History of Quality Science

1
UNIT 2

• History of Quality Science

2
Unit Objectives

• After reading this unit, the students will be
  able
• to understand the history of USA quality
  science
• to understand the history of Japans quality
  movement and
• to understand the history of quality evolution in
  Malaysia

3
HISTORY OF USA QUALITY SCIENCE

• The 1920s are widely recognized as the dawn of
  quality science.
• Bell Laboratories led the way by forming a
  quality department that emphasized quality,
  reliability, testing, and inspection.

4
Walter Shewhart Contribution

• While with Bell Laboratories Walter Shewhart
  introduced the concept of control charting, and
• H. F. Dodge and H. G. Romig perfected methods for
  acceptance sampling.
• The methods developed during those early years
  were recognized and adopted by the War Department
  and the U.S. Army during the war effort of the
  1940s.

5
Control Chart/Shewhart chart/process-behaviour
chart
6
Control Charts, Sampling SPC

• Guidelines for the use of control charts,
  sampling inspection standards, and sampling
  techniques were adopted to aid manufacturing of
  war materials.
• Training courses in statistical process control
  (SPC) also began to emerge.

7
Statistical Process Control (SPC)

• is an effective method of monitoring a process
  through the use of control charts.
• Control charts enable the use of objective
  criteria for distinguishing background variation
  from events of significance based on statistical
  techniques.
• Much of its power lies in the ability to monitor
  both process center and its variation about that
  center.
• By collecting data from samples at various points
  within the process, variations in the process
  that may affect the quality of the end product or
  service can be detected and corrected, thus
  reducing waste as well as the likelihood that
  problems will be passed on to the customer.
• With its emphasis on early detection and
  prevention of problems, SPC has a distinct
  advantage over quality methods, such as
  inspection, that apply resources to detecting and
  correcting problems in the end product or
  service.

8
The Publications Seminars

• Much of what was learned in the U.S. during war
  time manufacturing was published and taught
  during the fifteen year period following WW II.
• J. M. Juran and F. M. Gryna published the Quality
  Control Handbook (1957), and
• both Juran and W.E. Deming were invited to Japan
  to give seminars on statistical methods and
  quality management.

9
The Japanese engineers and scientists The
Stagnant ERA

• Japanese engineers and scientists also began
  developing methods for quality improvement such
  as Taguchis methods for experimental design, and
  Ishikawas introduction of the cause-and-effect-di
  agram.
• However, it is interesting to note that after all
  that was gained during this time period, the
  growth of quality methodology during the 1960s
  and much of the 1970s was stagnant.

10
The Awareness

• Something stalled the course of the quality
  movement in U.S. manufacturing between 1960 and
  1980 when NBC televised W. Edwards Demings first
  white paper titled If Japan Can . . . Why Cant
  We.
• Many quality professionals believe that
  management gave up on the tools that lead to the
  successful advancement of traditional quality
  science here and abroad.

11
The Emergent of a new modern quality movement

• Instead management concentrated on productivity
  and profits, and many blamed unfair trade
  practices for loss of market share.
• However, a new modern quality movement emerged
  after Demings famous white paper, and with it
  came a new philosophy regarding quality and
  continuous improvement.

12
HISTORY OF JAPAN'S QUALITY MOVEMENT

• The quality movement in Japan began in 1946 with
  the U.S. Occupation Force's mission to revive and
  restructure Japan's communications equipment
  industry.
• General Douglas MacArthur was committed to public
  education through radio.

13
Roles of Homer Sarasohn

• Homer Sarasohn was recruited to spearhead the
  effort by
• repairing and installing equipment,
• making materials and parts available,
• restarting factories,
• establishing the equipment test laboratory (ETL),
  and
• setting rigid quality standards for products
  (Tsurumi 1990).

14
Sarasohn Recommendations

• Sarasohn recommended individuals for company
  presidencies, like Koji Kobayashi of NEC, and he
  established education for Japan's top executives
  in the management of quality.
• Furthermore, upon Sarasohn's return to the United
  States, he recommended W. Edwards Deming to
  provide a seminar in Japan on statistical quality
  control (SQC).

