Chapter 2 Frameworks
for Quality and
Performance Excellence
Learing Objectives:
Describe the philosophies of Deming, Juran, Crosby
which provide a basis for modern approaches to
achieving quality and performance excellence;
Provide an overview of the Malcolm Baldrige
Award and other related programs, ISO 9000 and
Six Sigma as Frameworks for quality and
performance Excellence
2
Learing Objectives:
Understand the differences in scope, purpose, and
philosophy of these frameworks, so as to make
informed choices when deciding to pursue an
approach to organizational excellence.
3
Foundations of Performance Excellence
W. Edward Deming
True Management gurus
Joseph M. Juran
insights on measuring,
Philip B. Crosby
managing, and improving
quality
4
Deming Philosophy
Was trained as statistician and worked for
Western Electric during its pioneering era
of statistical quality control development
in 1920’s and 1930’s.
During World War II, he taught quality
control courses as part of the national
defense effort.
5
Deming Philosophy
He never defined or described quality
precisely.
Product or service possesses quality if it
helps somebody and enjoys a good and
sustainable market.
Stressed that higher quality leads to
higher productivity
6
Deming Philosophy
He developed a system of Profound
Knowledge ( appreciation for a system,
understanding process variation, theory of
knowledge, psychology).
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System
Is a set of functions or activities within an
organization that work together to achieve
organizational goals.
8
Variation
Pertains to the differences when it comes
to strength, thickness or moisture content
of a product or raw materials.
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Theory of Knowledge
It was influenced by Clarence Irving
Lewis.
A branch of philosophy concerned with
the nature and scope of knowledge, its
presuppositions and bases, and general
reliability of claims to knowledge.
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Psychology
Helps to understand people, interactions
between people and circumstances,
interactions between leaders and
employees, and the drivers of behavior.
11
Peter Scholtes
A noted consultant who makes salient
points and observations about the failure
to understand the components of
profound knowledge.
12
1. When people don’t understand
systems:
They see event as individual incidents
rather than the net result of many
interactions and independent forces;
They see the symptoms but not the deep
causes of problems;
13
1. When people don’t understand
systems:
They don’t understand how an
intervention in one part of (an
organization can cause havoc in another
place or at another time;
They blame individuals for problem even
those individuals have little or no ability to
control events around them;
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1. When people don’t understand
systems:
They don’t understand the Ancient
African saying, “It takes a whole village to
raise a child”.
15
2. When people don’t understand
variation:
They don’t see trends that are occurring;
They see trends where there are none;
They don’t know when expectations are
realistic;
They don’t understand past performance
so they cant predict future performance.
16
2. When people don’t understand
variation:
They don’t know the difference between
prediction, forecasting, and guesswork;
They give others credit/blame when
those people are simply either lucky or
unlucky.
17
3. When people don’t understand
psychology:
They don’t understand motivation.
They resort to carrots and sticks and
other forms of induced motivation that
have no positive effect and impair the
relationship between the motivator and
the one being motivated.
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3. When people don’t understand
psychology:
They don’t understand the process of
change and the resistance to it;
They revert to coercive and paternalistic
approach when dealing with people;
They create cynicism, demoralization,
demotivation, guilt, resentment, burnout,
craziness, and turnover.
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3. When people don’t understand the
theory of knowledge:
They don’t know how to plan and
accomplish learning and improvement;
They don’t understand the difference
between improvement and change;
Problems will remain unsolved, despite
their best efforts;
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Deming’s 14 Points for Management
Management Commitment
Learn the New Philosophy
Understand inspection
End Price Tag Decisions
Improve constantly
Institute Training
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Deming’s 14 Points for Management
(cont’d)
Institute Leadership
Drive Out Fear
Optimize team efforts
Eliminate Exhortations
Eliminate Quotas and (MBO)
Remove
barriers to Pride in
Workmanship
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Deming’s 14 Points for Management
(cont’d)
Institute Education
Take Action
23
B. The Juran Philosophy
JOSEPH M. JURAN
-- joined Western Electric in 1920’s
during its pioneering days in the
development of statistical methods for
quality.
-- Quality Control Handbook
24
B. The Juran Philosophy (cont’d)
JOSEPH M. JURAN
-- taught principles to the Japanese
in 1950’s after Deming and was a principal
force in their quality reorganization;
-- pursuit of quality on two levels:
-- Holistic mission of the firm
-- Departmental mission
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B. The Juran Philosophy (cont’d)
JOSEPH M. JURAN
-- contends that employees at different
levels of an organization speak in different
languages.
-- focuses on the operational level which is
on increasing conformance to specifications
through elimination of defects, supported
extensively by statistical tools for analysis
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B. The Juran Philosophy (cont’d)
JOSEPH M. JURAN
-- Quality as “Fitness for Use”
-- Categories of Quality
-- Quality of Design
-- Quality of conformance
-- Availability
-- Field Service
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Quality of Design
Focuses on market research, product
concept, and design specifications.
28
Quality of Conformance
Includes technology,
manpower, and
management.
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Availability
Focuses on reliability, maintainability,
and logistical support.
30
Field Service
Quality comprises promptness,
competence, and integrity.
