Q Classics (2)

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"Variation"

Variation is easily defended as the most classic concept of the Quality Movement. Walter A. Shewhart prophesied in his 1931 book that quality would improve as variation in production is reduced. W. Edwards Deming in 1950 taught that to Japanese corporate leadership who, in turn, made it a way of life for post World War II Japanese industrial recovery. The logic was: Reduce waste and rework – costs decrease with fewer mistakes and better use of time and equipment – productivity improves – workers’ improved performance gives them pride and increases motivation - better quality and lower prices keeps the company in business and capture the market - more jobs created.

By the 1980s that logic had given Japan 30% of the American car market and shocked United States leadership into adopting the same logic to compete. The change was based in measuring variation in processes, products and services and establishing continuing goals of reducing those variations while also raising the quality standards of the goals. It meant that statistical theory, statistical thinking, tools and experimentation based on probability had replaced dollars from sales as the primary evidence of success. Documenting the reduction of the costs of processes, products and services became the yellow brick road to continual quality improvement. Finding and removing common and special causes of variability replaced inspection. Quality paid in more dollars but dollars became only one of a number of different ends flowing from quality based means.

Variation is the statistically measured and documented difference between a desired goal and achievement of the work generated to meet the goal. Part of the quality paradigm change was that customers increasingly dictated the goals rather than corporate or agency leadership. Statistical thinking involves examining the process view, seeking sources of variation, and designing and executing a sequence of experiments to identify and quantify their contribution to inefficiency.

In 1998 Dr. Joseph Juran stated: "The 21st Century, not the 20th, will be remembered as the century of quality. "If Juran is right an optimum shared positive vision for the future for quality professionals could include reducing the variance of:

1) Global waste and defective products and services;

2) Incapacity to govern by political leaders who have a narrow definition of who their customers are;

3) Goals for elimination of poverty, hunger, homelessness and hopelessness;

4) Goals for the elimination of war.

Century 21 might have a Six Sigma vision for variance from human goals that is not as Utopian as that new sounds as we reflect on the 20th Century. The challenge for each of us as quality professionals will be to continually move our systems in ways consistent with six sigma variance. The most important variable for achieving that vision will be the quality of policymaking and management in every business, in every government, in every hospital, school and church.

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"Benchmarking"

Stars have always been the benchmarks of the universe.  Invention of the sexton helped humans know where they were on our planet and improved their chances of navigating to where they wanted to go. 


Merriam-Webster defines benchmarking as: "A point of reference from which to measure. Something that serves as a standard."    As the Quality Movement early in its development adopted Benchmarking as one of its classics, a more technical definition emerged as: "Benchmarking is a semi-quantitative tool for establishing position within a marketplace for all key, competitive parameters. More simply, benchmarking is learning about other successful systems for performance comparison with our own.  It’s a continuous process of measuring one’s products, services and practices against the best practices anywhere in the world.

The answer to the question "What should be benchmarked?" is: every process that describes the health, productivity and vitality of a business.  What is learned contributes to:  1) Strategic reassessment of customer needs; 2) Refocus the business strategy; 3) Realign the organization structure; 4) Develop an unbiased understanding of competitive position; or 5) Really understand the best-in-class.2

Make your benchmarking strategy a part of your quality plan.  Make both parts of your strategic business plan.  Make it an integrated component of the job.  Stop thinking your operation is different with no suitable others to benchmark.   Benchmarking can produce leapfrog performance improvement.  It will help you avoid inadequacies and mistakes that others have made; capitalize on the successes of others; reduce your cost of quality; raise customer satisfaction; and give you lead time for implementing improvements you would not otherwise have discovered.  Begin with the 20% of the variables that control 80% of the enterprise.

