3. History
The age of Craftsmanship
Manufactures directly dealing with customers
Development of interchangeable component products
- The Blanc’s muskets
The Early 20th Century
Separation of planning from Execution (Frederick W. Taylor)
Quality by inspection
Quality departments
SQC (Bell Telephone Laboratories- 1920)
4. Early History
Post War II
Shortage of goods- Quality not a priority
SQC introduced in Japan by Juran and Deming
- 20 years -
Kaizen helps Japan beat West in Quality and
penetrate in Western Markets
5. Early History
The US Quality Revolution
“If Japan can … Why Can’t We?”
Government safety regulations
Consumer Products Safety Commission
Product-liability judgments
6. Early History
XEROX
- Leadership Through Quality initiative (David Kearns).
Defects per 1000 machines reduced by 78%
Unscheduled maintenance decreased by 40%
Manufacturing cost dropped by 20%
Product development tine decreased by 60%
Overall product quality improved by 93%
Service response time improved by 27%
Won Malcolm National Baldridge Award 1989
Strong growth in 1990’s !
7. Excellence
From Product Quality to Performance
Excellence
NASA: Excellence award for quality and productivity (1985)
US Congress: Malcolm Baldrige National Quality Award (1987)
President Reagan: Federal Quality Prototype Award (1988)
Florida Power and Light won Deming Prize (1989)
AT&T Won Deming Prize (1994)
8. Bad Practices
Disappointments and Criticism
Douglas Aircraft
Poor organizational approach
Poor quality strategies
Poor execution of good strategies
Bad Management
9. Quality
Current and Future Challenges
1. Partnering
2. Learning systems
3. Adaptability and speed of change
4. Environmental Stability
5. Globalization
6. Knowledge Focus
7. Customization and differentiation
8. Shifting Demographies
“Quality is a race without a finish line” ….. David Kearns
11. Defining Quality
Perfection
Consistency
Eliminating waste
Speed of delivery
Compliance with policies and procedure
Providing a good, usable product
Doing it right the first time
Delighting or pleasing costumers
Total customer service and satisfaction
18. Quality
Costumer Driven Quality
Quality is meeting or exceeding customer expectations
Customers, Consumers and Suppliers
Internal Customers
External Customers
“Our costumers are intelligent: they expect us continuously
evolve to meet their ever-changing needs. They can’t afford to
have a thousand mediocre suppliers in today’s competitive
environment. They want a few exceptional ones”
CEO Fujitsu
19. Quality
Total Quality Control
- Total System approach
Total quality is a people-focused management system that aims at
continual increase in costumer satisfaction at continual lower real
cost.
Horizontally and vertically integrated approach stressing learning
and adaptation to continual change. Unyielding and continually
improving effort.
20. Total Quality
Principles of Total Quality
1. Customer & stakeholder focus.
2. Everyone's participation
3. Continual improvement and learning
21. Total Quality
Customer & Stakeholder Focus
Beyond merely meeting specifications
Delighting the customer
External costumers are important
Internal customers are equally important
Knowledge, skills, creativity are key to success.
Motivation, recognition of employees.
22. Total Quality
Participation and teamwork
Empowerment
Freedom and encouragement to make decisions
Horizontal coordination
Involvement in solving systemic problems
(Cross functional boundaries)
23. Total Quality
Process Focus and Continual Improvement
1.Enhancing value through improved products
2.Reducing defects, wastes etc.
3.Increasing productivity and effectiveness
4.Improving responsiveness
Improvement depends on learning.
1. Planning
2. Execution
3. Assessment of progress
4. Revision of plans
24. Quality
Quality and Competitive Advantage
- Ability to achieve market superiority
Characteristics
1. Customer need driven
2. Contributes to success of the business
3. Matches companies unique opportunities
4. Difficult to copy
5. Potential of further improvement
6. Provides direction and motivation to organization
Product quality provides profitability due to larger market
share and premium prices.