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 Putting Best Practices to Work | March 2008 | www.qualityprogress.com

Contents
FEATURES
22 SOCIAL RESPONSIBILITY
22
A Framework for Business Ethics
An ethical, socially responsible approach to business can co-exist with a
company’s drive to maximize profit.
by Bjørn Andersen

Strong Foundation, Solid Future

30 Social responsibility hasn’t lost momentum since this ethical initiative
moved to the forefront in the wake of Enron and other scandals more than
five years ago.
by Denis Leonard

HEALTHCARE
36 The Remedy for a Data Dilemma
One healthcare provider is using a new method to measure and analyze
data, enhancing quality improvement efforts and making workers more
accountable.
by Colleen O’Brien and Susan Jennings

ONLY @
44 TEAMS
A Gold Medal
www.qualityprogress.com
Solution
Using different quality tools • Most Popular
and methods, a team from See what QP readers
Boeing picked apart its click on the most.
tailcone assembly process,
resulting in a safer work • Quality Tools
environment for its em-
ployees.
Data collection and analysis.
by Nicole Adrian
• Quick Poll
Weigh in on QP’s
latest reader query.

• Back to Basics
Translated in Spanish.

44
 DEPARTMENTS

12
8 Inbox
• Readers react to redesign.
• Challenging “Conflict and
Complexity” article.

Expert Answers
• Outlook on outsourcing.
QP
Mail
Quality Progress/ASQ
QUALITY PROGRESS
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16 Keeping Current
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• Healthcare performance metrics. name followed by @asq.org (for example,

16 vfunk@asq.org).

Article Submissions
19 Mr. Pareto Head
Quality Progress is a peer-reviewed publica-
tion with 85% of its feature articles written
62 QP Toolbox by quality professionals. For information
about submitting an article, call Valerie Funk
at 800-248-1946 x7373, or e-mail
64 QP Reviews manuscripts@asq.org.

66 QP Calendar Free QP Live

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Photocopies, Reprints
58 Standards Outlook And Microform
Manage risk in a global economy. Article photocopies are available from
ASQ at 800-248-1946. To purchase bulk
72 Back to Basics reprints (more than 100), contact Barbara
The benefits of documentation. Mitrovic at ASQ, 800-248-1946. For micro-
form, contact ProQuest Information and
Learning, 300 N. Zeeb Road, Ann Arbor, MI
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72 Membership and Subscriptions
For more than 60 years, ASQ has been the
worldwide provider of information and learn-
ing opportunities related to quality. In addi-
NEXT MONTH tion, ASQ membership offers information,
networking, certification and educational
- TEAMS/LEADERSHIP - BALDRIGE PROFILES opportunities to help quality profession-
Accelerate team development. Healthcare category recipients. als obtain practical solutions to the many
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to Quality Progress are one of the many
benefits of ASQ membership. To join, call
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ASQ’s Vision: By making quality a global priority, an organizational imperative and application on p. 29 of this issue.
a personal ethic, the American Society for Quality becomes the community for everyone
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Quality Progress (ISSN 0033-524X) is published monthly by the American Society for Quality, 600 N. Plankinton Ave., Milwaukee, WI 53203.
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4 QP • www.qualityprogress.com
Q:
You rely on tens or hundreds of suppliers to
always deliver the right materials on time
and on spec so you can minimize inventory
and ensure continuous improvement to your
operations, quality and bottom line.

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 UPFRONT

Defining Social
QP
PUBLISHER
William A. Tony
QUALITY PROGRESS

Responsibility EDITOR
Seiche Sanders

ASSOCIATE EDITOR
Mark Edmund
Standard helps clarify a nebulous term ASSISTANT EDITOR
Brett Krzykowski

MANUSCRIPT COORDINATOR
SOCIAL RESPONSIBILITY (SR) has entered our modern-day lexicon and everyday Valerie Funk

practice, particularly in the corporate arena. Organizations worldwide espouse their EDITOR AT LARGE
Susan E. Daniels
social and environmental awareness and advocacy efforts, but the brush is very broad
in terms of a unifying definition. The question remains, what does it really mean to be CONTRIBUTING EDITOR
Nicole Adrian
socially responsible?
A decade ago, social responsibility was widely understood to mean green: Less toxic alter- COPY EDITORS
Susan Gronemus
natives, less pollution, reduced omissions and scaled-back energy usage. At the same time, Kelly Sullivan
the term also carried negative connotations among members of the business community— ART DIRECTOR
corporate America feared the financial repercussions associated with increased regulation. Mary Uttech

In the past few years, there has been an undeniable shift in many of these views. SR GRAPHIC DESIGNER
Sandy Wyss
has gone mainstream. But even with the flood of initiatives and efforts by many of the
world’s largest and most respected companies, a clear, overarching definition remains PRODUCTION
Cathy Schnackenberg
elusive. That’s where ISO 26000, the voluntary standard being developed by the Inter-
national Organization for Standardization, comes in. Its development within the United ADVERTISING PRODUCTION
Barbara Mitrovic
States is being administered by ASQ; the standard is scheduled for a 2010 release. (Learn
DIGITAL PRODUCTION SPECIALISTS
more about ASQ’s SR efforts at www.asq.org/social-responsibility.) Eric Berna, Laura Franceschi
The draft standard says it best: “As varying interpretations of social responsibility
MEDIA SALES MANAGER
exist, an internationally accepted standard may be of benefit in helping to achieve a com- Erica Gumieny
mon perspective and understanding about the principles and practices of social respon- ACCOUNT EXECUTIVES
sibility. The aim of social responsibility is to contribute to sustainable development and Angela M. Mitchell
Mitchell Pezanoski
the welfare of society.”
The standard details seven core issues at the heart of social responsibility: organi- CLASSIFIED/RECRUITMENT
ADVERTISING
zational governance, human rights, labor practices, the environment, fair operating Ramona Garcia
practices, consumer issues, and contribution to community and society. MARKETING ADMINISTRATOR
Denis Leonard points to the standard’s development as strong evidence that SR is here Matt Meinholz

to stay in this month’s article, “Strong Foundation, Solid Future,” p. 30. His article con- EDITORIAL AND ADVERTISING OFFICES
Phone: 414-272-8575
tends that the movement is not only alive and well, but will become even more widely Fax: 414-272-1734
accepted and embraced.
ASQ ADMINISTRATION
Ethical behavior is one facet of socially responsible practices, and it’s the subject of this Executive Director
Paul E. Borawski
month’s cover story, “A Framework for Business Ethics,” p. 22. According to the article’s
author, operating a business ethically can have a secondary benefit—greater profits. This Managing Directors
Christopher D. Bauman
realization—that SR can be achieved through quality, inevitably producing happier customers Brian J. Lehouillier
and healthier businesses—may further spur the already strong SR movement. Michelle Mason
Laurel Nelson-Rowe

To promote discussion of issues in the field of quality and

ensure coverage of all responsible points of view, Quality
Progress publishes articles representing conflicting and minor-
ity views. Opinions expressed are those of the authors and not
necessarily of ASQ or Quality Progress. Use of the ASQ logo in
Seiche Sanders advertisements does not necessarily constitute endorsement of
that particular product or service by ASQ.
Editor

6 QP • www.qualityprogress.com
What’s Your Quest?

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 INBOX
Putting Best Practices to Work
Positive change
I would like to pass on some
very positive feedback on the
new look. While many maga-
zines tout “new and improved”
features, graphics and con-
New:
tent, it looks like this change Expert
Answers
p. 10
adds substantive content, ac-
cessibility and usability. The
change, from my perspective,
embraces the true meaning of
quality progress.
Congratulations on a job well done and
implementing an improved process and
product improvement! It befits a quality
organization and magazine to get it right
the first time.
George Bojanowski
Northrup Grumman,
Electronic Systems Sector
Baltimore
Editor’s note
We received many letters, e-mails and
phone calls about the QP redesign, most of
which were complimentary about the new
look and website. In the spirit of continu-
ous improvement, a few individuals also
suggested enhancements we could make.
We will continue to collect and address this
valuable feedback and make changes and
adjustments accordingly.
Thanks to those who took the time to
contact us and to everyone for reading.
Soft dollars can stick
I just read the Expert Answers article in the
January 2008 QP (p. 10), which posed the
question about senior management desiring
projects with bottom-line savings versus soft
dollar savings. The answer focused on the
soft savings from process step reduction,
but I think this missed the issue.
8 QP • www.qualityprogress.com
www.qualityprogress.com | January 2008
QP
CHAIR OF THE BOARD
QUALITY PROGRESS
I lead the lean Six Sigma
Ronald D. Atkinson, General Motors
program for our hospital, and
QUALITY PROGRESS soft versus hard savings is a PRESIDENT
Michael D. Nichols, Nichols Quality Associates
A Complex common topic. For example,
System PRESIDENT-ELECT
we recently embarked on a Roberto M. Saco, Aporia Advisors
NASA’s Challenger:
A Case Study
In Problem 5S project to improve nursing
Solving p. 22 TREASURER
supply rooms. E. David Spong, Boeing (retired)
Plus:
Lean Six Not counting any savings
Sigma’s
Evolution PARLIAMENTARIAN
Get Leadership
p. 40
from improved inventory, this James J. Rooney Jr., ABS Consulting
On Board
p. 96
project could save each nurse
DIRECTORS
five minutes of time per eight Jochen Amelsberg, APC International
Belinda Chavez, United Space Alliance
hour shift. If 300 nurses work a shift each Brenda M. Fisk, Software Quality Solutions
day, this would result in 25 nursing hours Richard A. Gould, RG Management Solutions
Kamla P. Gupta, Continuous Improvement
saved each day or 9,125 hours per year. If Technology
Stephen K. Hacker, Transformation Systems
the average nurse earns $25/hour, the sav- International
ings would be $228,125 per year. Gary L. Johnson, U.S. Environmental
Protection Agency
Before we rush off to do the project, Kay A. Kendall, Sun Microsystems
William H. LaFollette, Humana Inc.
our CFO will say, “We are not going to send
Lou Ann Lathrop, General Motors
each nurse home five minutes early each David B. Levy, Levy Quality Consulting
Richard A. Litts, Litts Quality Technologies
day, so there will be no actual reduction in Richard F. McKeever, D2 Quality Associates
salaries.” Therefore, this project will gener- Aimee H. Siegler, Benchmark Electronics
Donald C. Singer, GlaxoSmithKline
ate only “soft dollar” savings. Steven E. Wilson, U.S. Department of
Commerce Seafood Inspection Program
This viewpoint accompanies many qual-
ity improvement projects in healthcare set- QP EDITORIAL REVIEW BOARD
Randy Brull, chair
tings, which tend not to use cost allocation
financial systems more commonly found in Administrative Committee
Roger Berger, Brady Boggs, Randy Brull, Jane
manufacturing. Campanizzi, Larry Haugh, Jim Jaquess, Gary
MacLean, Christine Robinson, Richard Stump
At the end of the day, we are still doing
this project, but the savings will not count Technical reviewers
I. Elaine Allen, Andy Barnett, David Bonyuet,
toward my department’s contribution to John Brown, Bernie Carpenter, Ken Cogan,
“hard dollar” savings. While I do understand Linda Cubalchini-Travis, Ahmad Elshennawy,
Tim Folkerts, Eric Furness, Mark Gavoor, Kunita
and appreciate the viewpoint of finance, in Gear, Lynne Hare, Ron Kenett,
Ray Klotz, Tom Kubiak, William LaFollette,
this case it is also an important project for Shin Ta Liu, Pradip Mehta, Gene Placzkowski,
internal customers—our bedside nurses. Paul Plsek, Tony Polito, Peter Pylipow,
Philip Ramsey, R. Dan Reid, Wayne Reynolds,
Steve Osborn John Richards, James Rooney, Anil Sengupta,
Sunil Thawani, Joe Tunner, Jeffrey Vaks,
Saint Vincent Health System Manu Vora, Jack Westfall, James Zurn
Erie, PA
Challenging leadership
The article “Conflict and Complexity” by
H. William Dettmer (January 2008, p. 22)
reminded me of an old Dilbert cartoon. In it,
the CEO states, “Quality is our top priority.”
 You’re there.
You’re here, you’re there, you’re in places you’ve never been, discovering things you never expected.
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 INBOX
A question is asked: “Is it more important
than safety?” The answer from the pointy-
haired CEO: “I forgot about that one.”
The logical thinking process, had it been
in existence, would not necessarily have
prevented the Challenger disaster without a
change in the mind-set of leadership. It ap-
pears that Morton Thiokol Corp. and NASA
top management made launch decisions
that outweighed considerations for the
safety of the Challenger crew.
Aristotle said, “It is possible to fail in many
ways … while to succeed is possible in only
one way.” Independent of the quality pro-
gram or process used, unforeseen situations
appear. We are not always perfect designers.
But when the leaders have the proper atti-
tude and emotional attachment with respect
to doing the right thing, it is likely that safety
issues related to injury or death can be
reduced to very low-probability events.
According to Jeff Forrest in his paper,
“The Challenger Shuttle Disaster,” it seems
at least two opportunities existed for
greatly reducing the probability of failure:
1. O-ring problems had been observed
months before the launch. They did not
appear to have been investigated, and ap-
propriate changes had not been made.
2. The temperature at launch was well
below the Thiokol recommendation of
53 degrees. Thiokol designed the O-ring
seals and supposedly knew their limita-
tions. NASA management browbeat
Thiokol into agreeing to the launch.
It was stated that the height of the
assembled boosters precluded a verti-
cal assembly that better approximated
THE WRITE STUFF
For more responses from readers regarding the January edition of QP, visit the
QP Discussion Board at www.qualityprogress.com. Or, to offer your own take,
e-mail editor@asq.org.
10 QP • www.qualityprogress.com
actual conditions for launch. If so, it can be
concluded that the horizontal assembly was
not sufficiently tested to ensure it would
function properly in real-world conditions.
Engineering designs are usually tested un-
der simulated and actual use conditions.
Performance objectives, including safety,
are not achieved without proper testing.
Problems can become visible after a design
is released. The logical process, while
useful, will not necessarily avoid all critical
safety problems. The fundamentals of pro-
viding quality must still be used: test, find
and remove failure modes, continuously
collect field performance data, analyze and
make necessary changes
Mort Levin
Natick, MA
Author’s response
Levin raises some excellent points, particu-
larly about the decision process among top
management. The idea of decision making
on a conference call with 35 participants is
ludicrous. It reminds me of the old saying,
“Teamwork is essential—it allows you to
blame someone else.”
The launch decision management
process, from the first shuttle launch in
1979 through Mission 51-L, is a ripe issue
for a completely separate discussion about
organizational leadership and groupthink.
And the Rogers Commission Report clearly
identified this as a contributing cause.
But, as Levin suggests with his Aristotle
quotation, there are multiple contributing
causes for a single outcome. The logical
thinking process assumes it might not be
possible, or even advisable, to try to elimi-
nate all contributing causes. Elimination of
one might be sufficient to break the chain
of causality. In the Challenger case, one of
those contributors was a faulty, Band-Aided
design established in the mid-1970s.
Had that design not been embraced as
the only way to address the challenge of ver-
tical versus horizontal assembly, the issue of
launch time air temperature and its effect on
the integrity of O-ring sealing probably would
never have been an issue. Titan-IIIs launched
in similar conditions for years, with the same
booster design, and the Titan-III was NASA’s
most reliable booster.
So the issue is not whether there were
multiple causes of the accident. The ques-
tion centers on the interdependent nature
of the relationship among them. The faulty
management decision process that oc-
curred later depended on the earlier faulty
booster design to produce the result. And
which is easier to change, an engineering
design or human group behavior?
Use of the logical thinking process does
not guarantee success. I hope my article did
not imply as much. But in the absence of any
other logical problem-solving approach, it can
turn the odds of success in your favor. Other
analysis tools, had they been available (and
used), might have done the same.
If the booster design engineers had the
ability to apply an evaporating cloud and
TRIZ to their engineering challenge in 1976,
the odds are extremely low that a top man-
agement launch decision (based on O-ring
compromise) would have been necessary.
Perhaps some other aspect of safety would
have required a group decision (ceramic
tiles come to mind), but not the issue of
O-ring failure to seal, which was the cause-
in-fact of the accident.
H. William Dettmer
 EXPERTANSWE
Outsourcing focus
Q: My employer recently introduced a strat-
egy of outsourcing product manufacturing
processes to China and service processes
to India. My team is currently working on
several processes related to the outsourced
products and services. Should we continue
working on improving the processes or
abandon the efforts entirely and move on to
something else?
A: Undoubtedly, the answer depends on
several considerations:
1. The level of control your company
intends to maintain over the companies
in China and India.
2. Contractual obligations that have been
established.
3. The current performance of the pro-
cesses being outsourced.
Consideration one (the “in-your face”
approach): Some organizations look for
more than just a deliverable from their sup-
pliers. For example, they might want a say
in what process is used, who works on the
process and how changes to the process
are effected. In this situation, you might
want to continue working on the processes
in an attempt to simplify, streamline and
mistake-proof them.
Transferring responsibility for executing
a less than pristine process halfway around
the world might create insurmountable
complications down the road. In addition,
process complexity, the availability of train-
ing and training documentation, and the
overall education level of the workforce
must factor into your decision regarding
whether you should continue.
Consideration two (the “fire-and-for-
get” approach): Some organizations will
stipulate contractually the requirements
or technical specifications related to the
12 QP • www.qualityprogress.com
deliverables with no regard for the process
required to produce those deliverables. All
the organization cares about is that the
right product is delivered on time with the
specified quality characteristics.
Essentially, the organization has inten-
tionally abdicated authority and respon-
sibility for the process that produces the
deliverables it requires. This might sound
harsh, but it might be the best business
decision. However, when making such a
decision, the organization must understand
that potentially serious consequences can
Is Six Sigma an appropriate
solution for every problem?
occur due to a lack of oversight or minimal
involvement.
Consideration three (the “hear no evil,
see no evil” approach): Some organizations
have jumped on the outsourcing bandwagon
and established strategic outsourcing initia-
tives. Consequently, they are outsourcing
many of their internal processes to Asia for
purely financial reasons. Process perfor-
mance or capability is not likely a consider-
ation. As a result of such parochial vision,
some companies have had to insource.
Insourcing carries its own set of
problems, such as re-establishing the
knowledge base (for example, job cuts),
repurchasing capital equipment (equipment
was sold off or shipped overseas) and re-
designing the outsourced process. So what
initially might have appeared to produce
short-term financial gains turns out to be
an operational disaster in the long run.
I hope these three considerations help
to make a decision and also aid you in
influencing key decision makers in your or-
ganization regarding outsourcing initiatives.
T. M. Kubiak, president
TK Performance Improvement Solutions
All the time, every time?
Q: Is Six Sigma an appropriate solution for ev-
ery problem? If not, then how do we choose
a project that would benefit from Six Sigma?
Ajay Sahore, sahoreajay83@gmail.com
A: The short answer to the first questions is,
“No.” It is not always necessary to assemble
a large team to solve a problem because
some problems have straightforward solu-
tions.
Consider this scenario: A circuit board
manufacturer has excessive rework at the
end of the assembly line. A checksheet is
created to tally the failure modes. Some of
the failures are a result of incorrect wiring.
This failure mode can be eliminated by
using color coded lead wires and connec-
tors. The operator simply attaches the wire
to the connector of the same color. Many
assembly errors can be eliminated with
simple fool-proofing techniques or poka-
yoke fixtures.
Some problems require more sophis-
ticated tools to reach a solution. I once
participated in a team that was trying to fix
a leaky irrigation valve. The problem had
plagued the production line for years. Ap-
proximately 0.5% of the valves leaked. This
forced the production line to add 100% in-
spection using a high-pressure water test.
RS
We used a designed experiment to identify
the factors contributing to porosity (the
root cause of the leaks). Minor adjustments
to the molding process completely elimi-
nated the problem, and after a few weeks
we discontinued the 100% inspection.
Because water testing was the slowest
operation on the line, eliminating 100% in-
spection increased the capacity of the line
by more than 25%, and scrap costs became
virtually negligible. To solve this problem,
we applied design of experiments (DOE),
a tool in the Six Sigma toolbox, but we did
not use a formal Six Sigma approach.
How do you choose a project for Six
Sigma implementation? Begin by identifying
potential projects. Assess each opportunity
in terms of the potential payback in financial
terms. Consider whether the project is
aligned with the strategic direction of the
company. Even if the payback is low, man-
agement might choose to support a project
if it strengthens the company’s competitive
position by improving customer satisfaction.
Consider the complexity of the problem.
If it can be solved quickly using simple
tools and an informal approach, then you
don’t need a Six Sigma project.
Be sure to carefully define the scope of
the project. If its scope is too broad, the
likelihood of success will be greatly dimin-
ished. Many practitioners suggest creating
a project selection matrix, on which various
proposals are “scored” relative to pre-estab-
lished evaluation criteria. The proposals with
the highest overall scores get management
support, including allocation of resources
and a budget for capital expenditures.
AN EXPERT’S OPINION
If you would like to reach any of QP’s experts, or to pose a question for consid-
eration, visit www.qualityprogress.com and click on the Expert Answers depart-
ment, or e-mail editor@asq.org.
FOR MORE INFORMATION:
Implementing Six Sigma, second edition. Forrest Breyfogle.
Available from ASQ Quality Press or through the website
www.smartersolutions.com.
Andy Barnett, Master Black Belt and
principal consultant, Quintiles Consulting
Learning behaviors
Q: It appears that many teachers (cer-
tainly compared to professionals in other
disciplines) don’t seem to recognize the
usefulness of Total Quality Management
(TQM) tools in public education as avenues
for increasing student achievement. What
management strategies have been suc-
cessful in overcoming this barrier?
A: Educational author Richard Elmore
describes the predominant climate in which
public school teachers view themselves as
independent contractors. In other words,
teachers are not open to substantive collabo-
ration or change.
One frequently used strategy for imple-
menting TQM practices is board of educa-
tion or superintendent dictates. But such
approaches often leave gaps as a result of
resistance and low morale.
Conversely, participation based methods
have shown success in certain contexts.
Such strategies use a research based ap-
proach. These begin with district or school-
wide conversations or other inputs about
what classroom practices comprise quality
education and how to control for variance.
One approach uses a series of intervi-
ifews with key educational leaders, focus
groups with teachers, and broad based
districtwide surveys to identify and then
rank essential quality practices or outputs
that teachers are most likely to adopt.
This participation based approach is not
as clean as a dictate, but it builds support
along the way without the typical gaps of
resistance.
Jack Westfall, coordinator of assessment,
Sheboygan Area School District, WI
All indications point to…
Q: In evaluating our statistical process control
(SPC) for a customer, we examine product
impurity by evaluating the upper limit of
process capability. In our reports we see a
different result for overall process capability,
Cpk, and Cpu, the upper limit. Which one is
appropriate and why do we see a difference?
Yu Chen, yuchen810@hotmail.com
A: This is an interesting question because you
are only interested in the Cpu, or the upper
limit of process capability. The definition of
Cpk is the minimum (Cpu, Cpl) in which
(USL) – Mean
Cpu =
3σ
and
Mean – (LSL)
Cpl =
3σ
USL and LSL are the upper and lower
specification limits.
It could be that whatever software is
used to calculate Cpk, Cpu, and Cpl is auto-
matically calculating Cpl and using that as
Cpk. In this case, with a one-sided limit, the
Cpu is the real indicator of process capabil-
ity for this type of data.
FOR MORE INFORMATION:
www.spcforexcel.com/ezine/nov2004/nov_2004.htm and
www.isotemp.com/docs/146-008.pdf.
I. Elaine Allen, Ph.D., research director,
Arthur M. Blank Center for Entrepreneur-
ship, associate professor of Statistics &
Entrepreneurship, Babson College
March 2008 • QP 13
 KEEPINGCURRE
PRODUCT SAFETY

