Prepared By:ERICSON CUTILLON MA. PAMELA

BARBA

JENNY NAVARETTE DAISY CADUSALE

Who was Malcolm Baldrige?

Malcolm Baldrige was Secretary of Commerce from 1981 until his death in a rodeo accident in July 1987. Baldrige was a proponent of quality management as a key to this country’s prosperity and long-term strength. He took a personal interest in the quality improvement act that was eventually named after him and helped draft one of the early versions. In recognition of his contributions, Congress named the award in his honor.

•Malcolm Baldrige national Quality Award (MBNQA)

-was instituted in USA in the year 1987 through Malcolm Baldridge National Quality Improvement Act by the US government. The award lays emphasis on Customer Satisfaction.

The Malcolm Baldrige award is given to three categories of organization as given below:

ManufacturingThe process of converting raw materials, components, or parts into finished goods that meet a customers expectations or specifications.

A type of  economic activity that is intangible, is not stored and does not result in ownership. A service is consumed at the point of sale.

Small BusinessSmall businesses are normally privately owned corporations, partnerships, or sole proprietorships. 

Service

Human Resources Development and Management(15%)—Examines how the organization enables its workforce to develop its full potential and how the workforce is aligned with the organization’s objectives.

Management of process Quality(14%)—Examines aspects of how key production/delivery and support processes are designed, managed, and improved.

Quality and Operational Results(18%)—Examines the organization’s performance and improvement in its key business areas: customer satisfaction, financial and marketplace performance, human resources, supplier and partner performance, operational performance, and governance and social responsibility. The category also examines how the organization performs relative to competitors.

Leadership(9%)—Examines how senior executives guide the organization and how the organization addresses its responsibilities to the public and practices good citizenship.

Strategic Quali ty planning(6%)—Examines how the organization sets strategic directions and how it determines key action plans.

Customer Focus and Satisfaction(30%)—Examines how the organization determines requirements and expectations of customers and markets; builds relationships with customers; and acquires, satisfies, and retains customers.

Information and Analysis(8%)—Examines the management, effective use, analysis, and improvement of data and information to support key organization processes and the organization’s performance management system.

Notice 30% marks are allotted for customer focus and satisfaction. The sub-parameters of the customer focus and satisfaction are:

*Customer Relationship Management*Commitment to customer*Customer satisfaction determination*Customer satisfaction results*Customer satisfaction comparison*Future requirement and expection of customer

Purposes of the Award

Help stimulate American companies improve quality and productivity for the pride of recognition while obtaining a competitive edge through increased profits;

Recognize the achievements of those companies that improve the quality of their goods and services and provide an example to others;

Establish guidelines and criteria that can be used by business, industrial, governmental, and other enterprises in evaluating their own quality improvement efforts; and

Provide specific guidance for other American enterprises that wish to learn how to manage for high quality by making available detailed information on how winning enterprises were able to change their cultures and achieve eminence.

ISO 9000 Standards

◦ Define the required elements of an effective quality management system, can be applied in any company

◦ ISO 9000 to comprehend the principles of quality management, function of quality management and correct use of terms

◦ Is a collection of documentation guidelines (9000 - 9004) which focus on the documentation of operational techniques and managerial activities used to fulfill customer expectations and requirements.

◦ The ISO 9000 series of quality standards was developed by the International Organization of Standards (ISO) in 1987, and has since become the international quality standard (Watson, 1992).

The “Plan-Do-Check-Act” cycle, also known as the “Deming Cycle”

A dynamic cycle that is deployed to organization’s processes

Associated with the planning, implementation, control and continual improvement

To operate efficiently

To achieve customer satisfaction

To improve financial results

Satisfy all the stakeholders

To secure sustainability

ISO 9000:2000 Quality Management Principles

1. Customer Focus

Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements, and strive to exceed customer expectations.

2. Leadership

Leaders establish unit of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives.

3. Involvement of People

People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization’s benefit.

4. Process Approach

A desired result is achieved more efficiently when activities and related resources are managed as a process.

5. System Approach to Management

Identifying, understanding, and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives.

