Quality Systems

Philosophies
and
Frameworks

1
Leaders in the Quality
Revolution
 W. Edwards Deming
 Joseph M. Juran
 Philip B. Crosby
 Armand V. Feigenbaum
 Kaoru Ishikawa
 Genichi Taguchi

2
Who’s Who?

b
a
Deming ____

Juran ____
c
Crosby ____
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 4

Key Idea

The Deming philosophy focuses on

continual improvements in product and
service quality by reducing uncertainty
and variability in design, manufacturing,
and service processes, driven by the
leadership of top management.
Deming’s System of Profound
Knowledge
 Appreciation for a system
 Understanding variation
 Theory of knowledge
 Psychology

6
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
7
Key Idea

The aim of any system should be for all

stakeholders—stockholders, employees,
customers, community, and the
environment—to benefit over the long
term.
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
9
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

10
Psychology

 People are motivated intrinsically and

extrinsically; intrinsic motivation is the
most powerful
 Fear is demotivating
 Managers should develop pride and
joy in work

11
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.
12
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 13
Juran’s Quality Trilogy

 Quality planning
 Quality control

 Quality improvement

www.juran.com 14
Key Idea

Juran proposed a simple definition of

quality: “fitness for use.” This definition
of quality suggests that it should be
viewed from both external and internal
perspectives; that is, quality is related
to “(1) product performance that results
in customer satisfaction; (2) freedom
from product deficiencies, which avoids
customer dissatisfaction.”
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.”
 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 17
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
Kaoru Ishikawa

 Instrumental in developing Japanese

quality strategy
 Influenced participative approaches
involving all workers
 Advocated the use of simple visual
tools and statistical techniques
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
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,
former U.S. Secretary
 Provide guidance for other of Commerce

American companies
21
Criteria for Performance
Excellence
 Leadership
 Strategic Planning
 Customer and Market Focus
 Measurement, Analysis, and
Knowledge Management
 Human Resource Focus Baldrige
Award trophy
 Process Management
 Business Results
22
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
Measurement, Analysis, and Knowledge Management
Key Idea

The Baldrige criteria define both an

integrated infrastructure and a set of
fundamental practices for a high-
performance management system.
Criteria Evolution (1 of 2)

 From quality assurance and strategic

quality planning to a focus on process
management and overall strategic planning
 From a focus on current customers to a
focus on current and future customers and
markets
 From human resource utilization to human
resource development and management
 From supplier quality to supplier
partnerships
Criteria Evolution (2 of 2)

 From individual quality improvement activities

to cycles of evaluation and improvement in all
key areas
 From data analysis of quality efforts to an
aggregate, integrated organizational level
review of key company data
 From results that focus on limited financial
performance to a focus on a composite of
business results, including customer
satisfaction and financial, product, service,
and strategic performance
Key Idea

Approaches that organizations use to

address the Baldrige criteria requirements
need not be formal or complex, and can
easily be implemented by small
businesses.
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
Self Assessment

A primary goal of the Baldrige program

is to encourage many organizations to
improve on their own by equipping
them with a standard template for
measuring their performance and their
progress toward performance
excellence.

Boeing Airlift & Tanker

Programs – 1998 winner
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

30
Other Quality Awards

 European Quality Award

 Canadian Awards for Business
Excellence
 Australian Business Excellence Award
Quality Awards Around
the World

Programs in place
No programs
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.

33
Key Idea

ISO 9000 defines quality system

standards, based on the premise that
certain generic characteristics of
management practices can be
standardized, and that a well-designed,
well-implemented, and carefully managed
quality system provides confidence that
the out-puts will meet customer
expectations and requirements.
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
35
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

36
Structure of ISO 9000
Standards
 21 elements organized into four major
sections:
– Management Responsibility
– Resource Management
– Product Realization
– Measurement, Analysis, and
Iimprovement

37
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
Key Idea

ISO 9000 provides a set of good basic

practices for initiating a quality system,
and is an excellent starting point for
companies with no formal quality
assurance program.
Six Sigma

 Based on a statistical measure that

equates to 3.4 or fewer errors or
defects per million opportunities
 Pioneered by Motorola in the mid-
1980s and popularized by the success
of General Electric
Key Idea

