Review on the development of the theories and practices of Quality Management

1. Review on the development of the theories and practices of Quality Management

2. Four phases • Quality Inspection phase • Statistical quality control phase • Total quality control phase • After TQM phase

3. Quality Inspection phase • Before World War II, what people knows about QM is the inspection of product quality. • Who is responsible for quality inspection? —Operator: Small workshop was the major production model before the 20th century. The worker then was both the operator and inspector. Problem?

4. Quality Inspection phase • Foreman: The Foreman system, which advances the division of labor between the operator and manager, was established at the beginning of the 20th century by F. W. Taylor, the founder of scientific management. In that system, it is the foreman that inspects the product quality, leading to the separation of operation and inspection and the strengthened inspection function.

5. Quality Inspection phase • Inspector: The concept of Division of Management gradually formed with the progress of technology and productivity. Then special quality inspection positions came into being. So the role of quality inspection transferred from the foreman to the special quality inspector. What’s more, the department of quality inspection was thereafter set up in some enterprises.

6. Quality Inspection phase • The development of QM from the operator to inspector has contributed greatly to the enhancement of product quality. However, some problems could not be solved in the quality inspection phase: • Inspection after the event -- hard to save the loss caused by quality problems; no prevention and control in the manufacturing process • Total inspection – high cost for the mass production • Destructive inspection – contradiction between quality judgment and product reservation

7. Statistical quality control phase • For the weaknesses of quality inspection, more attention was paid to the application of the Mathematics Statistic. • In the 1920s, there were two research groups in the American Bell Lab. -- Working Process control group headed by Dr. W. A. Shewhart: the Quality Control Chart embodying the idea of preventing the defected product with control in advance; Economic Control of Quality of Manufactured Product -- Product control group headed by Dr. H. F. Dodge: the Sampling Inspection Table to address the problems of total and destructive inspection

8. Statistical quality control phase • In the 1920s, a series of quality control standards were issued in USA. • AWSZ1.1-1941 Guidelines for quality control • AWSZ1.2-1941 Control chart for data analysis • AWSZ1.3-1942 Control chart for working process control • With the advancement and application of the above standards, the QM had evolved into the phase of statistical quality control. And the spread of the statistical quality control methods brought much profit to the enterprises after World War II.

9. Statistical quality control phase • Since the 1940s, Dr. Deming, as the consultant of Japanese industry introduced the statistical quality control methods to Japanese enterprises. • Japanese enterprises did a lot of efforts in popularizing the statistical quality control methods with advancing a set of simple and practical seven tools for quality control. • The Deming Prize was established in 1951 by the Japanese Science and Technology Union to thank Deming’s contribution in reconstructing Japan after World War II.

10. Statistical quality control phase • It is big leap in the theories and practice of QM from the QI phase to SQC phase.. Not only the control after the event was changed to pre-control, but also the problems of total inspection and destructive inspection could be addresses well. Owing to too much emphasis on the role of statistics methods, however, people gained a misunderstanding that QM was actually statistics methods and QM was the job of statistician since statistics methods are so complex. Such misunderstanding restricted both the spread of statistics methods and the field of QM.

11. Total quality control phase • Since the 1960s, there are some social factors in forming the theory of TQC. -- Higher quality requirements for technology-intense products and the huge products in particular, such as rocket, airship, manmade planet. -- Concept change caused by social progress. Campaigns for consumer rights presented to the companies the problem of quality responsibility. “Mar. 15th” -- Some new theories such as system theory and behavior theory promoted QM -- More intense competition with focus on the delivery time and price

12. Total quality control phase • A. V. Feigenbaum, general quality manager of GE, and J. M. Juran, famous QM expert, advanced the concept of TQC in 1960s. It’s big with impact on today.

13. Total quality control phase • TQC refers to an effective system which integrates the activities of developing, maintaining and improving quality of different departments in order to conduct market research, design, production and service at the most economical level while satisfying the customer requirements. (Total Quality Control, 1961)

14. Total quality control phase TQC emphasize that: • It is not enough to implement QM only with inspection and statistic control and there must be a systematic organizational management involving various methods and tools to deal with quality problems. • Quality is everybody’s responsibility within the company. • QM should be implemented through the whole process of forming and realizing quality to eliminate the roots of quality problems. • QM should take into account the factors of price, delivery and service, not focusing obly on the functional quality of products.

15. Total quality control phase • In absorbing the concept of TQC, Japanese enterprises are very successful. They created the theory of Company wide QM based on combining the American TQC theory with their own practice. Since 1980s, TQC has received more attention and application in a lot of countries and further evolved into TQM with more focus on the management side. Involvement of People

16. After TQC phase ISO 9000 Family Standards -- the whole standards for QM issues by ISO (International Organization for Standardization. Background: • Social: market economy • Economic: barriers in the international trade; market access • Legal: laws and regulations to establish the quality assurance system • Consumer: consumer rights campaign all over the world • Practical: development of American standards of war industry in 1940s

17. After TQC phase ISO 9000 Family has experienced three stages: • 1980s: ISO 8402-1986; ISO 9000-1987; ISO 9001-1987; ISO 9002-1987; ISO 9003-1987; ISO 9004-1987 • 1990s: ISO 9000:1994; ISO 9001:1994; ISO 9002:1994; ISO 9003:1994; ISO 9004:1994 • 21st century: -- ISO 9000:QMS - Fundamentals and Vocabulary -- ISO 9001:QMS - Requirements -- ISO 9004: QMS - Guidelines for Performance Improvements -- ISO 19011:Guidelines for QMS & EMS Audit

18. Advantages of ISO 9000 Family Standards:2000 • Enhanced generality • Simplified structure • Terse words easily understood • With requirements of all the interested parties in mind • Weakened demand in forming documents • Combining the QMS with the management process of an organization • Emphasis on continuous improvement in quality performance • Focus on customer satisfaction • Identical structure in ISO 9001 and ISO 9004 • More compatibility with the EMS and OHSMS

19. Eight quality management principles • Principle 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.

20. Eight quality management principles • Principle 2 Leadership --Leaders establish unity 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.

21. Eight quality management principles • Principle 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.

22. Eight quality management principles • Principle 4 Process approach --A desired result is achieved more efficiently when activities and related resources are managed as a process.

23. Eight quality management principles • Principle 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.

24. Eight quality management principles • Principle 6 Continual improvement --Continual improvement of the organization's overall performance should be a permanent objective of the organization.

25. Eight quality management principles • Principle 7 Factual approach to decision making --Effective decisions are based on the analysis of data and information.

26. Eight quality management principles • Principle 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.