6. Continual Improvement

Continual improvement of the organization’s overall performance should be a permanent objective of the organization.

7. Factual Approach to Decision Making

Effective decisions are based on the analysis of data and information.

8. Mutually Beneficial Supplier Relationships

An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.

Quality Management

According to ISO 9000 standards, Quality management comprises. “All activities of the overall management function that determine the quality policy, objectives and responsibilities and implement them by means such as quality planning, quality control, quality assurance and quality improvement within the quality system.

The Quality system consists of the organizational structure, procedures, processes and resources needed to implement quality management

The above brings out the following:

The company must have an objective and policy for quality of the product and services.

The organization should plan for meeting the objective

The plan should include QA, QC and methodology for improvement.

There must be a clear organizational structure for building quality into the products and services with necessary resources

The quality management should be implemented formally with well-defined processes and procedures and trained resources

INSPECTION

Pre-World War IIQuali ty Control

Quality Assurance

Quality Management

TQM

EVOLUTION OF QUALITY

Post-World War II

Quality Planning- refers to the activities that establish the objectives and requirement for quality.

Quality Improvement- this process aims at attaining unprecedented levels of performance, which are significantly better than the past level.

Strategic Planning-important for any business. It involves making for the

following, in particular:

Business Value Investment in machinery and equipment Manpower to be hired Budget Product Diversification Strategies for improving profits etc.

ISO 14000: Recent Developments in ISO 14000: Recent Developments in Formalized search for qualityFormalized search for quality

INTRODUCTION:

ISO 14000 is concerned with environmental management.

World’s first series of internationally accepted standards of environmental management system.

Guide to Environmental Management Principles, Systems and Supporting techniques.

Voluntary standards that will lead to the common worldwide approach to environmental management systems.

ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL MANAGEMENT SYSTEMS:SYSTEMS:

EMS is a method of going about your business while managing environmental risks.

Provides order and consistency to the organization.

Involves incorporating environmentally responsible practices into everyday business processes.

Recognizes and controls environmental risks while creating measurable improvements in performance.

WHY IMPLEMENT EMS?

Improved compliance with environmental laws.

Sustainable development.

Credibility.

Pressure from environmentalists.

Worldwide focus to the environment.

ISO 14000 STANDARDS

Series of international standards for environmental management.

ISO 14001 is the first in the 14000 series and specifies requirements of an EMS.

Overall aim of ISO 14001 and other standards in the 14000 series is to support environmental protection and the prevention of pollution in harmony with socio- economic needs.

ISO 14001 applies to any organization that wishes to improve and demonstrate environmental performance to others through the presence of a certified EMS.

ISO 14001 CERTIFICATION PROCESS:

•Preliminary assessment•Document review•Initial assessment•Main assessment•Certification/registration.•Surveillance

BENEFITS •It can be applied to any type of organization.

•It helps in maintaining an efficient quality system in an organization. •It creates confidence in customer on the quality of product supplied.

•It acts as competitive barrier.

Six Sigma as a Quality FrameworkSix Sigma as a Quality Framework

SIX SIGMA

•A term greek used in statistics to represent standard deviation from mean value, an indicator of the degree of variation in a set of a process. •Sigma measure how far a given process deviates from perfection. Higher sigma capability better performance. •The term “sigma” is used to designate the distribution or spread about the mean (average) of any process or procedure.For a process, the sigma capability (z-value) is a metric that indicates how well that process is performing. The higher the sigmacapability, the better. Sigma capability measures the capability of the process to produce defect-free outputs. A defect is anything thatresults in customer dissatisfaction.

