Sponsored by the GLC with the PMI “Quality Specific Interest Group” and the Detroit Chapter of the American Society of Quality “The History and Future.

Sponsored by the GLC with the PMI “Quality Specific Interest Group” and the Detroit Chapter of the American Society of Quality

“The History and Future of Quality Management”

by Joe De Feo

““Dedicated to providing Dedicated to providing training and consulting training and consulting services to continuously services to continuously

improve the performance of improve the performance of our clients’ processes, our clients’ processes, products, people, and products, people, and

profits.”profits.”

TONIGHT’S AGENDA

1. Get Acquainted – wake up it’s been a long day

2. Review the History of Quality – All 2000 years of it!

3. Look at the Present – Why Six Sigma? Because it was planned that way!

4. Look to the Future – Can it be predicted?

AcceleratingTechnology

Pricing Pressures

WHY? - FORCES OF CHANGE

THEORGANIZATION

DecliningFinancial Results

Competition

Globalizatio

nMergers & Acquisitions

Soph

istic

ated

Con

sum

er

Alters the Strategic

Plan

Macro-economic Events?

…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1900’s

...i.e. moving from the farms to the cities …

1900’s MACRO-ECONOMICS

…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1950’s

...i.e. end of the war…boon to consumers

1950’s MACRO-ECONOMICS

BREAKTHROUGH IMPROVEMENTSix Sigma Project Methodology Based on Time Tested Principles

Time

Quality Planning

Qu

alit

yIm

pro

vem

ent

New Zone ofQuality Control

Lessons Learned

Sporadic Spike

Quality Control

Cost of Poor QualityChronic Waste

The Juran Trilogy®

Def

ects

6 Sigma

3 Sigma

1 Sigma

Quality Control

…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1970’s

...i.e. competitive quality, alternative products …

1970’s MACRO-ECONOMICS

FinancialResults

Time1970 2001

ProductQuality

ProcessQuality

EVOLUTION TO GAIN COMPETITIVE ADVANTAGE

1990

Quality Circles

C Improvement Teams

Total Quality

Re-engineering

Six Sigma I

ISO

NQA

COMPETITIVE ADVANTAGE ?Financial

Time1900 2000

Results =

good

3 sigma

2 sigma

1 sigma

ProductQuality

ProcessQuality

…Make a list of the macroeconomic issues that were impacting society (the customer) in the early 1970’s

...i.e. smart consumers, technology driven …

2000’s MACRO-ECONOMICS

The e-World is driving super fast, effective, defect free processes - e-drugs as commodities!

Many companies will experience incredible never seen before customer defections.

Quality levels will not slow down - beyond ppb -consumers demand it, defects not tolerable!

Lessons Learned: Breakthrough Improvement at faster rates is required - if you do not your competition will!

Specialists such as Black Belts to drive improvement are a must.

TODAY’S MACRO-ECONOMICS

DO WE STILL NEED QI ?

Do you have loyal customers and no dissatisfaction?

Consistent product & process quality, no rework, no credits and allowances to customers?

Lead the competition on price and quality in the marketplace?

Healthy margins? Well defined demand planning as

demonstrated by successful new product launches?

Mergers affecting QUALITY?

FinancialResults

Time1970 2001

ProductQuality Information

Quality

ProcessQuality

EVOLUTION TO GAIN COMPETITIVE ADVANTAGE

1990

Quality Circles

C Improvement Teams

Total Quality

Re-engineering

Six Sigma II

Six Sigma I

ISO

NQA

WHY SIX SIGMA?Focus on Design -Focus on Costs =Focus on Customer

Right Features

$

Deficiencies Six Sigma Quality

DelightedCustomers Customers

Good Price Mkt. Share Fast CycleTime

Low Warranty

Costs

Low Scrap/ Rework

Effectiveness and Efficiency Improvement

Higher Revenue Lower Total Cost

Delights

Deliverables

Resultingin

APPLICATION EXPERTSAPPLICATION EXPERTS

THE FUTURE OFQUALITY MANAGEMENT

“We are headed into the next century which will focus on quality… we are leaving one that has been focused on productivity”

Dr. Joseph M. Juran

Which Century was he referring to?

““The problems that exist in the The problems that exist in the world of today...world of today...

...Cannot be solved by the level of ...Cannot be solved by the level of thinking that created them.”thinking that created them.”

Who said this?Who said this?

WHO SAID THAT?

…What do you think will drive us to higher levels of quality?

Speed…

THE FUTURE OF QUALITY

THE FUTURE: MY PREDICITON

The speed imperative Fewer fences Making it easy and easier Bye, bye, red tape Quality leaders will lead Do not discount technology – tripling sales! Gimme’ more Remember Einstein’s quote

COMPETITIVE ADVANTAGE ?Financial

Time1900 2000

Results =

good4 sigma

3 sigma

2 sigma

1 sigma

ProductQuality Information

Quality

ProcessQuality

5-6 sigma…?

THE PURSUIT OF RESULTS“GE’s 1999 double-digit growth increases again demonstrate the benefits of the Company’s continuing emphasis on globalization, growth in services, Six Sigma quality and e-business.”

“GE Medical systems earnings grew 25% in 1999 with strong global acceptance of its Six Sigma-designed products. In the fourth quarter…”

Source: GE Newswire, January 20, 2000

NEW TECHNIQUES/TOOLS

PROJECT MANAGEMENT A WAY OF LIFE FOR QUALITY PROFESSIONALS

QUALITY A WAY OF LIFE FOR PROJECT MANAGERS

I/TRIZ TOOLS TO DRIVE INNOVATION FASTER WAYS TO DIAGNOSE ROOT

CAUSE DIRECTED EVOLUTION !!!

YOUR NEXT STEPS• Macro-economics drives

the customer, the customer drives the macro-economics

• Do not stop improving because your competitor may surpass you

• Challenge your processes and set tough goals

• Stay ahead of the curve keep learning the next tool

The End