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Page 1: Philosophies Regarding Quality –  Juran  and Crosby

Philosophies Regarding Quality – Juran and Crosby

Prepared by: Bhakti JoshiDate: December 12, 2012

Page 2: Philosophies Regarding Quality –  Juran  and Crosby

Brief Characteristics of Deming’s Quality Principles

• Introduced Statistical Process Control (SPC) to measure quality

• Introduced “Plan, Do, Study/Check, Act” (Quality Circle)– Design the product– Make it; test it – Put it on the market– Test consumption behaviour and underlying

reasons

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Origins of Juran’s Philosophy• Juran’s father was a shoemaker during the pre-

industrialisation era• Juran’s father presided over the entire production process• Juran considered his father to be a producer and his own

customer• Father had an assembly line following the concept of

division of labour• Each artisan controlled every step and understood every

error that was made• This process changed after industrialisation across industries

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Juran’s Trilogy

Quality Planning

• Identify Customers•Determine

Customer needs•Develop product

features•Establish quality

goals•Develop a process

to produce needed product features•Prove process

capabilities that can meet quality goals

Quality Control

•Choose control subjects•Choose units of

measurement•Establish

measurement•Establish standards

of performance•Measure actual

performance• Interpret the

difference (Actual vs standard)•Take action on

difference

Quality Improvement

•Prove the need for improvement• Identify specific

projects for improvement•Organise to guide

the projects•Organize for

diagnoses – for discovery of causes•Provide remedies•Prove that

remedies are effective under current conditions•Provide for control

to hold gains

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Brief Characteristics of Juran’s Trilogy• Product features that met customer needs• Quality is always planned• Introduced the concept of calculating costs of poor

quality• Encouraged alterations in processes without adding

additional conditions or parameters• Questioned or debated the need for ‘Customer Care

Services’, ‘Warranties’• Introduced Quality by Design (QdB), (Example, United

States’ Food and Drug Administration (FDA))• Introduced the “Pareto Principle” (80% consequences

stem from 20% of the causes)

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Differences in Deming’s and Juran’s Philosophies

• Deming’s philosophy on quality was a comprehensive theory whereas Juran’s philosophy was an analytical and practical approach

• Deming focused on description (use of SPC) and systematic view of a business whereas Juran focused on managing quality and quality functions

• Deming was a philosopher who provided a different view or perspective, whereas Juran was a practitioner who desired to teach business practices

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Similarities in Deming’s and Juran’s Philosophies

• Deming’s argument on variations and Juran’s argument on quality planning, both focus on improvement in processes. Both philosophies are related to “Quality Circle”

• Deming and Juran observed that for a business to succeed, quality management efforts need the long-term commitment and involvement of top management

• Rejected reliance on slogans to motivate workers mainly because the performance depended upon the business’ systems and not the operators

• Both have concerns regarding current practices like incentive pay that are based on faulty or outmoded premises

• Placed great importance on planning as decisions made “upstream” or at top management effect the final results

• Both focused on customer-needs and rely heavily on market research though Juran’s approach is engineering-driven that translated customers’ vision of quality into what can be produced

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Quality Circle

• Dr. Ishikawa of Mushashi Institute of Technology, Tokyo added a dimension to quality

• Derived from the concept of Plan-Do-Check-Act developed by Deming

• Also inspired by Juran’s Trilogy especially quality control

• Basic elements – A group of volunteers trained to identify, analyse and solve work-related problems and present solutions to the management to improve performance of the organisation

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Quality circle – Case Study

• Name of the organisation – Workshop at University Polytechnic, Aligarh Muslim University (AMU)

• Section where the circle is operating – Machine and fitting shop

• Number of meetings held – 10• Problems:– Material wastes– Losses in savings and finances– Constrained relationship between workers and managers

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Quality circle – Case Study (contd…)

• Issues related to individuals, machines, material and methods• Material consumption – Iron & Steel products• Problem solving techniques:

– Team work or brainstorming– Data collection– Pareto principle (80/20 rule: 20% of defects caused 80% of the

problems or 80% of stock comes from 20% of your suppliers or 20% of the staff will cause 80% of problems or 20% of workers will generate 80% of your production – to focus on the 20%)

– Ishikawa diagram (Fishbone diagram) – causal diagrams– Cumulative line diagram

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Quality circle – Case Study (contd…)

• Causes related to individuals - lack of knowledge about materials; no proper instructions; materials cut more than required; lack of knowledge on operations or handling tools

• Causes related to machines – machines not operating at optimum conditions; frictional wear of machine parts; problems with misalignment of machine components; no implementation of new and automatic machines