ORIGIN OF SIX SIGMA•Six sigma was born in the 1980’s at Motorola. •Bill smith engineer of Motorola

ESSENCE OF SIX SIGMA

Statistical Control Limits - Upper control limit (UCL) and Lower Control Limit

Specification limit Upper specification limit (USL) and Lower Specification Limit

What is six sigma?“ Why do we call Six Sigma as Six Sigma and not Four or Five Sigma or Eight Alpha (another Greek symbol)? Sigma is a statistical term that measures process deviation from process mean or target. Mean is also referred as average in common language. The figure of six was arrived statistically by looking at the current average maturity of most business enterprises. We would like to revise this figure to 8 or may be 9 provided the world becomes a more orderly and predictable (even with increasing entropy or chaos) place to live! Six Sigma - A highly disciplined process that enables organizations deliver nearly perfect products and services.•The figure of six arrived statistically from current average maturity of most business enterprises•A philosophy and a goal: as perfect as practically possible.•A methodology and a symbol of quality.•Six Sigma emerged as a natural evolution in business to increase profit by eliminating defects•The Current business environment now demands and rewards innovation more than ever before due to:

Why six sigma?Six Sigma emerged as a natural evolution in business

to increase profit by eliminating defects

The Current business environment now demands and rewards innovation more than ever before due to:

•Customer Expectations•Technological Change•Global Competition•Market Fragmentation

What is six sigma?A statistical concept that measures a process in terms of defects – at the six sigma level, there 3.4 defects per million opportunities. Six Sigma is not:•A standard•A certification•Another metric like percentageRather!•It is a Quality Philosophy and the way of improving performance by knowing where you are and where you could be

COMPANIES USING SIGMA:Six Sigma is in use in virtually all industries around the world. Some of companies can be listed as:•Motorola•Ericsson•General Electric•Sony•Ford Motor Co.•CITI bank

BPMSBPM strategies emphasize on process improvement and

automation to derive performanceCombining BPM strategies with sigma six is most powerful

way to improve performance Both strategies are not mutually exclusive but some

companies produced dramatic results by combining them.

WHAT IS DMAIC?

(Define, Measure, Analyze, Improve, Control)A logical and structured approach to problem solving and process

improvement.An iterative process (continuous improvement)A quality tool which focus on change management style.

Phases of Six Sigma are:

Define specific goals to achieve outcomes, consistent with customers demand and business strategy

Measure reduction of defects

Analyze problems ,cause and effects must be considered

Improve process on bases of measurements and analysis

Control process to minimize defects

WHAT IS DMADV?•Acronym for:•Define the project•Measure the opportunity•Analyze the process options•Design the process•Verify the performance

WHEN SHOULD SIX SIGMA BE USED?Its usage depends on the type of business. In general,

“If there are processes that generate a lot of negative customer feedback, whether that customer is internal or external, the components of Six Sigma should be considered as a means to study and rectify the problem.”

BENEFITS OF SIX SIGMA

•Generates sustained success

•Sets performance goal for everyone

•Enhances value for customers

•Accelerates rate of improvement

•Promotes learning across boundaries

•Executes strategic change

SIX SIGMA MANAGEMENT:When practiced as a management system, Six Sigma is a high performance system for executing business strategy.

Six Sigma is a top down solution to help organizations:

•Align their business strategy to critical improvement efforts •Mobilize teams to attack high impact projects •Accelerate improved business results •Govern efforts to ensure improvements are sustained

KEY ROLES FOR SIX SIGMA

Six Sigma identifies several key roles for its successful implementation:

•Executive leadership•Champions •Master Black Belts (Identify projects& functions)•Black Belts (Identify non value added activities)•Green Belts ( works on small projects )

TOOLS & TECHNIQUES

7QC tools

•Check Sheets (collect data to make improvements)•Pareto Charts( define problem and frequency)•Cause and effect diagram (Identify possible causes to solve problem)•Histogram (Bar charts of accumulated data to evaluate distribution of data)•Scatter diagram (plots many data points and pattern between two variables)•Flow Chart (Identify unwanted steps)•Control charts (Control limits around mean value)

TRAININGS & CERTIFICATIONSIf you want to make yourself more valuable and attractive

to employers then get training and certificationOption I – Certification as Six Sigma Green BeltOption II – Certification as Six Sigma Black Belt

CONCLUSIONSix Sigma is methodology used for:Aligning key business processes to achieve those requirements.Utilizing rigorous data analysis to minimize data variation in those processes.Driving rapid and sustainable improvement to business processes.

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