Making Retailers Responsible?

R
Retailers—not just manufacturers—might need to test the products Importing companies “need to take more responsibility for their
they put on store shelves to make sure they’re safe. inadequate assessment of risks in dealing with foreign suppliers,
Earlier this year the head of the Consumer Product Safety Com- insufficient supplier development, and a lack of discipline in apply-
mission (CPSC) said the agency might need to sharpen its focus on ing quality basics with suppliers,” the report says.
retailers to ensure the safety of products, especially foreign made The ASQ report
goods such as toys. calls for a num-
According to a recent report in The Wall Street Journal, many of ber of preventive
the 15,000 household products regulated by the agency are made actions, including
in countries outside the United States, as most were when the stronger con-
agency began operating in 1973. At that time, most of the agency’s sumer protection
enforcement efforts were focused on product manufacturers. measures and an
U.S. companies that sell the products have “the ultimate respon- increased capacity
sibility at the end of the day to make sure that their products are of federal consumer
safe, and if they do not, we will take enforcement activity (to) the protection agencies.
product sellers,” said Nancy Nord, CPSC’s acting chairman, in The In the report,
Wall Street Journal report. ASQ also recom-
This policy shift depends on what happens with product safety mended that U.S.
legislation before Congress. Late last year, Congress had approved companies: increase
an additional $80 million for CPSC, and plans have already been an- on-site monitoring,
nounced to expand inspection of imported goods using those new reinforce discipline
funds, according to the report. in supplier quality basics, look beyond price when building relation-
ships with suppliers and raise the competency level of overseas
Report recommendations suppliers.
ASQ’s latest Quarterly Quality Report is consistent with CPSC’s To view the Quarterly Quality Report or download a PDF, visit
concerns about the lack of oversight with foreign made goods. www.asq.org/quality-report/reports/200801.html.

STANDARDS

METROLOGY THE FOCUS

OF NEW ISO/IEC GUIDE
The International Organization for Standardization (ISO) and the International Elec-
trotechnical Commission (IEC) have published a new version of their guide on the
vocabulary of metrology and its application.
ISO/IEC Guide 99:2007 provides guidance on the concepts and terms used in vari-
ous approaches to measurement. It covers measurements in chemistry and labora-
tory medicine for the first time, while incorporating concepts related to metrological
traceability, measurement uncertainty and nominal properties.
Copies of the guide can be ordered from ISO at www.iso.org or from ISO member
institutes, including the American National Standards Institute at www.ansi.org.

16 QP • www.qualityprogress.com
NT
HEALTHCARE
STATE’S HEALTHCARE
PERFORMANCE MEASURES
GAIN ACCEPTANCE
Wisconsin’s automated healthcare performance mea-
sures, the Medicaid Encounter Data Driven Improve-
ment Core Measure Set (MEDDIC-MS), are ready for
the National Center for Health Statistics’ international
classification of disease, ICD-10-CM, and are compli-
ant with the federal government’s Physician Quality
Reporting Initiative.
Upgrading to ICD-10-CM has not been mandated
yet, but several U.S. healthcare agencies have taken
note of the performance measures:
• In 2007, the Centers for Medicare and Medicaid Ser-
vices recognized Wisconsin’s MEDDIC-MS measures
for inclusion in its “Quality Measure Compendium.”
• The Center for Health Transformation included the
measures in its Transforming Example Resource Center.
“
Several U.S. healthcare
agencies have taken
note of the performance
measures.
”
• The Agency for Healthcare Research and Quality
added the MEDDIC-MS tobacco dependence treat-
ment and obesity prevention and treatment mea-
sures to its national quality measures clearinghouse.
A feature article on Wisconsin’s efforts ran in
QP (Gary R. Ilminen, “Improving Healthcare Quality
Measurement,” December 2003, pp. 62-66) and can
be accessed at www.asq.org/data/subscriptions/
qp/2003/1203/qp1203Ilminen.pdf.
Who’s Who in
NAME: Navin Shamji Dedhia.
RESIDENCE: San Jose, CA.
Q
EDUCATION: MBA, Golden Gate University, and master’s degree
in electrical engineering, Tennessee Technological University.
FIRST JOB IN/RELATED TO QUALITY: After
graduating from the University of Bombay in
1963, Dedhia worked at Polychem Limited
in Mumbai, India, in the plant engineer-
ing group. The work included planning the
preventive and corrective maintenance of
equipment, and the instrument and utility
system.
CURRENT JOB: Quality management systems consultant.
Previous jobs: Hitachi Global Storage Technologies quality sys-
tems group and IBM storage systems division quality assurance
group.
ASQ ACTIVITIES: Audit committee chair of the Inspection
Division; member of the division relations and advancement
committee of the Silicon Valley section.
PUBLISHED WORKS: More than 150 papers, newsletter articles,
columns and conference papers in various quality related publi-
cations in the United States, Australia, India and the U.K; Quality
from Many Perspectives, Parts I & II, D. L. Shah Trust, 1998.
RECENT HONOR: Harrington-Ishikawa Medal from the Asia
Pacific Quality Organization in Shanghai, China.
PERSONAL: Two daughters living in San Jose.
FAVORITE WAYS TO RELAX: Exercising, walking, sightseeing,
playing cards, reading and watching movies.
QUALITY QUOTE: Learning is a lifelong activity, and learning never
stops with graduation. Learning shows a way to innovate, keeps
the mind active and helps you to be better and excel.
March 2008 • QP 17
 KEEPINGCURRENT
WEBWATCH
This month’s Web Watch focuses on social responsibility and the
environment. For more quality related websites, visit www.asq.org.
www.thecro.com
Corporate Responsibility Officer is a magazine and website that pub-
lishes articles in areas of corporate responsibility, such as compliance,
ethics, governance, risk management, sustainability, workforce issues/
diversity, communications and legal considerations. The website also
features a directory of companies that offer services related to social
responsibility, an event calendar and a job board.
www.eere.energy.gov
The U.S. Department of Energy’s Industrial Technologies Program
(ITP) works in partnership with energy intensive industries to
reduce waste and boost productivity through quality practices. Visit
this site for news on ITP’s latest methods and technologies, a cata-
log of relevant tools and literature, and information on conferences,
workshops and training opportunities.
www.environmental-expert.com
The home page alone is packed with information of interest to
professionals in the environmental industry, such as promotions of
upcoming events, publications, products, job postings and previews
DATEINQUALITYHISTORY
QP looks back on an event or person that made a difference in
the history of quality.
March 18, 1891
Walter Shewhart, considered the
father of statistical quality control, is
born in New Canton, IL.
Regarding the intersection of sci-
ence and quality, Shewhart once said:
“Both pure and applied science have
gradually pushed further and further
Shewhart
the requirements for accuracy and
precision. However, applied science, particularly in the mass
production of interchangeable parts, is even more exacting
than pure science in certain matters of accuracy and precision.”
Source: www.sigma-engineering.co.uk/light/shewhartbiog.htm
18 QP • www.qualityprogress.com
of three featured articles. A visitor looking further will find informa-
tion on training and software, an environmental resource directory
and an archive of more than 1,500 free full text articles in PDF
format. A free monthly e-mail newsletter is also available.
www.greenbiz.com
Sponsored by the Green Business Network, this site is designed to
help companies align environmental responsibility with business suc-
cess. It includes related news stories, job listings, advice columns, a
bookstore, an organization directory and an events calendar with con-
ferences, workshops and courses on business and the environment.
Users can also add their own events to the calendar free of charge.
www.sustainabledevelopment-reports.org
This site provides free access to sustainable development information
from more than 600 organizations. The information, in the form of re-
ports and other documents voluntarily submitted by the organizations,
is organized by alphabetical order, business sector and country. There
are also case studies, a free monthly newsletter and an opportunity for
users to submit their own organizations’ sustainability reports.
FOUND AN INTERESTING QUALITY SITE? If you
come across a noncommercial site that could be useful to
other quality professionals, e-mail it to medmund@asq.org.
31
The number of business teams
from around the world that
are scheduled to compete in
the 23rd annual International
Team Excellence Award
competition.
Judging spans several
months and ends at ASQ’s World
Conference on Quality and Improve-
ment on May 5-7 in Houston.
Teams from Costa Rica, Singapore, Japan, India and the
United States will compete for gold, silver and bronze awards.
Conference attendees can observe team project presenta-
tions. The teams use quality tools and other creative methods
to demonstrate their projects.
For more information, visit http://wcqi.asq.org/team-
competition/index.html.
ASQ
HEALTHCARE
CONFERENCE
SPEAKERS
ANNOUNCED
ASQ has announced the keynote
speakers for the Quality Institute for
Healthcare (QIHC) Conference, May 5-7
in Houston:
• Heather Woodward-Hagg, College
of Technology at Purdue University
West Lafayette, IN.
• Robert Sutter and Jonathan Flan-
ders of the Juran Institute, South-
bury, CT.
• Keith Poole and Brian Hudson of St.
Francis Healthcare, Muncie, IN.
• Anantha Kollengode and Muhanad
Hirzallah of Mayo Clinic, Rochester,
MN.
• Jason H. Goto of AnalysisWorks Inc.,
Vancouver, British Columbia.
QIHC will be held concurrently with
ASQ’s World Conference on Quality and
Improvement. For more information on
QIHC, visit http://qihc.asq.org.
Mr. Pareto Head BY MIKE CROSSEN
QP ONLINEONPAPER
QUICK POLL RESULTS
Each month at www.qualityprogress.com, readers can take a short, informal survey,
and we post the results. Here are the numbers from the most recent Quick Poll.
Does your organization use Six Sigma and/or lean?
• Both: 41.7%
• Neither: 37.8%
• Lean: 12.4%
• Six Sigma: 7.9%
MOST POPULAR ARTICLES
QP’s website tallies the number of visitors and the hits each story receives.
The following is a recent ranking of the most popular articles that can be
found at www.qualityprogress.com.
• “2007 Salary Survey,” Hank Lindborg and QP staff.
• “Improve Your Audit Interviews,” by ASQ’s Quality Audit Division and
J.P. Russell.
• “Root Cause Analysis for Beginners,” by James J. Rooney and
Lee N. Vanden Heuvel.
• “10 Quality Basics,” many contributing authors.
• “After Six Sigma—What’s Next?” by Søren Bisgaard and Jeroen De Mast.
March 2008 • QP 19
 KEEPINGCURRENT
ASQNEWS
REACH ONE BIG ONE ASQ is offering 1,000 ASQ Bucks for members who bring in an
organizational member. Visit www.asq.org/eoro for details on the Each One Reach One
Refer a Member program.

MARKING 60 YEARS ASQ’s Cincinnati Section recently celebrated its 60th anniversary.
Events are planned throughout the year to mark the occasion.

BRANCHING OUT The ASQ Universidad Tecnológica de León student branch was
approved at the February meeting of the ASQ board of directors. The new member com-
munity was organized by student branch counselor Ruben Garcia Ortegon and his team
of student leaders.

SHORTRUNS A NEW BROCHURE from the Interna-

MANUFACTURING ENGINEERING
magazine’s web streaming video chan-
nel, METV, now offers two complete video
programs online each month on demand.
The magazine and METV are products of
the Society of Manufacturing Engineers.
The March program lineup is “Composite
Materials and Manufacturing” and “Power
Metallurgy,” while April will feature “Rapid
Prototyping and Casting.” The offerings
can be viewed at www.manufacturingen-
gineering.tv.
A NEW RABQSA OFFICE will open
this month in Seoul, South Korea. The
certification body already has operations
in Athens, Greece; Sydney, Australia; and
Milwaukee. For more information, visit
www.rabqsa.com.
tional Organization for Standardization
(ISO) and the International Electrotech-
nical Commission (IEC) explains ISO
and IEC guides that have wide general
interest to standards writers, consumer
representatives and others involved with
standards. For a list of guides covered in
the brochure and information on order-
ing, go to www.iso.org/iso/pressrelease.
htm?refid=Ref1101.
THE FOOD AND DRUG ADMINISTRA-
TION (FDA) recently updated its list of
consensus standards for evaluating medi-
cal devices before approving them for
market entry. “Recognition List Number:
019” features nearly 100 changes and
20 newly recognized standards. The full
list can be viewed on the FDA website at
www.fda.gov.
TWO HEALTHCARE CENTERS were
recognized earlier this year for the quality
patient care they provide. Virginia Mason
Medical Center in Seattle and Baylor
Health Care System in Dallas received
awards from the Leapfrog Group, a coali-
tion of corporations and public agencies to
improve patient safety. For more informa-
tion on the awards, visit www.leapfrog-
group.org/news.
THE AMERICAN STATISTICAL ASSN.’S
Quality and Productivity Section is offering
the 2008 Natrella Scholarship, which sup-
ports student participation in the Quality
and Productivity Research Conference
June 4-6 in Madison, WI. The scholarship
application deadline is March 17. For
details, go to www.amstat-online.org/sec-
tions/qp/Natrella_Scholarship.htm (case
sensitive).
THE AKAO SCHOLARSHIP from the
Quality Function Deployment (QFD) Insti-
tute features cash awards and compli-
mentary admission to the institute’s Green
Belt certification course. The application
deadline is April 14. For further details on
the scholarship, visit the institute’s website
at www.qfdi.org/akao_scholarship.htm.

20 QP • www.qualityprogress.com
2008 ASQ World Conference
on Quality and Improvement
MAY 5-7, 2008 • HOUSTON, TEXAS • GEORGE R. BROWN CONVENTION CENTER

KEYNOTE SPEAKERS
Rear Adm. T.K. “Ken”
Mattingly (USN, Ret.)
Apollo 13 Astronaut

Gregory S. Babe
President and CEO,
Bayer MaterialScience LLC

SPECIAL SESSION
International Panel including Dr. Marius J.S. Buiting, president of the Glenn Walters
European Society for Quality in Healthcare; Shoji Shiba, visiting professor Owner,
at the Massachusetts Institute of Technology and professor emeritus, GW Enterprises
University of Tsukuba, Japan; and Margaret Wheatley, president emerita,
The Berkana Institute

Quality Is In Everyone’s Job Description

Quality is no longer a term solely associated with manufacturing or the “quality control GENERATION
department.” Instead, it is a goal pursued by industries around the world—from the stockroom
to the boardroom. Join ASQ for the 62nd World Conference on Quality and Improvement for
QUALITY
information on business excellence, knowledge transfer, generational diversity, innovation and
application, teamwork, and the virtual universe.
When you have time between attending any of more than 75 sessions (including a variety
of sessions in Spanish), visiting the ASQ Career Fair, and networking with fellow quality
professionals, you can enjoy some of Houston’s many attractions. Take a tour of Space Center
Houston, see a Houston Astros baseball game, or visit one of the many shopping centers.
Come with an open mind, discover improvement methodologies that will lead your organization
to excellence, and have some fun, too! Visit http://wcqi.asq.org to learn more and register for the
conference. See you in Houston!
Early-bird rates end March 14, 2008.
Member $825 • Nonmember $925

Priority Code CEHHF57

 A Frame
Business
Social responsibility not at odds with

In 50 Words PROFIT MAXIMIZATION IS, of course,

Or Less the main and foremost objective for any commercial
• Studies indicate busi-
ness ethics impact prof- organization. Most modern organizations realize that
its because employees to survive in today’s competitive arena, customers
of socially responsible
organizations are more have to be satisfied.
motivated and potential
customers are more However, the more money a company can charge
willing to purchase. for a product or service of less value, the higher the
• What’s lacking is the
synthesis of business profits. Anyone who has bought something that has
ethics into a holistic
framework. broken within the warranty period knows what a
• A menu approach struggle it can be to have it repaired or replaced at
allows progression
to desired goals. “no extra cost.”