• Causes related to methods – no inspection of shop after materials used; no proper storage of materials; lack of knowledge for improving existing methods of production

• Causes related to material – no proper inspection of material dimension before cutting; materials did not have required composition

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Quality circle – Case Study (contd…)

• Results:– Improvement in inter-personal relationship– Self-confidence was developed in solving more

complex problems related to production– Building teamwork– Material wastes were reduced with regular

inspections – Overall decrease in wastes and increase in

finances and savings

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About Philip Crosby• Employed as a quality control engineer at Martin Company’s (now

Lockheed Martin) missile production plant• Function was to determine whether intensified inspection would

result in ability to ship missiles completely free of defects• Coined the concept of Zero-Defects (Z-D)• Current system allowed less defects to reach customers with huge

amount of inspection company wished NO defects• Crosby persuaded workers in his department to sign “no defects”

pledges.• Resulted into delivery of a Pershing missile two weeks ahead of

schedule with no detectable defects among its 25,000 parts• Crosby’s name became synonymous with the term ‘zero defects’

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Philip B. Crosby’s Principles of Quality

• Crosby worked for Martin Company which became currently Lockheed Martin, representing the aerospace industry

• DIRFT – “do it right first time” • Coined the concept of “Zero Defects” based on 4 underlying

principles1. Quality is conformance to requirements2. Defect prevention is preferable to quality inspection and correction3. Zero defects is the quality standard4. Quality is measured as the Price of Nonconformance (PONC)

• Argued that mistakes are caused by two things – lack of knowledge or lack of attention

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Philip B. Crosby’s 14 Step Quality Improvement Program

1. Management CommitmentCommunication instead of motivation to management regarding quality

2. Quality Improvement TeamEach department’s representative forms a team and appoint one of them to head the team

3. Quality MeasurementStandardized measurements that reflect possibility of defects

4. Cost of Quality Evaluation (COQ)Indication of corrective action towards reducing costs leading to profits

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Philip B. Crosby’s 14 Step Quality Improvement Program

5. Quality AwarenessCommunication about quality to workforce

6. Corrective ActionEncourage everyone to highlight any issues, problems, concerns, etc that can be rectified immediately

7. Establish an Ad hoc committee for the Zero Defects ProgramEveryone understands and practices ‘zero defects’

8. Supervisor TrainingConducting orientation with all levels of management

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Philip B. Crosby’s 14 Step Quality Improvement Program

9. Zero Defects DayEmphasis on the commitment

11. Error Cause RemovalProviding inputs on errors

12. RecognitionEstablish award programs for individuals meeting goals or performing acts ensuring quality

10. Goal SettingDetermining tasks for the team for a 30, 60 or 90 day time period

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Philip B. Crosby’s 14 Step Quality Improvement Program

13. Quality councilsBring quality professionals and team together to regularly communicate, determine actions and improve quality program

14. Do it Over AgainSet up a new team after 18 months and repeat the program all over

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Costs of Quality (COQ)

• Prevention costs – costs incurred in preventing poor quality or defects from occurring; Related to quality control

• Appraisal costs – Costs incurred in the process of uncovering defects; related to costs of inspections, testing, audits etc.

• Internal failure costs – costs associated with discovering poor product quality before reaching the customer. For e.g. rework, wastes, machine downtime, etc

• External failure costs – Costs associated with quality problems that occur at the customer site that damages customer faith and loyalty

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Crosby’s measurement in non-manufacturing units

Accounting Percentage of late reports

Computer input incorrect

Errors in specific reports as audited

Engineering Change orders due to errors

Drafting errors found by checkers

Late releases

Finance Billing errors (check accounts receivables overdues)

Payroll errors Account payable deduction missed

Hotel front desk Guests taken to unmade rooms

Reservations not honoured

Marketing Contract errors Order description errors

Purchasing Purchase order changes due to error

Late receipt of material

Rejections due to incomplete description

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Quality Assurance

• Two Principles:– Juran’s principle of “Fit for purpose”– Crosby’s principle of “Do it Right First Time”

• Systematic monitoring and evaluation of various aspects of a project, service or facility to maximise probability that standards of quality are being attained by the production process

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Quality Assurance and Total Quality Management

• An integrated organizational effort designed to improve quality at every level

• Value for price paid – assumes quality is price sensitive. For example, a personal finance seminar conducted in two different schools but at different fees - Greater value for the price

• Support services – quality also associated with people, processes and organizational environment –

• Psychological criteria – Focuses on judgmental evaluation of what constitutes product or service quality – Reputation of Rolex or Mercedes-Benz