15
What is statistical quality control?

• Statistical Quality Control is the process of
  inspecting enough product from given lots to
  probabilistically ensure a specified quality
  level.
• The purpose of statistical quality control is to
  ensure, in a cost efficient manner, that the
  product shipped to customers meets their
  specifications.
• Inspecting every product is costly and
  inefficient, but the consequences of shipping non
  conforming product can be significant in terms of
  customer dissatisfaction.

16
Demings Contribution

• Deming's 1950 lecture notes provided the basis
  for
• a 30-day seminar sponsored by the Union of
  Japanese Scientists and Engineers (JUSE) and
• provided the criteria for Japan's famed Deming
  Prize.
• The first Deming Prize was given to Koji
  Kobayashi (NEC) in 1952.

17
JUSEs Role

• Within a decade, JUSE (Japanese Scientists and
  Engineers) had trained nearly 20,000 engineers in
  SQC (statistical quality control) methods.
• Today Japan gives high rating to companies that
  win the Deming prize
• they number about ten large companies per year.

18
Impact of Deming's work

• Deming's work has impacted industries such as
  those for
• radios and parts,
• transistors,
• cameras,
• binoculars, and
• sewing machines.

19
Deming awarded the Second Order of the Sacred
Treasure

• In 1960, Deming was recognized for his
  contribution to Japan's reindustrialization when
  the Prime Minister awarded him the Second Order
  of the Sacred Treasure.

20
Role of Dr. Joseph M. Juran

• In 1954, Dr. Joseph M. Juran of the United States
  raised the level of quality management from the
  factory to the total organization.
• He stressed the importance of systems thinking
  that begins with
• product designs,
• prototype testing,
• proper equipment operations, and
• accurate process feedback.

21
From SQC to TQC (total quality control)

• Juran's seminar also became a part of JUSE's
  educational programs.
• Juran provided the move from SQC to TQC (total
  quality control) in Japan.
• This included company-wide activities and
  education in quality control (QC), QC circles
  (QCC) and audits, and promotion of quality
  management principles.

22
Total Quality Control (TQC)

• System for optimizing production based on ideas
  developed by Japanese industries from the 1950s
  on.
• The system, which blends Western and Eastern
  ideas, began with the concept of quality circles,
  in which groups of 1020 workers were given
  responsibility for the quality of the products
  they produced.
• It gradually evolved into various techniques
  involving both workers and managers to maximize
  productivity and quality, including close
  monitoring of staff and excellent customer
  service.
• The concept of kaizen, the notion that
  improvement must involve all members of a
  company, is central to TQC

23
Quality Control Circle (QCC)

• Ishikawa introduced the concept of quality
  circles (1962) in conjunction with JUSE.
• A small group of employees who come together to
  discuss with the management issues related to
  either quality control or improvement in
  production methods form a Quality Control Circle
  (QCC).
• These employees usually work in the same areas,
  and voluntarily meet on a regular basis to
  identify, analyze and solve their problems.

24
The elements of TQC management

• By 1968, Kaoru Ishikawa, one of the fathers of
  TQC in Japan, had outlined the elements of TQC
  management
• quality comes first, not short-term profits
• the customer comes first, not the producer
• customers are the next process with no
  organizational barriers
• decisions are based on facts and data

25
The elements of TQC management

• management is participatory and respectful of all
  employees
• management is driven by cross-functional
  committees covering product planning, product
  design, production planning, purchasing,
  manufacturing, sales, and distribution (Ishikawa
  1985)

26
JUSE and QCC

• By 1991, JUSE (Japanese Scientists and Engineers)
  had registered over 331,000 quality circles with
  over 2.5 million participants in its activities.
• Today, JUSE continues to provide over 200 courses
  per year, including five executive management
  courses, ten management courses, and a full range
  of technical training programs.

27
"Ishikawa" or "cause-and-effect" (Fishbone)
diagram

• One of the innovative TQC methodologies developed
  in Japan is referred to as the "Ishikawa" or
  "cause-and-effect" diagram (Fishbone).
• After collecting statistical data, Ishikawa found
  that dispersion came from four common causes, as
  shown in Figure 1.

