New eyes.... New eyes for management.. a different view of quality performance is what we hope to find tonight.
With NEW EYES we'll be able to question what we have taken for granted.. we'll be able to replace some new and modern with some old fundamentals that work ... and understand why .. We'll apply left handed and right handed thinking in the search for some totally new concepts.
There is some order to this madness.. for tonight we will:
- Review The Maxims of Quality
Suggest Some Ways to Prevent Problems and Improve Quality in Your Operation
I have read somewhere that the left and right sides of the brain controls different types of thought... It is said that the left side is very logical and that the left side is where we do deductive reasoning. The left side therefore is very objective in it's perception and governs accordingly. Conversely the Right side of the Brain controls our Emotions creativity and appreciation of beauty and is very subjective and governs accordingly.
It stands to reason then that Left handed thinkers are our scientist mathematicians. Right handed thinkers are our artist, designers and performers. This makes sense but.. what hand do you suppose our politicians think with??..... Our accountants use to be left handed thinkers... I'm not sure that that's true now..
This may sound a bit bizarre but by using the perception of left and right handed thinking we will be better able to understand the quality maxims and will undoubtedly conclude that successful quality professionals are switch hitters.
QUALITY DEFINITION - the first maxim.
The definition of quality is important and presents a challenge to management because the desire for achievement must be communicated...
There are many well thought out definitions available. They are part of the package offered by the several philosophies in vogue today:
- Quality means conformance to requirements.
Quality means fitness for use.
The loss imparted to society by products.
That which makes something what it is.
- CUSTOMER What he thinks it is. Shinny, Smooth, Clean, Quiet, Last a long time, Cost just enough money, Delivered on time.
WORKER Meets Spec. Within tolerance, Nothing left out, Right parts used, Process followed exactly, Paperwork right, Cost within standard range, Completed on time.
POLITICIAN Both of the above depending on who he is talking to.... You know we may never have a national policy on quality.
It's hard not to have two kinds of quality.. Try explaining to a mad customer that he has no beef because it's like the print! Or what would a worker do if something was rejected because it wasn't Excellent?!
- OUR first TNC! - Totally New Concept
Righthanded-Customer Quality means Satisfaction.
Lefthanded-Worker Quality means meet the requirements
Swithch-hitters-Management Quality - determine Satisfaction factors specify requirements.
- Establish the performance standard. ..then manage for achievement.
A performance standard expresses how often the requirements have to be met.
Always conform! The biggest problem with a wavering performance standard is that we can't depend upon each other.
The whole system of the company depends on being able to know what someone else is going to do. Imagine the problems of the shortstop who finds that management moves first base every day. He has trained himself to throw at one spot. If that spot is moved even a little the throw will be off target.
DEFECT FREE -DO IT RIGHT THE FIRST TIME IS A PROPER PERFORMANCE STANDARD.
Nonspecific words like good or pride or excellence means you're being nonspecific about quality.
If your employees have a problem with DEFECT FREE they probably have a problem with coming to work everyday at 8:00 AM. Management usually says: "IF YOU'RE GOING TO BE LATE CALL IN"..
So... why don't we say: "If you're going to make an error call us" we want to select which errors to put in the products.
I know this is a bit toung-in-cheek. But did you ever notice how much easier it is to get on an employee's case for coming to work five minutes late than it is if he or she creates $5000 in scrap?..
TNC : Management must set a serious standard for performance and expect it to be met.
MAXIM - Cost of Non Quality
The cost of Non-Quality is the only true measure of the quality performance of an organization.
The cost or Non-quality is all of the extra cost of meeting the already established obligation of conformance and the extra cost of customer pacification. These can result from ANY activity of the organization from sales to engineering, production, delivery, installation, service and all supporting functions.
There are three categories of cost usually measured in a cost of non-quality measurement system: Prevention, Detection, and Failure.
- Prevention costs are those expended trying to keep things from going wrong .. usually the most neglected area.
Detection costs are those used to find out if any thing went wrong.. These are things like inspections and tests..