22 QP • www.qualityprogress.com
 SOCIAL RESPONSIBILITY

work for
Ethics
profitability by BjØrn Andersen

March 2008 • QP 23
 Adding to this are full-blown media scandals in
which some large grocery store chains systematically
relabel meat and other products that have passed the
expiration date so they can sell them; some insurance
companies have double sets of claim handling proto-
cols; and some public transportation companies de-
liberately delay preventive maintenance of vehicles to
save money, even though they are fully aware that this
jeopardizes passenger safety.
An ethical approach to business is needed, and
the important question is: Why should you and your
organization take this direction? There are many rea-
sons, including the following, that should carry some
weight:
• Improve employee and organizational morale.
• Gain higher customer loyalty and the ability to at-
tract new customers.
• Improve financial performance.
• Eliminate negative performance and backlashes
that result from a nonethical approach.
• Gain the ability to attract other stakeholders.
• Make the world a better place.
Figure 1 demonstrates the compounded effects of
an ethical climate in an organization. By contributing
to an organization’s internal life and commitment, an
ethical climate ultimately impacts the profit levels. Evi-
dence of the financial and HR benefit is presented in
the sidebar “Studies Link Ethics and Profits,” p. 26.
Hands-on approach needed
Corporate social responsibility—also called business
ethics—is undoubtedly a popular concept. However, to
a large extent it manifests itself in more elevated dis-
cussions of virtues with philosophical overtones. What
Ethical climate and profits links
Customer and employee trust
Employee commitment
Ethical climate
Customer satisfaction
Organizational quality
Source: O.C. Ferrell, John Fraedrich and Linda Ferrell, Business Ethics: Ethical Decision Making and Cases,
Houghton Mifflin Co., 2000.
24 QP • www.qualityprogress.com
seems to be missing is a more hands-on approach that
converts the well-meaning intentions of business ethics
into something tangible and able to be implemented.
Of course, others have dealt with related issues,
especially how to organize responsibilities regarding
ethics in an organization and how to develop ethical
guidelines or codes of conduct that can help direct the
behavior of individuals and groups. Some have made
valuable contributions regarding the development
of subtopics such as local community programs, fair
trade schemes and environmental concern programs.
There are two main shortcomings in the discussions
so far:
1. Many more ways in which business ethics can be
converted into action have not been sufficiently
discussed—for example, cost moderation in areas
such as product pricing, corporate spending and
fair treatment of customers and employees
2. There have been few attempts to synthesize the
various aspects of business ethics into a holistic
framework.
The need for a holistic framework is based on the
assumptions that:
• The principles of business ethics offer numerous
potential benefits, including profits, for the organi-
zations that adopt them.
• The organizations that have implemented an ethical
approach fail to achieve the full potential inherent
in the concept.
• Not enough companies and other organizations
have adopted ethical approaches.
A tangible framework encourages more organi-
zations to convert to a business ethics approach by
depicting it as a more manageable process. Organiza-
tions that do adopt business principles
founded on ethics can achieve even more
/ FIGURE 1 benefits.
Business ethics framework
When designing a business ethics
framework, it’s important to create a
structure in which all of the different
Profits
business ethics elements that are part
of an ethical approach can be placed.
As such, the framework takes on the for-
mat of a menu. From there, a transforma-
tion toward an ethical business approach
can be more easily scoped and planned.
 SOCIAL RESPONSIBILITY

Of the many dimensions that can be used to span

Business ethics framework
this framework, the following three are most work-
able:
dimensions / FIGURE 2
1. Internal versus external focus: Are the eth-
Philanthropic
ics components directed internally or exter-
nature
nally? Do the organization and its members or
the organization’s external stakeholders benefit External
from the ethics? focus
2. Strategic versus operational: Are the com-
ponents of the ethics approach mainly related
Operational Strategic
to strategic aspects of the organization and level level
its operations or focused more on operational
levels?
3. Remedial versus philanthropic impact: Do Internal
the various activities and actions undertaken
focus
using the ethics approach merely minimize or Remedial
perhaps compensate for any negative impact nature
the organization and its operations have had on
Source: Bjørn Andersen, Bringing Business Ethics to Life: Achieving
the “world” (local community, the environment, Corporate Social Responsibility, ASQ Quality Press, 2004.
stakeholders, for example)? Or, do the activities
go even further and contribute beyond any dam-
age the organization has inflicted? An important point is that some kind of progression
Presenting these as dipolar entities does not mean among the dimensions of the business ethics frame-
everything is black and white or that different ways work exists. Figure 3 shows there is indeed a long way
of achieving an ethical position fall into one category to go before an organization can be taken seriously
or the other. There is a continuous scale in which ele- when promoting ethics and social responsibility.
ments can be a mixture of the two. This becomes ap- Cleaning up any legal issues must precede cleaning
parent when these dimensions are used to construct a up ethical issues, in which norms and standards often
3-D matrix along these axes (see Figure 2). are stricter than legislation. Only after the clean-up is
The framework spanned by these axes attempts to the organization ready to be perceived as a good cor-
illustrate that initiatives, actions, programs, organiza- porate citizen with the well-being of all its stakehold-
tional design elements and other elements that contrib- ers in mind. It can then take the step toward being a
ute to an ethical business approach can be structured philanthropic organization.
inside the space of these dimensions. This is not to say it should be the goal of any
It is not my intention to present
Figure 2 as a geometrically correct
representation of this thinking. You
Social responsibility steps / FIGURE 3
cannot calculate the ethical coordi-
nates of an ethics program based on
this diagram. Rather, the diagram is Philanthropic: “Giving back” to society
meant to illustrate the different tools
Economic: Maximizing stakeholder wealth and/or value
available in the process of construct-
ing an ethical business approach. Ethical: Following standards of acceptable behavior as judged by stakeholders
As you will see, this framework is Legal: Abiding by all laws and government regulations
used to structure these tools accord-
ing to three dipolar dimensions, mak- Source: Adapted by O.C. Ferrell, John Fraedrich and Linda Ferrell, Business Ethics: Ethical Decision Making and
Cases, Houghton Mifflin Co., 2000, from the original contribution by Archie B. Carroll, “The Pyramid of
ing it easier to assess them and con-
Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders,” Business
sider which ones to implement. Horizons, July-August, 1991, p. 42.

March 2008 • QP 25
 organization to reach this latter stage—many benefits
described previously start materializing long before then.
Road map
Instilling an ethical approach to business in an orga-
nization is a task that consists of many different el-
ements and activities. A streamlined implementation
process of clear-cut steps in a logical sequence that
will lead to the desired state would be beneficial.
While it is possible to develop such a process, it would
be virtually impossible to follow it to the letter.
Depending on characteristics of the organization,
prior levels of awareness and training, organizational
culture and other factors, such a process can vary sig-
nificantly from organization to organization. Even if
this process will be different in terms of sequencing,
duration and emphasis of certain elements and respon-
sibilities, there are many elements that will be common
among all such change processes. Figure 4 illustrates
these typical elements in a time sequence.
The key decisions or process activities are:
• Deciding on a goal for the ethical business ap-
proach on a strategic level. This should normally
be the first consideration because this decision is
the basis for the rest of the implementation process.
The required training and design of new business
practices will be more extensive if a far-reaching
philanthropic profile, not just mere compliance with
laws and industry norms, is the target.
• Developing the required business practices to

STUDY LINKS ETHICS AND PROFITS

There is a connection between the ethical position and
practices of an organization and the feeling of well-being,
motivation and inspiration among its employees. This has
been documented in numerous studies.1, 2 Companies that
successfully build high levels of internal trust also tend to be
much more successful in retaining their employees.
Stephen Covey found that the average corporation
loses half of its employees within four years.3 The costs of
recruiting, training and getting new ones up to speed can be
detrimental to an organization. The consequences of losing
employees are becoming more substantial as organizations
typically rely more and more on the knowledge of individual
employees.
When an organization has managed to position itself
positively so its general image in the marketplace is that of
a company with integrity, potential customers will be less
hesitant to commit to a purchase from it. Any uncertainty
customers might feel is reduced because they believe the
organization is trustworthy.
This has also been documented in several studies, includ-
ing one conducted by Cone Communications and Roger
Starch Worldwide in 1995.4 It found 31% of respondents
viewed a company’s sense of social responsibility as a key
factor in their purchasing decisions. Furthermore, large
percentages of those surveyed said they would pay more for
products and brands whose manufacturers and retailers sup-
ported a cause they cared about.
In another study conducted in New York in 1995, close
to 90% of those surveyed claimed that in a case in which
quality, service and price were equal, the best reputation for
social responsibility would likely guide their decision to buy.5
There are also several studies that report a link between
corporate social responsibility and profitability.6-8 While this
might seem too good to be true, there is evidence indicating
a positive relationship between corporate social responsibil-
ity and past and future business performance.
Results of another study showed a positive relationship
between corporate social responsibility and return on invest-
ment, sales growth and profit growth.9 And, results of anoth-
er study of the 500 largest corporations in the United States
found those that commit to ethical behavior or emphasize
codes of conduct have better financial performance.10 —B.A.
REFERENCES
1. Terry W. Loe, “The Role of Ethical Climate in Developing Trust, Market Orientation
and Commitment to Quality,” unpublished dissertation, University of Memphis, 1996.
2. Isabelle Maignan, “Antecedents and Benefits of Corporate Citizenship: A Compari-
son of U.S. and French Businesses,” unpublished dissertation, University of Memphis,
1997.
3. Stephen R. Covey, “Is Your Company’s Bottom Line Taking a Hit,” PR Newswire,
June 4, 1998, www.prnewswire.com.
4. Dale Kurschner, “The 100 Best Corporate Citizens,” Business Ethics, Vol. 10, 1996,
p. 24-35.
5. Frederick Reicheld, The Loyalty Effect, Harvard Business School, 1996.
6. S.B. Graves and S.A. Waddock, “Institutional Owners and Corporate Social Perfor-
mance: Maybe Not So Myopic After All,” Proceedings of the International Assn. for
Business and Society, 1993.
7. Graves and Waddock, “The Corporate Social Performance-Financial Performance
Link,” Strategic Management Journal, Vol. 18, 1993, pp. 303-319.
8. Gabrielle Taylor, Pride, Shame and Guilt, Clarendon, 1987.
9. Maignan, “Antecedents and Benefits of Corporate Citizenship: A Comparison of U.S.
and French Businesses,” see reference 2.
10. Curtis C. Verschoor, “A Study of the Link Between a Corporation’s Financial
Performance and Its Commitment to Ethics,” Journal of Business Ethics, October
1998, p. 1,509.

26 QP • www.qualityprogress.com

A consistent set of required business
practices must be developed.
implement the chosen ethical profile and goal.
Once the initial decision has been made as to what
goal the organization will aim for, a consistent set of
the required business practices must be developed.
In some cases, this will involve adjustments to exist-
ing practices. In others, it translates into establish-
ing whole new business processes and perhaps even
organizational units.
• Deciding on an organizational design to handle
the new approach to business. Depending on the
goal of the ethical approach, it might suffice to ex-
tend the responsibilities of certain existing organi-
zational functions to handle the new business prac-
tices. But in other cases, more elaborate changes
are required.
• Conducting ethical training and awareness ex-
ercises throughout the organization. No matter
what the goal, some training will be required when
transforming the organization to a more ethically
oriented entity. The extent, both in terms of who is
targeted for training and how much,
can vary. But this is still a crucial ele-
ment. Implementation steps for new
• Developing a new organizational approach / FIGURE 4
profile and making it known to ex-
ternal stakeholders. A secret ethical
business approach will rarely achieve
the concept’s potential benefits. Thus,
redefining the public profile of the orga-
nization in accordance with the ethical
goal is an important activity, as is mak-
ing the profile publicly known.
• Launching the new ethical profile
and business practices. So far, this
article has discussed designing and de-
veloping the new organization and its
business processes. At some point, the
actual transition must be made to start
working according to these practices.
This is often a milestone event that is
suitable for some attention.
Source: Bjørn Andersen, Bringing Business Ethics to Life: Achieving Corporate Social Responsibility,
• Ensuring compliance with the new ASQ Quality Press, 2004.
SOCIAL RESPONSIBILITY
business profile and practices. There is no point
in denying the fact that the organization and its
members will constantly face temptations to take
shortcuts and stray from the new business practic-
es. Implementing mechanisms for ensuring compli-
ance is an easy-to-overlook element.
• Assessing progress and reinforcing the imple-
mentation process. Defining one or more mile-
stones in which the implementation progress is as-
sessed is an important follow-up approach. Perhaps
it will be necessary to alter ambitions or add imple-
mentation elements to reach the set targets.
Renewed competitiveness
The subject of business ethics has its critics. For ex-
ample, there have been claims that:
• Corporate social responsibility is a breach of the fun-
damental capitalist model, the argument being that
enterprises contribute to society through taxes paid
on profits made and through people supported by the
Decide ethical ambition level
Develop ethical business practices
Decide ethical organizational design
Conduct ethical training
Develop a new organizational profile
Launch the new ethical profile
Ensure compliance with the new ethical profile
Reinforce the implementation process
March 2008 • QP 27
 SOCIAL RESPONSIBILITY
wages they receive for work performed. There should
be no further claims of doing good.
• Corporate social responsibility is built on false
premises. Customers will not select suppliers that
subscribe to a more ethical position or pay more
for products and services that rely on fair trade or
sound environmental practices.
28 QP • www.qualityprogress.com
• Corporate social responsibility will lead to global
salvationism, increased regulation and global stan-
dards. Some claim that a fundamental trait of corpo-
rate social responsibility is that new converts often
set out to convert others more fervently.
• Business ethics result in a cost disadvantage, and
the adoption of corporate social responsibility
will lead to increased costs and reduced
revenues.
It would be foolish to dismiss all criti-
cism and the possibility that some of these
effects could materialize. However, I be-
lieve this criticism is exaggerated.
Is corporate social responsibility a fatal
blow to the very fundamentals of capital-
ism? Is it a harmless alternative to ordinary
business that will hardly give any benefits?
Or, is it a potentially powerful way of doing
business? I guess the jury is still out, and I
expect it to stay out for quite some time, as
it is difficult to foresee one unified verdict
forthcoming.
In my personal view, you can go about
business ethics for all the wrong reasons—
and in all the wrong ways—and make a
complete and utter failure out of it. Done
right (as I have seen), it can represent a
powerful source of renewed competitive-
ness for an organization.
NOTE
This article is adapted from Bjørn Andersen, Bringing Busi-
ness Ethics to Life: Achieving Corporate Social Responsibility,
ASQ Quality Press, 2004.
BJØRN ANDERSEN is a professor and
research director at the Norwegian
University of Science and Technology
(SINTEF) in Trondheim. He earned
a doctorate in benchmarking from
SINTEF. Anderson is a member of
ASQ and author of Business Process
Improvement Toolbox, second edition
(ASQ Quality Press, 2008).
READ MORE
For more articles about corporate
social responsibility and business
ethics, go to QP’s website at www.
qualityprogress.com.
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Str
FO
 SOCIAL RESPONSIBILITY

ong
UNDATION
Solid
Future
Social responsibility drives forward
In 50 Words
Or Less
• Social responsibility (SR) by Denis Leonard
gained prominence five
years ago after Enron and
other corporate scandals
grabbed headlines.
• The momentum behind SR IN THE WAKE of the Enron, WorldCom, Tyco and
could have faded, but it Global Crossing scandals five years ago that shook consumer
hasn’t.
• The integration of standards, confidence in business leaders and the economy, I co-wrote
the upcoming release of
ISO 26000 and a public an article about the resurgence of social responsibility (SR)
thirst for SR has sustained on the corporate landscape and increased public awareness
the momentum, which will
continue to build. on the topic.1

March 2008 • QP 31
 The scandals back then resulted in calls for a tighter
focus on ethics and governance across the spectrum of
business and politics. At a Malcolm Baldrige National
Quality Award (MBNQA) ceremony, President Bush
had called for a “renewed sense of corporate respon-
2
sibility.” Liz Keim, then ASQ chair of SR, said, “The
corporate meltdown we’re witnessing reminds us of
the tragic long-term consequences of paying lip service
to quality and ethics.”3
After the article appeared, I was asked if the energy
harnessed around SR could be sustained. Or was SR
simply a reaction to the scandals and would fade rela-
tively quickly?
My answer was that there was most certainly the
danger of fading momentum as the attention of the
public, governmental, professional and other groups
could be refocused on more pressing issues. It was
critical that the lessons learned not be forgotten, dis-
cussions continue and action be taken quickly. ASQ
needed to be highly engaged, as well.
So what has happened since then? Has SR faded?
Have we learned our lesson?
Staying a priority
Before the scandals, the core issues of SR were indeed
important, but nothing unusual. Of course, there were
rules and requirements for a corporation’s financials.
How an organization interacted with the environment
was being monitored and regulated to a certain degree.
But the Enron and WorldCom scandals brought SR to
the forefront in dramatic fashion with extreme tales of
fraud, deception and bankruptcy. The scandals grabbed
headlines and stayed fresh in people’s minds for many,
many months. If it could happen at any of these corpora-
tions, where could the next scandal be uncovered? What
damages—financial or otherwise—could be looming
next? The time was right to make sure SR remained a top
priority for corporations and organizations.
Up to that point, SR had been characterized by a
strong focus on financial and nonfinancial return. In
essence, SR made good business sense and could help
limit litigation, protect brand image and increase cus-
tomer and employee satisfaction.
While that was and remains true, it was the public’s
attitude and outlook that created real change. When cor-
porations realized price was not the only concern of its
customer base, additional corporations became more
open to SR.
32 QP • www.qualityprogress.com
SR affects us all and is relevant to everyone, not just
a handful of do-gooders in any one city, state or coun-
try. It turns out there’s more than one issue SR touches.
That is what has given SR the ability to make such a
strong impact.
SR can be an issue that affects local communities,
business relationships, national patriotism or global
fellowship. It can encompass issues like human rights,
health and safety, the environment or social develop-
ment, just to name a few. SR can reach across borders
and touch issues that impact the world, like global
warming.
This commonality or personal connection is one of
the key reasons SR has not faded and has remained
constant in people’s minds, despite other pressing lo-
cal, national and international affairs. People see SR’s
integrative and relevant nature.
For example, the success of Al Gore’s book and
movie, An Inconvenient Truth, reflected the public’s
attitude and a feeling of interconnectedness to envi-
ronmental issues. The amazing, heartfelt reaction to
the disasters of the Asian Tsunami in 2004 and Hur-
ricane Katrina in 2005 also demonstrated people’s
interconnectedness with each other when thousands
donated time, money and efforts to help others re-
cover. A sense of SR was at the core of those relief
efforts.
Social awareness and SR also catch the public’s
attention when high profile figures step forward and
act. Two examples of this celebrity involvement in SR
include:
• Billionaire philanthropists Bill and Melinda Gates
and their work with their foundation, which focus-
es on health and education initiatives in the United
States and across the world.
• Musician Bono, the rock star turned global activist,
on a crusade to help save millions from the AIDS
pandemic in Africa.
Meanwhile, regular folks like you and I have dis-
covered we can quickly and easily contribute to SR
in small ways that can make a real difference. For
example, anyone can help reduce global warming by
making simple changes such as switching from in-
candescent light bulbs to compact florescent bulbs.
Home building has become more focused on green
initiatives, too.
An increased interest in energy conservation and
recycling continued to push the expansion of green
 SOCIAL RESPONSIBILITY

building practices—for example, Energy Star pro-
grams and certified products. Another example of
this is the Leadership in Energy and Environmental
Design (LEED) rating system, a national benchmark
for the design, construction and operation of high
performing green buildings. LEED promotes a sys-
tems approach to building performance and sustain-
ability.
“Green and Growing” (see sidebar below) describes
a voluntary program in Wisconsin that encourages or-
ganizations to monitor their environmental impact.
Standards, Baldrige and SOX
While public sentiment supported and demanded SR,
other events were already under way to keep SR a
priority. Many organizations were already creating
frameworks to facilitate SR in a more formal man-
ner. Standards and models already existed that ad-
dressed elements of SR in different ways, such as ISO
14001—the environmental standard—and OHSAS
18001 for health and safety.
With more applications and the more integrative
use of these two standards with ISO 9001, manage-
ment systems were becoming more commonly used
to provide structured approaches to support and pro-
mote SR.
Indeed, updates to these standards focused on
further integration and a natural alignment with the
Malcolm Baldrige National Quality Award criteria.4 SR
was also becoming a more highly visible element in the
Baldrige criteria, providing an ideal example of how
SR could be considered, implemented and evaluated
as part of an organization.
Another significant result of the corporate scandals
was the development of the Sarbanes-Oxley Act (SOX)
of 2002. Through SOX, the Securities and Exchange
Commission mandated that public companies have an
operational system of internal controls and investigate
their operations, and that CEOs and CFOs certify their
companies’ financial statements.
Developing an SR standard
Prior to that, there was a specific standard geared toward
SR: SA8000, developed by Social Accountability Interna-
tional. SA8000 is a voluntary standard that encourages
organizations to maintain socially acceptable workplace
practices.
Also, the International Organization for Standard-

GREEN AND GROWING

An example of how a voluntary approach to standards can
help increase involvement and create an atmosphere of col-
laboration is the successful Green Tier program in Wisconsin.
Green Tier is a voluntary program that recognizes and rewards
environmental performance that exceeds legal requirements
related to health, safety and environment resulting in continuous
improvement in the state’s environment, economy and quality of
life.
In the past, environmental policy programs have centered
on a command and control approach to regulation. Regula-
tory programs have no way to recognize regulated entities
that go beyond compliance to minimum environmental
requirements.
In other words, organizations that achieve a high level of en-
vironmental performance receive no more benefits or recogni-
tion than those that merely comply with the minimum.
Green Tier recognizes environmentally innovative compa-
nies that go above and beyond the bare minimum to engage
in superior environmental performance while improving their
bottom line.
The program adapts to the needs of the company, commu-
nity and environment by using collaborative contracts, charters
and environmental management systems (EMS).
The goals of the program include environmental improve-
ment beyond that which is achieved through mere compliance,
community development and economic gain.
While entry into the program is voluntary, participation is
governed by a legal agreement. Companies, communities and
governments negotiate agreements, contracts and charters
that are flexible, innovative, efficient and enforceable.
Contracts and charters are linked to an organization’s EMS
to assure predictable performance, due diligence and continual
improvement. Self-auditing, public involvement and reporting
make the processes transparent and the results verifiable.
The Green Tier program places emphasis on the develop-
ment of an EMS, which might be an ISO 14001-certified or
a functionally equivalent EMS, and a documented history of
results.
This program has encouraged many organizations to raise
the bar, develop an EMS or gain certification. —D.L.