28
Figure 1. Cause-and-effect diagram (Ishikawa
1982, 13).
29
Materials Machines

• Materials often differ when sources of supply or
  size requirements vary.
• Equipment or machines also function differently
  depending on variations in their own parts, and
  they operate optimally for only part of the time.

30
Process (Method) and measurement

• Processes or work methods have even greater
  variations.
• Finally, measurement also varies.
• All of these variations affect a product's
  quality.
• Ishikawa's diagram has lead Japanese firms to
  focus quality control attention on the
  improvement of materials, equipment, processes
  and measurement.

31
JTEC (Japanese Technology Evaluation Center)
Observation

• JTEC panelists observed statistical process
  control (SPC) charts, often with goal lines
  extending into 1995, in a few of the factories
  they visited in 1993.
• For example, at Ibiden, process control was
  apparent in its laminated process board
  manufacture, where there was extensive use of
  drawings and descriptions of the processes
  necessary to do the job.

32
JTEC Observation

• Companies that were competing for the Deming
  Prize made extensive use of such charts, and
  companies that had received ISO 9000
  certification also posted the process information
  required for each machine.
• However, the panel was surprised at the
  relatively limited use of SPC charts within the
  factories visited.

33
JTEC Observation

• The Japanese believe that the greatest benefit
  occurs when defect detection is implemented
  within the manufacturing sequence,
• thus minimizing the time required for detection,
  maximizing return on investment, and indirectly
  improving product reliability.

34
ISO 9000 Standards Certification

• The concept of certification and standards,
  however, breaks down when global competitiveness
  is at stake.
• Most recently, ISO 9000 certification has become
  a requirement for exports to Europe, and
• Japan has been forced to obtain ISO
  certification, not because it is a quality issue,
  but because it is a way of increasing market
  share.

35
Company product standards VS QML (Qualified
Manufacturers List)

• The Japanese companies provide some of the
  highest-quality products, typically
• using company product standards (best commercial
  practices)
• rather than external standards like QML
  (Qualified Manufacturers List) or any U.S.
  military standards.

36
Role of The Japan Quality Association (JQA)

• The Japan Quality Association (JQA) is
  responsible for ISO certification.
• It was established in 1958 as the Japan
  Management Institute (JMI) under Japan's Ministry
  of International Trade and Industry (MITI) for
  the purpose of export inspection.

37
From JMI to JQA

• In 1960, JMI moved from inspection to process
  certification,
• and in October 1993, JMI was renamed JQA to more
  aptly identify its mission.

38
JQA ISO 9000 Certification

• JQA has provided ISO 9000 certification in Japan
  since 1990 after receiving training from the
  British Standards Institution's (BSI) quality
  assurance division, and
• it has memoranda of understanding with both BSI
  and Underwriters Laboratory (UL) in the United
  States for reciprocal certification acceptance.

39
JQA ISO 9000 Certification

• By October of 1993, JQA had ISO-certified 300
  firms in Japan, about 80 of which were
  electronics firms the rest were chemical firms.
• JQA expected to have about 540 companies
  certified by the end of 1994.

40
JQA ISO 9000 Certification

• Most firms seeking certification were
  electronics firms that depended on exports to
  Europe.
• At the time of the JTEC visit, JQA was limited to
  about thirty assessments per month.

41
JQA ISO 9000 Certification

• It typically took companies one year to eighteen
  months to gain certification most had little
  difficulty in obtaining ISO certification.
• In addition to JQA certification, there were an
  equal number of firms obtaining ISO certification
  from non-Japanese auditors.

42
JTEC (Japanese Technology Evaluation Center)
Panel Observation

• When the JTEC panel visited Japan, Fujitsu, NEC,
  and Hitachi had the largest number of certified
  factories.
• Yamagata Fujitsu became ISO 9002-certified in
  February 1993 and was applying for ISO 9001
  certification for early 1994.
• Fujitsu had over ten certified factories by the
  end of 1993.
• Most of the factories visited by the panel had
  either received ISO certification or were in the
  process of certification.

43
QUALITY AND RELIABILITY REQUIREMENTS IN JAPAN

• Quality is associated with the degree of
  conformance of the product to customer
  requirements, and thus, in a sense, with the
  degree of customer satisfaction.
• Implicit in Japanese quality products is an
  acceptable amount of reliability that is, the
  product performs its intended function over its
  intended life under normal environmental and
  operating conditions.