Six Sigma can be described as a business

improvement approach that seeks to find
and eliminate causes of defects and
errors in manufacturing and service
processes by focusing on outputs that are
critical to customers and a clear financial
return for the organization.
Key Concepts of Six Sigma
(1 of 2)

 Think in terms of key business processes,

customer requirements, and overall strategic
objectives.
 Focus on corporate sponsors responsible for
championing projects, support team activities,
help to overcome resistance to change, and
obtaining resources.
 Emphasize such quantifiable measures as
defects per million opportunities (dpmo) that
can be applied to all parts of an organization
Key Concepts of Six Sigma
(2 of 2)

 Ensure that appropriate metrics are identified early

and focus on business results, thereby providing
incentives and accountability.
 Provide extensive training followed by project
team deployment
 Create highly qualified process improvement
experts (“green belts,” “black belts,” and “master
black belts”) who can apply improvement tools
and lead teams.
 Set stretch objectives for improvement.
Key Idea

Although different, Baldrige and Six

Sigma are highly compatible and can
each have a place in the management
system of a successful organization.
 An Education Institute -Need

• To give assurance to the students about Institute Management

programs

• To attract talent from India and Abroad- Students and Faculty

• To make Collaboration/Tie-ups with best B schools across the

Globe

• To emerge as top private B Schools in the region

• To brings process approach to Institute academic activities

Knowledge is Power
http://economictimes.indiatimes.com/articleshow/774731.cms
&
Quality Knowledge is Super Power
 Global B School Accreditations

• SAQS - www.amdisa.org

• EQUIS - www.efmd.org/equis/

• AACSB - www.aacsb.edu/

• AMBA -www.mbaworld.com/page/welcome/index.htm
 Global Accreditations – Indian B School Scenario

SAQS AACSB AMBA EQUIS

Private Business School IBS, XLRI, XIMB, SPJain, MDI, XIMB,IMI TAPMI, ISB, IBS MDI  

       
Govt Business School

L N Welingkar, TAPMI, ISB ,NMIMS,

In Process- Private IMT, Alliance Business School   IMT IMT

In Process- Govt IIMA     IIMA

Source:
ACCSB- Association to Advance Collegiate Schools of Business)-
http://www.aacsb.edu/General/InstLists.asp?lid=3

AMBA- Association of MBA B School List-

http://www.mbaworld.com/page/accreditedlistall/index.html

EQUIS- European Quality Improvement System) B School List-

http://www.efmd.org/html/Accreditations/link_overview.asp?
id=040929sqku&tid=4&ref=ind
What others are doing?

Source : Business India –Sept 2007

 SAQS-Focused Areas

CORPORATE and PUBLIC SYSTEM CONNECTIONS

Executive Education

Personal Development
Context Students
and and Programme Quality
Mission Participants Faculty Physical
Research & Development Resources

Contribution to the Community

REGIONAL AND GLOBAL ISSUES

 SAQS- Accreditation Process Flow

No Strategic
Advice
0. Inquiry 1. Application 2. Eligibility /Guided
Development

Preliminary Screening Information Package sent Eligible: AMDISA accreditation

SAQS Secretariat Data sheet Received likely in 3 years or less
Info AMDISA Eligibility Briefing Interview Decision by SAQS to appoint
Membership Eligibility Comm. Report mentor for the school

SAQS
Accreditation
3. Self 4. Peer Review 5. Apex Committee
Assessment Committee Committee (Awarding
Body)

PR Visit and Report

Preparation of SA Report Recommends on Accreditation
Evaluation based on SAQS
PR team to be notified to Full (5 years) or conditional (3
criteria
School years) accreditation /Guided
Recommendations to Institute
Assisted by SAQS Mentor Development
Report to apex Committee

Not Ready

Optional assistance from the

SAQS
Action Plan: strategy,
Resources, Timing
Tracking Implementation
Advice on when ready
EQUIS – Accreditation stages
EQUIS – Accreditation stages
EQUIS – Focused areas
 AACSB- Accreditation Process Flow

No Re approach
0. Inquiry 1. Application AACSB

Information Package sent

Eligibility Briefing Interview
Information Collection
Eligibility Comm. Report
AACSB allocates a Mentor

AACSB
Accreditation
3. Pre 4. Initial 6.Maintenance Committee
5. Peer Review
Accreditation Accreditation of accreditation (Awarding
Body)

Institute alters accreditation Initial Accreditation Committee Institute submits Self

Plan and decides Evaluation report. Peer Regularly AACSB monitors
Strategy Plan with the help of Institute submits annual review team visits and makes the progress and status of
Mentor progress report to AACSB report and sends with the institute for the
Pre Accreditation Committee every year with the help of recommendations for accredited period
decides on eligibility mentor for 3 years accreditation to AACSB to
accreditation decision.

