W2 Assignment "Improvement Philosophy" Performance Management The Deming Philosophy • • • • • • • Discuss the nature of the Deming Philosophy. Evaluate all 14 points and discuss each one in detail. The requirements below must be met for your paper to be accepted and graded: Write between 700 – 1,000 words using Microsoft Word in APA style, see example below. Use font size 12 and 1” margins. Include cover page and reference page. At least 80% of your paper must be original content/writing. No more than 20% of your content/information may come from references. Use at least three references from outside the course material, one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement. Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style. References must come from sources such as, scholarly journals found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing. A detailed explanation of how to cite a source using APA can be found here (link). Download an example here. Grading Criteria Assignments Meets or exceeds established assignment criteria Demonstrates an understanding of lesson concepts Clearly presents well-reasoned ideas and concepts Uses proper mechanics, punctuation, sentence structure, spelling and APA formatting Total Maximum Points 20 30 30 20 100 MGT431 Performance Management Week 2- Getting Started/Reading and Video Principles of Quality and Workforce Behavior are critical components of an organization’s foundational structure. This week will analyze the overall principles associated to quality and workforce behavior. Course Objective: At the successful completion of this week’s lessons, you should be prepared to: • Analyze principle performance and work group behavior Weekly Learning Objectives: In addition to the course objectives, this week will prepare you to be familiar with: • • • • • • Deming Philosophy Comparing Deming, Juran and Crosby Principles, Practices and Techniques of Quality Management Variation and Statistical Thinking Principles of Workforce Engagement and Motivation Workforce Focus 1. 2. 3. 4. 5. 6. 7. Read pages: 51 – 72 and 154 - 160 Week 2 PowerPoint Presentation “Workforce Behavior” Week 2 PowerPoint Presentation “Total Quality Management” Week 2 Video “Deming's 14 Points” Week 2 Video “Crosby - The Quality Man” Week 2 Video “Total Quality Management” Week 2 Video “Deming's Red Bead Experiment” Reading and Video Materials: Assignments: 1. Participate in the week two discussion: “Workforce Behavior” 2. Complete the week two assignment: “The Deming Philosophy” 3. Complete the week two quiz: “Quality Management Principles” Reading and Video Evans, J. R., & Lindsay, W. M. (2016). Managing for quality and performance excellence (10th ed.). Mason, OH: South-Western Cengage Learning. ISBN: 9781305662544 • Read pages 51 – 72 and 154 - 160 in textbook • • • • Watch video: Deming's 14 Points Watch video: Crosby - The Quality Man Watch video: Total Quality Management Watch video: Deming's Red Bead Experiment Foundations of Quality Management MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 9e, © 2014 Cengage Publishing 1 Quality Profile – Texas Nameplate Company, Inc.  “Fear is useless; what is needed is trust.”  A continuous learning environment that enables empowered teams of workers to take charge of processes and to deliver products and services with a “star quality.”  Reduced its defects from 3.65 percent to about 1 percent in four years.  satisfaction rates in five areas employees say are the most important exceed national norms by a significant margin. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 2 Quality Profile: MEDRAD  A culture of high performance.  Systematic approaches to capture customers’ expectations and preferences.  The Customer Complaint Process focuses on timely response and successful resolution of customer issues  MEDRAD’s overall Net Promoter (NP) scores (a loyalty metric defined by the level of repeat sales and referrals) have been consistently 60 percent or higher, compared to the 50 percent or higher marks for other organizations over the same time periods. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 3 Leaders in the Quality Revolution  W. Edwards Deming  Joseph M. Juran  Philip B. Crosby  Armand V. Feigenbaum  Kaoru Ishikawa © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 4 Deming Philosophy  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. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 5 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 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 6 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. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 7 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 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 8 Deming’s System of Profound Knowledge  Appreciation for a system  Understanding variation  Theory of knowledge  Psychology © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 9 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 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 10 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 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 11 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 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 12 Psychology  People are motivated intrinsically and extrinsically; intrinsic motivation is the most powerful  Fear is demotivating  Managers should develop pride and joy in work © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 13 Juran Philosophy  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.” © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 14 Juran’s Quality Trilogy  Quality planning  Quality control  Quality improvement © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 15 Juran’s Breakthrough Sequence  Proof of the Need  Project Identification  Organization for Breakthrough  Diagnostic Journey  Remedial Journey  Holding the Gains © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 16 Crosby Philosophy “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.” 