between factors' Stratification Check sheets Histograms Scatter charts Process control charts 26 Which variations to control and how' Tuesday, 28 September 2010 The Japanese who developed new concepts in response to Americans He believed it is preferable to design product that is robust or insensitive to variation in the manufacturing process, rather than attempt to control all the many variations during actual manufacture. To put this idea into practice, he took the already established knowledge on experimental design and made g p g it more usable and practical for quality Genichi Taguchi professionals. His message was concerned to Robust product design push quality and reliability back to the design stage. Today, companies see a close Level Parameter design Link between Taguchi methods, which can be of viewed Statistical process control along a continuum, and quality quality function deployment. Product inspection Quality control procedure and stage of evolution 27 Tuesday, 28 September 2010 9 The Japanese who developed new concepts in response to Americans Shigeo Shingo He is strongly associated with Just-in-Time Just-inmanufacturing and the Poka-Yoke (mistake Pokaproofing) systems. In Poka-Yoke, defects are Pokaexamined, the production system stopped and examined immediate feedback given so that the root causes of the problem may be identified and prevented from occurring again. The aim of PokaPoka-Yoke is to stop errors becoming defects. Zero quality control is the ideal production system in his opinion. 28 Tuesday, 28 September 2010 Western who followed the Japanese industrial success He is known for the concepts of “Quality is Free” and “Zero Defects”. He also developed 14 steps for quality Improvement. This quality improvement is based on 4 Absolutes: Philip B Crosby Absolute 1 Absolute 2 Absolute 3 Absolute 4 29 Quality is conformance to requirements The system of quality is prevention The performance standard is zero defect The measurement of quality is the price of non-conformance nonTuesday, 28 September 2010 Crosby 14 Points 1. Management is committed to a formalised quality policy. 2. Form a management level quality improvement team (QIT) with responsibility for quality improvement process planning and administration. 3. Determine where current and potential quality problems lie. 4. Evaluate the cost of quality and explain its use as a management tool to measure waste. 5. Raise quality awareness and personal concern for quality amongst all employees. 6. Take corrective actions, using established formal systems to remove the root causes of problems. 7. Establish a zero Defects committee and programme. 8. Train all employees in quality improvement. 9. Hold a Zero Defects Day to broadcast the change and as a management recommitment and employee commitment. 30 Tuesday, 28 September 2010 10 10. 10. Encourage individuals and groups to set improvement goals. 11. 11. Encourage employees to communicate to management any obstacles they face in attaining their improvement goals. 12. 12. Give formal recognition to all participants. 13. 13. Establish quality councils for quality management information sharing. sharing 14. 14. Do it all over again – form a new quality improvement team. 31 Tuesday, 28 September 2010 Characteristics of Successful Company according to Crosby People do things right routinely Growth is profitable and steady p y Customer needs are anticipated Change is planned and managed People are proud to work there 32 Tuesday, 28 September 2010 Western who followed the Japanese industrial success He identified leadership as being central to the quality improvement process and considered that ‘management’ should be discarded in favour of ‘leadership’. Care of Customers Tom Peters LEADERSHIP Managing By Walking About (MBWA) Constant Innovation 33 People Tuesday, 28 September 2010 11 Peters’ 12 traits of a quality revolution 1. Management obsession with quality. 2. Passionate system. 3. Measurement of quality. 4. Quality is rewarded. 5. Everyone is trained for quality. 6. M ltif ti t Multifunction teams. 7. Small is beautiful. 8. Create endless ‘Hawthorne’ effects. 9. Parallel organisational structure devoted to quality improvement. 10. Everyone is involved. 10. 11. When quality goes up, costs go down. 11. 12. Quality improvement is a never-ending journey. 12. never34 Tuesday, 28 September 2010 Western who followed the Japanese industrial success Claus Moller Moller sees Personal Quality as the basis of all other types of quality. It is the people who produce the goods who must be inspired to do their best, and this will only be mastered by improving the personal development of the individual. This will lead to increased competence in Productivity, Relations and Quality. 1. Set personal quality g p q y goals. 2. Establish your own personal quality account. 3. Check how satisfied others are with your efforts. 4. Regard the next link as a valued customer. 5. Avoid errors. 6. Perform tasks more efficiently. 7. Utilise resources well. 8. Be committed. 35 Tuesday, 28 September 2010 9. Learn to finish what you start – strengthen your self-discipline. self10. 