Failure costs are those needed to fix the things that went wrong.. rework scrap warranty etc.
Scrap is not just the cost of items thrown away but the cost of replacement, the cost of extra inventory required to cover shrinkage, the carrying cost of inventory stranded because of shortages not to mention the expediting costs.
Warranty is not just the cost to replace or repair discrepant items delivered to the customer but includes the cost of delayed accounts receivable and the loss of customer confidence not to mention the lost productivity of any sales personnel involved in adjusting the complaint.
Obviously all of these items do not show up directly on the cost of non-quality schedules.. but the basic elements are all measurable with varying degrees of precision and best of all they are manageable.
Manageable, not with magic but proven problem prevention techniques. With a concerted effort in reducing the cost of non-quality current levels can be reduced by 20-50% a year.
This scenario is being repeated every year in a broad spectrum of companies across America, all have reported significant achievements in the quality area. Without exception all reports include increased productivity and profitability along with product quality improvements.
This is good news and bad news .. The good news is that it can be done it's not magic just the "Systematic application of common sense". The bad news is that sooner or later our competitors are going to do it to..
Harley-Davidson
In 1983 President Ragan imposed special tariffs on heavyweight motorcycles. These were imposed for a period of five years to protect Harley-Davidson the remaining U.S. based manufacturer. Harley-Davidson under the direction of its CEO and Chairman Vaughn L. Beals Jr. undertook a program for survival. Survival required becoming competitive in world markets.
By 1986 the company had increased it's market share by 50% from it's share in 1983 (from 12 to 19%). Today Harley-Davidson operates with 2/3 less inventory, has increased productivity by 50% and reduced defects per unit by 70%.
In March of this year the company petitioned the International Trade Commission to terminate the tariffs because they were no longer needed.
Beals makes a point that "when given the opportunity the American worker can regain competitiveness". He also stresses that "Industry must be aggressive in initiating actions"
The Harley-Davidson story illustrates that it can be done and that the main ingredients are Industry leadership in initiating actions and management accepting the responsibility for getting commitment form the employees.
Do we really need restrictive trade tariffs?.... Perhaps in some industries where it's already too late. But in many others all that's needed is Management meeting the challenges.
GETTING SUPPORT
Quality practitioners often complain about the lack of commitment to quality by management and their peers in other functions. This perception of non commitment, aside form the complaining, often negatively influence their actions and performance and precludes their participation in the strategic planning of the business. The loss of energy, frustration and lack of effectiveness is unfortunate and for the most part unnecessary. A management group that is not committed to quality performance most likely has a quality function that has not communicated or exercised he leadership required to obtain the commitment.
Many quality programs fail because the quality professionals have not defined in their own minds what it takes to cause quality.
What do we really want when we ask for management support? Actually it's not one thing, it's a series of elements that together mean management support.
- Clout - That is, representation on the management staff equal to other functions.
Accessibility - To Management to discuss concerns and ideas.
Resources - Sufficient to perform required quality activities.
Information - In sufficient depth to allow planning and operation of the quality function in concert with the other functions in achieving company plans and objectives.
The authority to act.
A professional quality organization that is efficient and effective in the Assurance Sciences. Management cannot credibly support quality and an organizational objective unless the quality departments are competent and maintain an image of competence with their peer functions.
Leadership - Achievement of the organizational quality objectives can be viewed as a project and the quality people are the project leaders. The success of the project requires not only the application of the resources of the quality department, but the resources of other functions as well. Your effectiveness in team building for this activity will depend upon the authority of knowledge. The authority of knowledge cannot be granted by any office, it must be earned.
Integrity - Management must be able to count on the accuracy of what you tell them. Facts and opinions are wanted, but you must identify which is which. Also, talk to them in terms they can understand without an extensive course in statistical quality control.
Be Helpful - Don't confine your activities to quality assurance functions. Participate in business discussions. Business plans should contain a quality section that is an important part of our overall business strategy. Your participation is important to your profession and your company.
Thank You
Copyright © 1987 Charles Prier
Click Here to E-Mail your Comments
Return to ALL ABOUT QUALITY