17 2014 Cengage Learning. Reserved. May not be scanned, copied or duplicated, or posted to a in publicly © 2011 Cengage Learning. All©Rights Reserved. May notAll be Rights scanned, copied or duplicated, or posted to a publicly accessible website, whole accessible or in part.. website, in whole or in part. Crosby’s 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 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 18 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 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 19 Kaoru Ishikawa  Instrumental in developing Japanese quality strategy  Influenced participative approaches involving all workers  Advocated the use of simple visual tools and statistical techniques © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 20 Total Quality  Principles – foundation of the philosophy  Practices – activities by which principles are implemented  Techniques – tools and approaches to make practices effective © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 21 Core Quality Management Principles  Customer focus  Teamwork  Continuous improvement © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 22 ISO 9000:2000 Quality Management Principles  Customer Focus  Leadership  Involvement of People  Process Approach  System Approach to Management  Continual Improvement  Factual Approach to Decision Making  Mutually Beneficial Supplier Relationships © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 23 Customer Focus Practices  Researching and understanding customer needs and      expectations. Ensuring that the objectives of the organization are linked to customer needs and expectations. Communicating customer needs and expectations throughout the organization. Measuring customer satisfaction and acting on the results. Systematically managing customer relationships. Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole). © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 24 Leadership Practices  Considering the needs of all interested parties including       customers, owners, employees, suppliers, financiers, local communities and society as a whole. Establishing a clear vision of the organization’s future. Setting challenging goals and targets. Creating and sustaining shared values, fairness and ethical role models at all levels of the organization. Establishing trust and eliminating fear. Providing people with the required resources, training and freedom to act with responsibility and accountability. Inspiring, encouraging, and recognizing people’s contributions. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 25 Involvement of People Practices  People understanding the importance of their contribution       and role in the organization. People identifying constraints to their performance. People accepting ownership of problems and their responsibility for solving them. People evaluating their performance against their personal goals and objectives. People actively seeking opportunities to enhance their competence, knowledge, and experience. People freely sharing knowledge and experience. People openly discussing problems and issues. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 26 Process Approach Practices  Systematically defining the activities necessary to obtain a      desired result. Establishing clear responsibility and accountability for managing key activities. Analyzing and measuring of the capability of key activities. Identifying the interfaces of key activities within and between the functions of the organization. Focusing on the factors such as resources, methods, and materials that will improve key activities of the organization. Evaluating risks, consequences, and impacts of activities on customers, suppliers, and other interested parties. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 27 System Approach to Management Practices  Structuring a system to achieve the organization’s objectives in the       most effective and efficient way. Understanding the interdependencies between the processes of the system. Structured approaches that harmonize and integrate processes. Providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriers. Understanding organizational capabilities and establishing resource constraints prior to action. Targeting and defining how specific activities within a system should operate. Continually improving the system through measurement and evaluation. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 28 Continual Improvement Practices  Employing a consistent organization-wide approach to     continual improvement of the organization’s performance. Providing people with training in the methods and tools of continual improvement. Making continual improvement of products, processes, and systems an objective for every individual in the organization. Establishing goals to guide, and measures to track, continual improvement. Recognizing and acknowledging improvements. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 29 Factual Approach to Decision Making Practices  Ensuring that data and information are sufficiently accurate and reliable.  Making data accessible to those who need it.  Analyzing data and information using valid methods.  Making decisions and taking action based on factual analysis, balanced with experience and intuition. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 30 Mutually Beneficial Supplier Relationships Practices  Establishing relationships that balance short-term gains with long-term considerations.  Pooling of expertise and resources with partners.  Identifying and selecting key suppliers.  Clear and open communication.  Sharing information and future plans.  Establishing joint development and improvement activities.  Inspiring, encouraging, and recognizing improvements and achievements by suppliers. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 31 TQ Techniques  Statistical methods  Visual aids for problem solving, such as flowcharts  Techniques specific to quality assurance activities, such as control charts, measurement systems analysis, reliability models, and so on. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 32 Statistical Thinking  All work occurs in a system of interconnected processes  Variation exists in all processes  Understanding and reducing variation are the keys to success © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 33 Sources of Variation in Production Processes Materials INPUTS Operators Measurement Instruments Methods PROCESS OUTPUTS Tools Machines Environment © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. Human Inspection Performance 34 Problems Created by Variation  Variation increases unpredictability.  Variation reduces capacity utilization.  Variation contributes to a “bullwhip” effect.  Variation makes it difficult to find root causes.  Variation makes it difficult to detect potential problems early. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 35 Types of Variation  Uncontrollable variation (common causes) are a natural part of a process  Special (assignable) causes of variation can be recognized and controlled  Failure to understand these differences can increase variation in a system © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 36 Two Fundamental Management Mistakes 1. 