10. Control your stress. 11. 11. Be ethical – maintain your integrity. 12. 12. Demand quality. 36 Tuesday, 28 September 2010 12 Western who followed the Japanese industrial success Feigenbaum is the originator of Total Quality Management. He argue that quality needs to be applied to all stages of a process, not just the manufacturing stage, thus he emphasised the administrative viewpoint and considered human relations as a basic issue in quality management activities. Armand V Feigenbaum Total Quality Management Quality Leadership Modern quality technology Organisational commitment 37 Tuesday, 28 September 2010 Armand’ 10 crucial benchmark of TQM 1. Quality is a company wide process. 2. Quality is what the customer says it is. 3. Quality and cost are a sum, not a difference. 4. Quality requires both individual and team zeal try. 5. Quality is a way of managing. 6. Quality and innovation are mutually dependent. 7. Quality is an ethic. 8. Quality requires continuous improvement. 9. Quality is the most cost-effective, least capital-intensive route to costcapitalproductivity. 10. 10. Quality is implemented with a total quality system connected with customers and suppliers. 38 Tuesday, 28 September 2010 What is TQM' 39 Tuesday, 28 September 2010 13 Confusion on the terminology Many of the famous quality gurus have not actually used the term TQM although y g much of their work has been recognised as being relevant and sometimes quoted as referring to TQM. The total quality management (TQM) approach is increasingly used by organisations to improve their operations and the processes used in all functional areas of their organisations. TQM has become popular because it attempts to improve product/service quality, productivity, and competitiveness by improving communications with stakeholders (customers, suppliers, employees, shareholders and society). 41 Tuesday, 28 September 2010 TQM is an operating philosophy, a goal, and a way of doing business. For many companies and business units, it is a major cultural change; from solving success “solving a crisis is success” to “not having a crisis is the real success.” 42 Tuesday, 28 September 2010 14 GURUS Perspective: Guru 1 Deming never did use the term TQM. He said "the trouble with total quality management, ,y , the failure of TQM, you can call it, is that there is no such thing. It is a buzzword. I have never used the term, as it carries no meaning“. He also said that the term TQM implies that quality is a method when in reality it is the outcome of a method. (Deming, 1994a, p. 22). 1994a, 22). GURUS Perspective: Guru 2 Juran is critical of the concept "It is astounding how the term TQM is tossed about without defining what it means. To me, TQM consists of those actions needed to get to world-class quality. worldRight now, the most comprehensive list of those actions is contained in the Baldrige Award criteria ..." (Juran, 1994, 1994, p. 32). 32). Other Concepts Perspective total quality control (Feigenbaum, 1956, 1956, 1991), 1991), total quality improvement (Lascelles and Dale, 1991), 1991), company wide quality control (Ishikawa, 1985), 1985), strategic quality management (Garvin, 1988). 1988). 15 Basic Principles of TQM Approach Scope Scale Philosophy Standard Control Theme 46 Management Led Company Wide Everyone is responsible for Quality Prevention not Detection Right First Time Cost of Quality On going Improvement Tuesday, 28 September 2010 Keys to TQM • Measure quality so you can affect it • Focus on a moving customer • Involve every employee • Think long term - Act short term 47 Tuesday, 28 September 2010 Seven Deadly Sins of TQM • Flight to nowhere • One size fits all • Substituting TQM for leadership • Inside - Out indicators • Mandatory religion • Quality kept as a separate activity • Teaching to the test BoozBooz-Allen & Hamilton 48 Tuesday, 28 September 2010 16 Vague descriptions of TQM We can often see formulations such as: "a way to...", "a philosophy for...", "a culture of...", "an approach for...", "a business strategy that..." Learned Lessons and TQM Learning Process Improvement Quality Improvement Customer Satisfaction Shareholder Satisfaction Employee Satisfaction Tuesday, 28 September 2010 50 Obstacles for improvement hope for instant pudding; the supposition that solving problems, automation, gadgets, and new machinery will transform industry; search for examples; our problems are different; obsolescence in schools; poor teaching of statistical methods in industry; use of Military Standard 105D and other tables for acceptance; 105D our quality control department takes care of all our problems of quality; our trouble lies entirely in the work force; false starts; we installed quality control; the unmanned computer; the supposition that it is only necessary to meet specifications; the fallacy of zero defects; inadequate testing of prototypes; and anyone that comes to try to help us must understand all about our business. Tuesday, 28 September 2010 51 17 Quality is a Journey, not a Destination Tuesday, 28 September 2010 18