44
Reliability Assurance

• Reliability assurance tasks such as qualification
  are conducted
• (1) during the product design phase using
  analytical simulation methods and
  design-for-assembly software, and
• (2) during development using prototype or pilot
  hardware.

45
Quality conformance

• Quality conformance for qualified products is
  accomplished through monitoring and control of
  critical parameters within the acceptable
  variations already established, perhaps during
  qualification.
• Quality conformance, therefore, helps to increase
  product yield and consequently to lower product
  cost.

46
Automation and its impact on quality

• The Japanese have determined that manual labor
  leads to poor-quality output and that automation
  leads to higher-quality output.
• Quality has, therefore, become a key driver for
  factory automation in Japan.
• In addition, factory automation also adds the
  benefits of improving productivity and improving
  flexibility in scheduling the production or
  changeover of product types.

47
Inspection and screening

• Incoming inspection was negligible at most of the
  companies that the JTEC panel visited, because of
  the view that the quality of suppliers' products
  could be trusted.
• Since the 1950s, the Japanese government has set
  quality requirements for any company that exports
  products from Japan.

48

• Suppliers have progressed in status from being
  fully inspected by their customers to being fully
  accepted.
• Qualified suppliers (Qualified Manufacturers
  List) are now the standard for Japan, and most
  problems come from non-Japanese suppliers

49
Dealing with Reliability Problems in Electronic
Sector (JTEC Observation)

• Assessment methods
• Infrastructure
• Training
• The factory

50
Assessment methods for improvement

• Japanese firms identify the areas that need
  improvement for competitive reasons and target
  those areas for improvement.
• They don't try to fix everything they are very
  specific (very focus).

51
Assessment methods

• They continuously design products for reduced
  size and cost and use new technologies only when
  performance problems arise.
• As a result, most known technologies have
  predictable reliability characteristics.

52
Infrastructure

• The incorporation of suppliers and customers
  early in the product development cycle
• This has given Japanese companies an advantage in
  rapid development of components and in effective
  design of products.

53
Training

• The Japanese view of training is best exemplified
  by Nippondenso.
• The company runs its own two-year college to
  train production workers.

54
Training

• Managers tend to hold four-year degrees from
  university engineering programs.
• Practical training in areas such as equipment
  design takes place almost entirely within the
  company.

55
The factory

• Japanese factories pay attention
• to running equipment well,
• to continuous improvement,
• to cost reduction, and
• to waste elimination.

56
Total preventive maintenance (TPM)

• TPM is a methodology to ensure that
• equipment operates at its most efficient level,
  and
• that facilities are kept clean
• so as not to contribute to reliability problems.

57
Total preventive maintenance (TPM)

• In fact, the Japan Management Association gives
  annual TPM (Total preventive maintenance) awards
  with prestige similar to the Deming Prize.
• receipt of those awards is considered a required
  step for companies that wish to attain the Japan
  Quality Prize. Similar to Malaysian Quality
  Management Excellence Award (QMEA)

58
Quality Improvement through Comprehensive Waste
Reduction

• Fundamental improvement means working to
  eliminate wastes that can negatively affect
  product quality, cost, and delivery time.
• The Japan Management Association published a book
  describing the activities of Canon Corporation,
  Canon Production System Creative Involvement of
  the Total Workforce, that outlined a number of
  approaches to improve quality and reliability
  through "waste reduction" strategies (JMA 1987,
  19-22).

59
Comprehensive Waste Reduction

• These include the elimination of waste associated
  with
• defective products,
• systems planning,
• work-in-process,
• human resources,
• equipment,
• expenses, and
• excessive startup time for new products.
• Most Japanese electronics firms now incorporate
  waste reduction as a central part of their TQM
  programs.

