10 Essentials for High Performance Quality in the 21st Century 1

10 Essentials for High Performance Quality in the 21st Century 10 Essentials for High Performance Quality in the 21st Century D.H. Stamatis CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2012 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20111114 International Standard Book Number-13: 978-1-4398-7601-5 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. 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Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com To Dr. Stephen and Kristina vii Contents List of Figures ..................................................................................... xiii List of Tables ......................................................................................... xv Preface .................................................................................................xvii Acknowledgments ............................................................................ xxiii Introduction ........................................................................................ xxv Chapter 1 The Need for Quality Performance .................................. 1 Manufacturing .............................................................................1 Nonmanufacturing .....................................................................8 Religion .......................................................................................11 Education ....................................................................................15 Health ..........................................................................................24 Financial .....................................................................................35 Summary ....................................................................................41 Endnotes .................................................................................... 42 References .................................................................................. 44 Selected Bibliography ................................................................45 Chapter 2 Leadership......................................................................... 47 Summary ....................................................................................67 References .................................................................................. 68 Selected Bibliography ................................................................69 Chapter 3 Execution .......................................................................... 71 A New Mind‑Set ........................................................................73 Project Management .................................................................77 Managing Quality and Its Relationship to Project Management .............................................................................. 80 Classical Project Management Process ..................................83 Risk Management Activities as Applied to Project Management ...............................................................................85 Risk Management and Business Continuity .................... 86 viii  •  Contents Risk ..............................................................................................87 Assessment of Risk(s) ...........................................................94 Potential Risk Treatments ...................................................95 Risk Avoidance ......................................................................95 Risk Reduction ..................................................................... 96 Risk Retention .......................................................................97 Risk Transfer .........................................................................98 Planning for Risk ................................................................. 99 Limitations .......................................................................... 100 Areas of Risk Management .............................................. 100 Enterprise Risk Management ............................................101 PRINCE ....................................................................................102 Directing a Project ..............................................................103 Initiation (Starting the Project Off on the Right Foot) ...........................................................................104 Controlling a Stage .............................................................105 Managing Stage Boundaries .............................................105 Closing a Project .................................................................106 Managing Product Delivery ..............................................106 Planning ...............................................................................107 Benefits of Using PRINCE......................................................109 Error Analysis ..........................................................................110 Experimental Error ............................................................111 Classification of Error .............................................................114 Definitions in MSA .................................................................117 Resolution/Discrimination ...............................................117 Accuracy and Bias ..............................................................118 Linearity ...............................................................................118 Stability ................................................................................119 Precision ...............................................................................119 Repeatability ...................................................................119 Reproducibility .............................................................. 120 Gage R&R—Attribute MSA ...................................................121 Gage R&R Variable‑Data MSA ..............................................121 Measuring MSA with Indices ................................................125 Number of Distinct Categories ............................................. 126 What to Look for in High Gage R&R Error ....................... 126 ANOVA .................................................................................... 128 Rules of the MINITAB Output..............................................129 Contents  •  ix The Stereotyped Ordered Regression Model of Human Performance ..........................................................137 Rasmussen’s Skill–Rule–Knowledge Model ...................137 Chris Wickens’ Concepts on Mental Models .................138 James Reason’s Swiss Cheese Model of Error .................139 Summary ..................................................................................140 References .................................................................................140 Selected Bibliography ..............................................................142 Chapter 4 Innovation ...................................................................... 145 Design .......................................................................................146 Manufacturability/Assembly .................................................148 Service .......................................................................................150 Outsourcing .............................................................................157 Supply Chain Management ....................................................162 Coping with the Complexity of Supply Chain ....................163 Growing Turbulence and Uncertainty .................................164 Why Are Supply Chains More Vulnerable? .........................165 A Focus on Efficiency Rather Than Effectiveness ..........165 The Globalization of Supply Chains ................................165 Focused Factories and Centralized Distribution ...........166 The Trend to Outsourcing .................................................166 Reduction of the Supplier Base .........................................167 Achieving Supply Chain Resilience .................................167 Summary ..................................................................................168 Special Note ..............................................................................168 Endnotes ...................................................................................168 References .................................................................................168 Selected Bibliography ..............................................................169 Chapter 5 People and Quality ......................................................... 