Managing for Quality

1
Managing for Quality

• David Juran

2
What is Quality?

• Freedom from Defects
• Quality Costs Less
• Affects Costs
• Presence of Features
• Quality Costs More
• Affects Revenue

3
A Brief History

• The Craft System
• Taylorism (Scientific Management)
• Statistical Quality Control
• Pearson, Shewhart, Dodge
• Human Relations School
• Mayo, Maslow, Simon, Herzberg, Likert
• The Japanese Revolution (1950)
• Ishikawa, Taguchi, Deming, Juran, Feigenbaum
• The USA Wakes Up (1980)
• Crosby
• 1990s Six Sigma
• The Need for Organizational Change

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Total Quality

• Little Q
• Used to manage a specific product or process
• Physical goods
• Focuses on end user
• Big Q
• Used to manage the entire organization
• Services as well as goods
• Focused on all those affected

5
Results of TQM

• Delighted Customers
• Empowered Employees
• Higher Revenue
• Lower Costs

6
TQM and the Systems View
(Feedback)
Inputs
Processes
Outputs
(Feedback)
7
Triple Role
(Feedback)
Supplier
Processor
Customer
(Feedback)
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Who Are the Customers?

• External
• Internal
• A Cast of Characters

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Juran TrilogyPlanning, Control, Improvement
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Juran TrilogyPlanning, Control, Improvement
Planning
Control
Control
Improvement
Sporadic Spike
Chronic Waste
Chronic Waste
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Quality Control

• Aimed at preventing unwanted changes
• Works best if deployed at the point of production
  or service delivery (Empowerment)
• Tools
• Established, measurable standards
• Measurement and feedback
• Control charts
• Statistical inference

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Quality Control
Establish Standard
Operate
Measure Performance
Yes
OK?
Compare to Standard
Corrective Action
No
13
Quality Improvement

• Aimed at creating a desirable change
• Two distinct journeys
• Diagnosis
• Remedy
• Project team approach
• Tools
• Process flow diagram
• Pareto analysis
• Cause-effect (Ishikawa, fishbone) diagram
• Statistical tools

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Quality Improvement

• Identify problem
• Analyze symptoms
• Formulate theories
• Test theories - Identify root cause
• Identify remedy
• Address cultural resistance
• Establish control

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Quality Planning

• Aimed at creating or redesigning (re-engineering)
  a process to satisfy a need
• Project team approach
• Tools
• Market research
• Failure analysis
• Simulation
• Quality function deployment
• Benchmarking

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Quality Planning

• Verify goal
• Identify customers
• Determine customer needs
• Develop product
• Develop process
• Transfer to operations
• Establish control

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Strategic Quality Planning

• Mission
• Vision
• Long-term objectives
• Annual goals
• Deployment of goals
• Assignment of resources
• Systematic measurement
• Connection to rewards and recognition

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Strategic Quality Planning

• Aimed at establishing long-range quality
  objectives and creating an approach to meeting
  those objectives
• Top managements job
• Integrated with other objectives
• Operations
• Finance
• Marketing
• Human Resources