Not Ready
suggests
improvements
 AACSB – Detail Accreditation Process

The accreditation process will follow a continuous process. Transitions from one step of the process to the next step and from one
committee’s oversight to the next committee’s oversight will flow smoothly without disruption of the school’s progress. The series of
integrated steps follow in this order:

1.The applicant school establishes AACSB International membership.

2.The applicant submits its completed Eligibility Application to begin the process. The applicant is encouraged to submit a draft of
the application for staff review. Staff review will check for completeness.  Applications will be accepted at any time.

3.The PreAccreditation Committee assigns a mentor, and based on the PreAccreditation Committee review of the Eligibility
Application, the PreAccreditation Committee provides input to the mentor regarding areas of potential concern. Mentor
appointments must avoid any appearance of conflict of interest.

4.The Accreditation Coordinating Committee reviews the Eligibility Application as revised to meet any concerns raised by the
PreAccreditation Committee and rules on eligibility issues such as diversity and excluded programs. Changes in existing conditions
during the implementation period may delay or expedite initial accreditation.

5.With the mentor's assistance, the applicant prepares and submits an Accreditation Plan and a Strategic Plan. The Accreditation
Plan is presented as part of the school's Strategic Plan. The Strategic Plan extends beyond the achievement of accreditation.

6.The PreAccreditation Committee reviews the Accreditation Plan and approves it, or iterates suggestions for modification and
review until approval is possible. If the PreAccreditation Committee finds that there is no reasonable expectation that the applicant
will meet the business accreditation standards, it will so advise the applicant. Changes in existing conditions during the
implementation period may delay or expedite initial accreditation.
 AACSB – Accreditation Process Contd…

8. Once the PreAccreditation Committee has accepted the accreditation plan, the plan is forwarded to the initial accreditation plan.

9. The Initial Accreditation Committee reviews the Strategic Plan and approves it, or iterates suggestions for modification and review
until approval is possible. Changes in existing conditions during the implementation period may delay or expedite initial
accreditation.

10. The applicant submits annual reports on progress made and any delays in achieving its Accreditation Plan. Any changes to the
Accreditation Plan are described in the annual reports.

11. The mentor continues to work with the applicant for up to three years as the applicant implements its Accreditation Plan. Initial
accreditation must be achieved within five years of the Initial Accreditation Committee acceptance of the Accreditation Plan.

12. Two years in advance of the anticipated accreditation review visit, a Peer Review Team chair (but not the full team) is appointed.
The team chair monitors the applicant's progress through the final two years of the accomplishment of the Accreditation Plan. Team
Chair appointments must avoid any appearance of conflict of interest.

13. The applicant prepares its Self-Evaluation Report while working with the team chair.

14. The Initial Accreditation Committee appoints the other members of the Peer Review Team. The team reviews the Self-Evaluation
Report, and it prepares and sends a pre-visit letter that is approved by the Initial Accreditation Committee.

15. The visit takes place, and the team delivers to the applicant and to the Initial Accreditation Committee a visit report that includes
an accreditation decision recommendation. The Initial Accreditation Committee ratifies or remands the recommendation.

16. Recommendations for accreditation or denial that are ratified by the Initial Accreditation Committee are then sent to the Board for
ratification or remand.
AMBA – Accreditation Process Flow
 AMBA- Accreditation Process Flow

No
3. Assessment Strategic
1. Initial Contact 2. Self - Audit Advice
Visit

Institute does self audit as per

AMBA guidelines and if 3 to 4 AMBA members will visit
AMBA welcomes discussion
required pre assessment visit the institute and assess the
with Institute
will be arranged to advice the institute
institute

4. AMBA
Accreditation

Decides on accreditation of the

institute