March 2008 • QP 33
 ization’s (ISO) consumer policy committee conducted
an assessment of standards designed for SR because
“an increasing number of consumers are expressing
their concern regarding the social integrity of corpora-
tions in their operations.”5
The ISO Strategic Advisory Group (SAG) described
SR as “a balanced approach for organizations to address
economic, social and environmental issues in a way that
aims to benefit people, communities and society.”6
This led to the proposal and the development in 2004
of the voluntary international standard ISO 26000 on SR,
now scheduled for release in 2010. ASQ has had a key role
in developing ISO 26000, administering the U.S. Technical
Advisory Group (TAG) on social responsibility.
ASQ was selected by the American National Stan-
dards Institute (ANSI) to represent the United States
in development, during which it recognized that “so-
ciety is placing increasing demands on organizations
to operate in a socially responsible manner. But there
exists widespread lack of clarity about what ‘socially
responsible’ means and how to accomplish it …
“ASQ believes that being socially responsible means
that people and organizations behave ethically and
with sensitivity toward social, cultural, economic and
environmental issues. Striving for social responsibil-
ity helps individuals, organizations and governments
have a positive impact on development, business and
society.”7

QUALITY AND SR: HELP ASQ MAP THE CONNECTION

By Paul Borawski
Companies have always made decisions based on dollars and
cents. Quality has always played a key role in that process.
But today, more and more companies are seeing beyond
the bottom line. Responsible and effective leaders recognize
that we also need to conduct business in ways that protect
the future, develop communities and advance the health of
our planet.
The term “social responsibility” (SR) has come to stand for a
broad collection of organizational concerns, including envi-
ronmental impact, corporate citizenship, ethics, stakeholder
accountability and community relations. Quality continues to
play a key role in making decisions that address these concerns.
What is SR?
Quality professionals have long recognized the importance of
socially responsible business behavior. No less a quality guru
than Genichi Taguchi drew a direct connection, saying that a
product or service demonstrated good quality if its production
and use caused little to no harm to society.
Today, the International Standards Organization is develop-
ing ISO 26000, a proposed SR standard. The latest working draft
defines SR as “people and organizations behaving and con-
ducting business ethically and with sensitivity toward social,
cultural, economic, and environmental issues.”
Business leaders also are increasingly aware that “doing the
right thing” need not be at odds with business success. Quite
the opposite: Embracing SR—effectively and publicly—creates
new opportunities for businesses to grow, adapt and win new
respect from customers and the larger community.
Quality can, and does, play a central role in helping com-
panies grow in socially responsible ways, by maximizing the
efficiency with which new, socially responsible practices and
processes are developed and implemented.
What’s more, quality professionals with a demonstrated
commitment to SR are helping to create new opportunities for
themselves in the future, as more organizations look for help to
develop and sustain their socially responsible platforms.
Let us tell your story
ASQ wants to know how your business or organization is using
quality to achieve socially responsible outcomes.
We’re seeking real-world examples that demonstrate how
quality tools, techniques and principles can help build business
while building a better world.
We want to know:
• How is your organization, community or one you are familiar
with currently addressing SR?
• What quality tools and resources are used to achieve SR?
• What are your measures of success?
ASQ’s professional writers and editors can work with you
to turn your story into a case study, journal article or online
testimonial.
For more information and to submit your story, please email
qualitySR@asq.org.
PAUL E. BORAWSKI is executive director and chief strategic
officer of ASQ. He joined ASQ in 1986 as director of programs
and technical services and was appointed to executive direc-
tor in 1988.

34 QP • www.qualityprogress.com

The intention of the ISO 26000 standard is to:
• Assist organizations in addressing their social re-
sponsibilities while respecting cultural, societal,
environmental and legal differences and economic
development conditions.
• Provide practical guidance to operationalize social
responsibility, identify and engage with stakehold-
ers, and enhance the credibility of reports and
claims about social responsibility.
• Emphasize performance results and improvement.
• Increase confidence and satisfaction in organizations
among their customers and other stakeholders.
• Be consistent and not in conflict with existing docu-
ments, international treaties and conventions and
existing ISO standards.
• Promote common terminology in the social respon-
sibility field.
• Broaden awareness of SR.
• Not reduce government’s authority to address orga-
nizations’ SR.8
ISO 26000 provides a broad, nonprescriptive frame-
work in which to work—for example, a set of guide-
lines that can be incorporated into MBNQA criteria and
supported and integrated with ISO 9001, ISO 14001,
OHSAS18001 and SOX.
It has the potential to have the same or even more
value and impact than these existing standards. As
a voluntary standard, it can also help organizations
achieve the relevant requirements. The usual format
is for quality requirements to be of a contractual na-
ture, and environmental and safety requirements to be
based on regulatory requirements.
Industry wide SR adoption
Today, many organizations have adopted strategic SR
approaches that have impacted public perception,
carbon monoxide reduction, operational changes and
other financial and nonfinancial performance:
• Sun Microsystems has focused on eco-responsibili-
ty and helped form various trade coalitions and ini-
tiatives to develop codes of conduct, energy savings
and supply chain management tools.
• Hewlett Packard (HP) has collaborated with the
World Wildlife Fund on an initiative to reduce HP’s
greenhouse gas emissions by 15% by 2010.
• DuPont has developed a program called Base of the
Pyramid focused on poverty stricken nations.
• General Electric has developed its Ecomagination
SOCIAL RESPONSIBILITY
initiative aimed at spending $1.5 billion per year on
renewable energy and green research by 2010.
• Multi-national firms have formed initiatives to shape
corporate behavior, such as the Business Leaders
Initiative on Human Rights. This group includes
firms such as ABB, Ericsson and Gap.
Other organizations strongly involved in SR are
those you might not immediately expect—like BP and
Shell. Realizing that public opinion is important and
future business will depend on their management and
operational practices, these companies are focusing
on their environmental impact and social perceptions.
Another oil company, Exxon Mobil, produces a sig-
nificant amount of energy in Africa and has focused
the efforts of its SR programs on eradicating the threat
of malaria there and educating women and girls in
some of the continenet’s developing countries.
Sustaining SR
The focus on SR has certainly not faded. In fact, the need
for more attention to SR was underscored last year when
news broke about lead-tainted toys and toxic pet food.
To some extent, nothing has changed. There is still
a critical need to sustain the role of quality and SR. The
impact that quality professionals and ASQ can play in
its continued development remains relevant and essen-
tial; there is a continued need for ASQ members to re-
alize the integrative nature of SR and be aware of ISO
26000 and the value it can provide.
REFERENCES
1. Denis Leonard and Rodney McAdam, “Corporate Social Responsibility,”
Quality Progress, October 2003, pp. 27-32.
2. National Institute of Standards and Technology, news release, remarks
by the President related to the Malcolm Baldrige National Quality Sward
Ceremony, Washington Hilton Hotel, Washington, DC, March 7, 2002.
3. Liz Keim, “Corporate Wrongdoing: A Betrayal of Quality Principles,” public
statement by ASQ President, www.asq.org, 2002.
4. Denis Leonard and Mac McGuire, “Integrated Management Systems and
Their Alignment with Baldrige,” Quality Management Forum, 2007, Vol. 33, No.
3, pp. 12-15.
5. ISO, press release, Ref 8000, Sept. 10, 2001.
6. ISO, Strategic Advisory Group on Corporate Social Responsibility, prelimi-
nary working definition of organizational social responsibility, ISO/TMB AGCSR
N4, 2002.
7. ASQ White Paper, “Common Ground: Quality and Social Responsibility,” 2007.
8. Dorothy Bowers, “Making Social Responsibility the Standard,” Quality
Progress, April 2006, pp. 34-38.
DENIS LEONARD earned a doctorate in quality man-
agement from the University of Ulster in Jordanstown,
Northern Ireland. Leonard is a senior member of ASQ
and an ASQ certified quality manager, auditor and Six
Sigma Black Belt. He has been an examiner for the
Wisconsin and Malcolm Baldrige quality awards. He is
co-author of An Executive Guide to Understanding and
Implementing the Baldrige Criteria, ASQ Quality Press.
March 2008 • QP 35
The Remedy
for a
Data Dil
Bellin finds a way to measure up
 HEALTHCARE

In 50 Words
Or Less
• Bellin Health System
had been committed
to quality improvement
for decades but felt its
measurement process
didn’t reflect that.
• The paper reporting
system was replaced by
software that stream- by Colleen O’Brien
lined input and analysis
of performance data.
and Susan Jennings
• The new system helped
Bellin handle the nor-
mally stressful accredita-
tion process with ease.

emma
THE STATED MISSION of Bellin Health
System, an integrated healthcare delivery organization
in Green Bay, WI, is “to engage individuals, families, em-
ployers and communities in their lifelong journey toward
optimal health and to provide easy-to-use, high quality af-
fordable health products and services.”
Bellin understands that sustained success in this mis-
sion depends on continuous improvement of processes,
systems, technology and relationships. Its commitment to
quality improvement began in the late 1980s, when the or-
ganization’s leadership began learning about W. Edward
Deming’s approach to quality.

March 2008 • QP 37
 In The Business of Health Care, Peter Knox de-
scribed these early days:
In the mid-80s, Bellin Health System was an early health
care entrant into quality management. At the time, very
few health care organizations were interested in the
concepts of quality improvement. Most, if not all, of
the training materials were written for manufacturing
businesses, requiring translation by service organiza-
tions such as health care. From these rudimentary be-
ginnings, Bellin Health has concentrated on developing
new approaches to achieving performance results in
the complex world of health care.”1
As quality improvement initiatives expanded in
healthcare, Bellin Health was an active participant. It
was among the founding members of the Institute for
Healthcare Improvement and the Wisconsin Collab-
orative for Healthcare Quality, a voluntary statewide
consortium of quality improvement driven healthcare
organizations.
In 1994, Bellin Health volunteered for a pilot as-
sessment managed jointly by the Baldrige National
Quality Program and the Joint Commission, which
accredits and certifies healthcare organizations
and programs in the United States. This assessment
helped Bellin focus on developing an integrated mea-
surement system that is aligned to the organization’s
strategic direction and is widely accessible through-
out the organization.2
Tracking improvement
Bellin’s model for competency improvement is based on
the belief that outcomes are the results of processes and
can be improved by identifying success metrics, setting
goals and using the plan-do-check-act (PDCA) cycle.3
Statistical process control (SPC) charts track processes
for stability and response to improvement efforts.
Dashboard / FIGURE 1
View = all public
Group Count Status
Growth 17
Z innovation 65
Efficiency 421
Engagement 144
Effectiveness 590
38 QP • www.qualityprogress.com
Measurement is focused on four areas as identified in
the organization’s strategic plan:
• Growth: Bellin will be the market leader in its brands.
• Effectiveness: People will know that Bellin is the
clinical benchmark in its brands.
• Efficiency: Bellin will provide the best total cost
solution for its patients, customers and employers.
• Engagement: Patients, families, customers, staff
and physicians are connected and involved with
Bellin in the pursuit of lifelong health.
• Innovation.
Leadership is committed to implementing this plan
by making certain that all employees understand the
organization’s mission and can translate it into their
daily work. Time must be dedicated to educating team
leaders throughout the organization on Bellin’s mis-
sion, vision and strategic plan, as well as the sharing of
best practices and lessons learned across the system.
Leadership also requires that all employees have easy
access to the most current performance metrics and
plans for improvement.
While quality control is an institutional focus, these
efforts are the day-to-day responsibility of the quality
resource department (QRD), which has 10 employees
measuring 8.8 full-time positions: eight registered nurs-
es, one process engineer and one support staff member.
The group is responsible for all public reporting of
performance measures, Joint Commission readiness,
core measure abstraction and reporting, cardiac data-
base management, data mining from statewide admin-
istrative databases, infection control, peer review and
patient safety and privacy.
Scattered data
In 2005, Bellin’s measurement control system had
more than 250 system-level quality indicators. Many of
these indicators were reported at the department level
at varying times (monthly, quarterly or annually).
For example, compliance with the Centers for Dis-
ease Control guidelines on healthcare hand hygiene
was measured across the entire system, at the care
center level—invasive clinical services, heart and vas-
cular services—and at the department level, where
actionable improvement plans could be developed to
address the specific departmental environment.
Although none of the current indicators were mea-
sured at the shift level, the potential existed to do so.
It was also clear to the QRD team that the demand for
 HEALTHCARE

quality and safety informa-

tion from accreditation and
Scoreboard / TABLE 1

certification agencies, as Effectiveness > safety > hand hygiene-MD View=all public
well as the general public, Current SPC
Status Indicator Target Updated
would continue to grow. value alarm
Hand hygiene for BMG-MD 70.4% 90% Dec. 06 T
Hand hygiene for heart and vascular-MD 21.9% 90% Dec. 06 T
A measured response Hand hygiene for invasive clinical services-MD 80.3% 90% Dec. 06 T
Given the size and complexity Hand hygiene for system nursing care-MD 75.2% 90% Dec. 06 T
of the measurement system, Hand hygiene for bond center-MD 85.3% 90% Dec. 06 T
improvement would require Hand hygiene MD: ACD 100% 90% Dec. 06 T
Hand hygiene for business health-MD n/a 90% Dec. 06 T
that reports and feedback be
Hand hygiene for diagnostic services-MD n/a 90% Dec. 06 T
timely, directed to the right
Hand hygiene for family programs-MD n/a 90% Dec. 06 T
audience, readily available
and delivered in a format that
is accessible to a variety of users. • Efficient display of data over the corporate intranet
The paper reporting system in use was neither timely to promote a paperless reporting system.
nor accessible. Indicators were housed in several places Bellin’s key criteria to choose a performance im-
on the organization’s computer network and were not provement solution also included the following speci-
available to all users. In the case of public reporting in- fications:
dicators, it was easier to find information about Bellin on • Reasonable price.
public reporting sites than through its own internal sys- • A user-friendly and aesthetically pleasing inter-
tems. As there was no easy fix for the existing IT infra- face—end users should be able to easily find the
structure to meet these needs, the QRD team proposed a information they need.
redesign of the indicator reporting process through adop- • Availability across the system—Bellin’s initial plan
tion of performance improvement software. looked at using the solution via the organization’s
Bellin Health’s definition of performance improve- intranet, covering a wide geographic area.
ment software included the use of SPC technology as • Real-time display of data.
a method of monitoring processes through the use of • Ability to manage solution with minimal involve-
control charts and providing feedback on processes in ment of information services department.
and out of control. Processes that were out of control
because they exhibited special cause variation needed Bellin Health’s solution
to be detected early or they could adversely affect the The QRD team selected a software solution as the an-
quality of the service or output. swer to its data dilemma. Figure 1 and Tables 1 and
To have an effective performance improvement 2 provide a brief overview of the output using recent
software solution, certain capabilities were required: data from Bellin Health.
• Coordination of data from a variety of sources with- Figure 1 shows the dashboard—a summary of all
out requiring extensive changes to the current IT indicators by group—which provides the total number
systems. of indicators and the distribution of indicators by sta-
• Clear and timely alerts on processes that needed im- tus. Status categories include: meeting or exceeding
provement. the user-defined target level (green); below the user-
• Convenient access to the analysis to make com- defined alarm level (red); between the alarm and tar-
ments and corrective actions and monitor the statis- get levels (yellow); and no target level defined (gray).
tical significance of a change to the process relative Clicking on the chart icon allows the user to drill down
to the desired result. to a scorecard listing individual indicators.
• The ability to drill down in the data to the appro- Table 1 displays the scorecard listing some of the
priate level of analysis and create custom dash- indicators defined within the safety category—a subset
boards and scorecards specific to an individual’s of the effectiveness group listed on the dashboard. The
responsibilities. scorecard lists the status of the indicator, the current

March 2008 • QP 39
 value, the target value, the presence of an SPC alarm Table 2 disaggregates the information about hand
and the date the indicator was last updated. The check- hygiene by department, allowing the reviewer to see
mark in the status section indicates whether the most that performance varied considerably. The application
recent data update has been validated by the assigned also allows the user to display administrative informa-
owner of the indicator. tion about the indicator.
According to the scorecard, hand hygiene for system Bellin Health also required that the data for this
nursing care-MD is below alarm levels, with a score of output be created from the organization’s existing da-
75.2% compared to the target level of 90%. Clicking on tabases, spreadsheets and ancillary information sys-
the name of this indicator allows the user to examine tems, with minimal intervention from the information
the trend by drilling down to the percent chart that in- services department. This open approach to accessing
cludes user comments, as well as the data from which data allowed for use of that data in any location and in
the chart is drawn (Figure 2). any format.
The system provided a straightforward

P chart with comments and data / FIGURE 2

interface for the creation and maintenance
of indicators and, most important, multiple
Hand hygiene for system nursing care-MD
levels of reporting for different users, in-
Department = All
+ cluding senior executives and boards, phy-
Rules tested Summary
100%
sicians, department heads and dedicated
Target
quality staff.
75%
The support of senior management
x was necessary to approve the implemen-
+3 Sigma
Percentage

tation of the new software and critical to

50% 52.8% the success of any redesign of the report-
-3 Sigma ing process. Team leader Colleen O’Brien,
x who also serves as privacy and safety of-
25% ficer, presented a detailed business case
proposal to senior leadership describing
the costs and benefits of implementing the
0%
– solution, as well as a demonstration of the
Jan. 06

Feb. 06

March 06

April 06

May 06

June 06

July 06

Aug. 06

Sept. 06

Oct. 06

Nov. 06

Dec. 06

software.
The recommendation was adopted in
Period August 2005, after which O’Brien noted:
“The senior leaders have made this hap-
Comment Action Plan pen; they embraced it from the start and
Sept. 06 All departments required to monitor. are the No. 1 group clamoring for more
June 06 Identified as a system priority. indicators to be loaded. The need for easy
Period Num Den Percent and understandable information is a driv-
Jan. 06 58 172 33.7% ing force.”
Feb. 06 93 165 56.4%
March 06 77 125 61.6%
April 06 74 129 57.4% Putting the program into play
May 06 61 132 46.2%
In October 2005, the dashboard, scorecard
June 06 68 177 38.4%
July 06 49 120 40.8% and trend output solutions were installed
Aug. 06 48 132 36.4% on a Bellin web server, and key users were
Sept. 06 114 179 63.7%
Oct. 06 84 129 65.1% trained.
Nov. 06 74 114 64.9% This was a three-day process that includ-
Dec. 06 103 137 75.2%
ed installation of the software, training for
Note: The numerator (num) is equal to the number of hand hygiene monitors that met criteria. system administrators and configuration of
The denominator (den) equals the number of opportunities to meet hand hygiene criteria. the system for the Bellin site on the first day.