60
HISTORY OF QUALITY EVOLUTION IN MALAYSIA

• Several crucial historical events played very
  important roles in the history of quality
  evolution in Malaysia.
• The first one was the launching of the Malaysian
  look east policy in the early 1980s, and

61
PMQA and QMEA

• the second event happened very much later in the
  early 1990s when two quality awards namely
• Prime Minister Quality Award (PMQA) and
• Quality Management Excellence Award (QMEA)

62
PMQA and QMEA

• These two awards were introduced to encourage
  quality excellence among the public and private
  sector.

63
The Look East Policy (LEP)

• In July 1981, Prime Minister Dato' Seri Dr.
  Mahathir bin Mohamad became the Prime Minister of
  Malaysia.
• After six months in his office, he announced an
  initiative to learn from the experiences of Japan
  (and Korea) in the nation-building of Malaysia.

64
The Look East Policy (LEP)

• He considered that the secret of Japanese success
  and its remarkable development lies in its
• labor ethics,
• morale, and
• management capability

65
The LEP

• He felt a program enabling the young Malaysians
  to learn in Japan would contribute to the
  economic and social development of Malaysia.
• For this purpose, Malaysia decided to dispatch
  their students to Japan, to study not only
  academics and technical know-how but also to
  learn labor ethics and discipline of the Japanese
  people.

66
LEP Programs

• This initiative is called "Look East Policy." The
  program consists of two parts.
• The first is to send Malaysian students to
  Japanese universities and institutes of
  technology.
• The second is to send trainees to Japanese
  industries and training institutes.

67
LEP Programs

• These programs are funded by
• the Government of Malaysia, and
• the Government of Japan supports these programs
  by sending Japanese teachers to Malaysia and also
  by sharing a part of its costs.

68
Rationale of LEP

• This policy is designed to emulate the ways of
  the developed countries in the East such as
  Japan, and South Korea.
• Dr. Mahathir bin Mohamad considered that the
  secret of the Japanese success and its remarkable
  development lies in its labor ethics, morale, and
  management capability.

69
Rationale of LEP

• The Look East was a framework for learning from
  successful Japanese and South Koreans, and
  adapting some of the applicable values into
  Malaysian needs.

70
Objective of LEP

• The main objective of this policy is to increase
  the quality of management among the workers as
  well as
• creating a community with good value and positive
  working ethics with the aim of accelerating
  Malaysias development.

71
Implementation of LEP

• The programs arranged can be divided into three
  categories.
• Change in Structure Advocate in the use of
  punch cards, nametags, table files, and manual on
  work procedures among workers and also
  implementing counter service.
• Change in Behaviors Implementation of Clean,
  Efficient, and Trustworthy concept, Leadership
  through Example slogan, and the establishment of
  Quality Control Circle (QCC).
• Courses and Trainings Programs such as
  technical and academic studies and intensive
  training for the executive staff and
  entrepreneur.

72
The details of the Look East Policy programs are
as follows

1. ACADEMIC EDUCATION PROGRAM (AEP)
2. TECHNICAL EDUCATION PROGRAM (TEP)
3. JAPANESE LANGUAGE PROGRAM FOR MALAYSIAN TEACHERS
   (JLPMT)
4. INDUSTRIAL AND TECHNICAL (IN-PLANT) TRAINING
   PROGRAM (ITTP)
5. SHORT TERM TRAINING FOR MALAYSIAN EXECUTIVES
   (STME)
6. BUSINESS MANAGEMENT TRAINING AND ATTACHMENT
   PROGRAMME WITH JAPANESE COMPANIES (BMT)

73
Continuity of LEP

• At the Twelfth Annual Meeting on the Look East
  Policy held in May 1995, Malaysia reaffirmed that
  the Program will continue until the year 2000.
• In January 1997, when Prime Minister Mr.
  Hashimoto visited Malaysia, Prime Minister Dato'
  Seri Dr. Mahathir bin Mohamad stated that the
  Program will continue beyond the year 2000.

74
The Prime Minister Quality Award (PMQA) and
Quality Management Excellence Award (QMEA)

• There are two awards of quality excellence in
  Malaysia
• The awards are the Prime Minister Quality Award
  (PMQA) and
• Quality Management Excellence Award (QMEA).

75
The Prime Minister Quality Award (PMQA) and
Quality Management Excellence Award (QMEA)

• These two awards have one thing in common
• they emphasize quality excellence among the
  public and private sector.

