COSC 23 Quality Consciousness, Habits and Processes

PAGE 28COSC23 Quality Consciousness, Habits and Processes

Chapter IV Quality Awards, Certification, and Management

QUALITY AWARDS to stimulate efforts to improve quality, to recognize quality achievements, and to publicize successful programs

The Baldrige Award annual award given by the U.S. government to recognize quality achievements of U.S. companies

named after the late Malcolm Baldrige (an industrialist and former secretary of commerce)

administered by the National Institute of Standards and Technology

Baldrige Core Values and Concepts

The criteria for the Baldrige Award are related to the following set of core values and concepts:

Visionary Leadership

An organizations senior leaders need to set directions and create a customer focus, clear and visible values, and high expectations.

Leaders need to ensure the creation of strategies, systems, and methods for achieving excellence, stimulating innovation, and building knowledge and capabilities.

Customer-Driven Excellence Being customer-driven is a strategic concept directed toward customer retention, market share gain and growth

Includes not only defect and error reduction, meeting specifications, and reducing complaints, but also how well the organization is able to recover from defects and mistakes

Organization and Personal Learning

Organizational Learning refers to continuous improvement of existing approaches and processes and adaptation to change, leading to new goals and/or approaches.

Organizations invest in employee personal learning through education, training, and opportunities for continuing growth. Opportunities might include job rotation and increased pay for demonstrated knowledge and skills

Valuing Employees and Partners

valuing employees means committing to their satisfaction, development and well-being

Major challenges in the area of valuing employees include:

1. demonstrating your leaders commitment to your employees

2. providing recognition opportunities that go beyond the normal compensation system

3. providing opportunities for development and growth within your organization

4. sharing your organizations knowledge so your employees can better serve your customers and contribute to achieving your strategic objectives

5. creating an environment that encourages risk taking

Organizations need to build internal and external partnerships to better accomplish overall goals. Internal partnerships might include partnership with employees, creating network relationships among your work units to improve flexibility, responsiveness, and knowledge sharing. External partnerships might be with customers, suppliers, and education organizations. Agility

quick introductions of new or improved products and services

faster and more flexible response to customers

rapid changeover from one process to another

Managing for Innovation

makes meaningful change to improve an organizations products, services, and processes.

Should focus on leading your organization to new dimensions of performance

Management by Fact

Data and analysis support a variety of purposes, such as planning, reviewing your overall performance, improving operations, and comparing your performance with competitors Social Responsibility

An organizations leadership needs to stress its responsibilities to the public and needs to practice good citizenship

Business ethics and protection of public health, safety, and the environment

Focus on Results and Creating Value

Results should be focused on creating and balancing value for all your stakeholders customers, employees, stockholders, suppliers and partners, the public and the community

The European Quality Award

is the Europes most prestigious award for organizational excellence

Award winner:

the European Quality Award is presented annually to the organization judged to be the best in each of the award categories, providing they also meet all the requirements set annually by the award jurors

award winners are exceptional organizations they are European or global role models in their approaches and the results they achieve

Prize winners

Prizes are presented annually to organizations that excel in some of the fundamental concepts of excellence

Are intended to identify role models

Special prizes in each category in the following areas:

Leadership and constancy of purpose

Customer focus

Corporate social responsibility

People development and involvement

Results orientation

Finalists

Each year, several finalist may be declared in each category

Finalists are organizations that demonstrate a high degree of excellence in the management of quality as their fundamental process for continuous improvement

Recognized for excellence

this indicates that the organization is well managed and aspires to achieve role model status

The Deming Prize

named in honor of the late W. Edwards Deming

awarded annually to firms that distinguish themselves with quality management programs typically given to Japanese firms companies that win the Deming Prize tend to have quality programs that are detailed and well-communicated throughout the companyQUALITY CERTIFICATION

International Organization for Standardization (ISO)

promotes worldwide standards for the improvement of quality, productivity, and operating efficiency throughout a series of standards and guidelines

ISO 9000

a standard that defines the requirements for Quality Management Systems. concerns what an organization does to ensure that its products or services conform to its customers requirements

ISO 14000 a standard that defines the requirements for Environmental Management Systems concerns what an organization does to minimize harmful effects to the environment caused by its operations

With certification comes registration in an ISO directory that companies seeking suppliers can refer to for a list of certified companies.

A key requirement for registration is that a company review, refine and map functions such as process control, inspection, purchasing, training, packaging, and delivery.Eight quality management principles form the basis of ISO 9000

Customer focus Leadership

Involvement of people

A process approach

A system approach to management

Continual Improvement

Use of factual approach to decision making

Mutually beneficial supplier relationships

The standards for ISO 14000 certification bear upon three major areas:

Management systems systems development and integration of environmental responsibilities into business planning

Operations consumption of natural resources and energies

Environmental systems measuring, assessing, and managing emissions, effluents, and other waste streamsTOTAL QUALITY MANAGEMENTAs defined by the International Organization for Standardization (ISO):

"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."Three key philosophies:

1. continuous improvement

2. involvement of everyone in the organization

3. goal of a customer satisfactionIn Japan, TQM comprises four process steps, namely:

1. Kaizen Focuses on "Continuous Process Improvement", to make processes visible, repeatable and measurable.

2. Atarimae Hinshitsu The idea that "things will work as they are supposed to" (for example, a pen will write).

3. Kansei Examining the way the user applies the product leads to improvement in the product itself. 4. Miryokuteki Hinshitsu The idea that "things should have an aesthetic quality" (for example, a pen will write in a way that is pleasing to the writer).TQM approach:

1. Find out what customers want surveys, interviews

2. Design a product or service that will meet or exceed what customers want

3. Design processes that facilitate doing the job right the first time. determine where mistakes are likely to occur and try to prevent them

4. Keep track of results, and use them to guide improvement in the system. Never stop trying to improve

5. Extend these concepts to suppliers and distributors.

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