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"Employee Involvement & Empowerment"

Dr. C.C. Crawford knew it in the 1920s. Walter Shewhart knew it in the 1930s. Edward Deming and Joseph Juran knew it in the 1940s and taught it to the Japanese after World War II. Japanese industry integrated it into their design and production processes in the 1960s and 1970s. By the 1980s Japan had captured 30% of the U.S. automobile market. The principle is simple: "Ask the people who do the work . . . they knew where the problems lurk and usually how to fix them." It took the economic shock of Japan’s Quality Control movement to change American corporate leadership from top-down hierarchies to flatter organizations that captured the know-how of workers to make continuous improvement effective.

Methods to capture employee know-how and empower them to impact the decision making system began with Dr. C.C. Crawford’s 1926 invention of his "Crawford Slip Method" to simultaneously capture the written judgments, problems, concerns, ideas and recommendations of a group. Brainstorming was invented in New York by advertiser Alex F. Osborn in 1942. Charles H. Clark, a young partner wrote the Brainstorming book that sold millions in seven languages. In 1984 he admitted to me that "Dr. Crawford’s method saved Brainstorming." Charlie still consults in Ohio with a mix of Crawford Slip and traditional Brainstorming routines. I brought Dr. Crawford back to USC in 1981 (he had retired in 1956). We set up "The USC Productivity Network" based exclusively on teaching, consulting and writing with Crawford’s Method. I began computer applications in 1985 which led to Ideas UnlimitedÔ in 1996. My masters and doctoral candidates find it a powerful research tool.

As the tempo of business, government and life continues to accelerate in the 21st Century the Employee Involvement & Empowerment Quality Classic will continue as one critical variable for quality improvement.

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      "Process"

Process  Tracking; Process Management; Process Action Teams; Process Measurement; Statistical Process Control (SPC); and Process Variation are terms created after Quality Management pioneers identified process concentration and analysis to be a critical variable in achieving quality in products and services.
      Dr. W. Edwards Deming's "14  Principles for Transformation of Western Management" formed the basis for his lessons for top management in Japan in 1950(2) and for his teaching and consulting over 50 years until his death in 1993.  His Point  #5, "Improve constantly and forever the system of production and service," includes the theme that quality must be built-in at the design and process stages.
(3)    His 14 Points evolved into "The Deming System of Profound Knowledge (tm)."
     Dr. Joseph Juran's classic Handbook has a full page of process subjects in the index covering process capability, control, development, tools, industries, specifications, measurement, automation, improvement and variables.(4)
      Quality pioneer Philip B. Crosby, who died 18 August 2001, is known for his "Four Absolutes of Quality Management." (5)  His second Absolute was "The system for causing quality is prevention, not appraisal."  He amplified it to say that the first step toward defect and error prevention is to understand the process by which the product is produced.
     Process fits our criterion for this Quality Classics series by being a "? concept, model, tool, formula or algorithm that has 50 years or more validated utility." (6)   Evidence supports process continuing to be an indispensable quality variable for the next 50 years.
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(1)  This essay  was first published in  INLAND EMPIRE  QUALITY,  Vol  9, Issue #3 (Jan-Feb-Mar 2001),  the Newsletter  of  the Inland Empire Section of the  American Society  for Quality (ASQ). 
(2)  W. Edwards  Deming,  OUT  OF  THE CRISIS  (Cambridge, Massachusetts: Massachusetts Institute of  Technology,  1982 and 1986), p.23.  See the Deming Institute Web Site at http://www.deming.org.
(3)    Ibid, pg 49-52.
(4)  J.M. Juran, Editor  in  Chief and Frank M. Gryna, Associate Editor, JURAN'S  QUALITY  CONTROL  HANDBOOK, 4th Edition  (McGraw-Hill  Book  Company: 1988, first  published in 1951.
(5)  Philip  B. Crosby,  QUALITY  WITHOUT TEARS:  THE ART OF HASSLE-FREE MANAGEMENT,"  1984 www.philipcrosby.com .
(6)  Click  the  QUALITY   button  on  the  ASQ  Inland  Empire  Section 711 web site  at  http://www.asq711.org.

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