76
The Prime Minister Quality Award (PMQA)

• The Prime Minister Quality Award (Private Sector)
  was first introduced on 9th November 1990.
• This annual national quality award is given to
  organizations in private sector in recognition
  for their excellent achievement in quality
  management.
• Winning the award is a prestigious
  accomplishment, as the Prime Minister Quality
  Award is a proof of Organizational Excellence.

77
Objectives of PMQA

• Promote Quality Awareness among various
  organizations in the private sector category.
• Promote the adoption of Quality values in
  organizations.
• Encourage healthy competition among organizations
  towards continuous improvement of quality.
• Encourage Information Sharing on successful
  performance strategies and the benefits derived
  from using these strategies.

78
The PMQA Recipient's Responsibilities and
Contributions

• The Award recipient is required to share
  information of its successful performance and
  quality strategies with other Malaysian
  organizations.
• However, the recipient is not required to share
  proprietary information even if such information
  is part of the award application.

79
Incentives of PMQA

• The recipient of the Award will receive and enjoy
  the following benefits
• The Prime Minister Quality Award (PMQA) Trophy.
• Cash prize of RM 30,000.
• Certificate of Appreciation.
• Eligible to use the Q Symbol for publicity
  purposes for three years from the date of
  receiving the award.

80
Past Winners of Prime Minister Quality Award
(PMQA)
2004 Tioxide (Malaysia) Sdn Bhd Teluk Kalung, Terengganu
2003 Subang Jaya Medical Centre Sdn. Bhd. - Petaling Jaya, Selangor
2002 Infineon Technologies (M) Sdn. Bhd - Melaka
2001 Samsung SDI(M) Bhd. Seremban, Negeri Sembilan
2000 Intel Technology Sdn. Bhd. - Bayan Lepas, Pulau Pinang
1999 Asean Bintulu Fertilizer Sdn. Bhd. - Petaling Jaya, Selangor
1998 Subang Jaya Medical Centre Sdn. Bhd. - Petaling Jaya, Selangor
1997 Shangri-La Hotel Kuala Lumpur - Kuala Lumpur
1996 Selectron Technology Sdn. Bhd. Prai, Pulau Pinang
1995 Projek Lebuhraya Utara Selatan Bhd. (PLUS) - Kuala Lumpur
1994 Siemens Semiconductor Sdn. Bhd. Bayan Lepas, Pulau Pinang
1993 SGS-Thompson Micro Electronics Sdn. Bhd. Muar, Johor
1992 Matsushita Industrial Corporation Sdn. Bhd. - Petaling Jaya, Selangor
1991 Motorola Malaysia Sdn. Bhd. - Petaling Jaya, Selangor
1990 Intel Technology Sdn. Bhd. - Bayan Lepas, Pulau Pinang
81
Quality Management Excellent Award (QMEA)

• Ministry of International and Industry (MITI),
  Malaysia, has introduced the Industry Excellence
  Award in 1990.
• NPC (National Productivity Corporation) is
  appointed by MITI as the secretariat for the
  QMEA.

82
Objectives of QMEA

1. To give due recognition to excellent
   organizations.
2. To enhance quality awareness and practices in
   management of excellence.
3. To encourage the production of quality products
   or services.
4. To promote information sharing on successful
   performance strategies and strategy
   implementation benefits.

83
Categories of Participation in QMEA

84
The QMEA Recipient's Responsibilities and
Contributions

• The Award recipient is required to share
  information of its successful performance and
  quality strategies with other Malaysian
  organizations.
• However, the recipient is not required to share
  proprietary information even if such information
  is part of the award application.

85
Incentives of QMEA

• A trophy and a certificate
• Eligible to use the logo of the Award for
  publicity purposes for three (3) years from the
  date of receiving the award.
• To be featured in MATRADE's Publication and given
  space to advertise company product/services in
  MATRADE's export directory.
• To be nominated for the Prime Minister's Quality
  Award (PMQA) (with exception of the Export
  Excellence Award Services).
• 20 discount on any program organized by NPC

86
Past Winners of QMEA
87
THE END OF UNIT 2

• THANK YOU
• FOR YOUR ATTENTION