40 QP • www.qualityprogress.com
 HEALTHCARE

The next two days involved training the staff responsi-

ble for indicator administration, orientation for content
Comparison bar chart / TABLE 2
experts who would be responsible for maintaining and Avg = 75.2% Bar compare

validating indicators, and demonstrating the system for Hand hygiene for system nursing care-MD
Dec. 06 +
users.
100%
Eight people were trained at the time of installation, Target
including two network specialists from the information
75%
services group who had a limited part in the training

g
sessions but were focused on the server and making
50% Department: Surgical
the program work throughout the entire system. Other
Num: 8
trainees learned specifically about the program itself, Den: 21
25%
as they would be the primary administrators or users Percentage: 38.1

ED N/A

Rehab N/A
of the software.
“As with any new product in any organization, the 0%
–

ACD

Cardiac

Medical

OB/Nursery

Ortho

Pediatrics

Surgical
issues we faced centered around the ability to get our
arms around the solution,” O’Brien said. “The biggest
obstacle we faced was how to create the tree struc-
ture, how to lay out the indicators. We needed to create Department
an org chart for our indicators. We overcame this by
Periodic observation monitor—10 observations per
weighing out samples of indicators from several dif-
month per shift per Bellin Pychiatric Center, Bellin
ferent areas and making changes to the tree structure Definition
Memorial Hospital nursing units and every clinic 10
until we were happy with the final result.” observations every month.

Within three weeks of training, O’Brien was demon- Methods

strating the system at the quarterly leadership meet-
ing, and within three months, all initial system-level
indicators (approximately 350) were entered into the
system.
The QRD team took responsibility for administration
of the software solution. O’Brien conducted 30-minute,
one-on-one meetings with all mid-level clinical manag-
ers, directors, senior leaders and the president of the
corporation.
The QRD team also distributed a needs assess-
ment instrument to system users that listed features
of the software and asked them whether they wanted
to learn more about how to use the feature. O’Brien
or members of her staff followed up with each re-
spondent who requested more information and pro-
vided them with one-on-one training on easier ways
to use the system. These meetings also provided an
opportunity to reinforce the importance of using per-
formance improvement analysis as part of everyone’s
daily work.
In addition, the QRD team developed naming con-
ventions, rules for user setup, submission criteria and
definitions of roles and responsibilities to ensure con-
sistent use by the 150-plus staff members with admin-
istrative responsibility for one or more indicators. The
Executive sponsor—Jody Wilment
Physician champion—Dr. Dale Davis
Owners
Operational owner—Carol Bess
QRC contact—Sue Massart
Num = 0 and Den = 20 in a department report
Notes
indicates no monitors received in quality resource.
web solution made it easier to update and distribute
the data.
As O’Brien noted: “We would never have been able
to produce more than 1,300 indicators if we were
still in the Excel graph-making business. Because
the software allows for automation, as soon as a data
source is updated, the corresponding indicators are
also updated.
“Also, using the validation component, we can see
that the party accountable for a particular indicator
is verifying the validity of incoming data.”
It was also easier to create more complex presen-
tations of information. In the past, SPC charts rep-
resented less than 10% of the charts produced; they
now represent over 90%. Christopher Watson, M.D.,
chief medical officer at Bellin Health, highlighted the
benefit of this capability: “The display of data in SPC

March 2008 • QP 41
 chart format is particularly helpful to us in quickly
distinguishing between normal and special cause
variation.”
Serving a practical purpose
Since November 2005, performance improvement re-
ports have become part of every quarterly leadership
meeting, every patient safety steering committee, ev-
ery leadership report, numerous committee and de-
partment meetings, and leadership updates.
O’Brien summarized the acceptance of continuous
quality improvement (CQI) and the redesigned reporting
process: “I can’t begin to tell you how many meetings we
use the CQI reports at; it is just how we do it here.”
For example, every 120 days there is a performance
plan review. At these meetings, several processes are se-
lected for review. For each process, the executive spon-
sor or operational owner defines the indicator and the
reasons for its selection. Team members are identified,
as well as the actions they took to improve the process.
The team then presents charts to illustrate measure-
ment on key issues and discusses what the data are
demonstrating and the next steps for the workgroup.
One of the reasons for redesigning the quality report-
BELLIN HEALTH AT A GLANCE
Bellin Health System based in Green Bay, WI, serves 450,000 people in
northeastern Wisconsin and the Upper Peninsula of Michigan. Evolving from
a 15-bed general hospital founded by Julius Bellin, M.D., in 1907, it is now
comprised of:
• Bellin Memorial Hospital, a 167-bed multispecialty hospital.
• Bellin Psychiatric Center, a 54-bed hospital providing inpatient and outpa-
tient mental health services.
• The Bellin Medical Group of primary care, internal medicine and pediatric
physicians and mid-level providers practicing at 20 clinics throughout the
region.
• Bellin College of Nursing.
• The Bellin Foundation, the fundraising arm that supports initiatives of the
system.
• Lake Michigan Health Services, the parent corporation of several taxable
entities that include retail pharmacies, magnetic resonance imaging,
the rental and sale of durable medical equipment and managed care
contracting. In addition, independent specialty physicians provide
coordinated care through Physicians Partners Ltd., a physician-hospital
organization.
42 QP • www.qualityprogress.com
ing process was to prepare Bellin Health for increasing
demands from accrediting and credentialing agencies.
In 2006, that foresight was validated with the change in
the Joint Commission’s policy for on-site surveys. Start-
ing in January 2006, organizations no longer received
advanced notice of on-site surveys. Organizations had
to be ready at any time, so quality improvement efforts
needed to be an integral part of organizational life.
In November, the Joint Commission conducted an
unannounced survey of Bellin Health Psychiatric Center.
At that time, the center had been using CQI reporting
for less than a year but was prepared to use the tool in
support of the survey. The three-day visit began with an
overview of the center’s operations and provided infor-
mation on the structure of the organization, the patient
population served and the quality improvement frame-
work under which the center operated.
After this brief introduction, Linda Roethle, presi-
dent of Bellin Health Psychiatric Center, accessed the
software solution through Bellin’s corporate intranet
and began showing the survey team the current status
of the center’s quality initiatives. She was able to show
in real time how staff at the center implemented qual-
ity performance plans in its daily work.
“This presentation grounded the whole sur-
vey process,” Roethle said. “The survey team
made reference to the information every day of
the three-day visit. It was clear that our quality
improvement activities were how we did things
here and not just a dog-and-pony show prepared
for their benefit.”
In January 2007, Bellin Hospital had a similar
experience with its Joint Commission survey.
“We used our CQI solution to show the surveyors
how we track our data and performance improve-
ment,” Watson recalled. “Because we continually
update and validate our data, we could show the
Joint Commission our work and be confident that
the correct, most current version was being used.
It was clear that we make our performance data
widely and openly available.”
The benefits of accountability
There is a great demand for accountability via
hard data, not fuzzy opinions. Existing processes
must be examined and new ones discovered. The
good news is that improved quality inherently
lowers costs as it provides better service.

SPC provides accountability and is an essential ingre-
dient in the quality effort, not just an abstract theoretical
exercise for mathematicians. It is a hands-on endeavor
by people who care about their work and strive to im-
prove themselves and their productivity every day.
CQI charts are a tool to assist in the management of
this endeavor. The decisions about what needs to be
improved, the possible methods to improve it and the
steps to take after getting results from the charts are
made by all members of the organization and are based
on wisdom and experience.
Bellin Health continues to grow in size and com-
plexity, including the incorporation of additional mea-
sures and an increase in the automation of data collec-
tion through greater use of organizational databases.
Bellin Health is revising performance measures to
reflect updated mission, vision and strategic objective
statements that will require reorganization of the data
to align to the new strategic objectives.
HEALTHCARE
As Watson, Bellin Health’s chief medical officer,
points out, “Performance improvement is not a desti-
nation; rather (it is) a continuing journey.”
REFERENCES
1. Peter Knox, The Business of Health Care, Print Source Plus Inc., 2000, p. 4.
2. Ibid.
3. Gerald J. Langley, Kevin M. Nolan, Thomas W. Nolan, Clifford L. Norman and
Lloyd P. Provost, The Improvement Guide: A Practical Approach to Enhancing
Organizational Performance, Jossey-Bass Publishers, 1996.
BIBLIOGRAPHY
Marilyn K. Hart and Robert F. Hart, Statistical Process Control for Health Care,
Wadsworth Group, 2002.
COLLEEN O’BRIEN is a team leader in the quality
resource center of Bellin Health. She received her
master’s degree in nursing from Marquette University
in Milwaukee and a master’s in medical informatics
from the Milwaukee School of Engineering. She is a
member of ASQ.
SUSAN JENNINGS is a self-employed consultant based in West Hills, CA. She
earned a doctorate in sociology from Boston University.
March 2008 • QP 43
A Gold
Medal
Solutio
Boeing team uses quality to create
In 50 Words
Or Less
• Boeing’s C-17 stuffed tailcone team took home
a prize for eradicating unsafe working condi-
tions.
• The team used quality tools and methods to
choose the project and determine potential
solutions.
• The final solution eliminated safety hazards
and reduced budget hours by more than 300%.
 TEAMS

by Nicole Adrian,
contributing editor

n
a safer working environment
BY USING QUALITY tools, a team from Boeing came up with solu-
tions that eliminated the unsafe conditions that occurred during installation of
the details in aircrafts’ tailcones. The team also initiated process improvements
with positive results in areas of quality, cost and schedule with direct impact
on organizational goals.
Internal and external stakeholders were involved to review the current
situation and come up with possible root causes and potential solutions.

March 2008 • QP 45
 The work of the Boeing C-17
Stuffed Tailcone team—Matt Cor-
What is a tailcone?
rea, Daniel Munoz, Matt Swan,
Mark Adams and Teri Garten—
earned it a first place finish in the
2007 International Team Excel-
lence Competition, sponsored by
ASQ’s Team and Workplace Excel-
lence Forum. The team presenta-
tions are judged annually at ASQ’s
World Conference on Quality and
Improvement.
The project was carried out
because of the production team’s
concern about the hazards involved
when installing the interior details
of the tailcone. The installation
work area was roughly 20 feet off
the ground, making access difficult
and cramped, and lacked the proper
work stands and ladders. THE C-17 TAILCONE is located at the aft end of the aircraft and houses many
The C-17 tailcone is located components installed at the Boeing facility. Together, they make up the “stuffed”
tailcone.
at the aft end of the aircraft and
houses numerous components—
including manufactured parts, fasteners and wiring— Performance metrics would be affected more after
installed at the Boeing facility (photo and drawing). lean was incorporated, so the team focused its attention
The project and concerns were not taken lightly, as on the four categories that had a direct effect on root
personal safety was ranked lowest during Boeing’s causes by solving safety issues during lean implementa-
yearly employee survey. tion (methods, environment, manpower and machines).
Additionally, the production team’s performance
wasn’t meeting its organizational goals—including Involving stakeholders
quality, timeliness, efficiency and cycle time—for con- Both internal and external stakeholders were in-
tinuous improvement. volved throughout the project. Internal stakeholders
One benefit of choosing this project was that it had included those from in-plant manufacturing, safety,
a low cost of implementation, could be done quickly, and production control and the support personnel
aligned with key strategies and organizational goals— associated with the manufacturing team. The exter-
including being a global leader in safety, having the nal stakeholders were corporate employees, the De-
highest quality, reducing span time, having efficient partment of Defense, supplier management and the
use of assets, providing lower costs and incorporating tailcone supplier.
lean principles—and had a greater opportunity for big- The stakeholders began by value stream mapping
ger return. the current process. Each group provided feedback
The goals of the project (Table 1) were to: and analysis data on how the project would affect
• Eliminate hazardous environments. them. The mechanics provided the initial direction of
• Adopt a lean culture. the project. Production control provided start-up fig-
• Have a 10% increase in quality. ures for part availability and acquisition. Support per-
• Lower budgeted hours by more than 30%. sonnel in engineering, quality and facilities provided
• Reduce cycle time. cost and time analysis concerning tooling revisions,
• Cut span time by two days. risk assessment and work area upgrades.

46 QP • www.qualityprogress.com
 TEAMS

The impact on the goals and measures includ-

ed reducing potential mechanic injuries and lost
Project impact on each goal/
man-hours. The affected organizational goals and performance measure / TABLE 1
performance metrics, as well as the affected key
strategies of the project, included: Project impact matrix

• Making efficient use of company assets. Type of impact Organizational goals Project goals
• Providing first-time quality. Eliminate hazards Human Eliminate
• Lowering overall costs. Reduce defects Quality hazardous
environment
• Reducing installation time. Incorporate lean principles Efficiency
Adopt lean
• Increasing chance to be a global leader in safety. Eliminate wasted efforts Cost culture
• Implementing lean into products and processes. Parts delivered on time Span time 10% increase in
By having the team involved throughout the en- quality (repair/
Key Strategies
tire decision making process, the team enhanced rework)
Safety Safety
the company goal of adopting a lean culture for op- To lower
Lean Lean budgeted hours
timizing company assets and team empowerment.
Performance Metrics by >30%
Waste reduction and increased process efficiency
positively impacted the goals and performance Reduce defects Quality Cycle time
(performance—no
metrics for efficiency, quality, cycle time and time- Incorporate lean principles Efficiency
open items)
liness as lean was introduced. Stakeholders were Eliminate excess processes Cycle time
To reduce span
interviewed and surveyed to ensure continuous Parts delivered on time Timeliness time by two days
project health at specific intervals. Work-around
plans were created to ensure critical paths went
unblocked during implementation. the tailcone (Figure 1, p. 48). These included:
The stuffed tailcone team created a “war room” for 5S+1: Employed sorting, simplifying, sweeping,
regular meetings, which allowed the team members to standardizing, self-discipline and safety as the founda-
facilitate discussions and action items. They used soft- tion to lean implementation.
ware that provided real-time feedback on the project’s Value stream mapping: Used as a visual tool for
budget and timeliness. Team members had access to understanding the flow of material and information re-
a central computer server, where all project informa- garding the tailcone installation.
tion could be found and updated in real-time, ensuring Cause and effect diagrams: Identified root causes
accurate accountability for all action items and mile- of safety and performance issues.
stone achievements. Trend analysis: Used to review the performance
The potential impact on each stakeholder varied by metrics to identify inefficiencies within the process.
the specific needs and predefined requirements. Each Through the value stream map of the current situ-
stakeholder listed the impact on his or her field through ation, the team found that inefficient planning caused
brainstorming, stakeholder surveys and reviews that assembly errors and inaccurate cycle times, late de-
provided definitive direction to next level attributes. liveries from the supplier caused schedule delays,
The degree of impact on the existing tailcone supplier and incorrect engineering impacted cost and quality.
was rated very high because of the extreme variation Team members brainstormed trend analysis and value
in potentional revenues due to work scope and imple- stream data, then used the 5 Whys to create a cause
mentation costs. It was also high for the mechanics and effect diagram illustrating potential root causes
due to the positive morale from resolving their safety associated with safety and low performance. The dia-
issues and knowing their performance metrics would gram provided obvious and unforeseen causes.
be positively affected. The obvious root causes included inadequate facili-
ties, cramped spaces, not enough allocated hours and
Reviewing the current situation too much rework to finish on time. The unforeseen root
Team members used quality tools and methods to iden- causes included poor ergonomics, not enough mechan-
tify root causes of the unsafe conditions surrounding ics, poor planning sequencing and a lack of floor space.

March 2008 • QP 47
 Analysis of data to identify potential The group also researched internet

root causes / FIGURE 1 articles and lean manufacturing publi-

cations to identify best practices and
lessons learned. Some team members
Measurement Materials Methods attended lean conferences and train-
ing seminars, and others used value
Time Crane stream mapping to simulate potential
La

Excessive rework Hard to drill solution validation. Brainstorming

Drilling
te

Late completion was conducted to optimize subject-

mo

Ca

Ha

Ac
matter expertise.
ve

rbo
Ac

nd

ce
me
ce

ss
nfi
The team analyzed the data to de-

dri
ss

nt

lls
be

velop solutions by aligning them with

r

Hazardous root causes. The criteria used for se-

Drilling
Accessibility lecting the final solution came from the
Mechanics

w
six project goals. The team agreed that
No ladder Slo
h

Hand drills
few
hig

the criteria for solution selection would

e
ive
im

Ergonomics
o

o
ns

To

mirror the project goals: span time,

To
gt

pe

ss
vin

cycle time, efficiency, quality, adopting

Ex

ce

Floor space Cramped space

Mo

Ac

a lean culture and safety.

Environment Manpower Machines
The team then used brainstorming, cause and ef-
fect diagrams and the 5 Whys to identify the final root
causes. The final root causes pertaining to the unsafe
conditions included:
• New ladders/scaffolding were too expensive.
• Too few mechanics.
• Use of hand drills.
• Mechanic restrictions.
• Planned process.
• Lack of floor space.
• Cramped spaces.
To validate the list of final root causes, the mechanic
stakeholders were surveyed to see whether the list ad-
dressed their needs. The entire team then revisited the
current process by conducting a walk-through to verify
the root causes, allowing the team to check them off
the list.
Solving the problem
Team members used numerous tools and methods to
come up with potential solutions to the safety issues
surrounding the tailcone installation. The team bench-
marked other successful company projects with simi-
lar requirements by reviewing documentation and in-
terviewing team members.
To select the final solution, the
team brainstormed to give stakehold-
ers an opportunity for direct input,
a vital part of minimizing resistance.
Stakeholders participated in a walk-through of the
new process to validate the solution, optimizing the
view of all advantages they could expect. Lastly, lean
value stream mapping was conducted by putting the
potential solutions into the existing process, allowing
the team to evaluate its ability to meet all goals and
strategies.
Three final solution candidates were considered:
move installation to the tailcone supplier, install the
parts in a workbench area, or move the installation
later in the build cycle.
Each solution was inserted into the value stream
map, allowing support stakeholders to determine more
precise cost factors and differences in span time.
Ultimately, detail installation was moved to the sup-
plier because it met project goals by reducing:
• Man hours by 38.
• Budget hours by more than 30%.
• Inventory by more than 400 parts.
• Span time by two full days.
• Safety hazards.
The final decision also improved the efficiency of the
in-house process.
The team validated the solution by inserting the
new processes into the existing value stream map.

48 QP • www.qualityprogress.com
 TEAMS

Then, support personnel from the project team ran

computer simulations on mechanic access for safety
related purposes. Stakeholder team members partici-
pated in a simulated walk-through of the new process
on the production floor. Support personnel generated
new cycle time and cost reduction data.