2. Treating as a special cause any fault, complaint, mistake, breakdown, accident or shortage when it actually is due to common causes Attributing to common causes any fault, complaint, mistake, breakdown, accident or shortage when it actually is due to a special cause © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 37 Deming’s Red Bead Experiment – Round 1 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 38 Deming’s Red Bead Experiment – Round 2 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 39 Deming’s Red Bead Experiment – Round 3 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 40 Deming’s Red Bead Experiment – Round 4 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 41 Control Chart of Results © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 42 Lessons Learned  Quality is made at the top.  Rigid procedures are not enough.  People are not always the main source of variability.  Numerical goals are often meaningless.  Inspection is expensive and does not improve quality. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 43 Note to Students  The following slides can be used to guide a class demonstration and discussion of the Deming Red Bead experiment using medium size bags of M&Ms, from a suggestion one author found on a TQ newsgroup several years ago. The good output (“red beads”) are the blue M&Ms, with the instructor playing the role of Dr. Deming. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 44 We’re Going into Business!!! We have a new global customer and have to start up several factories. So I need teams of 5 to do the work: 1 Production worker 2 Inspectors 1 Chief inspector 1 Recorder 45 2014 Cengage Learning. Reserved. May not be scanned, copied or duplicated, or posted to a in publicly © 2011 Cengage Learning. All©Rights Reserved. May notAll be Rights scanned, copied or duplicated, or posted to a publicly accessible website, whole accessible or in part.. website, in whole or in part. Production Setup 1. Take the bag in your left hand. 2. Tear a 3/4” opening in the right corner. (only large enough for one piece at a time) © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 46 Production Process 1. Production worker produces 10 pieces and places them on the napkin. 2. Each inspector, independently, counts the blue ones, and passes to the Chief Inspector to verify. 3. If Chief Inspector agrees, s/he tells the recorder, who reports it to me. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 47 Do it right the first time! Be a Quality 48 Take Pride in Your Worker! Work! 2014 Cengage Learning. Reserved. May not be scanned, copied or duplicated, or posted to a in publicly © 2011 Cengage Learning. All©Rights Reserved. May notAll be Rights scanned, copied or duplicated, or posted to a publicly accessible website, whole accessible or in part.. website, in whole or in part. Deming’s Funnel Experiment  Rule 1: Leave the funnel alone  Rule 2. Measure the deviation from the point at which the marble comes to rest and the target. Move the funnel an equal distance in the opposite direction from its current position.  Rule 3. Measure the deviation from the point at which the marble comes to rest and the target. Set the funnel an equal distance in the opposite direction of the error from the target.  Rule 4. Place the funnel over the spot where the marble last came to rest. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 49 Illustration of Funnel Rules © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 50 Simulated Results of Funnel Experiment © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 51 Quality Management Systems  Quality Management System (QMS) - a mechanism for managing and continuously improving core processes to "achieve maximum customer satisfaction at the lowest overall cost to the organization.”  Objectives  Higher product conformity and less variation.  Fewer defects, waste, rework, and human error.  Improved productivity, efficiency, and effectiveness. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 52 Quality Manual  A permanent reference for implementing and maintaining the system.  Typical records  inspection reports  test data  audit reports  calibration data © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 53 ISO 9000:2000 Objectives 1. Achieve, maintain, and seek to continuously improve product quality (including services) in relationship to requirements. 2. Improve the quality of operations to continually meet customers’ and stakeholders’ stated and implied needs. 3. Provide confidence to internal management and other employees that quality requirements are being fulfilled and that improvement is taking place. 4. Provide confidence to customers and other stakeholders that quality requirements are being achieved in the delivered product. 5. Provide confidence that quality system requirements are fulfilled. 54 © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. ISO 9000:2000 Documents 1. ISO 9000:2005—Fundamentals and vocabulary: This document provides fundamental background information and establishes definitions of key terms used in the standards. 2. ISO 9001:2008—Requirements: This is the core document that provides the specific requirements for a quality management system to help organizations consistently provide products that meet customer and other regulatory requirements. 3. ISO 9004:2009—Guidelines for Performance Improvements: This document provides guidelines to assist organizations in improving and sustaining their quality management systems. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 55 ISO 9001:2008  Management Responsibility addresses what top management must do to ensure an effective quality system.  Resource Management ensures that an organization provides sufficient people, facilities, and training resources.  Product Realization refers to controlling the production/service process from receipt of an order or quote through design, materials procurement, manufacturing or service delivery, distribution, and subsequent field service.  Measurement, Analysis, and Improvement focuses on control procedures for assuring quality in products and processes, analysis of quality-related data, and correction, prevention, and improvement planning activities. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 56 Benefits of ISO 9000  It provides discipline. The ISO 9001 requirement for audits forces an organization to review its quality system on a routine basis.  It contains the basics of a good quality system. These include understanding customer requirements, ensuring the ability to meet them, ensuring people resources capable of doing the work that affects quality, ensuring physical resources and support services needed to meet product requirements, and ensuring that problems are identified and corrected.  It offers a marketing program. ISO certified organizations can use their status to differentiate themselves in the eyes of customers. © 2014 part. 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.. 57
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