Juran's Quality. Essentials. For Leaders. Joseph A. DeFeo. Joseph M. Juran

Transcription

1 Juran's Quality Essentials For Leaders Joseph A. DeFeo Joseph M. Juran l\ac Graw Hill Education New York Chicago San Francisco Athens London Madrid Mexico City Milan New Delhi Singapore Sydney Toronto

2 CONTENTS Preface Acknowledgments xvii xix CHARTER 1 Embrace Quality 1 Superior Quality Always Leads to Sustainable Business Results 1 Managing Quality Is Not Optional 2 Quality Impacts Revenue and Costs 4 Quality, Earnings, and the Stock Market 5 Building Market Quality Leadership 5 Quality and Share of Market 6 Effect of Quality Superiority 7 No Quality Superiority 7 Carryover of Failure-Prone Features 7 Changes in Customer Habits 8 The Twentieth Century and Quality 8 Explosive Growth in Technology 9 Threats to Human Safety, Health, and the Environment 9 Consumer Movement 10 Intensified International Competition in Quality.. 10 The Twenty-First Century and Quality 11 The Lessens Learned 11 References 13 CHAPTER 2 Three Universal Quality Management Methods...15 The Concept of Universals 15 What Does Managingfor Quality Mean? 16 vii

3 viii Contents Organizational Effectiveness Programs 20 Management of Quality: The Financial and Cultural Benefits 21 Features' Effect on Revenue 21 Failures' Effect on Income 21 Failures' Effect on Cost 22 How to Manage for Quality: A Financial Analogy 22 The Juran Trilogy Diagram 24 Chronic and Sporadic 24 The Trilogy Diagram and Failures 26 References 26 CHARTER 3 Leadership Role in Creating a Sustainable Culture of Quality 27 Culture Defined 27 What Does Culture Have to Do with Managing an Organization? 28 Transforminga Culture 28 Breakthrough and Transformational Change 30 Breakthroughs Are Essential to Organizational Vitality 30 Breakthroughs in Leadership and Management 35 Breakthroughs in Organizational Structure 37 Function-Based Organization 38 Business Process-Managed Organizations 39 Means ofachieving High Performance 39 Focus on External Customers 40 Breakthroughs in Current Performance 41 Breakthroughs in Culture 42 How Are Norms Acquired? 43 How Are Norms Changed? 43 Breakthroughs in Adaptability 49 The Route to Adaptability: The Adaptive Cycle and Its Prerequisites 50 References 56

4 Contents ix CHARTER 4 Aligning Quality Goals with the Strategie Plan 57 Strategie Flanning and Quality: The Benefits 57 What Is Strategie Planning and Deployment? Quality and Customer Loyalty Goals 60 Why Strategie Deployment? The Benefits 61 Why Strategie Deployment? The Risks 62 Launching Strategie Planning and Deployment 63 The Strategie Deployment Proeess 63 Developing the Elements of Strategie Planning and Deployment 66 Establish a Vision 66 Agree on Your Mission 68 Develop Annual Goals 70 The Role of Leadership 73 Subdivide and Deploy Goals 74 Deployment to Whom? 76 A Useful Toolfor Deployment 77 Measure Progress with KPIs 77 Reviewing Progress 80 Competitive Quality 81 Performance on Improvement 81 Costs ofpoor Quality 83 Product and Proeess Failures 1 83 Performance of Business Processes 83 The Seorecard 84 Business Audits 85 References 87 CHARTER 5 Product Innovation 89 Tackling the First Proeess of the Trilogy: Designing Innovative Products 89 The Juran Quality by Design Model 90 The Quality by Design Problem 93 Juran Quality by Design Model 94 Step 1 Establish: The Project and Design Goals.. 95 Step 2 Define and Identify: The Customers

5 x Contents Step 3 Discover: Customer Needs 103 Step 4 Design: The Product or Service 112 Step 5 Develop: The Process 122 Step 6 Deliver: The Transfer to Operations 126 References 127 CHARTER 6 Creating Breakthroughs in Performance 129 The Universal Sequence for Breakthrough 129 Unstructured Reduction of Chronic Waste 131 Breakthrough Models and Methods 132 Breakthrough Lessons Learned 133 The Rate of Breakthrough Is Most Important 134 All Breakthrough Takes Place Project by Project 136 The Backlog of Breakthrough Projects Is Never-Ending 137 Breakthrough Does Not Come Free 137 Reduction in Chronic Waste Is Not Capital-Intensive 138 The Return on Investment for Breakthrough Improvement Is High 138 The Major Gains Comefrom the Vital Few Projects 140 Breakthrough Some Inhibitors 141 Disillusioned by the Failures 141 The Illusion of Delegation 141 Employee Apprehensions 142 Securing Upper Management Approval and Participation 142 Proof of the Need 143 The Size of the Chronic Waste 143 COPQ versus Cost Reduction 144 A Better Approach 146 Driving Bottom-Line Performance 146 The Results 148 The Potential Return on Investment 148