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Juran’s Quality Trilogy
Quality planning
Quality Control
Quality Improvement
32
Quality Planning
Begins with identifying customers, both
external and internal, determining their
needs, and developing product features
that respond to customer needs.
33
Quality Control
Involves determining what to control,
establishing units of measurement so that
data may be objectively evaluated,
establishing standards of performance,
measuring actual performance and the
standard, and taking action on the
difference.
34
Quality Improvement
Is best achieved by identifying specific
projects for improvement, getting the right
people involved, diagnosing causes of
poor performance, developing remedies
for the causes, proving that the remedies
will be effective, and providing control to
hold improvements.
35
C. The Crosby Philosophy
PHILIP B. CROSBY
Was corporate vice president for
quality at International Telephone and
Telegraph (ITT)
Develop and offer training programs.
Proposed the Absolutes of Quality
Management.
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C. The Crosby Philosophy (cont’d)
PHILIP B. CROSBY
Quality means conformance to
requirements not elegance.
There is no such thing as quality problem.
There is no such thing as the economics of
quality: it is always cheaper to do the job
right the first time.
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C. The Crosby Philosophy (cont’d)
PHILIP B. CROSBY
The only performance measurement is
the cost of quality.
The only performance standard is zero
defects.
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THE BALRIDGE AWARD
(Malcolm Baldrige National Quality Award)
Has been one of the most powerful
catalysts of Total Quality in U.S. A and
throughout the world.
Establishes a framework for understanding
and integrating principles of performance
excellence .
39
THE BALRIDGE AWARD
Was highly regarded by world leader,
having played a major role in carrying out
the administration’s trade policy, resolving
technology and transfer differences with
China and India.
40
Purposes of the Award
Help stimulate American Companies to
improve quality and productivity for the
pride of recognition while obtaining a
competitive edge through increased profits.
Recognize the achievements of those
companies that improve the quality of their
goods and services that provide an example
to others. 41
Purposes of the Award (cont’d)
Establish guidelines and criteria that can be
used by business, industrial, governmental,
and other enterprises in evaluating their
own quality improvement efforts.
42
Purposes of the Award (cont’d)
Provide specific guidance for other
American enterprises were able to change
their cultures and achieve eminence.
43
BALDRIGE AWARD
Consists of hierarchical set of categories,
items and areas:
Categories (leadership; strategy; customers;
measurement, analysis and Knowledge
Management; Workforce; Operations ;
Results )
44
BALDRIGE AWARD (cont’d)
1.1 Senior Leadership
a. Vision, Values, and Mission
b. Communication and Organizational
Performance
1.2 Governance and Societal Responsibilities
a. Organizational Governance
b. Legal and Ethical Behavior
c. Societal Responsibilities
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BALDRIGE AWARD (cont’d)
Core Values and Concepts:
□ Systems pERSPECTIVE
□ Visionary leadership
□ Customer-Focused Excellence
□ Valuing People
□ Organizational Learning and Agility
□ Focus on Success
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BALDRIGE AWARD (cont’d)
Core Values and Concepts:
□ Managing for Innovation
□ Management by fact
□ Societal Responsibility
□ Ethics and Transparency
□ Delivering Value and Results
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Quality Management Systems (QMS)
can be considered as a mechanism for
managing and continuously improving core
processes to “achieve customer maximum
customer satisfaction at the lowest overall
cost to the organization.”
Synthesizes standards, methods, and tools
to achieve quality-related goals.
48
Quality Management Systems (QMS)
Variables
Quality Policy
--a formal document that demonstrates a
commitment to achieving high quality
and meeting customer expectations
Quality manual
-- serves as permanent reference for
implementing and maintaining the system.
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ISO 9000 Standards
focus on developing , documenting, and
implementing procedures to ensure consistency of
operations and performance in production and
service delivery processes, with the aim of
continual improvement, and supported by
fundamental principles of TQ.
Consist of 3 documents ( ISO 9000:2005),
( ISO 9001:2008),
( ISO 9004: 2009) 50
ISO 9000:2005 ( Fundamentals and
Vocabulary)
provides background information and
establishes definitions of key terms used in the
standards.
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ISO 9001:2008 ( Requirements)
provides a structure for a basic QMS and is
intended to demonstrate compliance with
recognized quality principles to customers and for
third party certification.
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ISO 9004:2009 ( Guidance for
Performance improvement)
provides guidelines to assist organizations in
improving and sustaining their QMSs.
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Benefits of ISO 9000: 2000
provides discipline
contains the basics of a good quality
system
offers a marketing program.
54
SIX SIGMA
an approach in measuring product and
service quality.
Is the realization of many fundamental
concepts of “total quality management”
notably, the integration of human and
process elements of improvement.
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COMPARING BALDRIGE, ISO 9000, and
SIX SIGMA
Baldrige focuses on performance excellence for
the entire organization in an overall management
framework, identifying and tracking important
organizational results;
ISO focuses on product and service conformity for
guaranteeing equity in the marketplace and
concentrates on fixing quality system problems.
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COMPARING BALDRIGE, ISO 9000, and
SIX SIGMA
Six Sigma concentrates on measuring product
quality and driving process improvement and cost
savings throughout the organization.
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