171 Understand the Human Dimension .....................................171 Assuming the Helm ................................................................172 Shaping Corporate Culture ....................................................173 Creating Organizations That Work ......................................173 Facilitating Strategic Decisions .............................................173 Empowering Employees .........................................................176 Worker Loyalty ........................................................................177 x  •  Contents Multicultural Management ....................................................178 Business Ethics .........................................................................182 Training ....................................................................................184 Rapid Prototyping .................................................................. 190 Formative Evaluation ..............................................................191 Training as a Subsystem .........................................................192 Summary ..................................................................................194 Special Note ..............................................................................194 References .................................................................................195 Selected Bibliography ..............................................................196 Chapter 6 Time Management ......................................................... 199 Scheduling ............................................................................... 204 Summary ................................................................................. 204 Selected Bibliography ............................................................. 205 Chapter 7 Engagement .................................................................... 207 Communication .......................................................................210 Delegation .................................................................................216 Risk and People ........................................................................218 Managing Change .................................................................. 223 Change and Scenario Thinking ............................................ 236 Articulating the Official Future ............................................239 Summary ................................................................................. 242 References ................................................................................ 242 Selected Bibliography ............................................................. 243 Chapter 8 Team Building ................................................................ 245 The Life Cycle of the Team .................................................... 250 The Life Cycle of Executive Teams ...................................251 Cross‑Functional Teams .........................................................253 Leadership and Paradigms .................................................... 254 What Is the Role of a Consultant and/or a Trainer? ...........255 Thought‑Provoking Observations .........................................257 Conclusion ............................................................................... 258 Summary ................................................................................. 260 Contents  •  xi References ................................................................................ 260 Selected Bibliography ..............................................................261 Chapter 9 Quality Operating System ............................................. 263 QOS Implementation ............................................................. 269 QOS Meeting Summary ........................................................ 269 Summary ..................................................................................274 Reference ...................................................................................274 Chapter 10 Advanced Quality Planning .......................................... 275 Why Use Advanced Quality Planning? ................................278 When Do We Use Advanced Quality Planning as an Effective Methodology? ..........................................................281 How Do We Make AQP Work? ............................................ 282 Are There Pitfalls in Planning? ............................................. 283 Do We Really Need Another Qualitative Tool to Gauge Quality? ....................................................................... 284 How Do We Use the Qualitative Methodology in an Advanced Quality Planning Setting? .................................. 284 Summary ................................................................................. 286 References ................................................................................ 286 Epilogue ............................................................................................... 287 Selected Bibliography ......................................................................... 297 About the Author ................................................................................ 319 xiii List of Figures Figure 3.1 Classical project management process. ................................. 84 Figure 3.2 Overview of PRINCE2. ..........................................................104 Figure 3.3 Six panels for gage R&R. ........................................................125 Figure 7.1 Don’t be just a square! .............................................................211 Figure 9.1 Generic overview of a QOS model. ...................................... 264 Figure 9.2 Specific automotive assembly QOS. ......................................273 Figure 10.1 Overview of an AQP model. ............................................... 280 xv List of Tables Table 1.1 Research and Development Spending ........................................7 Table 1.2 2007 Rankings of Some of the Best Nonmanufacturing Organizations ...................................................................................................12 Table 1.3 Penalties Due to Financial Irregularities ($ in millions) .......36 Table 2.1 Comparison of the Taylor and Deming Philosophies ............50 Table 2.2 Summary of Theories X and Y ..................................................53 Table 2.3 Items That a Leader Should Invest and Expect .......................61 Table 2.4 Myers‑Briggs–Type Indicator Characteristic Scales ...............62 Table 3.1 Framework of Priorities ..............................................................76 Table 3.2 Gage R&R Study—ANOVA Method ......................................130 Table 3.3 Relationship Between the SRK Model and the Three Levels of Control of Human Behavior ........................................................138 Table 4.1 Innovation Strategy and Critical Dimensions ......................149 Table 6.1 Basic Form of an Action Priority Matrix .............................. 203 Table 7.1 The Gauge of Change ............................................................... 226 Table 8.1 Comparison Between a Manager and a Leader ....................255 Table 9.1 Potential QOS Measurables .................................................... 266 Table 9.2 QOS Implementation ............................................................... 269 Table 9.3 Requirements for Each Step .....................................................270 xvii Preface The “future shock” once predicted by author Alvin Toffler is here. Those who prosper in our inconstant world accept change as a positive force and can persuade others to do the same. Those fearful of change or unable to rally others in new directions will be steamrollered with the volatility of modern organizations. You can get others to go along with useful change with a minimum of resistance. In the field of quality, we are no differ‑ ent. We continue to struggle to find a way to maximize product or service quality in relationship to cost and customer satisfaction. But what is quality? The term quality has been with us for a long time. Ancient marvels have been constructed, as well as modern technology, all based on some of its principles. However, what is quality and how does it help the product and or service in the marketplace? Many definitions have been given for quality over the years; for example: • Continual improvement (Deming 1982, 1986) • Conformance to requirements (Juran, Gryna, and Bingham 1979) • Quality is free (Crosby 1979) • Loss function (Taguchi 1986–1987) • COMFORT (Stamatis 1996) • Six Sigma (Harry and Schroder 2000) • And many others Whereas the definition is somewhat easy to pinpoint, the application of quality in the marketplace seems to be nebulous if not very difficult to articulate. For example, a recent (November 4, 2010) Google search brought forth the following: • Quality in relation to Malcolm Baldrige (684,000,000 hits) • Quality in education (423,000,000 hits) • Quality in religion (65,600,000 hits) • Quality in health (513,000,000 hits) • Quality in manufacturing (