Business case
To justify this solution, a business case was put to-
gether, itemizing the expected tangible and intangible
benefits of the project:
• Lower injury risk factors.
• Positive employee morale.
• Financial and schedule benefits.
• Return on investment of more than 4.5 to 1—50% THE STUFFED TAILCONE team members at ASQ’s World Con-
above the organizational requirement for project ference were (back row, from left) Matt Correa, Daniel Munoz,
Matt Swan, (front, from left) Mark Adams and Teri Garten.
implementation.
Stakeholders were involved in the implementation
process before and during installation. Prior to installa- situation and made recommendations for change. All
tion, mechanics helped support personnel with the new stakeholders attended daily meetings to discuss success-
build sequence and manpower usage. Supplier manage- es, issues and change requirements.
ment issued contracts and mitigated supplier issues. Dur- Some stakeholder resistance to the final solution
ing installation, stakeholders verified contractual compli- was identified in meetings, stakeholder surveys and
ance. They installed the tailcone, reviewed the current one-on-one interviews. Some were fearful of losing

AN INSIDER’S VIEW
We were eager with anticipation as we headed into the room
where we would compete. As the room began to fill with
observers and judges, I thought to myself, “This is our moment.”
My job was to run the presentation, and one by one, Mark
Adams, Matt Swan, Matt Correa and Teri Garten delivered each
portion of our presentation.
Afterward, I thought to myself, “Flawless! Great job, team!”
After the question-and-answer session, I remember thinking,
“It’s over. It’s in the judges’ hands.” We left the room knowing
we had done our best.
The morning of the results, all teams were on edge. Emo-
tions tugged and pulled at us from all sides. We’d been riding
the emotional roller coaster for three days. Now, it was peaking.
They began calling out the winners. First, the bronze went to
the CSX team, then the three-way tie for the silver went to Boe-
ing’s OBIGGS and Safety teams, and the ScanIt Team.
Watching the Boeing teams receive their awards brought a
great feeling of pride for the company we work for, but it also
brought a momentary feeling of going home empty-handed. We
looked at each other, smiled, lowered our heads and held our
breath. “The 2007 ASQ International Team Excellence Gold win-
ning team is … the C-17 …”
That was all we needed to hear to know we had just won
the biggest prize in the quality team competition. By the time
they had finished announcing us, we were on our feet and
headed to the stage.
The five-hour flight home was the best I’ve ever had. My
emotions were constantly up and down, but this time there
was no anxiety or stress—only the occasional smile as I
reminisced about the events of the past few days. I don’t
doubt the rest of the team had similar thoughts during their
flights home.
Far from the accolades and congratulations, I take from this
experience a renewed desire to achieve even higher levels of
quality in the projects I am a part of at Boeing. I understand
more about the essence of using quality tools, how they help to
define direction and substance in managing a project, and how
to better prepare a team for future competitions.
—Daniel Munoz,
presentation driver for the Boeing C-17 stuffed tailcone team

March 2008 • QP 49
 The team validated the solution by
inserting the new process into the existing
value stream map.
their jobs, having to change, learning new processes or
not being listened to or taken seriously. The concerns
were addressed during interviews. Statistical data re-
garding manpower was provided as a positive re-en-
forcement to project expectations and intentions.
Plans to implement the solution included:
• The completion of all supporting documentation by
support staff, suppliers and supplier management.
• Training for mechanic, supplier and support team
members.
• Project readiness review to assess the current situ-
ation, resource allocation and contingency plans by
all stakeholders.
• Installation of the tailcone details by mechanics.
• The analysis of results by safety and support.
• Acquiring customer feedback for continuous im-
provement from production, supplier, safety and
support team members.
• A project schedule and action tracker for strategic
alignment of events, deliverables and major mile-
stones, itemized needs and issues, and dates.
A system was created and installed to measure and
sustain results. The system captures actual data, in-
cluding hours worked, rework and repair hours. The
actual data is then levied against predetermined expec-
tations, charted and made available for daily review. If
the system detects negative trends, the C-17 program’s
process based management system issues an automat-
ed corrective and preventive action plan to the process
owner and requires immediate action to rectify the
situation. This helps sustain results by driving the situ-
ation back through the continuous improvement loop
until the trend is positively effected.
READ MORE TEAM COMPETITION ARTICLES
Look for case studies on other winning projects from the 2007
International Team Competition in future issues of QP and on www.
qualityprogress.com.
50 QP • www.qualityprogress.com
Seeing results
Numerous tangible and intangible results were
realized:
• An overall reduction of 66 man-hours per aircraft.
• A two-day reduction in span time.
• A return on investment greater than 4.5 to 1.
• A savings of more than $900,000 over the life of the
program.
• Greater employee morale, evident in positive atti-
tudes during regular team meetings.
• Greater customer satisfaction as identified by cus-
tomer surveys.
• A higher degree of employee trust, evident in regu-
lar team meetings between production and support
personnel.
• Employee satisfaction of 100% in having a safe work
environment as indicated by the yearly employee
survey.
Key strategies of global leadership in safety and
applying lean principles were positively impacted
when the work was moved to the supplier. This ac-
tion completely eliminated the safety issue and re-
moved wasted efforts associated with the hazardous
work environment. Having the supplier install details
increased quality, because access was easier and less
hazardous. Span time decreased as wasted efforts
were removed from the process. Efficiency and cycle
time increased as safety was enhanced, access issues
were removed, and determinant assembly methods
were incorporated.
The team had direct, one-on-one interaction for
feedback during shop floor walk-throughs. Combined
with statistical data, this helped reinforce positive at-
titudes, ownership in the process and a continuous
improvement environment. Periodic surveys were
conducted to assess satisfaction with project results
and to verify that all stakeholders received the results
communication. Effective teamwork and communica-
tion ensured the project’s success.
QUALITY IN THE FIRST PERSON
Value of Certification
Pursuit of knowledge elevates one man’s career opportunities
IN 1986, I began my career as an engineer in
the research and development function of a
large global chemical company. Eight years
later, I took a job with a plastic products
company as a senior process development
engineer. Throughout this time, I received ex-
cellent on-the-job and external training that
gave me a feel for quality thinking. However,
I was unaware of careers in the quality field,
despite an increasing use of quality tools.
In 1998, I heard about ASQ’s certified
quality engineer (CQE) exam. Finding out
about the exam was one of the most signifi-
cant events of my career. I embraced cer-
tification wholeheartedly, passing the CQE
and certified reliability engineer (CRE) ex-
ams in 1999 and 2000, respectively.
Becoming a volunteer
Shortly after earning the CQE certification, I
was invited to participate at ASQ exam de-
velopment workshops in Milwaukee. I have
been an ASQ volunteer ever since. The work-
shops have been excellent experiences, as
peers from various industries and geograph-
ic locations come together to form a team for
a few days. The opportunity to apply critical
thinking and to consider every conceivable
point of view has been important to my pro-
fessional career. The team environment also
taught me humility and patience.
My company thoroughly supported my
certifications and exam development activi-
ties, and I began to more systematically and
intentionally use quality, facilitation and sta-
tistical tools. The results were satisfying, as I
had the opportunity to be involved with com-
panywide statistical process control imple-
SHARE YOUR JOURNEY
If you have an interesting quality story to tell, consider submitting it for this
column. E-mail your article to editor@asq.org and share your journey.
mentation and problem solving training.
In 2001, with aspirations for management,
I studied and passed the certified manager of
quality/organizational excellence exam. This
exam added knowledge and skills related to
leadership, management and quality systems
to my toolbox. Then, in 2002, I acquired a
Six Sigma Black Belt. With Six Sigma knowl-
edge, I was fortunate enough to complete
many visible projects demonstrating yield,
productivity and quality improvements.
In 2003, I had the opportunity to be-
come the exam chair for the CRE exam
and joined the ASQ Certification Board. In
addition, with certifications and growing
professional experience, I was upgraded
to ASQ’s senior membership. Achieving
the distinction of ASQ fellow has also en-
tered my mind and now seems attainable,
although still extremely challenging.
Board experience
The Certification Board experience has
greatly benefitted my career. I have had an
opportunity to participate on a diverse, re-
mote, cross functional team consisting of
bright and motivated individuals. The strate-
gic planning and leadership techniques could
be applied directly to my job, which has
provided an edge over those without compa-
rable experience. The firsthand exposure to
the exam development process also opened
doors to give lectures, enhancing my expo-
sure, network and presentation skills.
To complete the set of certification ex-
ams that were directly relevant to my job, I
obtained the certified quality auditor (CQA)
designation in 2004. By that time, I had been
BY SCOTT A. LAMAN
performing supplier and internal quality au-
dits, and the CQA certification allowed me to
put my arms around the body of knowledge
I was practicing. Also, the exam filled in gaps
where I lacked direct experience.
On the Certification Board, I had the op-
portunity to become new exam chair in
2005, immediately following my term as CRE
exam chair. The new exam chair position has
allowed me to be involved with many inter-
esting groups that were in the process of pro-
posing and developing ideas for new exams.
I thus became an advocate for several groups
who were sponsoring exams. There was an
opportunity to learn and apply salesman-
ship skills and to interact productively with
diverse people.
Having the qualifications
In 2005, I began work at a medical device
company. The job change was facilitated by
my certifications, as the advertisement to
which I responded stated, “ASQ certification
and Six Sigma training/knowledge preferred.”
I accepted the senior quality engineer position
and was immediately able to use knowledge
from each certification. The circumstances
ultimately led to a management position.
The benefits of certification continue to
be important. My organization has just come
under new ownership, and the certifications
have increased my value in reorganizations.
For all these reasons, it is difficult to overes-
timate the value of certification. It would be
wonderful to continue as a volunteer and ad-
vocate of quality, and give back to ASQ some
of the benefits I have received.
SCOTT A. LAMAN is the manager of
new product development quality
engineering for Teleflex Medical in
Reading, PA. He earned a master’s
degree in chemical engineering from
Syracuse University. Laman is a senior
member of ASQ.
March 2008 • QP 51
 MEASURE FOR MEASURE
A Feather in Your QAP
Quality assurance program is essential to process improvement
ONE OF THE MOST important func-
tions in a calibration laboratory is the
quality assurance program (QAP), which
is crucial in creating a culture where
technicians buy into using process im-
provement to produce a quality product
that maintains traceability to national
standards.
The philosophy of the QAP should be
an improvement based system instead of
a compliance based system. Rather than
just pointing out what does not comply
with directives, one should perform
effective root cause analysis (RCA) to im-
prove the process and prevent recurring
nonconformities.
To change the culture of the work-
place and the mind-set of the workforce,
the entire leadership team must be
dedicated to the cause. It can be difficult
to transform a QAP, especially if the
current environment has a “black hat”
mentality—where the QAP is seen as the
police—but the benefits are well worth
the extra effort.
The first step in establishing an im-
provement based system is to embrace
an improvement minded philosophy and
the principles that guide the program on a
day-to-day basis. Next, management will
need to establish a process to sample the
equipment for review based on the experi-
ence and competency of the workforce.
Then, leadership must choose the right
people to manage the QAP and perform
inspections.
After that, concentrate on conducting
effective analysis of nonconformities to
reach the true root cause and apply ef-
fective corrective action. Finally, analyze
the collected data to identify trends and
make improvements to processes in the
52 QP • www.qualityprogress.com
BY CRAIG A. NIEMANN
calibration laboratory. To make systematic
improvements based on data analysis,
however, management must commit to the
philosophy of the program.
While compliance with specifica-
tions is one way to identify areas for
improvement, this is only the first step
in an improvement based system. A
compliance-oriented system will discover
the nonconforming condition and have
the technician align the item to bring it
within tolerance. An improvement based
system does not stop when an item reads
out of tolerance during a calibration;
instead, it asks why.
An improvement based QAP is also a
process focused approach instead of a
technician focused approach. The indi-
vidual technician plays a large—but not
the only—part in the calibration process.
Ultimately, QAP personnel evaluate the
overall laboratory processes for the ability
to produce an item that is traceable to
national standards.
Some technicians have a hard time
adjusting to the process based approach,
especially if the previous QAP wore the
“black hat.” An emphasis on process
improvement in all aspects of the QAP will
help ease the transition.
Nothing but the truth
In addition to the process focus, manage-
ment must establish a consistent and
honest environment to help technicians
adapt and buy into an improvement
based program.
Along those lines, the QAP should
make every attempt to deal with similar
nonconformities in a straightforward fash-
ion. Failure to do this adds another barrier
because the technicians will feel singled
out by identifying a nonconformity in one
instance but not another.
It is acceptable for the QAP to depart
from how it has handled a situation in the
past, but it must make all personnel aware
of the new standard or practice. This is
where honesty becomes crucial.
“ An improvement based
system does not stop when
an item reads out of toler-
ance during a calibration;
”
instead, it asks why.
There should never be a situation
where the QAP has a secret because the
interpretation will be that the QAP is
setting up individuals for failure. The con-
sistent, honest, process focused approach
should remain constant throughout;
however, there are a few administrative
guidelines of the QAP that might vary
based on the workforce.
Open or closed?
Day-to-day operations should change
based on the workforce. One issue is an
open versus closed system for end-of-line
sampling. In an open system, the techni-
cian can identify the items selected for
review. In contrast, a closed system masks
this data from the technician.
The open system prevents a bottle-
neck of equipment in the QAP because it
allows for segregation of items selected
for inspection. On the other hand, it
leaves open the possibility of techni-
cians double-checking the items selected
for inspection. A more experienced and
trusted workforce can operate very well
in an open system, whereas a closed
The primary focus of the QAP
should be on the bigger issues.
system usually works better for a newer
workforce.
Management will also need to decide
on the sampling criteria for equipment.
This includes the sample rate of equip-
ment and how it is adjusted.
There are two ways to determine the
sampling rate—either by examining the
laboratory as a whole or each individual
member. The individual approach makes
it easier for management to quantify poor
individual performance but tends to detract
from the process focus of the QAP. With an
effective and flexible program, it is possible
to make a hybrid of the sampling rates.
The laboratory approach can have an
overall rate, as well as other adjustable
rates based on nonconformity trends. This
enables management to target an overall
calibration area or even a specific part
number.
The purpose of targeting individual
areas, technicians or part numbers must
only be to collect additional data to verify
a theory or monitor the effectiveness of a
recent corrective action. Otherwise, the
technicians might feel unnecessarily tar-
geted, and it could hamper efforts to have
individuals buy into the program.
A consistent, honest and process based
approach will go a long way to prevent the
individuals from feeling targeted.
Don’t sweat the small stuff
Another factor that will change over time
is how much focus is on the big problems
versus the little ones.
GET WITH THE PROGRAM
Share your experiences setting up or working within the confines of a quality
assurance program on the QP Discussion Board at www.qualityprogress.com,
or e-mail them to editor@asq.org.
One of the byproducts of an improve-
ment based system is that as the amount
of major nonconformities is reduced, the
QAP naturally tries to correct the less
significant nonconformities. Approach
this carefully, because as the focus on
the minor nonconformities increases,
technicians can lose the true focus of the
calibration laboratory.
For example, the laboratory finds a
few problems with the verification of
the proper fuse size in the calibration
equipment. To correct the problems,
management elects to brief and train
technicians on what data to use to verify
the fuse.
If this is emphasized too strongly, the
technician might get too concerned about
the minor point of using correct data to
look up a fuse size and miss the fact that
one of the standards used during the cali-
bration is past the due date.
This is not to say management should
ignore the small issues. However, the
primary focus of the QAP should be on
the bigger ones—the traceability and ac-
curacy of the equipment.
This is not to say management should
ignore the small issues. However, the
primary focus of the QAP should be on
the bigger ones—the traceability and ac-
curacy of the equipment.
Accomplishing all of these steps will
set the foundation for transition to an
improvement based system. The next step
is to pick the right people to manage the
program and perform reviews.
This means selecting personnel who
have technical credibility. The techni-
cians must trust that the people review-
ing their work are competent to perform
the task.
One of the easiest ways to ensure
that people are of the highest caliber is
to select the top technicians to work as
part of the QAP. It is a difficult decision
to move a few of the most productive
and technically competent people off the
bench, but it is the first building block of
a solid QAP.
Although they are being moved to
different sections, they are still part of
the organization and available to train
others on the difficult tasks. This has the
added benefit of allowing others to fill
the void and increase their own knowl-
edge level while maintaining a local
safety net.
Management must also consider the
temperament of the personnel perform-
ing reviews. Process improvement
becomes much more difficult in an
adversarial environment. Most techni-
cians take great pride in their work, and
informing them of a nonconformance can
be difficult.
This is why the technicians selected
for the QAP must be even-keeled. The mo-
ment technicians notice that the reviewer
is happy to discover a nonconformity, a
lot of credibility and cooperation needed
during RCA may be lost.
Accomplishing these steps will put
a laboratory on the road to an improve-
ment based system. Two other compo-
nents of a successful QAP—RCA and
trend analysis—will be addressed in a
later column.
CRAIG A. NIEMANN is a Senior Master
Sergeant with the U.S. Air Force
stationed in Heath, OH, and has
served as a quality process evaluator
and quality program manager. He
received his associate’s degree from
the Community College of the Air
Force in 1997. Niemann is a senior
member of ASQ and a certified calibration technician.
March 2008 • QP 53
 CAREER CORNER
Company of One
New book offers practical tips on career management
FOR ABOUT 20 years, I’ve surveyed books
on careers. A great selection was published
in 2007, but I’ll now focus on one of the best:
You, Inc.: The Art of Selling Yourself by
Harry Beckwith and Christine Beckwith.1
The title gives away the overarching
theme. You are a company. You are responsi-
ble for your life and career success. Period.
When Tom Peters proposed treating
yourself as a brand in his Brand You books
several years ago, it was considered radi-
2
cal. Now, it’s conventional wisdom.
You, Inc. takes the idea to the next
stage—career management 2.0. The
authors offer practical tips for career and
life management success. Most tips are
commonsensical, such as “life is a sale,
find your story and tell it well,” and “set
goals not because they will help you reach
them, but because they will teach you.”
The real power of the book, however,
is in the details and stories of how to inter-
nalize and execute these practical tips.
Vocation and avocation
An avocation is “something a person does in
addition to a principal occupation, espe-
3
cially for pleasure; hobby.” There seem to
be two types of career books. One type of
book basically says you should find your
passion and then follow it. These books
do well in terms of helping you find your
avocation—what you want to do. The chal-
lenge is that there might not be a market for
your avocation.
Another type of career book lists tools
and techniques that will improve perfor-
mance once you have a job. I call these
vocation books. A vocation is “a particular
occupation, business, profession or call-
ing” or “a strong impulse or inclination
to follow a particular activity or career.”4
54 QP • www.qualityprogress.com
BY GREG HUTCHINS
I like these two definitions of vocation
because they blend what a person likes
to do with what pays well. And, that’s the
strength of You, Inc.
You, Inc. recommends finding your
vocation along with your avocation. You
can think of it as old-school advice mixed
with new-school attitude. For example, my
dad’s advice was to follow your passion but
have a solid day job. I didn’t understand the
advice for a number of years and dismissed
it. Also, there were no books I could turn to
that provided real-life stories.
I thought technical skills, along with
the right effort, would be the keys to my
career success. That was partially right.
Technical skills opened doors and got me
my first job. Then, I learned job success
was based on project success—mastering
the cost and quality sides of work.
Later in my career and still today, suc-
cess is measured by managing people’s
productivity to enhance the revenue side
of the work equation. This relies much
more on emotional maturity than techni-
cal capabilities. Another great strength
about You, Inc. is that it focuses on the
emotional maturity side of the equation.
You, Inc. tips
Since Peters’ Brand You concept, people
have had difficulty with the concept of “liv-
ing is selling,” which is one of the recurring
themes in You, Inc. Some readers might
be offended by this idea. However, it is the
premise of almost all current career books.
Many of us were coached to find our
passion and follow it. The employer would
value our technical contributions more than
our personality and soft skills. You, Inc. and
most job books now stress that employers
hire for attitude and train for aptitude.
You, Inc. advises readers how to gain
emotional maturity and develop soft skills.
For example, communicating, listening,
speaking and relating are the significant
work and career success factors. Many
of the tips seem obvious, such as “praise
often but flatter never,” and “no politics.”
While these suggestions might seem
obvious, how often do we consistently
practice them? That’s the point of the
book: Most life, career and job successes
come down to doing the simple things we
all know, but doing them consistently.
Finally, You, Inc. shares prescriptions
for life and career success in a witty and
anecdotal way. The authors offer about
200 prescriptions for life, career and job
successes in chapters that range from 30
to 200 words. Each tip and tool is set in
the context of a short and amusing story.
Ready for recession?
I estimate that at any given time, more
than 40% of workers are contemplating
some job shift—up, across or even out.
And a lot of pundits are using the big R
word—recession—in their forecasts.
If they’re right, this means each of us
should take a hard look at our career and
job options. You, Inc. is a short, quick read
that will get you thinking—and moving.
REFERENCES
1. Harry Beckwith and Christine Beckwith, You, Inc.: The Art
of Selling Yourself, Business Plus, 2007.
2. Tom Peters, The Brand You 50, Knopf, 1999.
3. Dictionary.com., http://dictionary.reference.com.
4. Ibid.
GREG HUTCHINS Is an engineering prin-
cipal with Quality Plus Engineering and
Lean SCM in Portland, OR. His firm has
received a certificate of conformance
for its critical infrastructure protection
forensics and assurance analytics
from the U.S. Department of Homeland
Security. He is a member of ASQ.
 STATISTICS ROUNDTABLE BY CHRISTINE M. ANDERSON-COOK
More is Better
Inducing more variation in an experiment
can lead to better understanding
CENTRAL TO THE CORE goals of Six
Sigma and other quality improvement ini-
tiatives is the idea that reducing variation
in processes is a vital part of successfully
enhancing customer satisfaction and
bottom-line results.1, 2
Running processes with the responses
of interest consistently close to the
desired target values can greatly reduce
waste and provide predictably desirable
products and services. Reducing vari-
ability is clearly an important goal that,
when reached, results in powerful and
far-reaching benefits.
Although variance reduction is an im-
portant goal, misconceptions quite often
exist regarding the notion of reducing
variability. For instance, I recently en-
countered a situation involving the design
stage of experimentation in which known
sources of variation were intentionally
omitted from the plan because includ-
ing them would have increased the total
observed variability of the process.
In this situation, the goal of the experi-
ment was to understand the sources of
variability of the entire process and then
use this information for process optimiza-
tion. To keep response variation down
during experimental planning, input raw
materials were intentionally restricted to
a single supplier since it was known that
some characteristics of the input varied
considerably between different suppliers.
In a second situation, an experiment
was designed to study a key performance
metric for a group of complex systems.
Complex systems involve collections
of multiple processes, components and
nested subsystems in which the overall
system is difficult to understand. Often,
multiple sources of data are involved, and
system performance estimation is based
on the synthesis of system, subsystem and
component level data.
In this second experiment, only the
most consistent subpopulation was cho-
sen because other subpopulations were
known to have greater variability. The goal
of this experiment was to understand the
sources of variability for the entire popu-
lation of systems and use this to predict
future performance.
In both examples, when asked what
prompted the decisions to restrict the
scope of the experiments, variance reduc-
tion was cited as the motivation. It was
known there was considerable additional
variation from the omitted factors, but
the actual size of their variability was not
known. The thinking was that by eliminat-
ing some sources of variability, it would be
easier to see the functionality and impact
of the other inputs.
I also suspect that since gathering this
information was explicitly avoided, quanti-
fying the total variability across all known
input sources (including raw materials
or all subpopulations) was something the
experimenters were also happy to avoid.
Having a full assessment of the wide
range of observed responses would have
to be reported to someone in the manage-
ment chain, and the experimenters wanted
to avoid being the bearers of bad news.
Common misconceptions
So what is the common misconception
present in these two examples that ties to
the general goal of reducing variability?
It is a misunderstanding of the timing in
which variance reduction should take
place. At the conclusion of the entire
project, we want to choose input levels to
operate close to the target while maintain-
ing small variation. This is when we want
to reduce variability.
During the experimentation phases,
however, we want to gain understanding
about the process by inducing as much
“ During the experimentation
phase of a study, inducing
more variation in the re-
sponse can lead to improved
”
understanding.
variation in the responses as possible by
manipulating the inputs through a wide
range of potential values. George Box,
one of the founding fathers of industrial
statistics, is quoted as saying: “To see
how a system functions when you have
interfered with it, you have to interfere
with it.”3
In this situation, to understand the
variation in a response, you have to make
the response vary through the direct ma-
nipulation of the inputs. It is only by doing
this that we gain understanding about the
impact of factors on the responses. It also
allows us to explore what values of the
inputs produce desired response values.
Indeed, we should be willing to know-
ingly produce some less desirable parts
March 2008 • QP 55
 STATISTICS ROUNDTABLE
Sometimes making things
worse can make the final
product better.
during the experimentation phase to gain
the understanding required to optimize
the process to its ideal settings during
production.
Recall that during the course of a
project, we likely want to run several
sequential experiments that build on
the knowledge gained from previous
phases. If in the early stages we can gain
an understanding of which inputs are
responsible for the largest proportions of
variability of the process, this can help us
focus our subsequent effort where it will
matter the most.
Scouting things out
What is my response to the fear of know-
ing the full scale of the variability of the
process? As with a scouting report for
a sports team’s next opponent, I think
knowing the whole truth is preferable
to making decisions based on partial
information.
A good scouting report tells you not
only the weaknesses of the opposition
that can be exploited, but also the oppo-
nent’s strengths that must be consciously
and vigorously defended against.
In our experiment, we want to know
the strengths of the process (places of
consistency and meeting target) as well
as its weaknesses (where it might be
inconsistent and off target).
When the total variance is known, the
THE RIGHT TECHNIQUE?
Are you skeptical about this approach to experiments? Post your remarks
on www.qualityprogress.com or e-mail them to editor@asq.org.
56 QP • www.qualityprogress.com
conversation with managers will have an
entirely different focus. If we were really
lucky, the ignored source of variability
might not be as bad as originally feared.
More likely, the feared big sources of
variability will be important.
Either way, knowing the relative
magnitude of different contributors to
variability will allow for a sound variance
reduction plan to be developed. The net
result of this all-encompassing experi-
ment might be to recalibrate where en-
ergy is directed to improving the process.
Ultimately, this is the right solution.
Consider again the first example in
which the initial decision was to restrict
the experiment to just a single supplier.
We could run an experiment in which
we vary a lot of the other inputs and find
an optimal combination of them to get
close to our desired targets with minimal
variability.
When we use that solution in the
production environment, what will the
likely result be? There will be much more
variability than during the experimenta-
tion phase, and there is a good chance
that the mean of our response will also
not be on target.
It is also possible that all of our
fine-tuning of the process for that one
supplier of raw materials represents a
tiny fraction of the total variability when
materials from all the suppliers are
considered. In other words, the real solu-
tion might be that we need to make the
materials from the supplier more uniform
to control our process. If this is the case,
then our experimental efforts have solved
the wrong problem.
Smaller sources of variation
Let’s address the fear of not being able to
identify other smaller sources of varia-
tion as a reason for excluding the bigger
potential sources of variability. In an
observational study in which we cannot
control the different combinations of
factor inputs considered, this might be a
potential risk.
However, if we are able to run a
designed experiment in which strategic
levels of inputs are chosen, we can select
combinations that allow us to estimate
the factor effects independently.
For example, suppose that in the first
phase of our experiment the goal is to
understand the main effects of our fac-
tors and their two-way interactions on
the response. We could specify two levels
of each continuous input factor near
the extremes of the ranges we expect to
observe during normal production.
For more than two suppliers of raw
materials, we could include all suppliers
as separate levels of a categorical factor.
Alternately, we could select a subset
of the suppliers that were thought to
represent the entire range of charac-
teristics of interest, if this information
about difference between suppliers is
available. If we then ran a factorial or
fractional factorial design,4 we would
be able to estimate the effects of all our
factors separately, regardless of their
relative sizes.
If we had proceeded with charac-
terizing the performance of the entire
population with just one subpopulation
in the second example, our expectations
would likely have been overly optimistic.