6 Contents xi Mobilizing for Breakthrough 151 The Needfor Formality 151 The Executive "Quality Council" 152 Membership and Responsibilities 152 Leaders Must Face Up to the Apprehensions about Elimination of Jobs 154 Assistance from the Quality and/or Performance Excellence Functions 155 Breakthrough Goals in the Business Plan 156 Deployment of Goals 156 The Project Concept 157 Use of the Pareto Principle 157 The Useful Many Problems and Solutions 158 The Nomination and Selection Proeess 158 Sources of Nominations 158 Criteria for Projects 159 Project Selection 160 Vital Few and Useful Many 161 Cost Figures for Projects 162 Costs versus Percentage of Deficiencies 162 Elephant-Sized and Bite-Sized Projects 163 Replication and Cloning 163 Model of the Infrastructure 164 Team Organization 165 The Team Leader 165 The Team Members 166 Finding the Time to Work on Projects 166 Facilitators and Black Belts 167 The Qualifications of Facilitators and Black Belts 169 Leaders Must Learn Key Breakthrough Terminology 171 Diagnosis Should Precede Remedy 171 Institutionalizing Breakthrough 172 Review Progress 172 References 173

7 xii Contents CHARTER 7 Assuring Repeatable and Compliant Processes 175 Compliance and Control Defined 175 The Relation to Quality Assurance 177 The Feedback Loop 178 The Elements of the Feedback Loop 180 The Control Subjects 180 Establish Measurement 181 Establish Standards of Performance: Product Goals and Process Goals 182 Measure Actual Performance 184 The Sensor 184 Compare to Standards 185 Take Action on the Difference 185 The Key Process 185 Taking Corrective Action 186 The Pyramid of Control 187 Control by Technology (Nonhuman Means) 188 Control by the Employees (Workforce) 189 Control by the Managerial Hierarchy 189 Flanning for Control 190 Critical to Quality (CTQ): Customers and Their Needs 190 Compliance and Control Concepts 191 Process Capability 191 Process Conformance 192 Special and Common Causes of Variation 192 The Shewhart Control Chart 192 Points Within Control Limits 193 Points Outside of Control Limits 194 Statistical Control Limits and Tolerances 195 Self-Control and Controllability 197 Effect on the Process Conformance Decision 198 Product Conformance: Fitness for Purpose 199 The Product Conformance Decision 199 Self-Inspection 200 The Fitness for Purpose Decision 201

8 Contents xiii Disposition of Unfit Product 202 Corrective Action 203 Diagnosing Sporadic Change 204 Corrective Action Remedy 205 The Role of Statistical Methods in Control 205 Statistical Proeess Control (SPC) 205 The Merits 206 The Risks 206 Information for Decision Making 207 The Quality Control System and Policy Manual 208 Provision for Audits 209 Tasks for Leaders 209 References 210 CHARTER 8 Simplifying Macro Processes with Business Proeess Management 211 Why Business Proeess Management? 211 The BPM Methodology 214 DeployingBPM 215 Organizingfor BPM 216 Establishing the Teams Mission and Goals 217 The Planning Phase: Planning the New Proeess 217 Defining the Current Proeess 218 Discovering Customer Needs and Mapping the Current State 219 Establishing Proeess Measurements 221 Analyzing the Proeess 225 Redesigning the Proeess 226 The Transfer Phase: Transferring the New Proeess Plan to Operations 229 Planning for Implementation Problems 229 Creating Readiness for Change 231 Planning for Implementation Action 232 Deploying the New Proeess Plan 232 Operational Management Phase: Managing the New Proeess 233

9 xiv Contents Business Process Metrics and Control 233 Business Process Improvement 234 Periodic Process Review and Assessment 234 The Future of BPM Combined with Technology 234 References 235 CHARTER 9 Benchmarking to Sustain Market Leadership 237 Benchmarking: What It Is and What It Is Not 237 Objectives of Benchmarking 240 Why Benchmark? 241 Classifying Benchmarking 241 Subject Matter and Scope (What) 242 Internal and External, Competitive and Noncompetitive Benchmarking (Who) Data and Information Sources (How) 247 Database Benchmarking 248 Survey Benchmarking 249 Self-Assessment Benchmarking 249 One-to-One Benchmarking 250 Consortium Benchmarking 250 Benchmarking and Designing New Products 251 Benchmarking and Long- and Short-Term Flanning. 252 The Benchmarking Process 253 Flanning and Project Setup 255 Data Collection and Normalization 256 Participant Support Düring the Benchmarking Process 256 Data Validation 256 Data Normalization 258 Analysis and Identification of Best Practices 259 Report Development 260 Learning from Best Practices 260 Internal Forums 260 One-to-One Benchmarking 261 Best Practice Forums 261 Improvement Action Flanning and Implementation.. 262

10 Contents xv Institutionalizing Leaming 264 Legal and Ethical Aspects of Benchmarking 264 The Benchmarking Code ofconduct 264 Confidentiality 265 Managing for Effective Benchmarking 266 References 266 Index 267