Chapter 3

Philosophies and
Frameworks

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 Leaders in the Quality Revolution

• W. Edwards Deming
• Joseph M. Juran
• Philip B. Crosby
• Armand V. Feigenbaum
• Kaoru Ishikawa
• Genichi Taguchi

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 Who’s Who?

b
a
Deming ____
c
Juran ____

Crosby ____
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 Deming Chain Reaction
Improve quality

Costs decrease

Productivity improves

Increase market share with better

quality and lower prices

Stay in business

Provide jobs and more jobs

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 Deming’s System
of Profound Knowledge
• Appreciation for a system
• Understanding variation
• Theory of knowledge
• Psychology

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 Systems
• Most organizational processes are cross-
functional
• Parts of a system must work together
• Every system must have a purpose
• Management must optimize the system
as a whole

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 Variation
• Many sources of uncontrollable variation
exist in any process
• Excessive variation results in product
failures, unhappy customers, and
unnecessary costs
• Statistical methods can be used to
identify and quantify variation to help
understand it and lead to improvements

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 Theory of Knowledge
• Knowledge is not possible without
theory
• Experience alone does not establish a
theory, it only describes
• Theory shows cause-and-effect
relationships that can be used for
prediction
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 Psychology
• People are motivated intrinsically and
extrinsically
• Fear is demotivating
• Managers should develop pride and joy
in work

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 Deming’s 14 Points (Abridged) (1 of 2)
1. Create and publish a company mission
statement and commit to it.
2. Learn the new philosophy.
3. Understand the purpose of inspection.
4. End business practices driven by price alone.
5. Constantly improve system of production
and service.
6. Institute training.
7. Teach and institute leadership.
8. Drive out fear and create trust.
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 Deming’s 14 Points (2 of 2)
9. Optimize team and individual efforts.
10. Eliminate exhortations for work force.
11. Eliminate numerical quotas and M.B.O.
Focus on improvement.
12. Remove barriers that rob people of pride
of workmanship.
13. Encourage education and self-improvement.
14. Take action to accomplish the transformation.

www.deming.org
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 Juran’s Quality Trilogy

• Quality planning
• Quality control
• Quality improvement

www.juran.com

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 Phillip B. Crosby

Quality is free . . . :
“Quality is free. It’s not a gift, but it is free. What
costs money are the unquality things -- all the
actions that involve not doing jobs right the first
time.”

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 Philip B. Crosby
Absolutes of Quality Management:
• Quality means conformance to requirements
• Problems are functional in nature
• There is no optimum level of defects
• Cost of quality is the only useful measurement
• Zero defects is the only performance standard

www.philipcrosby.com

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 A.V. Feigenbaum
• Three Steps to Quality
– Quality Leadership, with a strong focus
on planning
– Modern Quality Technology, involving
the entire work force
– Organizational Commitment, supported
by continuous training and motivation

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 Kaoru Ishikawa
• Instrumental in developing Japanese
quality strategy
• Influenced participative approaches
involving all workers
• Advocated the use of simple visual
tools and statistical techniques

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 Genichi Taguchi
• Pioneered a new perspective on quality based
on the economic value of being on target and
reducing variation and dispelling the
traditional view of conformance to
specifications:

Loss No Loss Loss

0.480 0.500 0.520

Tolerance
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 Deming Prize
• Instituted 1951 by Union of Japanese Scientists
and Engineers (JUSE)
• Several categories including prizes for
individuals, factories, small companies, and
Deming application prize
• American company winners include:
Florida Power & Light, and
AT&T Power Systems Division

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 Malcolm Baldrige
National Quality Award
• Help improve quality in U.S.
companies
• Recognize achievements of
excellent firms and provide
examples to others
• Establish criteria for evaluating
quality efforts
Malcolm Baldrige,
• Provide guidance for other U.S. former U.S. Secretary
of Commerce
companies
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 Criteria for Performance
Excellence
• Leadership
• Strategic Planning
• Customer and Market Focus
• Information and Analysis
• Human Resource Focus
• Process Management
Baldrige
• Business Results Award trophy

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 The Baldrige Framework –
A Systems Perspective
Organizational Profile:
Environment, Relationships, and
Challenges

5
2 Human
Strategic Resource
Planning Focus

1 77
Leadership Business
Business
Results
Results
3
Customer & 6
Market
Focus Process
Management

4
Information and Analysis

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 Baldrige Award Evaluation Process
Receive Applications

Stage 1
Independent Review

Judges Select for No Feedback report

Consensus Review?
to applicant

Stage 2
Consensus Review

Judges Select for No Feedback report

Site Visit Review?
to applicant

Stage 3
Site Visit Review

Stage 4
Judges Recommend Award Feedback report
Recipients to
NIST Director/DOC to applicant

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 The Baldrige Award
Scoring System
• Three evaluation dimensions - Approach,
Deployment, and Results
• Scoring is linked to the importance to the
applicant’s business
• Scoring guidelines (Table 3.5)

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 Feedback Report
• Strengths - approaches or results that
demonstrate effective response to the
Criteria
• Opportunities for improvement - how the
applicant can better address the purposes
of the Criteria, or issues that require
clarification

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 Self Assessment and the Baldrige
National Quality Program
A primary goal of the
Program is to encourage many
organizations to improve on
their own by equipping them
with a standard template for
measuring their performance Boeing Airlift & Tanker
Programs – 1998 winner
and their progress toward
performance excellence.

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 Quality Awards Around the World

Programs in place
No programs

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 ISO 9000:2000
• Quality system standards adopted by
International Organization for Standardization
in 1987; revised in 1994 and 2000
• Technical specifications and criteria to be used
as rules, guidelines, or definitions of
characteristics to ensure that materials,
products, processes, and services are fit for
their purpose.

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 Objectives of ISO Standards (1 of 2)
• Achieve, maintain, and continuously improve
product quality
• Improve quality of operations to continually
meet customers’ and stakeholders’ needs
• Provide confidence to internal management
and other employees that quality
requirements are being fulfilled

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 Objectives of ISO Standards (2 of 2)
• Provide confidence to customers and other
stakeholders that quality requirements are
being achieved
• Provide confidence that quality system
requirements are fulfilled

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 Structure of ISO 9000 Standards
• 21 elements organized into four major
sections:
– Management Responsibility
– Resource Management
– Product Realization
– Measurement, Analysis, and Iimprovement

See Table 3.7

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 ISO 9000:2000 Quality
Management Principles
1. Customer Focus
2. Leadership
3. Involvement of People
4. Process Approach
5. System Approach to Management
6. Continual Improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier Relationships
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