Clearly, our goal is to realistically assess
the true variability of the process, but it
can be helpful to think about the trade-
offs between the two types of errors we
can make in this estimation.
Over and under
During the experimentation phase, we
can either underestimate the variability
or overestimate it. If we underestimate
it during the experimentation phase, we
might initially make our lives simpler
because there is less problem solving
needed. However, sometime during
production, we will get a nasty shock
about the true variability.
This might lead to an urgent fire drill
response to fix an unexpected problem.
If we initially overestimate the
variability, we might invest more to
reduce the variability than absolutely
necessary to meet our targets. During
production, we will have a process
that exceeds expectations.
Clearly, both of these incorrect as-
sessments of the process have different
associated costs. The timing and size of
the costs will vary for each application.
If we have a shortsighted view of the
experimentation phase, then underes-
timating the variability might not seem
like such a bad risk.
However, if we think about the
bigger picture and the resources
involved in the production phases,
often we will be more willing to strive
to protect ourselves against the risk of
underestimating the true variability of
our process.
So, during the experimentation
phase of a study, inducing more
variation in the response can lead to
improved understanding, which will
enable us to reach the goal of reduc-
ing variability during production.
Sometimes making things worse can
make the final product much better.
CHRISTINE M. ANDERSON-COOK is a
REFERENCES
technical staff member of Los Alamos
1. Roger Hoerl and Ron Snee, Statistical Thinking: Improving
National Laboratory in Los Alamos,
Business Performance, Duxbury, 2001.
NM. She earned a doctorate in statis-
2. Ron Snee and Roger Hoerl, Six Sigma Beyond the Factory
tics from the University of Waterloo
Floor: Deployment Strategies for Financial Services, Health
in Ontario. Anderson-Cook is a senior
Care and the Rest of the Real Economy, Prentice Hall, 2004.
member of ASQ and a fellow of the
3. T.P. Ryan, Modern Experimental Design, Wiley, 2007.
4. Douglas C. Montgomery, Design and Analysis of Experi-
American Statistical Assn.
ments, sixth edition, Wiley, 2004.
DISCOVER...
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March 2008 • QP 57
 STANDARDS OUTLOOK BY SANDFORD LIEBESMAN

How to Manage Risk

In a Global Economy
Management tools and ISO standards support key processes
THE GLOBAL ECONOMY has provided
organizations many opportunities that
didn’t exist just 10 years ago. But the
flattening of the Earth via the internet and
extensive outsourcing to countries such
as China and Mexico have also presented
organizations with many risks.
The designers of the guidance com-
monly used for Sarbanes-Oxley Act (SOX)
financial and accounting compliance
recognized the importance of risk by
including risk assessment as one element
of the system of internal control.
An assessment process that can be used
to manage risk consists of the following:
• Defining the organization’s objectives.
• Specifying the risk categories.
• Identifying risks to the objectives.
• Specifying the methods of managing risk.
Types of risk
Four types of risk worry organizations:
1. Strategic risk is concerned with
Risk level matrix
the inability to achieve high level goals.
For strategic risk assessment, manage-
ment should consider technology changes,
creditors’ demands, competitors’ actions,
economic conditions, political conditions
and customer needs. These considerations
should be included in the quality manage-
ment system planning process described
in ISO 9001, clause 5.4.2.
2. Organizational risk is based on an
organization’s structure and is affected by
external and internal factors.
External factors include technology
developments, competition legislation
and the global environment. Examples
of internal risks are physical security,
information system processing, lost
shipping and receiving records, person-
nel competence and changes in manage-
ment responsibilities.
3. Compliance risk affects the ability
to meet legal and regulatory requirements.
The focus is on financial, environmental,
/ TABLE 1
health and safety, and security factors.
Management is concerned because of the
threat of fines, shutdowns or criminal
prosecutions. There is also a concern with
conformance to quality and environmental
standards and specifications.
Environmental compliance risks include
liquid spills, gaseous emissions and solid
waste creation. ISO 14001, the environmen-
tal management system standard, requires
monitoring and measurement of environ-
mental risks, identification of significant
environmental aspects and evaluation of
compliance to the standard.
The U.S. Environmental Protection
Agency (EPA) has recognized the value
of ISO 14001 by establishing a national
environmental performance track that
provides incentives for participation.
The incentives include allowing specific
facilities to have lower priority for routine
EPA inspections and the right to use EPA’s
performance track logo.
4. Operational risk concentrates on
factors that could prevent the efficient use
of resources. These include an ineffective

Consequences
management system, poor customer sat-
Insignificant Minor Moderate Major Catastrophic isfaction, supply chain problems, a weak
Likelihood 1 2 3 4 5 revenue recognition process, poor infor-
A (almost High High Extreme Extreme Extreme
certain) risk risk risk risk risk mation security management, the effect of
Moderate High High Extreme Extreme natural disasters and logistical risks.
B (likely)
risk risk risk risk risk
Low High Extreme Extreme
C (possible) Moderate risk
risk risk risk risk Types of operational risk
Low Low Moderate High Extreme Factors that affect the capabilities of a
D (unlikely)
risk risk risk risk risk
Low Low Moderate High High management system include manage-
E (rare)
risk risk risk risk risk ment strategies, practices and tools; data
Extreme risk—immediate action; senior management involvement required. processing and call center capabilities;
High risk—management responsibility should be specified.
contract administration; and design and
Moderate risk—manage by specific monitoring or response (e-mail).
Low risk—manage by routine process (file). development effectiveness. Compliance

58 QP • www.qualityprogress.com
Align risk and risk tolerance
with organizational strategy.
with ISO 9001 can be used to manage
these factors.
There are areas of operational risk that
can be managed using ISO 9001: customer
satisfaction, supply chain, revenue recog-
nition, information security, logistics and
natural disasters.
Customer satisfaction risk is
affected by customer communication,
delivery problems, product quality, design
problems, repair problems and the ac-
curacy of customer feedback. ISO 9001
requires the organization to gather and
analyze customer satisfaction data.
Supply chain risk can be caused by
poor communication with suppliers. Pro-
curement managers must be concerned
with factors such as managing outsourced
products and services, risks associated
with having a sole supplier, delivery
problems, quality of received products,
inventory management, and design and
documentation problems. Again, ISO 9001
is an effective mitigation tool.
Revenue recognition risk is affected
by problems with accounts payable and
accounts receivable, revenues recorded
before delivery, quotation to cash errors,
spreadsheet errors and out-of-date or
incomplete pricing information.
Quality managers can play an important
role in controlling the effectiveness of the
revenue recognition process. An overlap
between quality and financial management
systems includes product realization (ISO
9001, clause 7), costs, sales, invoices, pay-
ments, inventory management and delivery.
In many organizations, revenue recog-
nition problems have a major effect on the
organization’s earnings. Corrections could
require a restatement of earnings, which
might trigger a falling stock price.
Information security risks include
viruses, unsecured files, inaccurate
financial records, poor change control,
information retrieval errors, overuse of
spreadsheets, use of contractors and
consultants, introduction of new technol-
ogy (including hardware, software and
network), industrial espionage and fraud.
The new ISO/IEC 27001 is designed
to provide management of information
security. Its suitable uses include:
• Formulating security requirements and
objectives.
• Ensuring that security risks are man-
aged cost effectively.
• Complying with laws and regulations.
• Defining new information security
management processes.
• Determining (by internal and external
auditors) the degree of compliance
with the policies, directives and stan-
dards.
Logistics risks include transportation
of raw materials and completed products,
products damaged during shipping, delays
that cause understocking of materials and
homeland security.
Threats to U.S. security are a major
concern. The search for concealed weap-
ons of mass destruction will slow shipping
and receiving processes. New tools will
have to be developed to screen and trace
materials economically without supply
line disruption.
Software is also at risk due to the cre-
ation and dissemination of viruses by those
who want to hurt the general economy.
Natural disasters in the past few years
have included major hurricanes, flood, fires,
earthquakes, contamination and epidemics.
Business continuity requires safekeeping of
enterprise information in protected storage.
Organizations should plan for disaster
recovery and business continuity with a
process that ensures the following:
• All documents are retained and avail-
able to investigating agencies.
• Potential material events are covered.
• Audit documents are safe for the seven-
year period required for compliance
with SOX.
• There is a business continuity plan.
Risk management methodology
Risk analysis methodology starts with the
organization determining its risk appetite
and risk tolerance so all personnel can
understand the organization’s philosophy.
Tools are then used to determine the risk
levels and manage the risks.
Risk appetite is the amount of risk an
entity is willing to accept. It is the measure
of the risk-reward trade-off in the business.
On the other hand, risk tolerance re-
lates to the entity’s specific objectives. It is
the amount of variation an entity is willing
to accept relative to these objectives. Risk
appetite defines the boundary of accept-
able risk for many categories, while risk
tolerance defines the variation in objec-
tives that affect specific risks.
Risk appetite sets the high level
risks for organization For example, an
organization might say new product de-
velopment should not exceed 25% of the
projected overall profit. Perhaps one of
the objectives is that the budget for R&D
for a product is $1 million, and the risk
tolerance for budgets is 15%. If spending
on a particular new product is going to
exceed $1.15 million, action would be
taken to reduce the spending on R&D.
It is the responsibility of top manage-
ment and the board of directors to align
risk appetite and risk tolerance with the
organization’s strategy.
Organizational controls
One key tool for managing risk is the
organization’s set of controls. These are
March 2008 • QP 59
 STANDARDS OUTLOOK
especially important for compliance
with SOX. Auditors test the controls as a
key part of the compliance process. The
financial controls are at two levels—entity
and activity. The quality controls are also
at these two levels and appear as “shall”
statements in ISO 9001 and ISO 14001.
“Shall” statements are often accompa-
nied by requirements to submit a quality
record. These records are often used to
identify impending risks.
Examples of entity level controls are
HR policies, codes of conduct, commu-
nication strategy, accounting practices,
management’s risk assessment process,
organizational responsibilities and con-
tract review. Contract review require-
ments are related to quality requirements
in ISO 9001, clause 7.2.2.
Activity level controls include recon-
ciliation of general ledger to a subsidiary
ledger, automated data validation and edit
checks, and review and approval of paper
based information prior to input.
Quality controls at the activity level
include control of nonconforming product
(ISO 9001, clause 8.3), design and develop-
ment validation (ISO 9001, clause 7.3.6),
preventive action (ISO 9001, clause 8.5.3)
and identification of significant environ-
mental aspects (ISO 14001, clause 4.3.1).
Risk management consists of activities
to identify and analyze risks that might
prevent achievement of objectives. Effec-
tive risk management requires definition
and compatibility of the organization’s ob-
jectives, identification of risks to achiev-
ing objectives, judgment of which risks
are critical and use of risk management
tools to mitigate risks.
Risk management tools
A key tool is the risk level matrix (see
Table 1, p. 58).1 For each identified risk,
READ MORE ABOUT RISK MANAGEMENT
If you would like to learn more about the role quality professionals can play in
risk management, view previous QP articles at www.qualityprogress.com.
60 QP • www.qualityprogress.com
the consequences and likelihood of occur-
rence of the risk are estimated and input
into a risk level matrix.
Once the level of concern is deter-
mined for each risk, preventive actions can
be implemented for the extreme and high
risks. Organizations can use the ISO 9001
preventive action process to accomplish
this. Other risk management tools include:
• Objectives, risk, controls and alignment
(ORCA).2
• ISO 9001’s improvement process.
• Failure mode effects analysis (FMEA).
• Risk control matrix.
ORCA requires organizations to articu-
late objectives, identify and assess risks
across the entire spectrum, build in bal-
anced controls to manage risks and ensure
alignment of objectives, risks and controls
across the entire enterprise.
The ISO 9001 improvement process
consists of using the ISO 9001 improve-
ment loop: quality policy, quality manage-
ment system planning, quality objectives,
audit results, analysis of data, corrective
and preventive actions, and management
review. Data analysis identifies opportuni-
ties for corrective and preventive actions.
FMEA3 examines potential failures in
products or processes and helps select
remedial actions that reduce risks. It
starts with a description of the parts of a
system. Next, the consequences of each
part failure are determined.
A risk level matrix can be used to
evaluate the level of concerns for each
failure. The ability of controls to detect
failures is also determined. Actions that
could eliminate or reduce the occurrence
or improve the detectability of risks are
identified.
Finally, the FMEA method is used to
track changes that were incorporated to
avoid potential failures.
A risk control matrix4 can be used to
track risks and associated controls. It
consists of the following information in
tabular form:
• Process.
• Risk.
• Control objective.
• Controls.
• Control owner.
• Process narrative.
• Control category.
• Control type.
• Primary or secondary control.
• Frequency of the control.
• Design assessment.
Getting started
Risk management must start with a defini-
tion of an organization’s objectives. These
should be measurable, as required by ISO
9001.
Risks are obstacles that impede prog-
ress toward achieving these objectives. An
organization needs to determine its risk
appetite and tolerance so employees will
have a consistent risk philosophy.
An organization can determine risk
levels by combining the likelihood of an
event and its consequences in a risk level
matrix. The result is used to determine
the appropriate management activities.
In a SOX compliant process, risk based
controls are tested to identify evidence of
potential SOX deficiencies.
REFERENCES
1. IOMOSAIC Corp., “Designing an Effective Risk Matrix,”
www.iomosaic.com.
2. Larry D. Hubbard, “Assigning Risk,” The Internal Auditor,
August 2002, pp. 22-23.
3. Cliff Welborn, “Using FMEA to Assess Outsourcing Risk,”
Quality Progress, August 2007, pp. 17-21.
4. Sandford Liebesman, “The Sarbanes-Oxley Law: QMS &
EMS Can Reduce the Risk,” Ellis Ott Conference, Newark, NJ,
Sept. 13, 2006.
SANDFORD LIEBESMAN is president of Sandford Quality Con-
sulting LLC, Morristown, NJ, following more than 30 years of
experience in quality at Bell Laboratories, Lucent Technolo-
gies and Bellcore (Telcordia). He is an author of the books
TL 9000, Release 3.0: A Guide to Measuring Excellence in
Telecommunications, second edition, and Using ISO 9000 to
Improve Business Processes. Liebesman, a fellow of ASQ, is
a member of ISO technical committee 176 and the ANSI Z-1
committee on quality assurance and a RABQSA International
certified ISO 9000 and TL 9000 lead auditor.
ASQ + Social Responsibility =
Doing the Right Thing

ASQ believes that being socially responsible means that people and organizations must behave ethically and with sensitivity
toward social, cultural, economic, and environmental issues. Striving for social responsibility helps individuals, organizations,
and governments have a positive impact on development, business, and society with a positive contribution to bottom-line results.
ASQ has been chartered by the American National Standards Institute (ANSI) to administer the U.S. Technical
Advisory Group (TAG) on Social Responsibility which, with other international groups, is developing the
international standard ISO 26000 Guidance on Social Responsibility. ASQ’s involvement in developing this
ISO standard is a direct extension of its existing leadership role in standards development and its long-term
objective to serve as stewards of the quality movement by ensuring that ASQ activities provide increased value
to our members and to society.

LEARN MORE ABOUT ASQ’S ROLE, DISCOVER HOW YOU CAN GET INVOLVED, OR SHARE YOUR STORY
AT www.asq.org/social-responsibility.
 QPTOOLBOX
Linear gauge sensor
▼

Ono Sokki Technology has released the

GS-4630 linear gauge sensor. The GS-4630
can measure dimensions, thickness, dis-
placement, height, depth and flatness using
glass scale technology. It is resistant to
dust, chips, water, oil and tough conditions
found in manufacturing environments like
production floors.
The GS-4630 comes with a 15 ft. signal
cable. Optional extension cables up to 100
ft. are available. The gauge is compatible
with many remote displays, comparators
and interfaces with various outputs.
Call: 630-627-9700 x121;
e-mail: kujiiye@onosokki.net.

Heating dry baths ▼

Torrey Pines Scientific has released the
EchoTherm SC20XT and SC25XT models.
The SC20XT is a digital unit while the
SC25XT is fully programmable. Both models
have a temperature range from -20º C to
100º C and incorporate a variable speed or-
bital shaker for mixing and controlling the
temperatures of samples simultaneously.
The instruments are designed as mo-
lecular biology tools and can be used to run
temperature and time profiles, unattended
restriction digestions, automatic enzyme
reactions and deactivations.
Call: 760-471-9100; e-mail: tonyc@
torreypinesscientific.com.
Tablet computer
The Ridgeline Tablet from Glacier Computer
features a 10 in. display with options for
daylight readability. It was designed and
tested to withstand repeated 3 ft. drops to
the concrete.
Users can input data through a touch
screen or with a pen. The accompanying
software allows for signature capture and
character recognition.
The Ridgeline offers instant access to a
database, work order, blueprint, parts list or
another computer. It also features an inte-
grated global positioning system module.
E-mail: johng@glaciercomputer.com;
visit: www.glaciercomputer.com.
Robotic gripper
Applied Robotics has released the Smart
Gripper, a closed loop, direct drive gripper.
The Smart Gripper is designed to deliver
gripping capabilities with a programming
interface. It offers integration with most
commercially available robots.
The Smart Gripper features robotic
finger positioning, adjustable grip force
and easy installation, and it requires no
external controller. Its gripping fingers can
be designed by the user or provided by
Applied Robotics. The gripper can provide
status back to the robot controller using
three output lines.
Call: 518-384-1000; e-mail: jbrown@
arobotics.com.
Document authoring and review
Coventi Pages allows multiple users in vari-
ous locations to collaborate on documents.

62 QP • www.qualityprogress.com
Users can review, discuss and revise docu-
ments online in one place through a web
browser.
Other features include highlighting spe-
cific content and creating a comment or
suggested edit that invites others to reply.
Coventi Pages can also keep track of who
has reviewed the document, when they
reviewed it and what their
comments are in the context
of the document.
Users can request approval
from the group and docu-
ments can be approved with
one click.
Call: 210-858-4607; e-mail:
lauren.tessier@coventi.com.
ESD event detector
▼
The Trek model 900 ESD Event
Detector is a diagnostic tool for manufac-
turing environments sensitive to electro-
static discharge (ESD), including electronic,
semiconductor and medical device manu-
facturing and assembly.
ESD events are important indicators of
excessive charge accumulation, which can
be detrimental to ESD sensitive processes.
The ESD Event Detector identifies and
verifies incidents in suspected areas of ESD
activity in a manufacturing site.
A voltage sensitive antenna is posi-
tioned near potential problem areas to
monitor ESD events. Detection is conveyed
through an audible buzzer and color-coded
light display, which depicts intensity.
Call: 585-798-3140; visit: www.trekinc.
com.
GOT A QUALITY PRODUCT?
Please send your product description and photo to vfunk@asq.org.
Coordinate measuring
machine
▼
Leica’s T-Probe can probe hidden, hard-to-
reach points and measure up to nine cars
in one setup. The T-Probe reaches up to 98
ft. in any dimension. It is battery powered
for wireless operation and offers a sleep
mode option.
Individual application the edge of ports, lands and ends.
functionality is available A calibration ring traceable to interna-
with user-assignable mul- tional standards comes as part of the gage
tifunction buttons. Other system and features nominal size at 68º
features include right or F marked on the face. Calibration checks
left handed operation, with the ring ensure that gage setting capa-
acoustic process informa- bility retains accuracy in original limits.
tion feedback, insensitivity Call: 800-325-3670; e-mail: sales@
to environmental light sunnen.com.
and a point rate output of
1,000 points per second.
E-mail: metrology@leica-
geosystems.com; visit:
www.leica-geosystems.com.
Bore gage
▼
Sunnen’s PG-Series bore gag-
es are designed for process
control in lean manufactur-
ing environments. The gages
can be used to examine the
entire bore for diameter,
taper, barrel, bell mouth, out-
of-round and lobing. A sliding
faceplate with adjustable
stops permits end-to-end
examination of bores. Stops
can be set to allow examina-
tion of a particular section of
the bore with accuracy up to
March 2008 • QP 63
 QPREVIEWS
Balanced Scorecard
Strategy for Dummies
Chuck Hannabarger, Rick Buchman and
Peter Economy, Wiley Publishing, 2007,
362 pp., $21.99 (book).
“If you’re not keeping score, you’re just
practicing.” This statement carries a truth of
modern business along with the essence of
a performance standard.
Developed by
Robert Kaplan and
David Norton of the
Harvard Business
School, the balanced
scorecard provides a
method to manage
and measure the
performance of an
enterprise.
What was—and still is—radical about
their idea is that such a system should
include more than basic financial measures.
Other measures, such as those related to
customers and internal processes, need to
be included for management to have an ac-
curate view of the enterprise.
The authors offer—in basic terms and an
easily consumed format—a wealth of ex-
amples, checklists and tips for implementing
a balanced scorecard approach. The authors
provide guidance to create a strategy map
that links tactical goals to strategic goals
via the four legs of a balanced scorecard:
financial; customer; internal process; and
knowledge, education and growth.
The authors provide tools to help the
reader understand the role of the four legs
and supply the tools to build that role further.
It is a pretty simple formula, and it works. For
example, the sections on knowledge, educa-
tion and growth outline how to perform a
skills inventory, use it in a gap analysis and
translate that analysis into a set of actionable
measures that tie into the overall scorecard.
64 QP • www.qualityprogress.com
Moving beyond simple measures of the
bottom line is still a pretty bold idea. But
after reading Balanced Scorecard Strategy
for Dummies, it’s clear that measures are
for more than the finance guys. With a little
thought, scorekeeping applies to us all.
Reviewed by Tim Knight
Evergreen Park, NY
On Becoming Exceptional
Sister Mary Jean Ryan, ASQ Quality Press, 2007,
114 pp., $26.25 list, $15.75 member (book).
Many quality professionals ponder how to
articulate to senior executives and CEOs the
value and impact of the Baldrige criteria. This
book, written by the CEO of SSM Health Care
(SSMHC), an organization that earned the
Baldrige Award in 2002, can help.
The book provides insight into the thought
processes of a CEO with vision, determination
and passion. It is a rich, personal Baldrige jour-
ney that is incredibly
honest. The author
freely shares the
organization’s mis-
takes and difficul-
ties, proving that this
is not an idyllic story
of easy success.
Tools and techniques are provided to
illustrate the journey, which is not just told
from the perspective of the CEO. Many
quotes, stories, photos and documents are
provided from every level in the organiza-
tion. It is made clear this was a team effort.
We see the applicant’s side of the sto-
ry—how SSMHC focused quality initiatives
and continuous quality improvement using
Baldrige criteria. It also covers implementa-
tion, self-assessment, application prepara-
tion, site visit experience, reaction to the
feedback report and—most important—
what to do after the euphoria of winning
has waned.
This book encompasses years of experi-
ence with the Baldrige criteria and decades
of leadership lessons. It is of value to anyone
interested in the Baldrige process. However,
its power is in the behind-the-scenes, day-
to-day attention to detail required to make a
Baldrige award happen.
This is essential reading for senior
managers and an informative read for any
CEO trying to build a successful company.
But the real story here is the focus on
values, vision and leadership, not return on
investment.
Reviewed by Denis Leonard
Madison, WI
Serious Performance Consulting
Geary A. Rummler, Pfeiffer (Imprint of Wiley),
2007, 176 pp., $40 (book).
There are direct links between the
author’s expertise, this publication and the
work of a professional quality practitioner. I
can say this because I successfully applied
many of Rummler’s techniques long before
my involvement with quality initiatives.
Using an in-depth look at the steps that
will ensure successful performance im-
provement, the guide applies equally to the
inside quality professional and the external
quality consultant. The model presented
enables a quality practitioner to assess and
diagnose a performance deficiency.
A detailed case
study allows the
reader to follow the
performance consult-
ing process through
the stages of: defining
the project, identify-
ing barriers, guiding
the implementation of changes and monitor-
ing results.
In the case study, the author presents
four ways to learn from the example,
including a chapter with a high-level over- When the book was first published in 1990, Machine provides enduring and essen-
view, an appendix with in-depth findings, Toyota was half the size of GM. Today, Toyota tial guidance to managers and leaders in
a chapter debriefing the case study and has become the world’s largest automaker every industry who are seeking to transform
personal comments emphasizing serious and is the most con- traditional enterprises into examples of lean
performance consulting. In the final chap- sistently successful success. The real challenge is getting manag-
ter, the author outlines a method of logging global enterprise of ers to use them. Reading Machine certainly
accomplishments on the journey toward the past 50 years. would provide a good start.
becoming a serious performance consul- This classic was the Reviewed by Bengt Klefsjö
tant, with a focus on continuous learning. first book to reveal Luleå University of Technology, Sweden
The book contains 80 diagrams, charts the ideas behind
and forms, a glossary, and other references
and resources. The serious quality profes-
that success.
Reissued with a new foreword and
RECENT RELEASES
sional needs the information and guidance afterword, Machine contrasts fundamen- Lean for Service
furnished in this book. It appears to have a tally different business systems—lean Organizations and Offices
natural tie-in with Six Sigma quality initiatives versus mass—that provide two schools Debashis Sarkar, ASQ Quality Press, 2008,
and all quality related initiatives—whether of thought about how humans work to 231 pp., $63 list, $37.80 member (book).
large or small, internally or externally driv- create value. Supply Chain Cost Management
en—and can be your blueprint for success. This book, together with a few other Jimmy Anklesaria, American Management
Reviewed by Russ Westcott classics, has supplied analysis of most Association, 2008, 230 pp., $39.95 (book).
R.T. Westcott & Associates, of the lean methods that are needed to The Desk Reference of
Old Saybrook, CT improve product design, supply chain Statistical Quality Methods
The Machine That management, production operations and Mark L. Crossley, ASQ Quality Press, 2008,
Changed the World customer relations. 541 pp., $94.50 list, $56.70 member (book).
James P. Womack, Daniel T. Jones and
Daniel Roos, Free Press, 2007, 352 pp.,
$11.49 (book).
In 1950, a young Japanese engineer, Eiji
Toyoda, set out on a three-month pilgrim-
age to Henry Ford’s plant in Detroit to learn
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March 2008 • QP 65
 QPCALENDAR
To receive information or to register for
ASQ Education Courses and Conferences,
contact Learning Offerings, ASQ, 600 N.
Plankinton Ave., Milwaukee, WI 53203,
call 800-248-1946 or 414-272-8575, fax
414-272-1734 or visit www.asq.org.
APRIL
1-4 Lean, Six Sigma and Process
Improvement in Healthcare. Las Vegas.
Call WCBF at 800-959-6549 or e-mail
louise.gosling@wcbf.com.
3 ASQ Conference. New Jersey Spring
Quality Conference. Parsippany, NJ.
3-8 The Performance Improvement
Conference. New York. Call the International
Society for Performance Improvement at
301-587-8570 or e-mail register@ispi.org.
15-17 ValuMetrix Association
of Process Excellence Healthcare
Forum. Philadelphia. Call ValuMetrix at
800-523-6911 or visit www.valumetrixser-
vices.com.
16-17 ASQ Conference. Hiawatha
Section Seminar. Hiawatha, IA. Visit
www.asq1214.org.
22-25 The Quest for Excellence
Conference. Washington, DC. Call the
National Institute of Standards and Tech-
nology at 301-975-2036 or visit www.
baldrige.nist.gov.
24-25 Demonstrating Reliability
with Accelerated Testing. San Jose, CA.
Call Hobbs Engineering at 303-465-5988 or
e-mail learn@hobbsengr.com.
MAY
7-9 ASQ Education Course. Implement-
ing and Auditing an ISO 9000:2000 Qual-
ity System. Houston.
7-9 ASQ Education Course. Skills for
Success for the Management Represen-
tative. Houston.
8 ASQ Conference. Government
Division Leadership Dialogue Series.
Houston.
12-16 ASQ Education Course.
Certified Quality Engineer Exam Prep-
eration Toronto.
19-20 ASQ Education Course. After
the Audit: Continual Improvement from
the Audit Process. Atlanta.
19-21 ASQ Education Course. Root
Cause Analysis. Atlanta.

7-11 ISPE Conference on Innova-
tion. Copenhagen, Denmark. Call the
International Society for Pharmaceutical
Engineering at 813-960-2105 or e-mail
customerservice@ispe.org.
8 ASQ Conference. Quality Cafe. Tulsa, OK. 5-7 ASQ Conference. World Conference
9 ASQ Conference. ASQ-UDEM Quality
Day. Monterrey, Mexico. E-mail Pamela
Vera Islas at pamela_vera@hotmail.com or
visit www.asqudem.com.
13-17 ESS Expo.08. Chandler, AZ.
Call Essential Software and Services at
800-289-6116 or visit www.ess-expo.com.
1-2 ASQ Education Course. Certified Qual- 19-21 ASQ Education Course. Soft-
ity Auditor Refresher Training. Houston. ware Requirements Engineering. Atlanta.
3-4 ASQ Education Course. Baldrige Self- 19-22 Six Sigma Leadership
Assessment for Higher Education. Houston. Conference. Scottsdale, AZ. Call the
International Society of Six Sigma Profes-
sionals at 480-368-7083 or e-mail info@
on Quality and Improvement. Houston. isssp.com.
5-7 ASQ Conference. Quality Institute 19-23 ASQ Education Course. Black
for Healthcare. Houston. Belt/Quality Engineering Statistics. Atlanta.
5-9 ASQ Education Course. Lead Auditor 21-23 ASQ Education Course. Imple-
Training for AS9100 (RABQSA Certified). menting Statistical Process Control.
Houston. Atlanta.

14-17 SAE World Conference. Detroit. SAVE THE DATE

If you’d like your event included in QP Calendar, submit information at least three
Call SAE International at 877-606-7323 or visit months in advance to vfunk@asq.org. Non-ASQ organizations may list one event
www.sae.org. per issue.

66 QP • www.qualityprogress.com
 For information on placing an ad,
contact Ramona Garcia at 800-248-1946,

PROFESSIONALSERVICES or 414-272-8575, or e-mail rgarcia@asq.org

What does earning a degree mean to you?

Career advancement? Greater opportunities? Personal development?
With distance learning, all these things are within your reach.
California National University for Advanced Studies (CNU) is an accredited distance-learning university designed for technical and business
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Engineering Management. Combining distance learning with one-on-one instruction, CNU degree programs provide maximum flexibility for maximum
growth. The Bachelor of Quality Assurance Science prepares the individual to be able to manage, plan, procure, design, and maintain an effective
Quality Assurance Program within a company. The Master of Engineering Management provides the individual with the breadth of knowledge required
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CNU also offers seven other degree programs and courses by extension for those who prefer to begin their continued education gradually.

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March 2008 • QP 67
 For information on placing an ad,
contact Ramona Garcia at 800-248-1946,

PROFESSIONALSERVICES or 414-272-8575, or e-mail rgarcia@asq.org

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68 QP • www.qualityprogress.com
 For information on placing an ad,
contact Ramona Garcia at 800-248-1946,

PROFESSIONALSERVICES or 414-272-8575, or e-mail rgarcia@asq.org

Process Characterization
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March 2008 • QP 69
 For information on placing an ad,
contact Ramona Garcia at 800-248-1946,

PROFESSIONALSERVICES or 414-272-8575, or e-mail rgarcia@asq.org

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70 QP • www.qualityprogress.com
 For information on placing an ad,
contact Ramona Garcia at 800-248-1946,

PROFESSIONALSERVICES or 414-272-8575, or e-mail rgarcia@asq.org

Resources for Quality

& Productivity Improvement
Business Process Books, Videos, CD’s, DVD’s,
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March 2008 • QP 71
 BACK TO BASICS
An Appreciation for
Documentation
Six benefits of documentation that round out a quality process
ISN’T COMPLETING THE task more im-
portant than completing the paperwork?
Why do organizations spend valuable time
and resources generating and maintaining
paperwork systems?
Quality professionals are accustomed
to hearing—and sometimes asking—these
questions. Asking for quality process docu-
mentation often results in responses about
bureaucratic or time-consuming paperwork.
In many cases, the distinction between
unnecessary paperwork and important
documentation is nothing more than the
attitude taken toward the subject. The dis-
tinction becomes clear when trying to find
documentation critical to resolving a dis-
pute or legal claim.
At HDR Engineering Inc., an engineering
and architectural consulting firm, profession-
als recognize the value of documenting their
technical activities. The following are six key
benefits HDR has identified to help profes-
sionals understand the importance of docu-
mentation in a complete quality process:
1. Accountability: If a process requires
documentation, it is much more likely to
occur. Many quality processes require docu-
mentation in some form to trigger the next
phase. The completed documentation be-
comes the key to opening the door to the
next step.
For example, a contract might not be
signed until a documented review of the
contract terms has been completed.
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72 QP • www.qualityprogress.com
BY DAN DOMALIK
2. Completeness: If standard forms
or checklists are incorporated into a qual-
ity process, those tools become roadmaps
to ensure the entire process is followed.
Good documentation should tie directly to
the process being completed.
An example: A reviewer might feel
tempted to bypass the defined quality con-
trol review process to speed submission of
a deliverable. But if documentation of the
completed review is required, the reviewer
will have to perform all duties needed to
generate that documentation.
3. Consistency: Individuals might at-
tempt to complete a given task in many
ways. This might be acceptable in some
situations, but in many cases a consistent
approach creates organizational efficiency.
If the form of documentation generated is
standardized, the processes used to create
the documentation also are standardized.
This ensures reviews are conducted in
a more consistent manner companywide.
The corporate headquarters is then able to
combine and analyze the data more easily.
4. Timeliness: The knowledge that a
form or document must be signed and dated
according to a specified schedule encour-
ages compliance with that schedule. When
deadlines are important, documentation is
important.
For example, if offices are required to
submit financial results to corporate head-
quarters by the end of each month, they
will take the steps necessary at the local
level to collect and document that informa-
tion in a timely manner.
5. Communication: Documentation
improves communication flow among
team members. E-mail and the internet
have increased the speed and flexibility of
project activities, thus increasing the need
for documentation.
An example: Individuals who did not par-
ticipate in a team meeting because of busi-
ness travel can quickly review meeting re-
sults if thorough minutes were documented
and made available in electronic form.
6. Record: A documented record of deci-
sions made or actions taken can span gaps,
provide the necessary information years later
and protect a team and its leaders.
For example, a contractor’s claim of de-
sign error might spark an investigation into
the design process. If good records were
kept of the meetings and decisions, those
records would be invaluable in responding
to any subsequent inquiries.
The documentation benefits listed can
be cited as the value of paperwork. Com-
pleting the task itself is important, but if
documentation is required and not yet
completed, the task is not done. The doing
and the documenting are complementary
and necessary parts of most useful quality
processes.
DAN DOMALIK is a lead internal
auditor at HDR Engineering Inc., Pitts-
burgh. He earned a master’s degree
in civil engineering from Pennsylvania
State University and an MBA from
the Tepper School of Business at Car-
negie Mellon University, Pittsburgh.
Domalik is a senior member of ASQ
and a certified quality auditor and quality manager.
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